So you want to be a super saver?
The average American family has about $40,000 in liquid savings across different types of accounts. Where do you stack up? Do you think your saving skills could use a boost?
A fat savings account doesn’t happen overnight. However, small decisions can have big rewards over time.
Check out these easy money goals you can tackle this year to up your savings game!
1. Reduce Credit Card Debt
Let’s be real, if we ranked types of debt on a scale of smart to dumb, credit card debt definitely comes in on the dumb end. Unless you’re using your card for an emergency (such as a medical bill) there really isn’t a reason to carry a balance on your credit card.
The average interest rate for credit cards is an astonishing 20.28%! This means that if you carry a balance, you’re paying all that interest on purchases that might not be 100% necessary.
If you want to make saving a priority, reducing your credit card debt should be at the top of your list. Don’t just make your minimum payment every month. Aim to pay it off. If you can’t do that just yet, that’s okay. Put as much as you can towards those balances until you can pay them off and then keep it that way.
Now that you aren’t throwing away money in credit card interest each month, you’ll find some funds freed up for saving!
2. Automate Saving
Saving money isn’t always hard to do because you don’t want to. In fact, for many people, the big issue might simply be that they forget to do it.
Build your savings account without even thinking about it by setting up automatic deposits. Different banks offer different features so check to see what options your bank offers. Nearly every bank allows you to set a certain amount to automatically transfer from your checking to your savings account on whatever day you pick.
3. Improve Your Credit Score
As we said earlier, there are dumb kinds of debt, but also smart kinds. Using debt wisely to make large purchases is actually quite beneficial.
However, before you take on that debt, it is best to boost your score as much as you can. A higher score translates to savings because you’ll qualify for lower interest rates and better loan terms.
Always make your monthly payments on time because your payment history has the biggest impact on your score. Paying down your credit card debt will have already helped because it lowers your credit utilization rate.
Meeting Your Financial Goals
We hope these little money tips can help you move towards your money goals this year. Remember, looking at the big picture can feel overwhelming, but meeting little financial goals every day can add up over time.
Looking for more money tips and tricks? Don’t hesitate to check out more of our blogs!