Good money management will help you meet your financial goals and reduce the number of impulse purchases you make. This is important when you consider that 6 in 10 Americans can’t afford a $500 emergency
. There’s no need to worry if you only have a small amount in your savings account as there are things you can do to maximize it. You can even increase the amount you’ve got
stashed away with these tips.
Move Your Savings
Business Insider reports that 75% of Americans don’t have a high-yield savings account. Perhaps, you’ve got your cash in a checking account instead because it’s easier to access. The problem with this is that you’ll earn very little interest on your money. Interest rates have gone up multiple times recently, so now is an ideal time to move your money into a savings account with a decent interest rate. It’s best to compare rates and terms before signing up for one so you know exactly what you’re getting.
Increase Your Earnings
Inflation keeps rising, but 55% of workers say that their pay isn’t in line with it
. If you’re not one of the lucky 31% that’s recently received a pay increase to cover the rising cost of living, consider adding to your earnings yourself. Look for jobs that pay quickly
and are flexible, such as under the table jobs. You’ll usually be paid in cash and can choose from a variety of jobs. Common vacancies include house sitting, lawn cutting, odd jobs, and proofreading. Another option is to do as much paid overtime as you can in your current employment.
Hone Your Skills
The skills you already have are likely to help you succeed in a second job. By gaining new skills and honing the ones you’ve already got, you could open up a lot of new opportunities that could help you financially. For example, 93% of employers say that soft skills are critical
. Work on skills such as communication, time management, and analytical thinking, and you could impress your boss and improve your chances of climbing the career ladder and getting a bigger salary. One way to do this is to invest some of the savings you’ve got into a learning and development course which will show that you’re dedicated to your role.
Give Your Money Purpose
It’s easy to take your earnings for granted when you get paid each month. One of the first things people splash their cash on when they get paid is takeouts. Other treats often follow. This is one way to spend a lot of money and have very little to show for it. You need to treat every dollar you’ve earned as though it has a purpose. This will help you cover the cost of essentials and stop you from wasting your cash on pointless purchases.
You’ve undoubtedly worked hard for your money, so make sure you make the most of the cash that you’ve got. Simple things like switching bank accounts can net you a few hundred extra dollars each year while brushing up on your skills can improve your earning potential.