Saving money is typically at the top of most goal lists for the new year. We tend to start out strong, but then old habits that are difficult to break seem to veer us off track. Follow these simple 20 steps to help you save money this year and make it your most PRODUCTIVE year yet.
#1-Create a Budget: Keep track of your income, fixed expenses, and flexible expenses.
Fixed expenses are bills that stay the same each month, like your car payment or mortgage payment.
Flexible expenses are expenses such as gas and grocery bills.
Identify spending patterns and areas for improvement or savings opportunities. One way to help you analyze your spending habits and locate areas for potential savings is to download apps like MINT or ROCKET MONEY.
#2- Set Financial Goals: Define short-term and long-term savings goals to keep yourself motivated.
One short term goal you should focus on includes saving at least $1,000. Once you have achieved that goal, focus on setting up an Emergency fund with 3 months’ worth of income in the event something happens to you or your family.
#3—Start Paying off Debt: Once you have saved enough, start paying off your debts.
Make a list of all your debts and their interest rates. Start with the debt with the highest interest rate and pay it off first. Then, work your way down the list. This will save you the most money in the long run.
#4—Cut out the fluff: Locate unnecessary expenditures like subscriptions or gym memberships you haven’t used all year and cancel them.
#5- Limit Eating Out: Cook meals at home and reserve dining out for special occasions.
#6- Embrace DIY: Take on small home repairs, grooming, or crafting projects to save on services.
#7- Use Cashback and Rewards: Take advantage of credit card rewards, cashback apps, and store loyalty programs.
#8- Buy in Bulk: For non-perishable items, bulk purchases can often save money in the long run. Memberships to Costco or Sam’s Club can be analyzed for savings depending on the size of your family.
#9- Shop Sales and Clearance: Plan purchases around sales events and use price comparison tools.
#10- Create a Shopping List: Before making your shopping list, check the pantry and freezer to see what you have FIRST. Stick to a list to avoid impulse purchases. Until you get the finances under control, try to stick to a routine menu. This will also keep you from impulse purchases at the store AND keep you healthier.
#11- Lower Energy Usage: Use energy-efficient appliances, switch off unused lights, and adjust the thermostat during work hours when no one is home.
#12- Unplug Electronics: Avoid phantom energy use by unplugging devices not in use.
#13- Cut Cable: Opt for streaming services or free online entertainment. Look for those New Year deals and promos on certain streaming options.
#14- Carpool or Use Public Transport: Share rides or take buses and trains to cut fuel costs if able.
#15- Maintain Your Vehicle: Regular maintenance can prevent costly repairs and improve fuel efficiency.
*We purchased our Yukon when they offered the lifetime power train warranty. We regularly serviced the vehicle and kept documentation for our records. Last year our transmission went out and almost all of the cost for replacement was covered under the warranty. A savings of about $12,000.
#16- Automate Savings: Set up automatic transfers to your savings account each payday.
#17- Start Investing: Put a portion of your savings into low-risk investments or retirement accounts.
#18- Negotiate Bills: Contact service providers for discounts or better deals on utilities, insurance, and phone plans.
#19- Increase Deductibles: Opt for higher deductibles on insurance to reduce premiums, if feasible.
#20- Adopt a Minimalist Mindset: Last but NOT LEAST, probably the most important: Focus on needs over wants and prioritize experiences over material possessions. Try your best to maintain this mindset during the Holiday Season as well.
Bonus Tip:
Track your progress monthly to celebrate milestones and adjust strategies as needed. This habit keeps you motivated and on track for long-term savings.
