Five Ways to Boost Your Savings

Starting a savings plan seems daunting; sometimes it feels like when we are caught up on bills, more stack on top. Without a mix of easy short-term ways to save as well as healthy long-term savings habits, it can become harder to get ahead. Test out these five tips to help your savings soar.

1. Pay Yourself First. Setting up an automatic transfer from your checking to your savings account is easy, and it doesn’t have to be much money. Even moving $5 a week to your savings account adds up quick, and scheduling transfers means you don’t have to remember to do it each week. Also look into savings accounts that help make saving up easier, such as First Federal Bank of Louisiana’s Christmas Club, which allows you to auto transfer money into a savings account to use for the holidays.
2. Make a Monthly Budget. Too many people don’t keep track of where their money goes each month. This step is very important for those who feel that they are “living paycheck to paycheck.” Make a spreadsheet and write out regular monthly expenses, and be sure to include online subscriptions, such as Netflix or Amazon Prime. Writing out a monthly budget will help you see what you can trim, what you can get rid of, and how much spending money you should have left over.
3. Turn Dreams into Goals. If we only ever think of big expenses like a new home or a vacation as dreams, then they may never happen. A concrete savings plan will help encourage positive savings habits later on. Sit down and think of your goals and priorities – as well as if they are short-term (such as a vacation) or long-term (a down payment on a house). When you decide what your goal is, you can move forward with a timeline of savings. Consider a savings account to fit your goal, such as a Home Buyer Account with First Federal Bank of Louisiana, which is designed to help you build up enough money for a down payment on a home.
4. Review Your Spending Habits. Oftentimes we don’t realize we have a spending problem until it’s spelled out in front of us. At the end of each month, take a look at your credit card and bank statements to see where your money went. Highlight expenses such as dining out, movies, online purchases, and other personal spending items. You may be surprised how much you spend on things you can reduce or even do without. Something as simple as cooking more instead of ordering out can make a big difference.
5. Get Rid of Multiple High Interest Rate Credit Cards. We’ve all heard it – a cashier at our favorite store asks if we want to apply for a store credit card and save 10% on our purchase. If it’s the only store card you have and you keep the balance low, then it can be used as good debt. Good debt helps your credit score and shows that you are reliable and that you can pay off debt. By making on-time payments each month on a credit card, you can improve your credit score. But, if you have multiple high interest rate credit cards, you can weigh yourself down with having to pay multiple payments each month, which makes it easier to miss a payment. Begin paying off store credit cards and focus on keeping one to maintain good credit.

Want to learn more? Stop by your local branch or visit www.ffbla.bank to learn more about our savings accounts.