Most likely, you have made inspiring resolutions for this new year, haven’t you? Some of these resolutions may even concern finances. Possibly, you want to save for a new car, a home, a business or anything else that you’d want your hard-earned money to do for you. However, some people make resolutions that ever remain to be resolutions – with no tangible results whatsoever. Reason? Their makers don’t have money to make them come true. Don’t be like these people. You can achieve all your new year’s goals if you save appropriately. Here are four tips to help you save enough money for the projects that you’ve planned for this year:
- Stick to the 50, 30, 20 Budgeting Rule
If you want to save sufficiently, you must comprehensively budget for your spending. Budgeting isn’t merely about paying your house rent, utility bills, school fees and your other bills on time. A financial budget also helps you to establish the amount of money you’ll spend and the items on which you’ll use it.
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In her book named All Your Worth: The Ultimate Lifetime Money Plan, Senator Elizabeth Warren emphasizes on the 50/20/30 budgeting rule. The rule is designed to help people keep their spending in line with their saving goals.
According to the rule, 50% of our after-tax income should go to your basic needs (food, clothing, shelter and the like) ¸30% to your wants ( holiday trip, eating out, fancy car..) and 20% should be your savings. If you stick to this rule, you can save a fortune and be able to achieve your goals.
- Try To Reasonably Reduce Your Spending
If even with the above budgeting rule your savings aren’t sufficient for your projects, you can recheck your wants’ expenses and try to see if there are some that you can reduce. While there you can do away with some wants and still fair on well, others can be tricky to completely avoid.
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If you spend a lot on snacks, it is more reasonable to reduce the amount that you take per day rather than saying that you’ll do away with them completely in order to cut on your spending. You are less likely to stick to the latter. Imagine staying for a whole year without eating a snack for the sake of increasing your savings! Is that practical?
- Switch to Cash
According to personal finance research, people tend to spend more money when using credit cards as compared to when they are making payments using a credit or debit card. When you are dealing with cash, you can easily see the amount of money you have. This makes it easier for you to avoid impulse buying. You can even get a cash discount when you shop using cash in some places!
- Take Advantage of Online Deals
You can also get the most from your money by going for discounted online deals. Nowadays, you can get almost everything at a discount. All you need is to be on the lookout to know when various online stores offer discounts on the products that you need. For instance, if you are a vapor, you can save a fortune if you turn to cheap vaping deals. If you find that something you buy regularly is on offer, try as much as you can to purchase as many as you can, but reasonably.
This is the year to make things happen. Just be prudent, realistic and disciplined in your saving habit. If implemented, these tips will help you big time to achieve your financial goals.
