Top 5 Financial Tips to Save More Money This Year
Every day is a new opportunity to handle your money better. You do not need to be an expert to save more, spend less, and work towards zero debts. All it takes is developing healthy financial habits and you are sure to get ahead in the money department. Below are six of the best tips to start implementing today.
- Automate finance goals.
Do you really want to meet your financial goals or not? If you are committed, automate them. There are several ways to do this. First, you can use direct deposit to have a portion of your paycheck go directly to a savings account. Second, recurring transfers can also be set up so you are always on top of your IRA contributions. Third, start saving for your retirement and participate in a workplace retirement plan. All of these ensure your hard earned money is going to serve you and not just disappear meaninglessly.
- Reassess your budget.
Maybe you are not fully maximizing your cash. Track your spending and see if you can cut back on anything. Are you overspending anywhere? Are you paying for a service you do not even use? Where does your extra cash go? Take note of your income and expenses so you can work out a budget that is realistic for you.
- Take identity theft seriously.
Technology has made it all too easy for identity scammers so be vigilant in protecting your money and information. Never share key data like your birthdate, social security number, driver’s license number, credit card number, bank account number, and insurance policy number. Only do so to a person or company that you completely trust. Also, avoid accessing your confidential documents through unsecured or public networks like cofee shops or airports. You never know who is skimming these connections.
- Start investing.
The earlier you start investing, the longer your money has time to compound. It does not matter how small you invest. The longer it stays there, the more it can grow exponentially. For example, if you are 25 years old and invests $100 a month in a Roth IRA for 40 years and earn a 12% annual return, by the time you retire at 65, this money will grow to be over $1 million. If you do the same when you are 35, it will only add up to $300,000. Better invest now!
- Make debt repayment a priority.
Having debt does not cost you any money. It prevents you from getting it. Not to mention, it is stressful and energy-draining, plus it makes you dependent on others. There is zero upsides. So make debt repayment a priority. It is the only responsible thing to do. It gives you a sense of control and confidence, too. Once you are out of debt, you can focus on ways to make money. Everything goes up from there.