Education

How to Save Money in the New Year

posted by Chris Valentine

When New Year’s approaches, many people set their resolutions for the year. For many, spending less money and having more savings is a goal that many people strive to achieve. According to the Federal Reserve, Americans’ revolving debt, the majority including credit card balances, went up to 1.0645 trillion in April 2019. Since credit card debt is such an issue for many people, here are some tips to save money this year.

Reduce Banking Fees

Banking fees can add up every month and increase your list of expenses. These kinds of fees include overdraft fees, maintenance fees, or out-of-network ATM fees. It is essential to pay off the minimum. balance or you can end up paying an excessive amount of money during your lifetime. You can avoid banking fees by searching for free checking or savings accounts, where you’re earning a yield of 2% or more.

Try the 50, 30, 20 Rule

Budgeting is an essential component in saving money. The 50, 30, 20 rule is a budgeting technique followed by the most savvy budgeters. It works as follows: budget 50 percent for your essentials (like food and housing), 30 percent for your wants (eating out, activities), and then 20 percent for future plans (savings, debt repayment).

Want costs are the ones that can land people into trouble – for instance, maybe you rely too much on car sharing services like Uber, or you get too much food delivery or take out. Even subscription services like Netflix or other monthly services can get out of hand. The wants category is the one where you’ll want to cut some expenses, as you wouldn’t want to dip into your necessities or future financial goals.

Apply for a Payday Loan

If you find that you have trouble sticking to a specific budget, you can always learn more about payday loans. This handy resource from a payday loans company explains how payday loans work and why applying for one will help your financial woes. Seeking money in the short-term can alleviate your money worries and make managing your money simpler since you can repay your loan with each paycheck.

Set Money Aside

It may feel difficult to achieve, but you need to create strong savings habits in order to have a financial cushion in the long-term. One way to increase the balance in your savings account is by setting up an automatic transfer into your savings account after each paycheck or once a month. Your bank will allow you to set up an automatic transfer, and you could even do so through direct deposit at your work. That way, you don’t have to think about it and building up savings can be simple.

Improving your budget is an attainable goal when it comes to New Year’s resolutions. Payday loans can help you save money in the short-term, which is an attractive option for many people, but if you plan well and prepare in advance, you can save money and put yourself into better financial standing without any loans at all.

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