The start of the year is a great time to make some financial decisions for 2021. One of the most common resolutions, when it comes to personal finance, is to be a better saver for the year to come. This sounds easy in theory, but more difficult to achieve in reality.
So here are five simple tips to help you reach your savings goals in 2021.
1. Have concrete goals
This is basic but often overlooked - you tend to change your spending habits and be better off saving if you have something to target. While the specific purpose is up to you - maybe a vacation, a new car, or a new outfit - make sure it’s clear and achievable.
2. Budget wisely
Budget is also important because it allows you to see where your money is going. After researching your income and expenses, you will be able to find out how much income you should be working on at a given time, which will help you save more effectively in the future.
Which also helps, when maximizing your savings, is to look at your budget carefully and find out how much you spend on optional items like clothing, vacations and meals to see where your expenses can be reduced.
3. Analyze your expenses
While reducing spending opens up more opportunities to save, so does lateral thinking. For example, it’s a good idea to keep looking for cheaper deals when it comes to banking, insurance providers or memberships on things like gyms and streaming services.
It also pays to keep looking for cheaper clothing and food brands, as well as utility savings like electricity or water.
4. Get out of debt
Easy - debt is not your friend if you want to save. You’ll definitely be amazed at how much easier saving is when you’re not fighting growing debt.
If you use this ship, give it a try and find out how the interest on your debt is calculated and when it is charged as this can help you manage payments and avoid unnecessary interest payments. It’s a good idea - if you have some debt - to try and pay off debt with the highest interest rate first.
5. Call a friend!
Even for the most disciplined person, saving can be difficult at times. That’s why it can help to work with family members, friends or colleagues who also have a rescue goal.
However, if you have to do it yourself, consider imposing some hard spending rules on yourself. For example, when making an impulse purchase, one option is to impose a 24 -hour ban on spending cash once it enters your account. If you impose a “calm down” period on yourself, you may realize that what you want to buy doesn’t really matter.
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BUSINESS & MONEY
