Ten Ways to Save in the New Year
2022 is upon us and that means New Year’s Resolutions. Whether it’s wanting to exercise more, take that dream vacation or save money, sticking to it is the hardest part.
At CapFed® we want you to succeed in your resolutions, so here are a few brief tips to help you save money in the new year so you can accomplish your goals.
1. Wants versus Needs: Weren’t we all taught this growing up? You need water to survive but you want that 55” TV. Do not spend your money recklessly. Ask yourself, “do I really need this” before making any impulsive purchases.
2. Develop a Personal Budget: Determining where you spend your money each month is beneficial in helping you save. It will give you a baseline for what you can afford, allowing you to identify opportunities to save and how much you can spend. Begin by writing down all your fixed monthly expenses, such as your rent/mortgage, groceries, etc. Learning to track each month will save you in the long run.
3. Increase Contributions to Accounts: If the money doesn’t hit your bank account, then you won’t be tempted to spend it. Increasing your 401(k) contribution or the amount you automatically transfer into savings will help. Having the distribution take place without you having to do anything is one of the best ways to curb unnecessary spending.
4. Don’t Open Any More Credit Cards: There is certainly no limit to how many credit cards a person should have, but being able to manage the ones currently open is key. Instead of opening more, focus on paying down the cards in your possession because when you’re in debit, you don’t have the freedom to use your money the way you want.
5. Try Lowering your Monthly Services: Do you have a high cable bill? Try calling customer service to get your monthly bill lowered or figure out another streaming option. If you have a cell phone, you might consider removing insurance (if you have it) or your land line. Identifying unnecessary charges on your monthly bills can save you throughout the year.
6. Cut Down on Take-Out: Meal prep at home will save you money in the long run and be a healthier option for you. If you eat out twice a week and spend $10 each time, that is costing you over $1,000 per year! Also, think about taking your lunch during the week, too!
7. Cancel Unnecessary Subscriptions: Cell phones make it easy to surf for apps. Pay attention to those subscriptions that may have charged you after the free trial period expired.
8. Lower Your Car Payment: Being able to refinance your auto loan for a lower interest rate can save you money over the life of the loan.
9. Make Your Own Gifts: Giving people gifts for birthdays, anniversaries or any other special occasion can add up. Get creative and make a DIY gift to save money.
10. Lower Your Energy Bill: Make sure to turn off lights or appliances when not in use. Lowering the temperature in the home and putting on heavier clothing during the colder months will also help to lower the cost of your energy bill. During the summer, try using a fan instead of the air conditioner.
For more ways on how to save, click here.
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