2019 is just days away, but is your bank account ready for the new year? If one of your new year’s resolutions is to improve the way you save money, keep reading for 5 savings tips to set you up for financial success in the new year.
Save money with a purpose
Attempting to save money without a goal or purpose in mind won’t get you very far. In order to stay committed to saving money in 2019, come up with a purpose and a goal amount that you want to save. Whether it’s for your emergency fund, a new car, or higher education, save with an intention and set a savings amount that you would like to reach by the end of the year.
Club accounts from WMFCU allow you to set aside savings with a specific purpose in mind, such as a vacation. Our club accounts also offer the options of a direct deposit or payroll deduction to automatically transfer money without having to think about it.
Match your spending with savings
One strategy to help build your savings is to match the money you spend on non-essentials with money for your savings. For example, if you purchase a coffee for $5, set aside another $5 for your savings. While it might seem like only small amounts, these small purchases add up, and by the end of the year, you’ll have significant savings. Setting a goal to do this also encourages you to think about each purchase rather than buying impulsively.
Pay off your credit card each month
In order to set yourself up for financial success in the new year, make sure to pay off your total credit card balance each month. Credit cards are a great way to take advantage of the power of borrowing, but they should be used cautiously to avoid growing in more debt. Ensure your financial security for years to come by using your credit only for necessities that can be paid off easily, such as gas or groceries. WMFCU offers members low-interest credit cards with no fees to make using a credit card easy and affordable.
Write down what you spend money on
Another savings strategy to try in the new year is writing down everything that you spend money on. If you don’t already, keeping track of everything you spend money on is a great way to see the areas where your spending is adding up. For example, you might not even realize it now, but spending an extra $10 on lunch a few times a week adds up quickly. Taking note of your spending allows you to see the areas where you are spending most and where you can cut back.
Utilize Your 401k
Did you know that 20% of Americans do not take advantage of their employer’s matching program? If your employer offers a matching retirement program, take full advantage of what they are willing to match. With a payroll deduction, you won’t realize that you are putting savings away, but you will be making a significant contribution to your future financial security. If you are not taking full advantage of what your employers are willing to match, consider making that change in the new year.
Are you interested in learning more about how to save and set yourself up for financial success in the new year? WMFCU’s free financial education center offers lots of quick online videos to help you learn new savings strategies for 2019.