January can be a struggle financially after Christmas, but there’s a simple trick that will boost your piggy bank by $1456 this year.
If you follow the steps below, you could walk away with the sizeable savings pot by the end of 2019, and you don’t even have to cut back too much of your spending.
Apartment Therapy has come up with a pain-free savings plan, which sees participants put aside a small sum each day.
The concept is that every Sunday you put aside $1, followed by $2 on Monday, $3 on Wednesday and so on.
On Saturday you’ll put aside $7, and then the process repeats and you’ll put aside $1 on Sunday as the new week begins. The largest daily amount, $7, is around the cost of two coffees, so it isn’t too high to factor into the budget. If you stick to the daily savings, you’ll put aside $28 a week, which works out as $1456 by the end of the year. You just need to put away $28 a week.
Money can be saved either in a jar if you tend to carry around cash, or could be transferred into a savings account each week.
The concept is seen as a more realistic savings plan than other popular alternatives, such as the 52 Week Money Challenge. That challenge works by getting participants to put aside $1 for the first week, $2 for the second, and so forth, until the end of the year.
This may seem easier at first, but relies on people putting their largest sums away around Christmas, which is an expensive time of year for many households.
OTHER WAYS TO SAVE
• Open a savings account
The first step to saving is actually opening an account that will give you the most benefits. If you set up an automatic deposit into the account to coincide with your payday, the money quickly adds up without you missing it.
• Download apps
There are loads of apps you can download to your smartphone, which can help you budget properly and save a fortune over the next 12 months. A few examples are Squirrel, which helps you stick to a budget as well as Chip, which works out how much money you can afford to save without it affecting your usual spending habits.
• Cut down on your spending
Another obvious way to save money is by cutting down on how much you spend each month. Go through your transaction history and set yourself a budget.
• Plan your meals in advance
A large part of our income is spent on groceries, yet it’s estimated Aussies throw away $20 million worth of food each year. By planning meals and making a list before you go grocery shopping, you’ll avoid picking up products you don’t really need.
• Pay off debts
The interest on your debts is always higher than the interest earned on your savings, so you should consider paying off any debts with your savings to be better off.
Full Article: news.com.au