Last updated on September 21st, 2024 at 10:28 am

 

Whenever a crisis comes around people tend to introduce aggressive saving plans to reach money-saving goals fast since they are hit by the experience. Whether you also want to start now it’s fine but the best way to go about this is to make saving a habit.

Then you’ll be able to overcome any challenges that come your way no matter when and of course there will be financial implications no doubt.

In most parts of the world due to the pandemic, saving is now being prioritized at a personal level and it’s put on a budget to cater for emergencies.

Some people that used to save are trying every way possible to ensure that they can save even more. And those who never used to save now realize the upside and are ready to get started with aggressive savings.

But saving aggressively should not only be recognized when times are hard if it’s to get a clear meaning. Therefore, saving aggressively can be done at any time for various reasons depending on your income.

What’s an Aggressive Saving Plan?

An aggressive saving plan is where you aim to up your savings by increasing your income and cutting more on spending. We realize that when you reduce your spending and at the same time earn more you can save way more than usual.

Whenever I see that I am earning some good money from my side hustles I tend to increase the saved amount. And there are different ways to increase savings despite the little you earn provided you check spending.

Whether you save 10%, 20%, or 30% it all adds up when you use an aggressive plan. The percentage can be applied to the amount that gets onto your checking account every saving period.

 Why It’s Important to Develop an Aggressive Saving Plan?

Though coming up with an aggressive saving plan it’s not simple but it’s worth the outcomes. You can achieve your saving goals in just a very short period compared to normal saving.

And it doesn’t matter the type of financial target you have, with an aggressive plan it’s all possible to achieve. I don’t know what’s on your mind but am sure there’s that thing that you wish to cover through saving say an emergency fund.

If your income can’t sustain an aggressive saving plan then you can either get another job or a side hustle. Supplementing your day job with a side hustle will boost your income hence saving more money.

How You Can Effectively Achieve Using Aggressive Saving Plans with Convenience.

I tried out many strategies to help me out in ensuring that I could get the best out of a saving plan now and in the future. Aggressive saving doesn’t mean stressing yourself it’s adopting better practices to wipe out unnecessary spending and earning more to save.

Some people use the wrong approach then they end up getting bored since it’s not easy to commit. But when you start small then later on after getting used you raise your expectations and goals it becomes easier.

Look here, saving $100 a month makes $1200 a year and this can be easily achieved compared to saving $1000 a month for a $12000 target a year for a starter. And another important thing you need to look into is determining your savings depending on your earnings.

I also used to spend like crazy but I had to stop it since I was heading nowhere reasonable in terms of savings. Nowadays since am so into saving I care about the savings yield of a savings account to get huge returns.

The Best Aggressive Saving Plan Approaches to Use

Out of experience, I know that an aggressive saving plan isn’t that simple to sustain. But there are different approaches that you can use to keep in shape and achieve accordingly with best practices.

Still wondering how to aggressively save money, right? Any defined approach can work best when you know exactly what you can contribute without much hustle. It will be hard to save when you’re servicing a loan unless you work on it first and later on start saving effectively.

I nowadays rarely get into debt ever since when I realized that you spend more money on debt in terms of payback charges. Of course, I know that this is something that not everyone can avoid but it’s possible and rewarding.

What if credit card debt spending happens just in a while say at least once in a year or not all and all you would have spent on debt is saved?

This means that you only make cash purchases you no longer accept your card to get in negatives. And since it’s not possible to completely cut out spending then one has to mindfully spend it also saves.

But also find more ways to increase earnings to have enough to save. When you cut spending and at the same time increase your income you’ll get more into the saving account.

An aggressive saving plan will help you grow your savings account much faster using proven strategies compared to normal saving tactics.

1. Get on a budget

To be more effective, you have to work on a budget when it comes to how to save money aggressively. I don’t know how much you save according to your earnings but it would be wise to put it on budget.

Using a budget helps you determine how best you can save more on certain items and also tell your money where to go. Here you’re completely trimming your budget to the very best so that there’s more to save.

It would be always good to ensure that within the budget you remove any unnecessary spending that you realize to cut costs.

