How To Save Money In The New Year
If you're wondering how to save money in New Year, you'll need a bit of enthusiasm and this short guide to get started. We'll cover ten ways to save cash and spend less this year while living a fun and productive life.
Our money-saving topics include:
- Wallet-draining expenses to cut down
- The trick to buying less
- How to pay less interest on your debts
- Why you should pay your savings before your bills
- And more…
A new year is a unique opportunity to improve your financial health and progress toward your financial goals. Let's get on the right path today.
Money Saving Tips For The New Year
1. Automate Your Savings
How to save money in New Year starts with automating your savings through your online bank and cash accounts. You'll set up an automatic transfer that moves money from your checking account to your savings account on the same day every month.
Ideally, automate this transfer to happen the day after payday so that the money is moved before you can spend it elsewhere – out of sight, out of mind.
2. Cut Down On Subscriptions
T.V., entertainment, and other unnecessary subscriptions can add up to hundreds of wasted dollars per year. The same can be said for expensive phone and internet plans.
Do some shopping to find the best providers and deals and choose to cut down to less than three subscriptions per month; test it out for just a month, and you may be surprised by how little you miss them!
3. Read Top-Selling Savings Books
Financial literacy is rarely taught at home or in schools, so it's up to you to learn the financial basics of saving money in the New Year. Ready some bestsellers that catch your eye from authors like Dave Ramsey, Robert Kiyosaki, and Tony Robbins.
4. Cut Down The Cost Of Your Commute
The average car payment in the U.S. ranges from $500-$700. If you took $600 per month and instead invested it in a standard stock that returned 7% annually, you would have more than $41,400 in five years – that's more than $5,000 in your pocket just from interest!
The point? Cut down on your commute. Trade that expensive car for a reliable one you can pay off immediately or sooner, or find a way to bike, walk, or carshare to work.
5. Consider House-Hacking
With housing accounting for more than one-third of most people's spending, learning how to save money in New Year starts at home. House-hacking is when you rent out space in your home to help cover the cost of your mortgage or rent. Essentially, you should live as close to free as possible.
6. Use Cash-Back Apps
Cash-back apps can give you cash for the shopping you were going to do anyway. Look into coupons.com, Dosh, Ibotta, Rakuten, Receipt Hog, and other apps to save money in the New Year.
7. Cut Out Unhealthy Habits
If you find yourself partying on the weekends, eating out every day for lunch, or smoking regularly, consider cutting down or eliminating these habits as a way to save. Here are the annual expenditures for such practices:
- A smoker who smokes a pack a day spends over $12,000
- The average American spends over $2,000 eating out
- The U.S. as a whole spends $37 billion on alcohol
8. Delay Unnecessary Purchases For 30 Days
If you're tempted to buy something that isn't 100% necessary, delay the purchase for 30 days. Nine times out of ten, you'll no longer want to buy it after this time has passed.
9. Consider Refinancing And Debt Consolidation
Consider refinancing or debt consolidation plans if you have a high mortgage interest rate or other high-interest debt. Lowering your interest rate by just a few points could mean hundreds or even thousands of dollars in savings per year.
10. Be Prepared For Emergency Expenses
Those wondering how to save money in New Year should put those savings towards an emergency fund. This cash can help cover sudden expenses, such as home or car repairs, medical procedures, or any other unexpected and urgent bill.
What To Do If You Don't Have Savings
Sometimes you get stuck between a rock and a hard place with no emergency funds to help. In this scenario, you may ask yourself, "Are there payday loans near me?" Thankfully, Utah Title Loans, Inc. offers short-term payday loans between $100 and $500 that can help cover urgent costs before your next payday.
To qualify, you'll need the following things:
- Driver’s License or State Issued I.D.
- Your most recent pay stub
- Blank check from an active checking account in your name
After a short in-person meeting at one of our local offices, you'll learn if you qualify for a short-term payday loan. If so, you will receive your money that day or the following business day.
Build Up Your Finances This New Year
Learning how to save money in New Year is easy, but implementing the strategies is where the challenge lies. If you can cut down on subscriptions, car payments, and housing costs, you'll be able to save thousands this new year.
Add in the cancellation of expensive bad habits like smoking and frequent bar outings, and you could have a hefty amount of leftover money in your savings account within a few months.
Before you get to that point, you may need cash to cover an urgent bill before your next paycheck hits. Contact Utah Title Loans, Inc. to learn how short-term payday loans may be an option. Why delay a bill that you can pay today? We're waiting to hear from you!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.