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Strategies to start saving more

teens and money

Want to save more than you are currently? Here are some ideas.

Whether you're good or bad at saving, it's possible for most people to save more. If it's done wisely and within the context of a budget - you're unlikely to notice the difference. Here are some ideas:

Reorganise your bank accounts.

Most people benefit by having more than one bank account - unless that is you're an active user of revolving credit. Instead of having your wages or salary deposited into your current account ask your bank for a fee-free way to open several accounts. Earmark individual accounts for bills, spending and saving and ask your bank to split your incoming salary automatically between the three. Budget so that you never need to touch the savings money.

Pay yourself first. The idea of paying yourself first is that you consider your savings as a bill and pay that at the beginning of the month (or fortnight if you're paid that way), not the end. Choose a percentage of your earnings that you want to save and have that moved automatically into the savings account. Then try to squeeze every dollar you spend so that he has money left at the end of the month to save more.

Save your bonus or tax refund. Any lump sums that find their way to you should be saved automatically. Too many people see them as a windfall and spend them on luxury items.

Bank your tax cut or pay rise. As well as saving your one-off payments such as bonuses, consider saving a proportion of any increase you get to your monthly take home income, be it a pay rise or a tax cut. If you're budgeting to live within your existing earnings, it should be easy to simply put away the pay rise.

Save your expenses. This is one that I do personally. Most of my business expenses are paid out of my personal pocket. When I get my refunds from the company every six months the lump sum is automatically earmarked to savings and investment. That's a wonderful savings boost. The same could be done with expenses payments from your employer.

Think: do you really need it? I have a little mantra I repeat to myself every time I go to spend money. Do I really need it? It works a treat and stops the worst spending excesses. It also helps me reduce my impact on the planet by not consuming as much as I would if I didn't control myself.

Hold onto that recession mentality. I don't recommend adopting a poverty mentality, but try to cherish living minimally like you did last time there was a downturn, or when you were a student. It declutters your mind, is good for the environment, and allows you to save. Finally, do something strategic with your additional savings. Depending on your situation you might want to deposit the money in a higher interest term deposit or term Pie. Or you might drip feed it into funds to take advantage of dollar cost averaging.