2020 is a New Year and can signify a fresh start for many and one popular resolution is to instill the right habits to save money.
Some of the top financial new year’s resolutions according to CNBC include:
Saving more and budgeting
Improving credit score
Paying off credit cards on time
If you’re thinking about tackling one of these important financial goals, don’t fret, you’re not alone. Here are some strategies that may be able to help you save money and start paving your path towards financial freedom:
Practice paying yourself first - Better money management will start with knowing you, your goals, and your retirement come first. Being disciplined to save a portion of your income with every paycheck to go towards yourself will help set yourself up for success.
Tracking what you spend and paying off debt - Remembering what you spend and paying off your current debt should be a top priority as interest will accrue. Tracking your spending and noting where there are areas to start saving (like on your insurance) will help you pay debt in a scheduled and efficient matter. Whether it be a car loan, student loans, or any outstanding payments, it’s best to try to pay off as soon as possible.
Kakeibo is a Japanese art of saving your money. “Kakeibo” can help change how you spend by journaling, letting go of the things you don’t need, and being more mindful about how you spend. The physical action of writing down whether or not you can live without this item and analyzing your emotional state can help in the process of letting go of what you don’t need. More details can be found in this article by CNBC.
Taking a walk - taking a walk away from the shopping mall store window or wherever it is you were hoping to buy something can help you reflect on your purchasing habits. Being more mindful can help with decision making so you have a clearer vision of things to spend on.
Shop sales and use points- Flipp is a great grocery app that identifies sales in your local grocery stores so you can find the deals and shop where you can save. By saving money on groceries and cooking for yourself, you’ll be able to save on going out to eat. Use stores that you can gain points, or credit cards with cashback options if you have to spend you might as well earn some money back!
Save on insurance - With an upcoming policy renewal, it will be helpful to start saving money on your insurance. There are a few strategies like installing an alarm system in your home, maintaining a clean driving record, and bundling home and auto insurance together that can help you save on your insurance premiums. Always best to speak to an advisor to maximize your discounts.
