If you want to boost your savings, this is the right place for you!
When you look at your savings around the halfway point of your career, you realize that they’re not exactly where you want them to be. Yes, it’s a gut punch, but it’s just your average gut punch, and you can still turn this situation in your favor. We all need money to survive, to get the things we want, to take part in activities that bring us joy, to see the world, and so many other things. As you already know, saving money is one of those “I can do this next year” aspirations that many of us have as our shifting target.
You probably want to boost your savings and live more comfortably, especially if you’re getting ready for retirement, and we’re here to help you. We’ve talked to a plethora of financial experts to create a compilation of savings tactics you could try for quick results. So, without further ado, if you follow these easy methods, you’ll be golden. If you want to know how to boost your savings ASAP, keep reading:
1. Set it and forget it
This first tip on how to boost your savings after 40 is to set aside a certain amount of money every month. This can either be a sum of money or a portion of your income, let’s say 20%. For example, if you get paid in cash, you can easily set aside the savings part. You can put that money in a different account and pretend you forgot about it, or you can put the money into an envelope. Remind yourself that the money is not yours and belongs to your savings account.
You can make saving even simpler by using a piggy bank that requires breaking to access the money. If that sounds helpful, I highly recommend checking out this nifty item!
2. Adopt the 50/30/20 rule
Another easy method to boost your savings is to adopt the 50/30/20 rule. This is the perfect budgeting method for beginners. After you receive your paycheck, allocate 50% of your after-tax income to needs like housing, utilities, groceries, and other essential bills. Set aside 30% for wants—things that make life fun but aren’t necessities, like new clothes, vacations, or dining out. Finally, dedicate 20% to savings and paying off debt to secure your financial future.
You can still have it all: pay your obligations, have fun and try different things, and still manage to put money aside. It’s one of the smartest things you can do; I couldn’t recommend this method enough!
3. Pay attention to your triggers
We all have different triggers when it comes to spending, but if you want to boost your savings fast, you should watch out for them! Think about your spending habits and the situations in which you most frequently take out your wallet as you go through your day. Once you identify all these areas where you’re more tempted to spend money, it’s easier to be more cautious and mindful of your habits and triggers.
Even though there will still be situations when you’ll spend more money than planned, you’ll make a conscious decision, and it won’t be an impulse purchase. Other than that, it’s important to recognize the circumstances that lead to your spending and to stay out of such scenarios. Stress, a bad day, social pressure, credit cards, boredom, or pressure from social media are common reasons for excessive purchasing, so watch out.
4. Stay in more often
This doesn’t mean you must say goodbye to your social gatherings, but limit their frequency. We all know how fun and exciting evenings out are, but a drink with your friends after a long day can easily turn into dinner, and just imagine how much the bill will be.
But staying in doesn’t only help you cut down on the price of dinner or drinks, but also on fuel or transportation. If you’re used to going out twice a week, try cutting down to once a week or reducing the frequency as much as you’re comfortable with. It will help you boost your savings fast.
5. Maximize your 401k
If you’re able to benefit from a 401k plan, an effective way to boost your savings fast is to maximize your contributions to your employer. According to financial experts, one of the smartest ways to have more money for your golden years is to maximize tax-deductible contributions.
If sticking to a strict budget feels challenging, experts recommend at least ensuring that you contribute enough to your retirement plan to receive the full employer match. This way, you’re not leaving any free money on the table and can continue building your savings, even if your budget is tight. You’re essentially turning down free money if you’re offered a match and either decide not to participate or neglect to make the donation that will provide you with the highest match.
6. Put your purchases on hold
As we’ve already discussed, one of the reasons people spend more money than planned is because they act on impulses and don’t think about their decisions enough. For instance, if there’s something you want but don’t necessarily need, it could be useful to not press “buy” that soon.
If you wait at least a week to see whether you should make the purchase or not, it tricks your brain into thinking about how useful that product will be. If it’s a clothing item, for instance, you’ll have more time to think about different wearable combinations, maintenance, budget, and versatility. If you still want that item after the waiting period, you know you’re not acting on impulse.
Another strategy to boost your savings, according to experts, is to use a Google Chrome plugin that replaces the “buy” button on popular retail websites with a reminder to reconsider your purchase. It also adds pop-up reminders on over 400 e-commerce sites, encouraging you to put items “on ice” before making impulse buys. A good plugin is Icebox. You can customize this cooling period, and you’ll have plenty of time to decide whether or not to purchase the desired items.
7. Turn your spending into time
This isn’t a popular method to boost your savings, but it can help you change your perception regarding your finances. Begin by reframing the meaning of cost. Instead of thinking about your purchases in terms of cash, think of them in terms of time. For example, if you spend your mornings at a coffee shop and waiting in line for a delicious cup of java, you spend 30 minutes of your day.
If you go to work, you can drink your coffee for free while catching up on emails or chatting with your colleagues. And if you’re at home, you could invest in a coffee machine like this and listen to a podcast, do the dishes, or whip up breakfast while your gadget takes care of your coffee for you.
8. Pay yourself a salary
…I know I know, this might sound a bit weird, but if you want to boost your savings even after 40, you should at least give this tip a try.
