LOS ANGELES â January 27, 2022 â (Newswire.com)
iQuanti: Saving more money is a common New Year’s resolution. But many people who express a desire to save more may not know good ways to do so. Luckily, saving money can be easy if you just change your habits. Here are 5 ways to save money in the new year:
1. Pay yourself first.
Have you ever noticed that when you wait until the end of the month to save, there seems to be nothing left in your bank account? Paying yourself first means taking money out of your paycheck and setting it aside for savings. Then what’s left is yours to spend. This approach gives you peace of mind that you can add to your savings no matter what happens during the month.
2. Reduce subscriptions.
Many families take pride in lowering their cable bill by switching to streaming services. But the financial reality is that having too many streaming services or other monthly subscriptions can cost just as much, if not more.
If you know you’ve gone subscription crazy, create a list of all current monthly subscription services, TV or otherwise. Then prioritize based on which ones you actually use. Be ruthless when reducing. Then, transfer the saved money directly to your savings account.
3. Increase contributions to tax-advantaged savings accounts.
Savings that go into a tax-advantaged account, like a company-sponsored 401(k) plan, may actually benefit you more than savings that go into a regular savings account. If you’re not already doing so, make sure you contribute enough to your company’s pension plan to get the match from your employer.
If you already contribute to a tax-advantaged savings account, commit to saving an additional 1% this year. Then, next year, do it again. These small savings will accumulate over time and allow you to have a successful retirement later in life.
4. Put credit card rewards directly into savings.
Many credit cards now offer rewards points in one form or another. If you used a cashback credit card to earn rewards, start funneling that money straight into savings. At the end of each month, choose to send those savings directly to the bank instead of spending them on gift cards or statement credit.
5. Think about apps that help you save money automatically.
Money-saving apps like Digit or Acorns can help you save a few dollars a week without you realizing it. Just setting aside $5 a day every working day can lead to huge savings. Over a year, just an extra $25 each week can add up to $1,300. Then, at the end of the year, you can use those savings to accumulate and reach your savings goals.
Alternatives to consider if you need cash fast
Saving money takes consistency, and it takes a little time. But if you need quick access to cash, whether it’s to cover bills or a sudden emergency, there are loan options to consider. For example, if you have a steady income, you might want to consider a cash advance that you can repay with an upcoming paycheck. Then, once you’ve paid off the loan, you can kick into savings mode.
Installment loans and lines of credit are two other loan options to consider. These options can be better than cash advances when you need access to more cash. An installment loan, like a personal loan, can be a low-interest loan option with predictable monthly payments. And a line of credit can give you continued access to money up to your credit limit.
If you are unsure which loan option is best for you, research the most reputable lenders, eligibility criteria, and interest rates. Then choose the loan that can get you the amount you need with the loan terms that suit your situation.
The bottom line
The New Year is the perfect time to start fresh and resolve to save more money. Making small changes like paying yourself first, reducing subscriptions, increasing pension contributions, sending credit card rewards to savings, and using automatic savings apps can all help you reach your savings goals. faster. But if you still need money now, considering loan options like cash advances, installment loans, or lines of credit might be a smart move.
Notice: The information provided in this article is provided for guidance only. Consult your financial advisor about your financial situation.
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5 ways to save more money in the new year