Tips for Saving Money in the New Year

Tips for Saving Money in the New Year

The key rule of living in comfort in the future is sound financial management. We found out why it is difficult for people to save? Which saving strategy is the most effective? Which life hacks will help you save money on a regular basis?

What prevents you from saving money?

How to start saving money in the New Year

Planning and motivation are saving’s best friends. If you have a clear plan, it is easier to move towards the intended goal.

You should act according to the algorithm:

  1. Set a specific goal: to save up for a ten-day vacation in Paris in a definite hotel;
  2. Calculate the required amount – for example, $1,500;
  3. Determine the deadline – for example, by July 2021;
  4. Calculate how much money you need to be saved monthly to achieve the goal: if you start from December 2020, then putting aside $200 each month, you will collect the required amount by July.

The goal should be achievable without compromising a normal lifestyle: so that you have enough money for food, travel, and other necessary expenses.

Severe restrictions can cause depressed mood and breakdowns. In a state of stress, you will not be able to save funds. Financial planning is about having fun – just like eating right. You will notice the result of a new good habit right away: even if it serves as a motivation.

7 saving tips for beginners

If you can’t save money, ask yourself if you really need the thing for which you are saving money. You may just reconsider the goal.

3 techniques to help you save money

Six “jars”

This is one of the most popular saving methods, which was described by T. Harv Eker in the book “Think Like a Millionaire.”

The bottom line: after receiving income, distribute the money in six “jars” (envelopes) in a certain proportion. Each jar is responsible for a specific goal, and you can spend this money only on it:

Collecting “tails”

This method assumes daily rounding of the card balance downwards and sending the excess to the savings account. Let’s say that at the end of the day you have $567 on your card, you send $67 to savings. Or $7, if saving $67 in a piggy bank every day is too burdensome for you.

If you are more comfortable using cash, create a daily ritual to take out change from your pockets and put it in a piggy bank. By the end of the year, you will save a decent amount.

“Piggy bank” in the banking app

Almost all banks offer the “piggy bank” function to create savings automatically. You can choose one of the following methods:

The “piggy bank” is connected quickly, the amount of savings is reported in SMS. Also, you can use a savings account as a “money box”. For savings, the bank will also charge you interest – another advantage in your savings bank. And it is convenient to manage finances online – in a mobile app.