Helpful Hacks to Save Money in 2020
Whether you’re working on saving up for your child’s college education or for your retirement, it’s essential to save money in order to live a great life. If you feel like saving $20,000 seems impossible, the key is to know that it’s all about starting. Once you get started and remain consistent, anything is possible. To help you get started, consider the following helpful hacks this year.
1. Develop an Additional Income Stream
If you don’t have enough money to cover your bills and expenses, it’s going to be very difficult to save money. Start by accessing your income streams. It’s often stated that most millionaires have at least seven income streams. While it’s okay to not have seven, it is important to have at least three. In addition to your full-time job, see if you can find some part-time work. Monetize some of your profitable skills. Whether you’re great at reselling, baking or babysitting, find ways to bring in extra money so you can put aside more in your savings account.
2. Automate Your Finances
Find ways to automate your finances as much as possible. Look at bills that tend to be the same each month. Then, create a specific account that is dedicated to paying bills. Make sure that a certain portion of your paycheck covers those expenses each month. When it’s automated, you’ll decrease your chances of getting overdraft fees because you swiped your debit card one too many times. It’s also great to talk with your lenders, utility companies and other service providers in order to see if you can get a better rate or deal on the services you’re using. Negotiating the right deal can save you hundreds or thousands in the long run.
3. Make Your Savings Account Inconvenient to Access
One of the main reasons why it’s so easy for many people to deplete their savings accounts is because it’s too easy to access. Just by tapping a few buttons on a touch screen, a person can easily transfer money from their savings to their checking account. Instead, open a savings account with a separate bank. If you need to access money from that savings account, it’s going to be tougher to access immediately. When you have this barrier, you’ll think twice before adding money to your checking account to take advantage of a sale at the mall.
4. Stick to A Planned Budget
If you fail to plan, you plan to fail. This is so true because you don’t want to look up a few days after payday and realize you’ve already blown your entire check. Instead, stick to a budget. Plan every single expense ahead of time. It’s even important to allot money for expenses that fall under the entertainment or clothing categories. If you know you want to transfer money over to take care of some bills, you can write that down as a part of your budget for that pay period. Use a bill pay mobile app in order to track where your money is going once you’ve begun the transfer process. Money is a tool. When you use it wisely by sticking to a budget, it’ll help you achieve your financial goals.
5. Create an Emergency Fund
When it rains, that’s when it seems to pour. It seems when you don’t have the money, that’s when unexpected expenses arise. Instead of waiting for your refrigerator to break down or for your tires to go flat, focus on saving money in an emergency fund. Start by placing $1,000 in the fund. Then, focus on more of your other financial goals. If a mishap occurs, you’ll have a cushion to soften the blow.
6. Cook at Home
Take a look at your debit or credit card statements at the end of each month. Specifically, look at the number of times you’ve stopped at a local fast-food restaurant on your way home from work. Those purchases add up quickly. Before you know it, you’ve spent a small fortune on food. One of the best ways to save money in 2020 is by cooking your meals at home. There are tons of ways to get inexpensive groceries. Prepare a meal plan at the beginning of the week. You’ll not only save a ton of money but also know exactly what’s going into your body. Therefore, you’ll be preserving your health as well.
When you’re able to manage money well, you’ll become more empowered with how you use it. Financial freedom isn’t just for the rich and famous. It’s for those who know how to save, invest and spend wisely. With these helpful hacks, you’ll be well on your way to financial abundance in 2020 and beyond.