Ready to build your savings account?
The new year is almost here, and many of us are already making big plans for how we want to transform our lives in 2020. For some people, the ultimate goal will be to lose weight and eat healthier. For others, 2020’s target will be all about getting rid of bad habits.
One of the best resolutions that we could all do with making next year, involves figuring out how to use our money more strategically. That means spending less on meaningless things and finding more cash to put away towards our personal goals. If you’re ready to focus on building your savings account in 2020, the following tips will help.
1. Try Rounding Up
One easy way to start increasing your savings potential in 2020, is to begin rounding up your everyday expenses. For instance, banks like the Bank of America offer programs where you can “round up” purchases and send the change to your savings account. For instance, if you spend $238 on your rent for the week, then you might round that up to $250 and put the rest of the cash in your savings.
Rounding up like that means that you begin to forget about saving as a chore that you need to commit to each month. If you prefer a simpler approach, you can even start by taking all of your change out of your pockets at the end of each week and putting it into a jar which you can cash into your savings account later.
Related: Ways To Save Money For Yourself And Your Family
2. Cut the Cords
Another way to improve your savings strategy in 2020, is to cut some of the cords in your life that are costing you money. First of all, you might not need a home phone bill if you take most of your calls on your smartphone anyway. You may also be spending a fortune on things like television and cable, then barely watching half of the channels that you pay for.
Consider switching your cable subscription for a streaming service instead. Something like Netflix or Hulu can give you and your loved ones plenty of fantastic shows and movies to watch, without the unnecessary expense.
3. Cook Your Food in Advance
Fast food and eating out are some of the biggest causes of budget problems for people all around the world. While spending a few dollars here and there on fast food might not seem like it’s going to make a big difference in the short-term, in the long-term, it can add up to a lot of lost cash.
Eating at home is a great way to save cash, but it can also be tough. If you usually eat out five times a week, start by switching to eating out only 3 times instead. Try forcing yourself to eat at least four meals at home each week to begin with. This strategy will ensure that you’re spending more of your time eating healthy home-cooked meals, and it helps you to save cash too. If you’re having trouble sticking to this plan, try making some of your meals in advance and putting them in the freezer, so they’re ready for you when you get home from work.
4. Switch to Cash Only
Another excellent tip for people who have trouble saving money, is to switch to a cash-only strategy. While you might not be able to pay for everything by cash, like your rent or mortgage, you should at least be able to switch to cash only for things like food and entertainment. Using cash instead of plastic when you go out with your friends for a meal, or head to the grocery store, means that you won’t be able to go over your pre-set budget for the day.
You can figure out in advance how much money you’re going to use each day and leave your credit and debit cards at home. You’ll quickly learn how to appreciate every penny this way.
5. Don’t be Afraid to Borrow
Sometimes, borrowing can be the best way to get by in life. We’re not just talking about taking out personal loans via HappyPenguin Loans or similar when you don’t have enough cash in your savings either. You can borrow books and CDs from public libraries when you’re struggling to find entertainment. You might even be able to borrow crucial items like lawnmowers and tools from your friends when you don’t have the money to buy them yourselves.
As long as you return the things that you borrow in good condition, and within in a reasonable amount of time, most of your friends and loved ones won’t mind helping you out.
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