New Year Resolution Ideas to Save Money
Saving money is easier said than done. But, with some creativity, commitment and hard work, you can save money and improve your financial well-being. To help you live up to these resolutions, we’ve compiled this list of useful tips.
Build a 50/30/20 Budget
With the 50/30/20 budget, you can make sure you have enough money for your needs, wants and savings goals. Here’s how it works:
- 50% of your after-tax income is for your needs, like your rent or mortgage and groceries.
- 30% goes toward your wants, like vacations and meals out.
- 20% is allocated for savings goals, like building up your emergency fund or saving for retirement.
Pay Yourself First
When payday comes around, try to pay yourself first before tackling your bills. Figure out how much money you make after taxes and subtract your expenses — the number you come up with can give you an idea of how much you can afford to pay yourself. Wondering why you should pay yourself first? It makes savings a priority rather than a second thought.
Increase Your Income
If you find that you’re unable to save as much money as you’d like, try working toward increasing your income in the new year. Start by looking for a higher-paying full-time job in your field, or start a side hustle like delivering groceries or driving for a ride-sharing service.
Automate Savings & Bills
Set up automatic and recurring transfers from your paycheck to your savings accounts of choice. These accounts may be your high-interest savings account, employer-sponsored 401(k), 529 college savings plan or Roth IRA.
Automating your bills can help you save money without giving it much thought and establish your budget while ensuring that your credit score stays in good health. You can even include notifications for when automated payments are scheduled, so you can check to be certain your accounts are ready to handle the transaction.
Download a Savings App
There are many savings apps out there that can help you and are available to download for free. Savings apps can even make saving money simple and fun! Do a little research and choose the best one that fits your life, earnings and financial knowledge.
It’s a lot easier to save money when you don’t have debt obligations. To keep your debt to a minimum, get into the habit of paying cash for your purchases. When you pay cash, you’ll have better control and awareness of how you spend your money, allowing you to contribute more to your savings.
Find a Savings Coach
A savings coach is a trustworthy person that can hold you accountable for your savings goals. Find a friend, family member or professional who will check in with you throughout the year to make sure you’re on track to save as much money as you need to meet your goals.
Commit to Spending Freezes
During a spending freeze, you don’t buy anything you don’t need for a given period of time. By committing to spending freezes multiple times throughout the year, you can easily put more in savings and spend less on things that may deter your money resolutions for the new year.
It's our hope that if you try out a few of these resolutions, this year will be the year that you meet your short-term goals and start moving toward your long-term financial goals!
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