New Year’s Resolution: Save Money
The New Year is just around the corner and so is the dread of sticking to your New Year’s resolutions. Everyone is excited for the New Year but is afraid of the pressure of actually completing a New Year’s resolution. If you’re going to pick one resolution to stick to, make it about saving your money and organizing your expenses.
Prioritize your Expenses
Write a list of things that you absolutely need to pay for each month. This includes electricity, water, rent, food, etc. After adding those all up see how much of your income remains after your total monthly expenditure. If there is anything remaining, make sure to put at least a quarter of it into a savings account. Once that is removed, you can make a list of things you’d like to have each month (i.e. Netflix, Spotify, etc.) Out of these, make sure you have some you would prioritize over the other. Also, make this specific to each month. Maybe you would like to go to a concert in August and go on a vacation early September. Those expenses are going to be unique to that particular month, so make sure to create a new list for each month.
It’s also important to see the expenses you would like to be able to make for future months so you can know to save a little bit extra during the months prior. Make sure to include long term goals (i.e. how much you’d like to have saved in 5 years, future car, house, etc.) This is good to keep in mind to make sure you’re on track to making those goals further down the line. If you have some extra spending money at the end of a month, put it aside in your savings account for the bigger purchases you’d like to make in the future.
Ask for a Raise or Change Jobs
You work hard for your money, you shouldn’t be afraid to ask for a raise. Also, if you feel you aren’t being paid fairly and you are unable to move upwards in your current job, there’s no shame in looking for a new one. If you would like to make some extra cash during the week on top of your day job you can sign up for apps like Uber and drive people around on your own schedule, or apps like Grubhub and Uber Eats where you can deliver food to people whenever you have free time. Save the money you make on those apps instead of spending it right away.
Think about Where Your Money Goes!
Most people think savings accounts are all the same. Not true. You can put your money into a CD, invest it, put it in an index fund, etc. Also interest rates are not the same across all banks. While you may not be earning a ton of money off the interest, putting your money into a savings account or a CD will dissuade you from spending that money and effectively save you money in the long run. You also may think that having money in a savings account is for people with larger sums of money lying around, but this is not true. Most savings accounts have deposit requirements anywhere between $1 and $500. You should compare rates and deposit requirements for different banks to see what makes the most sense for you.
When thinking about where you put your money it’s also important to consider the types of purchases you’re frequently making.
· Are they necessary?
· Are there cheaper alternatives?
· Am I being efficient in how I am spending my money?
· Am I getting the full value of what I am paying for?
It’s important to consider these things each month to see where you’ve gone wrong and how you can improve.
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