If you’re the proud owner of a small business, there’s a chance you know all about the benefits of paying yourself a salary or a draw based on your business structure. Doing so offers several tax advantages and also gives you a clear sense of the operating expenses of your firm. Even though taking a draw has its own unique set of tax implications that should be thoroughly examined before proceeding; either choice can assist in guaranteeing that you boost your savings.
9. Make it easy to follow
When people decide to save money, they want things to happen fast, but they don’t think more in-depth. Many of them are strict for a couple of months, manage to boost their savings, and when they reach their goals, they stop it entirely and then go back to where they started.
However, the smart thing here is to see the entire experience as a marathon rather than a sprint. Just like pushing hard at the gym can yield quick results, those changes won’t last unless you maintain consistency. If your savings practices aren’t consistent, you won’t boost your savings in the long run.
Break your big goal into smaller parts, so it’s easier to achieve and stick to your practices. For example, if you want to save $100 in a month, think about ways to save $25 each week, whether it’s cutting down on coffee shop trips, postponing your purchases, eating at home, etc. Once you are in the state of saving, it will be a lot easier to keep doing it even decades later.
10. Carry cash
I don’t know about you, but I find it easier to spend money when I only pay with my card. Swiping a credit card can feel like nothing at the moment, but you’re more likely to spend more just because you don’t see your money going.
For example, $20 on a lunch meal might not seem much when you pay with your card, but the simple act of handing over your bill can make you more aware of how much money you spend. Experts say this tip boosts your savings by making you more aware of your spending habits, as it forces you to count your money when paying. Don’t just take their word for it—give it a try and see the difference for yourself!
11. Try money-saving apps
You can usually arrange for automatic payroll withdrawals through your job, but don’t neglect the help of specialized savings apps. They can easily remove funds from your salary or bank account, and you can use them for a wider range of savings requirements.
Saving money has never been easier! With Digit, you don’t have to think twice about setting aside cash. The app uses a smart algorithm to analyze your income and spending habits, automatically transferring a little bit into your savings account without you lifting a finger. Just set it up, and let Digit handle the rest.
I don’t know what you think about it, but I love it, and it motivates me to spend even less on unnecessary things and redirect the saved money for more important things, like travel expenses, theater shows, and concerts!
12. Make the most of coupons and deals
Coupons aren’t just for grocery stores. They can help you save a ton of money and still get all the things you want. If you’re ready to spend some time looking for them, you can find a ton of saving opportunities through apps and Internet resources. Finding discounts from nearby retailers can sometimes be done simply by going through your junk mail. You can find discounts in your region by stopping by a magazine rack, as local businesses also advertise in local newspapers and magazines. Whatever you decide to do, don’t forget that deals are everywhere near you; you just need to pay attention.
13. Double-check your withholdings
This is a small but useful way to boost your savings. According to financial planners, you should regularly review your withholdings on your W4 to make sure everything is correct and up-to-date. Are you curious about your tax situation? The IRS has a handy withholding calculator that helps you figure out if you owe taxes or can expect a refund. All you have to do is enter your income and current withholdings, so you can see if adjusting your withholdings could boost your savings. It’s an easy way to potentially keep more money in your pocket throughout the year, so check it out.
14. Sell things you no longer use
If your home is full of items you no longer need, why not try to make a profit out of it? Make an inventory in your home and organize your things in different piles, like things you still need, items you’ll donate, and things you could sell for a profit. Whether it’s accessories, clothing, shoes, furniture, decor items, paintings, or anything in between, as long as they’re in good condition and of great quality, you can sell them on different platforms, such as Poshmark, Facebook Marketplace, Etsy, eBay, and Nextdoor.
…If you’re a competitive person, you’re going to love the next tip!
15. Make it a challenge
Constantly thinking that you need to boost your savings can feel like torture, but if you turn it into a fun challenge, chances are you’ll succeed faster. Turn your boring tasks, such as saving on takeout, into a challenge to keep yourself motivated.
When you challenge yourself, it becomes natural to strive for the best and reach your goals. Start by reviewing how much you spend in a month on interest payments, fees, and other expenses, so it’s easier to set a goal for the next month.
16. Try microsaving
Who said you have to save big chunks to make a difference? Microsaving is just what it sounds like: saving a bit today, a bit tomorrow, and so on. You can set a new challenge where you save $1 each day, for instance, or you can try different specialized apps, such as Qapital, which will round up all of your transactions and save your spare change. This is the digital version of the piggy bank we talked about at the beginning of this article.
If you’re looking for an easy and sustainable way to boost your savings, I recommend you sign up for a service like this. You’ll be surprised by how much money you’re able to put aside by the end of the year. And the best part is that you don’t even notice you’re saving.
17. Put an embargo on online shopping
Unless there’s something you desperately need, I suggest you put an embargo on online shopping. At least if you’re serious about bossing your savings. According to studies, over 80% of Americans give in to shopping impulses and spend an average of $80 per shopping session.
If you want an item but you’re not sure of it, leave it in the cart for a few days to make up your mind, but if the temptation to click “buy” is too hard to resist, consider adding a forced shopping blocker. It might not be comfortable at first, but it will help boost your savings in the long run.
Do you know any other methods to boost your savings after 40? Let us know in the comments below because we’re keen on discovering new tips. If you enjoyed reading this article and would like to check out something else from our website, here’s another useful post for you: Save $50 per Day With THESE Frugal Habits!
