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Want to give your savings a lift? Read on to see how.
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At a time when inflation is soaring and many people are spending more money than ever on basic expenses, the idea of growing your savings account might seem like a joke. But it’s important to try to boost your cash reserves, especially if you feel you’re lacking in that area.
A recent SecureSave survey found that 67% of Americans could not cover a $400 unplanned bill from savings. If you’re in a similar boat, it means you’re vulnerable to racking up costly credit card debt the next time an unexpected expense pops up. And that’s far from ideal.
The good news, though, is that there are steps you can take to boost your savings even at a time when living costs are so high. Here are three worth looking into.
1. Fight for a raise
Today’s labor market is fairly strong, and some companies are still struggling to attract and retain talent. That gives you a prime opportunity to (nicely) demand a raise. And the higher your paycheck, the more savings opportunities you’ll have.
Of course, your boss isn’t going to just approve a raise to appease you. You’ll need to really prove you’re worthy of one.
Start by listing your accomplishments from the past year. If you can prove you’ve gone above and beyond your job description, that alone might make the case for higher pay.
Also, do some salary research to see how your wages stack up. If you can show that you’re statistically underpaid, that alone might help you make the case for a higher salary.
2. Take full advantage of your Costco membership
Many people use their Costco memberships to save money on groceries. But there are so many more savings opportunities you can benefit from at Costco.
For one thing, buying clothing at Costco could be a money-saver, as could purchasing electronics. And you can also look to Costco for things like prescriptions, eyeglasses, and even furniture for your home. So the next time you pop into Costco to buy dairy products and meat, think about some of the needs on your list, and explore your options for purchasing them there.
3. Do a subscription inventory and cancel those you can do without
Many of us have subscriptions and memberships we pay for month after month. You can boost your savings by canceling those that are no longer offering you the same amount of value they once did.
Let’s say you signed up for Netflix during the pandemic when everyone was stuck at home and you were bored senseless. If you’re barely watching any TV these days, then it’s probably not worth paying for Netflix when you can bank that money instead.
In fact, you may have subscriptions you’re paying for that you’ve completely forgotten about. So comb through your last six months of credit card and bank statements to see what you’re signed up for, and start making cuts as appropriate.
It’s not easy to save money at a time when it costs so much to do things like buy groceries and cover utility bills. But if you make these moves, you may be pleasantly surprised at how your savings are able to grow.
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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has positions in Netflix. The Motley Fool has positions in and recommends Costco Wholesale and Netflix. The Motley Fool has a disclosure policy.
