4 ways to save money in the new year
Christmas is just around the corner and many people around me have already started thinking about their New Years’ Resolutions. Although I do think it’s a good idea to have a plan for the new year, I think it’s best to refer to those resolutions as goals.
Most people don’t continue with their “resolutions” past the first month of the new year (some don’t make it past the first week!), but when you set goals for yourself and break down those goals into bite-sized pieces so that your plans are much more attainable, I find that you have a greater deal of success.
Since I know that many people are always interested in saving more money and often have that as one of their resolutions/goals, I thought it might be a good idea to share some ideas on saving money in the new year.
Create a budget
Creating a budget is helpful in many ways. The most important thing that you gain from having a budget is knowing that you have a plan for your money. If you don’t have a plan for the money that you bring in, it’s easy for it to slip through your fingers.
Budgets seem daunting and boring to many people, but I assure you that they are really not that bad. They will keep you from overspending, help you stay organized and clue you in on how much money you really have available to spend and save.
Pay with cash
If you really want to stop yourself from spending too much money, start paying for your purchases in cash. Many people find it painful to watch money leave their pocket and are usually more careful with how they spend it. To them, a credit card is much easier to spend lots of money on, because you don’t actually see the money leaving your hands.
If you’re like me, and find that paying with cash actually leads you to spend MORE than paying with a credit card, set yourself up with a decent credit card company that will give you cash back for your purchases. I only suggest doing this if you are diligent with paying off your credit card bills in full every month.
Make savings automatic
A simple way to start saving money is to think of savings as a fixed expense. The best way to do this is to have your employer take off a certain percentage of your earnings and put it directly into your savings account before that money makes it onto your cheque. This way you will never even see the money, so you won’t miss it.
If for some reason you can’t have your employer deduct savings for you, it’s easy to set up an automatic withdrawal system with your bank. Determine a set amount of money that you would like to save each month (the golden rule is 10% of your gross income) and have that automatically sent to your savings account on a monthly basis.
Start a change jar
Find the largest container you can and set a goal to fill it up completely by the end of the new year. Empty your pockets every night and add all of your loose change to the container.
Make it a rule that no one is allowed to take out any money until the end of the year. Then, when that time comes, figure out how much you’ve saved and add it all to your savings account.
If saving more money is something you would like to do in the new year, keep in mind that it’s not something that will happen overnight. You really have to keep at it and make saving money a goal for the rest of your life, not just for a certain amount of time.
Make it fun and include saving money in your everyday life. You’ll be glad you did!
Do you plan to save more money in the new year? Let us know how in the comments.