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Many new year resolutions are related to money, and no doubt many people will want to start the new decade with greater financial stability. For many, this will mean boosting their savings and putting more of their paycheck away for a rainy day or retirement, but can you achieve this without big changes to your lifestyle? Here are some tips to help you save more while still enjoying life.
Save money on payday
It’s common for people to put away money at the end of the month, once they’ve paid bills and outgoings, but it’s far too tempting to spend this ‘spare’ cash. Transfer money from your paycheck to your savings on payday. This way, you are less likely to be tempted by any impulse buys. Not sure how much to save? Experts recommend you save 20% of your paycheck each month; however, it’s better to work out all your outgoings, expenses, plus some emergency cash, then decide how much you can put away.
Consider investing
Rich people don’t get rich from work alone; they save and invest their money, which means it grows over time. However, it’s not only the wealthy who can invest. Anyone who has extra cash can put it into an asset such as agriculture investments with Crawford Park. If you’re new to investing, you should look for low-risk investments while you learn the ropes. Avoid get rich quick schemes or anything that seems too good to be true and seek professional financial advice when possible.
Check for employer matching programs
Some employers will offer matching contributions into your retirement plan, usually up to around 3-6% of your salary, which gives you an incentive to save. If you’re not already paying into a 401k or similar, see what your current employer has to offer, as these paycheck deductions can soon add up to give you a nest egg for retirement.
Stop impulse buying with the 30-day rule
Many people who look through their bank statements will notice a number of impulse buys, from a new pair of shoes to household goods. If you feel your spending is getting out of control, but you can’t resist shopping trips, then start using the 30-day rule. When you see something in a shop you just have to buy, put the amount it costs into your savings. In 30 days, you can decide whether you actually want the item, or whether you’d rather keep the money saved. In many cases, you may find the initial rush has worn off, and you’d rather keep hold of the cash.
Cancel those unused subscriptions
Don’t think you can cut anything from your budget? Look carefully at your bank statements. Americans waste an average of $500 a year on unused subscriptions, often to services where they’ve forgotten to cancel after a free trial. Many of these subscriptions are just a few dollars a month, but they soon add up, so this shows the importance of keeping a close eye on your finances.