2. Get out of debt

You’ll be able to save money aggressively when you reduce how much you spend on debt. And this will enable your savings account to grow much faster than when most of your earnings are spent on paying debts.

So, getting out of debt will enable you to be with more money to save and hence meet the aggressive saving plan. This doesn’t mean that you completely must be debt free to start saving but clearing off some debts gives you a boost.

Pay off some short-term and long-term loans that you think can be cleared off at once to get more room to save. These might include mortgage loans and credit card debts since these take money every time it gets onto your checking account.

Some people spend thousands of dollars every month clearing loans but if you take time and you check how much you’ve spent the figure can blow your mind. And in case you get out of debt then divert your spending on loans to the savings account you’ll be saving thousands.

I know you want to save more but the only key to success is getting out of debt. And am telling you this out of experience, it’s how I managed to succeed till now it works.

3. Start a side hustle business

Do you want to save more? I get you now but get ready to begin the journey. Starting a side hustle can get you more money to save than depending on a single income stream.

And it’s true that the more money you earn the more you’ll save which enables you to meet the aggressive saving target fast. It’s therefore now time you start a side hustle business in case you’ve not done any to enable you to do great.

Because I wanted to save more money to invest I then decided to start up a blog and it’s doing great. I mean the blog really pays out well than the 9 to 5 that I had hence saving is surely fun and you can also up the game when you diversify earnings.

If the idea of starting a blog seems not good to you at least go for a second job to squeeze out some dimes. Surprisingly, I found myself quitting the full-time job since the blog was paying better in all ways.

Whether your intention is starting a side hustle say food delivery services, blogging, or freelance writing you have to start now. So, if I did it then you can also do it when you do things correctly to achieve the aggressive saving goal.

But ensure not to spend much while on the lookout for side hustles since the main target is finding ways to earn to get more to save.

4. Pay you first

Before you spend any money that you earn it would be wise to pay you first as saving and then later spend. Most people prefer spending first before saving, which is not financially healthy for an aggressive saving plan.

20% of what you earn isn’t that much, it can’t make you fail in life when you save it from your checking account. Just in case you earn $3000 per month then saving $600 every month would be your target.

And if your saving target period is about 10 years this will total $72000 without interest. But where there’s a compounding interest it’s way much higher than this with a high-yielding savings account.

If you’re used to paying yourself first you’ll also find that your spending will reduce since you don’t have much at hand.

I started paying myself first way back and it has now become a habit that has surely improved all my savings both short and long-term. Paying you first sounds good, right? But it’s hard to stick to it when not composed of saving.

So, if you spend first it’s very hard to save enough since most of the money might get into expenses. And let me give you another tip that gives a boost in the paying you first before spending approach “Even after spending I save any money left behind”

By doing this you’ll aggressively save money and grow your account much faster than usual.

5. Use money-saving apps

There’re lots of money-saving apps online that you can use to do the work for you automatically. Using these apps is a wise option since doing it manually is less effective due to inconsistency.

Saving apps will enable one extremely cut expenses without doing much work. The money-saving apps include cartwheel by target which is used to scan items yet at the same time adds coupons with cut-offs.

The second app is Shopkick which lets you check in when you get into participating stores for kicks after scanning items and kicks translate into store credit savings.

You’ll then realize that you save more with expenses immediately when you start using the apps. Using these apps helps you in identifying which items are taking more money on expenses so that they can be removed from the priority list.

6. Working more hours

If you think working more hours at your workplace can be fun, then you talk to your supervisor. Some workplaces pay good overtime money to people willing to work beyond normal working hours.

And this can surely bring you extra money for your savings to meet your goals much faster. It’s also a good option to choose to work overtime at your workplace since it gives you an advantage over others in terms of performance.

Hopefully, you might even get a raise since it’s perceived as being hard-working. In the end, it all adds up to the saving plan because it’s the main goal of doing all this with much effort.

7. Automating finances

One of the most important things that have made me always meet saving goals fast is automation. Yes, this is somehow complicated in the first place but it’s worth your effort and time since makes it all simple to save

In case you’re employed then you can talk to your employer to find ways in which you can do it. And it can be done depending on your preferences say through the 401k approach or to a separate private savings account.

One can also use automated banking services on items that seem to take a fixed amount every end of the month like savings and loans.

