We all know the basic equation to build wealth is to spend less and save more. Even still, it can be hard to implement this in our everyday lives. Most of us can admit to wondering where the money in our bank account went to this month. Surveys have shown that 60% of Americans would find it challenging to cover an unexpected expense of $1000. To minimize the stress associated with poor financial stability, we have put together some tips to boost your bank account in a hurry.
Have an Emergency Plan
The recent US government shutdown led to thousands of people struggling to survive without an income. To avoid finding yourself in a tight spot if your household income is ever affected, it is a good idea to save 3-6 months of salary as an emergency fund. If you don’t have one in place, don’t panic and turn to a high-interest loan or credit card to tide you over in a pinch. You can apply for small cash loans with flexible repayment schedules and low-interest rates online. Do your research thoroughly to find the right one. Make sure that you read all the small print and ask questions if you are unsure of the conditions around the loan.
Negotiate a Pay Rise
Earning more each week is the easiest way to boost your bank balance although it is an avenue that few people consider when trying to balance the budget. Asking for more money can be nerve-wracking, and many people feel awkward about raising the conversation with their boss. However, negotiating a pay rise is a skill that gets easier with practice and can be essential to ensuring that you are earning market value within your role.
Do your research to figure out what the average wage is for your role, considering experience, skill set, education, and location. Put together a summary of your recent achievements in your current position position and how you have gone above and beyond to meet the company’s goals and objectives. Have a figure in mind and remain professional at all times.
Assess Your Priorities
If upping your income isn’t an option (or even if it is!) cutting costs is another that will help you to improve your financial situation. Sometimes we find it hard to separate our wants from our needs, which makes it challenging to prioritize spending. Think about your long-term financial goals, as well as about what your day-to-day priorities are.
If you currently spend money on television subscriptions services, sports or gym memberships, eating out, and new clothes each month, choose one that adds the most value to your life and cut the rest, at least while you get your finances on track. If you love eating out, maybe you can set one night a week as a cheap eats’ night. There are lots of restaurants that have special deals midweek so you can still enjoy dining out without breaking the budget. Treating yourself to something that you value will help you to stay on track.
Automate Your Savings Plan
If you never see the money, you are less likely to spend it. Calculate a figure that you can afford to save each month, then set up an automatic transfer so that the money goes straight into your savings account. Evaluate this amount on an ongoing basis and see if you can slowly increase it over time. If you are married or saving with a partner, you might even like to make it a game to see how much you can save each month.
These changes will have a significant impact on your finances, not just in the short term but well into the future.