With tax season in full force, many people are thinking about how to build up their savings when their tax returns come in.
Whether you already have a bit of a nest egg or are starting from scratch, having some savings set aside is crucial for your financial health and security.
There are a ton of ways to build up your savings. Some even require a bit of an initial investment. Here are 5 interesting ways you can establish a nest egg.
1. Get Your Taxes Done
OK, this might sound obvious, but it’s not as simple as it seems. Most of us, 72%, find the complex U.S. tax system troubling. Getting our taxes done each year can be a massive headache and a confusing one to boot.
But that’s easier said than done. If you need help, consider talking to a tax professional. It’s worth it to get the maximum tax return you can. Then you can invest that money in your nest egg and build up your savings.
2. Start Early
show that young people, especially Millennials, find it particularly difficult to figure out how to save correctly. But Millennial or otherwise, we all need help learning how to save and grow our nest eggs.
Wherever you are today is a great place to start. Don’t waste time wishing you’d started sooner or known more. Your nest isn’t going to build itself. You have to start it, and today is as good a day as any. The more time you spend wishing you’d started sooner, the later you will actually end up starting.
3. Increase Your Side Hustling
The way we work is changing dramatically. For example, co-working spaces have become much more prevalent, with estimates that there will be more than 6,200 by 2022.
However you work, you need to save. A lot of people do this by having a side hustle. You can devote all of the money from your side hustle exclusively to saving. This will make your side hustle into a funding source for your nest egg.
By taking this approach to your side hustle, you won’t even need to think about saving. Any money earned from that particular job can be set aside exclusively for your nest egg.
4. Cut Excess Out of Your Life
So many of us are paying for things that we don’t really need. This includes things like cable and subscription services.
Many people don’t even know how many subscriptions they’re shelling out for. This is eating away at their nest eggs without them even realizing it.
Take a good look at your cable and subscription services. Try to cut as many as you can. You might find you can do without a lot of those services you purchased for a short promotion period and forgot about.
5. Remodel Your Home
This falls under the category of “spending money now to make it later.”
While remodeling can be expensive, it also often leads to a huge return on investment. For example, those who remodel their basements see up to a 70% return on their investment. That means a lot more money for your nest egg when you sell your home.
But you don’t have to do such large scale projects to increase the value of your home and build your nest egg that way. You could also do simple projects that cost less than $100 to improve your home.
This includes things like adding a fresh coat of paint to some of your walls and spending just one hour with a contractor to get some advice. If you have a little more to spend, you can think about things like planting new trees, changing to energy-efficient appliances and doing larger maintenance projects.
However you plan to spruce up your home, it’s a worthwhile investment. Your home is one of your biggest nest eggs. It can produce value for you now and in the future.
Do What Works For You
When you’re thinking about growing your nest egg, do what works for you. There is no one single method that works for everyone. Look at your current income, your expenses and your goals and decide on a plan that will work for you.