When you use automation services with best practices you’ll surely know where your money goes. So, with banks, you’ll also be able to avoid unnecessary bank charges in terms of penalties.

8. Investing money

Did you know that investing money is like saving money in a yielding account? And also, with investing you’re using your money to make extra money on top of it.

Though, the difference comes in the returns that are received after a person invests. It’s a hard way to go but with huge returns and you have to wait long enough for the investment to mature to pay you back.

It’s advisable that when you want to invest long term you should ensure that the emergency fund is lively.

Having six months of living expenses in the emergency fund can of course sustain you during economic hardships. And this will give meaning to the aggressive saving plan hence investing without any worries at all.

An aggressive saving plan should be done with a sober mind in that you invest your money where you expect to get good returns.

Exchange-traded funds (ETFs) are some of the assets in which you can invest your money to get huge returns. With ETFs, you’re most likely to get annual gains of about 10% to 15% per annum on your investment whereas most savings accounts give below 8% per annum.

I do have a savings account but at the same time, I invest some savings into equities that is stocks, ETFs, and bonds. If you invest your money with ETFs you end up with a lot more returns compared to when you use a savings account.

9. Cut spending on eating out

When I sat down way back to calculate how much I used to spend eating out throughout the month it surprised me. But have you ever done it too? No, then check it out now you never know you might be spending a lot out.

Making meals at home is among the best ways you can save money spent eating out all the time. It reals you a lot of money which can be used to do other things that are important in life.

Carry meals to your workplace and avoid buying food to aggressively save. Nothing wrong with carrying food you want to save huge fast enough.

And in fact, the total amount of money you spend eating out can make you a good return on investment. Let’s use at least $10 that you spend on easy lunch per day excluding holidays and weekends in a year.

It means you dash out $2000 yet this can make you a return of up to $200 when you invest it in ETFs.

10. Look out for a high-yielding savings account

There is no reason why you stick to one service provider yet many are out there looking for clients. When you decide to open up a savings account you want one that will give you high returns.

Then you have to try here and there to get the best satisfactory rates among service providers. Even though the difference between the percentage rates is negligible it adds up over time to pay the charges at least.

The negligible difference between the two saving accounts makes one with higher a rate to be high yielding. Just in case the difference between the two is $100 it’s still something to count on compared to the other with a lesser return.

11. Extremely cut monthly expenses

You need to trace monthly spending in your budget to cut more within the month. Some items should be cut or may be completely taken out of the budget since you can do without them.

All items of a kind must be worked on in the budget to create more room to save aggressively. Sometimes I decide to forego gym subscriptions in case I want to increase my savings for some months hence working out from home.

Or maybe you subscribed to a coffee delivery service to deliver coffee to your doorstep? This is a waste of money yet it’s possible to do them by yourself without making any monthly payments.

Again do you want to save more? Then do away with gym subscriptions by working out from home and also start making your coffee.

It will save all the money that you have been spending at the gym, on coffee, and many other items of a kind. By doing just this your savings are going to get a boost since you need to save money fast.

12. Use the no-spend challenge

Here you ensure that you cut out spending on wants for a while but the needs are still spent on in the process. The money that you put on wants can be saved in your savings account say night outs or weekend parties.

If you don’t feel me on this one then it will be hard for you to get some extra money to save. And this is something that you have to do for a while to get better results whereby you can have money saved on the side

Different people schedule no spending days as they wish, which is fine as long as the strategy is yielding.

No spending days can be done for a week, month, or even a year depending on your intentions say in the case of aggressive saving plans. Yes, it’s an aggressive saving plan but it should be simple, achievable, and motivational.

13. Track spending

It’s known that spending is much easier than saving money since it’s more fun. And the tool you can use to help you track your spending is the monthly budget as usual.

Get all your expenses into your budget to very well monitor your spending and act where necessary. By effectively tracking your expenses, you can be able to save on different items that are not worth spending on.

You develop a mindful approach toward your spending patterns.

 Final Word

An aggressive saving plan is a hard way to go in case you want to save money, but it’s a very nice move in case you want to boost your savings fast to meet your target. And applying any of the 13 strategies will impact much on your saving journey.