7 Ways to Increase Your Savings as Prices Rise
Here are easy ways to save more money and earn more interest.
There is one silver lining to inflation and rising interest rates on mortgages: There is no better time to save. When the Federal Reserve increases interest rates, banks usually offer a higher yield on savings to attract new customers–which means the more you save right now, the more you could earn later.
With this in mind, here are some small and simple ways to increase your savings in the face of rising prices, according to top financial publications like Forbes, NerdWallet, and Bankrate. And for more every day moves you can make to save your precious coin, check out these Simple Ways to Save Money on Gas Right Now.
According to Bankrate, canceling unnecessary subscription services and memberships can help you save big. Maybe you signed up for a streaming service to watch a show that's no longer airing. Or, maybe you joined a gym but haven't gone in months. It could be time to go through all your financial statements and figure out exactly how much you are wasting on monthly services you aren't using… and cancel them for good. This simple move could add up to big savings that you'll notice quickly.
Nerd Wallet recommends changing your cell phone plan. This doesn't necessarily mean switching to a new service, considering there are lots of other ways to save without switching carriers. For example, some cost-saving moves you can make are to swap to a newer, cheaper plan, sign up for autopay and paperless statements to save an additional $5 to $10 a month per line, or remove your phone insurance.
If you aren't using a cash-back credit card, Forbes recommends getting one now. Search for a cash-back credit card for a card that gives you money for more pricey and recurring costs. Think: Your weekly groceries run, getting gas, or your dining out fund. As long as you pay your balance off every single month, this solution can help you get money back on purchases without accruing interest charges.
To avoid any overdue charges, set up automatic payments, Bankrate recommends. "While this might amount to just $5 here or $10 there, those fees quickly add up. Credit card late fees can be a lot more expensive."
Avoid impulse purchases (that you may come to regret) by holding yourself to the 30-day rule—aka, waiting 30 days before following through with the purchase, recommends Nerd Wallet. By giving yourself a "cooling-off period" between wanting something and actually buying it, you can save more of your funds for things you actually need. Plus, playing the waiting game could allow time for the item you want to go on sale or fall under a discount code.
Switching banks can save you money if your current one is charging you hidden or hefty account fees. Some banks will even give you a bonus for switching, says Bankrate.
Boost your savings by opening a high-yield savings account earning a competitive interest rate. You can also automate your savings by scheduling automatic transfers or sending a percentage of your paycheck straight to this high-yield account, says Forbes.