Many people want to save money. However, it’s not easy to put money aside when you’re already careful and have a very tight budget.
Sometimes the hardest thing about saving money is just getting started. And one of the keys to start is to create savings habits.
Believe me; habits can make all the difference in the saving process. It may even be what is missing for you to achieve your goals. And in this article today, you will understand these habits and how to practice them.
Here are some simple savings habits you can implement to see your savings grow.
1. Use an app to manage your budget
The one who saves well is the one who knows how he spends. Your grandparents probably kept an account book. And your parents maybe Excel files. Today, the most practical option is to have a dedicated app.
Many banks offer an app, more or less successful, on which to connect with the same identifier as your online account. On this platform, you can label your expenses according to categories (water bills, health, house, groceries, etc.) and thus have a big picture of your expenses thanks to beautiful colored diagrams.
Tools that can save you: On the store of your smartphone, by typing “budget app,” you will realize that there are several applications that offer to replace your bank for monitoring your accounts. However, the most successful applications remain Moneyspire and Moka. These fintechs have developed partnerships with hundreds of banks, which means you can manage your accounts in different establishments on the same platform.
2. Open a savings account with your bank
The best way to let your money slip away is to keep all your savings in your chequing account. Month after month, we tend to cut back on what we promised ourselves not to touch.
The simplest solution? Open one or more passbooks dedicated to your savings with your bank. To do this, simply log on to your bank’s website or contact your advisor and choose the one that suits you best. As your bank already has all your data, you avoid paperwork and can open an account in just a few minutes. (See also: Best High Interest Savings Accounts in Canada).
3. Make your money grow with life insurance
A life insurance policy is a good way to grow your savings.
Life insurance is not (only) used to cover your back in the event of death, contrary to popular belief. In contrast, it is a contract in the event of death: the insurer pays back the capital to the subscriber upon termination and interest to the beneficiary upon the death of the subscriber.
The insurer guarantees the deposit. Each year, interest is added to the capital, thereby securing the deposit.
In theory, if you block the funds until the end of the contract, you can release them at any time, as long as you abide by certain conditions. The advantage is that life insurance can generate a higher interest rate than a savings account. This is not guaranteed but is generally around 2%.
The startup that can help you: Sunlife
If you want to consider this alternative but are completely overwhelmed by the ocean of possibilities offered by insurance companies, you can turn to a company like Sun Life. You can create an online account with Sunlife in 5 minutes and get personalized advice.
In conclusion
It takes determination and consistency to change something you are used to. After all, changes in habits don’t happen overnight.
Sometimes small changes represent annual savings of hundreds or even thousands of dollars. And so, take a moment to reflect on your habits and how you can improve your financial situation.