The Money Club for Young Adults

How To Grow Your Savings

 

Savings = Income - Expenses

 

 

Big Idea: Pay Yourself First

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• Another way is to decide on an amount you are going to save. Maybe the number is 30%. When each pay cheque is deposited you have your bank automatically transfer 30% into a separate savings account. The money you have left in your first bank account is yours to spend. 

 

Another Useful Tool: Start With A Little Budgeting

• Track what you spend for a month.

• Compare your expenses with your income.

• Figure out expenses to reduce or eliminate.

 

To increase savings you have two options: 

 

• grow your income

  • salary: maximize your earnings potential: education pays 

  • assets: over time grow your assets so you develop multiple income streams (do not rely just on your salary) 

 

• reduce your expenses

  • bank accounts: pay no fees

  • credit card: pay off your entire balance each month

  • cars: do not own one