4 New Years Money Saving Tips
New Years Money Saving Tips
The New Year is just around the corner. And with that, another year has gone by. For most of us, we probably spent a year which was eventful, full of surprises, but also a year where all the resolutions made last year was probably not realized to their fullest capacity. One topic people are interested in when the New Year comes around is: How do I save more money next year? Life throws us many curve balls and before we know it, there is more money being spent than we had the plan to. Savings take a back seat and life forces a decision that often ends up in regret at the end of the year. Were those impulsive cigarettes everyday worth it? Even forgetting the health risk associated with that, smoking every day takes a lot out of the bank account.
Similarly, the small pleasures of life, if left uncontrolled can often wind up costing us a lot more than we had the intention to spend. And that is where careful planning even before the New Year sets in can take you a long way. With the big New Year parties right around the corner, now is the time to save money. If dealt with well, you may even find yourself with more than enough money to buy passes to that New Year's event you were dying to go to.
Four Tips On Saving More Money In The New Year:
Each year people take resolutions that they want to save more money, and each year, they fail to live up to those. In the coming year, be determined to not just save money but to spend wisely so that you do not miss out on any of the fun things you enjoy doing. There is no need to cancel your vacation or stop all your recreational activities, all you need to do is spend only what you can afford to. Maybe its time to update your flooring.
1) Budget Away: The most important part of saving money is first knowing how much you can spend. Assuming your salary and the rate of inflation stay within reasonably similar means they are in now, you can potentially save up to 30% of your salary in the year. First decide on the essentials, the money you absolutely must spend. These include rent and utilities. With the rest you can compromise, but not those two. Once you have set that money aside, estimate your food budget. If you plan on a set budget each week and do not exceed that, you can eat well and eat what you like. From the amount that is left, take 20% out to put into your savings. The rest you can either invest, have fun with or leave in your bank for a rainy day or an unexpected emergency.
2) Quit Impulsive Spending: Just because you want something does not mean that you need it. By investing only in what you really need, you open doors to quality spending in worthwhile items instead of guilt trips after every other quick purchase.
3) Look Out for Deals: Wait patiently for those expensive items to become a little older. That way you can invest in them when prices are lower and they are more affordable. Do not hint for the biggest and the best, because at the end of the day, functionality beats a snazzy marketing scheme.
4) Make Deposits: Opening a recurring deposit or even premium plans are a good way to ensure that some portions of your money are definitely going into your future savings. With the interest you gain on them the longer they stay in the bank, you are actually making a little money this way too. Saving money leaves resources for when you really need it. An accident or getting fired from a job can all require you to plunge into your savings, so ensuring your safety net is in place should be a top priority.