Each new year brings resolutions that are not always easy to keep. The slightest idea of failing can easily throw you off from starting in the first place. Likewise, though many people dread saving money, it is an essential habit to adopt. Saving money helps with things like a wedding, starting a business, or even going on vacation.
On the other hand, by all means, don’t put too much pressure on yourself. After all, you can't achieve everything overnight. Instead, focus on baby steps and take one step at a time. If you typically have difficulty saving money, you have come to the right place.
So, let’s explore some of the top five ways to save money in 2020. It’s never too late to start. Even if you don't find this article until well into 2020, start saving with these tips!
Consume Less
If there is any change that can help you save, it's consuming less. Shopping from high-end designer shops is fine, but using what you already have is better. Buying a new car is unnecessary when you already have one in good shape. You should avoid being lured by new technology and refrain from purchasing a new phone every time the latest version is released. Always consider your needs versus wants before you spend your money.
Have A Budget
Most people think budgeting is complicated, but this is far from the truth. Money experts say that if you ever want to achieve your saving goals, always have a budget and be sure to follow through. List your monthly expenses, factor in other costs that typically arise, and compare your expenses with your total earnings.
If your expenses exceed your income, you live beyond your means. Think of which expenses to trim and go back to the drawing board. By all means, always aim to have money left in your savings account.
Also Read: Why You Should Save Every Last Penny Of Pocket Change
Pay All Of Your Debts
Before you start saving, consider clearing all your debts. The last thing you want is interest rates to accumulate on your balances. This includes all loans, even student loans or credit cards. However, it would be wise to prioritize and know which debt to clear first. Typically, you will want to target those with higher interest rates first.
Set Goals And Follow Through
Financial experts usually advise setting goals before starting to save. For example, if you're buying a house, find out exactly how much you need. This way, you will know exactly how much you need to save each month. Setting goals also helps people avoid spending money on unnecessary items.
Always Save “Found Money”
You might be lucky to get $100 as a gift from grandparents or parents. However, you should always save this money. Just because it was handed to you as a gift doesn’t mean you should spend it. The same goes for annual tax refunds and raises. Always save this money. If you must, buy something small for yourself and then put the rest into savings.
Bottom Line
Many people try to avoid the topic of saving, but it is possible, and you can do it. It’s not rocket science; if others have done it, so can you. To achieve this, say goodbye to overspending, always plan in advance, and determine money goals. As the adage goes, where there is a will, there is a way. If you put your mind to it, you will be amazed at how much you can save.
