The start of every New Year provides us a perfect opportunity to work on new resolutions and accomplish our goals. However, improving the finances must be our top priority, so to avoid getting run over by any difficult monetary situation. Though sites like FreebiesDip offer us plenty of money saving options, we too have created five money saving tips to add in your list of money saving resolutions for 2016.
Keep Track Of Your Finances
Keeping track of your finances is the first step toward saving money. Set a monthly budget and spend according to it. You can use an app, a piece of paper, or an excel sheet to get a complete picture of what you are making vs. what you are spending. Mark out all the activities you do in a month, such as dining with friends, watching movies in cinemas, and shopping for clothes and household stuff to know where your money goes other than the regular monthly expenses. This will help you to take control of your financial situation and make you avoid the extravagance.
Limit Your Credit Card Usage
Whether you are fighting a debt or have just gone over the line with the previous one, limiting your use of a credit card as a money saving resolution will help you stay clear of the difficult financial situations. However, do not eliminate the usage of credit cards entirely. Instead, maintain a good balance of both debit and credit cards while shopping to keep a good credit score. This will assist you in maintaining your balance to a manageable amount that can be paid monthly.
Plan Around Temptations
You need to work around the things you love to shop for. What is it that you are always spending money at; clothing, technology, food, or something else? For example, if you are spending a great deal of money on dining at restaurants, consider cooking some dishes at home. Similarly, when it comes to buying a new line of prêt wear, plan on spending in an economical way to make yourself happy. Understanding all your money pitfalls will assist you to stay on top of your money saving resolutions.
Save Money As If Does Not Exist
A lot of times in pursuit of saving money, millennials encounter a situation where they have to use their savings. This can be disastrous and may crush their entire savings plan. To counter it, consider saving your money in a place where it is not easily accessible. For example, instead of using a checking account to save money, try using an account that can be withdrawn in person only. However, the best way to get around this is by investing the saved amount. This will assist in saving, as well as growing your money over time.
Invest In A Retirement Fund
Planning for retirement may not be on your current list of money saving resolutions, but it is worth investing in. Instead of starting late at 35, start planning it around 25, and make use of all the available work years to gather as many dollars as possible to earn a high interest amount. Research about the 401k retirement plan through your company and ask for a payroll deduction on a monthly basis to fund it.
You do not have to give up on every single detail of your life to save money, however spending money smartly by tracking your finances will surprise you with how much you will be left to save for every month!