How to Multiply Your Savings

Saving money allows you to purchase the things you want without guilt.

Saving money prevents you from living from paycheck to paycheck and provides ready cash in case of an emergency. Your ultimate goal should be to save three to six months of your living expenses, but if you have no savings, this can seem daunting. Begin with the goal of saving at least $1,000. In the meantime, save whatever you can afford each paycheck, even if it's only five dollars. You will be able to increase the amount once you develop more ways to multiply your savings.

Step 1

Have money automatically deducted from your paycheck and deposited into your savings account. You are less likely to spend money that you never physically see.

Step 2

Save all or part of your income tax refund rather than spending it.

Step 3

Cut entertainment costs. Rent a movie, or go to the theater early in the day rather than in the evening. Limit your dining out and share an entrée when you do eat out.

Step 4

Pay down high interest debt. Deposit the money you save each month into your savings account.

Step 5

Apply for a promotion or a higher paying job. Save the extra money you make.

Step 6

Bring lunch and snacks from home rather than purchasing them every day.

Step 7

Manage your bank account wisely by not incurring ATM fees or non-sufficient funds fees.

Step 8

Shop for groceries once a week, and shop only from a list to avoid impulsive buying.

Step 9

Set aside a jar for your loose change. Deposit the money into your savings account when the jar is filled.

Step 10

Don't incorporate your raise into your budget. Deposit the extra money into a savings account.

Step 11

Pay your bills on time to avoid unnecessary late fees.

Step 12

Keep a spending log for a couple of months to determine if there are expenses you can cut. Many people spend money on frivolous things without realizing it.

Step 13

Search for a savings account or a money market account that provides a higher interest rate than your current account. Online banks often offer higher rates and are FDIC insured.

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