The recent economic crisis has made one thing very clear to us - cash reserves are very important. If you're financially fragile, you will further fall into debt. So it's better to follow some easy tips and boost your cash reserves.
Here are 4 ways in which you can boost your cash reserves:
1. Put aside the savings: If you want to really increase your cash reserve, then you should save your savings. Suppose, you bargained and got a beautiful pair of shoes priced $100 for $60. You should immediately put the $40, which you've saved, into your savings account. This will actually increase your savings. Instead, if you use the $40 for a matching pair of earrings, you won't be saving your money.
2. Give yourself a tip: If you did something worthy of reward, give yourself a tip. In the long run, this will help you in saving more money. You must be going to the saloon for the bimonthly manicure and pedicure which will cost your $50 - $70. You can do your own bimonthly manicure and pedicure and save up to $70 a month. You can tip yourself $10 for this and this will help you save up to $1,000 a year.
3. Keep the extra bills: At the end of the day, you should take out your extra dollar bills out of your wallet and save them in your own personal piggy bank where it will be difficult for you to retrieve your money. If you could just keep aside 2 bucks a day, you can easily have a savings of around $700 at the year end.
4. Go for a second savings account: Though you have an instant access savings account, you may open a separate savings account which should be in no way linked to a checking account. Thus, you won't have an access to this account via an ATM. So, the withdrawals will be difficult as you will have to visit your local bank for it. There will be situations when this will be inconvenient and thus help you in boosting your cash reserves. CDs and Short-term certificates of deposit can also be a good way to boost your savings as you won't be able to withdraw the money until their maturity date.