Having a specific goal in mind can be a great motivator to start saving up money, whether that be a new gadget, a holiday to your dream destination, or tickets to the concert of your favorite band. This can be easier said than done, however, considering you probably have other expenses that you need to budget for as well, being the responsible adult that you are. Yet, saving up for your wants is not impossible, so long as you have the right strategy and tools to guide you in fulfilling your target financial goals.
One way to begin aiming for that major goal is to open a savings account through Maya, the country’s leading digital bank. Not only does Maya Savings provide an easy way to save and check your progress, your funds also earn a base interest rate of 3.5% interest p.a. that is credited daily, far more than what other banks offer so you reach your financial goals faster. And by using Maya for your daily transactions, you can further boost this interest rate to up to 15% p.a. Simply pay your bills, buy load, and use Maya Wallet or Maya Easy Credit for your online, QR Ph, and card payments.
Opening a savings account, however, is just the beginning. Here are more tips on how you can start saving up for that dream purchase or major expense in the near future.
1. Set Aside Money Using Dedicated Banking Tools
If you’ve got all your money in just one account, it becomes more difficult to set aside a particular amount for that major expense you’re saving for. You’ll probably just end up withdrawing any funds you may have for your daily expenses, thus undercutting your own saving progress. Hence, learn to utilize dedicated banking tools to create a clear distinction between funds that are intended for that major purchase and funds that are for your everyday needs. This can help you get into the mindset of certain funds being untouchable, thus making it easier to stay on track with your savings.
Setting that boundary has never been easier, thanks to Maya Personal Goals. It allows you to set up to five different financial goals that are distinct from your main Maya Savings account. You can name each of your savings goals, allowing you to personalize and clearly identify your financial objectives and making it easier for you to track progress towards specific targets. For example, you could name your goals "Vacation Fund," "New Laptop," "Emergency Savings," or any other custom name that reflects what you are saving for.
The goals are essentially different accounts into which you can directly deposit money, either from your Maya Wallet, Maya Savings account, or even from other banks and e-wallets. Also, thanks to its guaranteed 4% interest p.a. monthly, you can count on Maya Personal Goals to give your savings that extra boost to reach your goals faster.
2. Explore High-Interest Banking Products
Should the goal you’re saving up for isn’t in the immediate future, another great way to get your savings to grow more is through exploring high-interest banking products. Maya Time Deposit Plus, for example, starts with a base interest rate of 3.5% p.a. credited monthly, but which can be boosted to up to 6% interest p.a., with the option to set the “lock-in” duration of your funds to 3, 6, or 12 months. Not only is saving in a time deposit account a secure way to store your funds and have them earn higher interest in the meantime, time deposits also give you an incentive to not touch those savings so they can continue to earn interest.
3. Get Into the “Pay Yourself First” Mindset
This approach states that upon receiving your income, you ought to set aside the amount intended for your savings and investments first before dividing the rest into your expenses—essentially, you “pay yourself” first before you start paying other billers and the like. One variation of this is the 50/30/20 rule, which suggests that 50% of your income should be for necessities such as food, rent, and utilities; 30% for your personal wants; and the remaining 20% is what you should set aside for savings. However, this can be modified depending on your needs; say, if you’d rather set aside 30% or more for savings instead, then you can adjust accordingly. The important thing here is to ensure your savings and investments are secured first before spending elsewhere.
4. Lessen Non-Essential Expenses
Part of saving up is being strict with how you spend your money. Ask yourself: Is this item essential or could I just save the money I’ll be spending on it instead? If the major expense you’re saving up for is considered as non-essential or is purely for leisure such as a vacation trip or new equipment for your hobby, then it’s all the more important to cut back on your other non-essential spending to make room for that one. Remember to budget wisely at every turn and track down all your expenses, since even small purchases can surely add up.
5. Look For Extra Income Opportunities
To help build up your funds, consider taking on freelance or part-time gigs. Nowadays, it’s much easier to do so thanks to online jobs that allow you to accept projects depending on your skills and availability. Most online employers also pay through digital bank apps or other online avenues, so you can quickly receive your pay and direct it to your savings account right away.
6. Sell Unused or Unneeded Belongings
You can also earn a bit more cash by selling items that you aren’t using anymore. When was the last time you’ve worn some of the garments in your closet? Do you have books you’ve long finished and are now just gathering dust on your shelves? Do a quick check of your belongings and see which ones are still in good condition to be sold. This way, you get extra money while decluttering your space—talk about hitting two birds with one stone!
As with any savings strategy, you’ll constantly need to review your current progress and see if adjustments are needed. If you’re lagging behind in your savings goal, consider checking if you’ve overspent somewhere in your budget this month and make up for it by saving more in the next. Use the tips in this article in developing a personalized savings strategy to help achieve that dream purchase of yours in the future.
