Each new year comes with setting resolutions that are not always easy to keep. The slightest idea of failing itself can easily throw you off from starting in the first place. Likewise, though many people dread the thought of saving money, it is an essential habit to adopt. Saving money helps for things like a wedding, starting a business, or even going on a vacation.
On the other hand, by all means, don’t put too much pressure on yourself. After all, you can't achieve everything overnight. Instead, focus on baby steps and take one step at a time. If you typically have a hard time-saving money, then you have come to the right place.
So, let’s explore some of the top five ways to save money in 2020. It’s never too late to start. Even if you don't find this article until well into 2020, start saving with these tips!
Consume Less
If there is any change that can help you save, it's consuming less. Shopping from high-end designer shops is fine, but it’s better to make use of what you already have. There is no need to buy a new car when you already have one that is still in good shape. You should avoid lured by new technology and refrain from purchasing a new phone every time the latest version is released. Always consider your needs versus wants before you spend your money.
Have A Budget
Most people think budgeting is quite complicated, but this is far from the truth. And money experts say that if you ever want to achieve your saving goals, always have a budget and be sure to follow through. List your monthly expenses, factor in other costs that typically arise, and compare your expenses with your total earnings.
If your expenses exceed your income, then you are living beyond your means. Think of which expenses to trim and go back to the drawing board. By all means, always aim at having money left for your savings account.
Pay All Of Your Debts
Before you even think of starting to save, first consider clearing all the debts you have. The last thing you want is for interest rates to keep accumulating on your balances. This includes all loans, even student loans or credit cards. However, it would be wise to priorities and know which debt to clear first. Typically, you will want to target those with higher interest rates first.
Set Goals And Follow Through
Financial experts usually advise on setting goals before you start saving. This means that if it's buying a house, find out exactly how much you need. This way, you will know exactly how much you need to be saving each month. Setting goals also helps people not spend money on unnecessary items.
Always Save “Found Money”
You might be the lucky person who gets $100 as a gift from grandparents or parents. However, you should always save this money. Just because it was handed to you as a gift doesn’t mean you should spend it. The same goes for annual tax refunds and raises, always save this money. If you must, buy something small for yourself and then put the rest into savings.
Bottom Line
Saving is one topic so many people try to avoid, but it possible, and you can do it. It’s not rocket science, and if others have done it, so can you. To achieve this, say goodbye to overspending, always plan in advance, and determine money goals. Like the adage goes, where there is a will, there is a way. If you put your mind to it, you will be amazed at how much you can save.
