Not Achieving Your New Year’s Savings Goals? Try These 4 Hacks
Saving more is one of the most popular new year’s resolutions that you can make, but it isn’t one of the easier ones to achieve — this year especially. After following the economic disaster that was 2020, 2021 may have arrived at a tender moment in your finances.
It’s hard to stay committed to a goal when you feel like none of your actions make a difference. But before you give up on resolution, check out this guide. It offers actionable tips to help you protect your cash.
1. Comparison Shop When You Borrow
At the start of your goal-setting journey, you may not have a lot of financial flexibility. Your savings may have disappeared with a poof after filling in for lost wages or paying off bills. Add another unexpected emergency expense to your responsibilities, and you may have to borrow money before you can save it.
If you’re also sporting a bad credit score, you may be tempted to use an online payday loan.
If so, don’t let your bad credit score stop you from learning more about these direct lender payday loans before you sign a contract. Take a look at MoneyKey to find out how these payday loans work compared to other online loans. Then compare lenders, rates, and terms.
Comparison shopping like this may help you find the best possible loan for your credit profile, saving you from locking into something you can’t afford.
2. Cut out Banking Fees
In this day and age, you need a bank account to do almost anything — from using a digital payment app to applying for a direct lender payday loan. Considering how important it so to have an account, it’s easy to think that you’re stuck paying bank fees.
Every year, the average American spends $290 a year on basic banking fees. That’s a lot of money you could save simply by changing accounts or unsubscribing from unnecessary services.
Here’s another instance when shopping around may help. Compare free checking and savings accounts, and don’t get suckered into paying for things like credit card insurance.
3. Use a Budget to Pay Yourself First
A budget helps you organize the way you go about paying your bills. Most people think of tackling the big things first —housing costs, insurance, and utility bills get priority. However, paying yourself first is a financial rule that puts your savings before any of these expenses.
Making a contribution to your savings before you pay any bills ensures you’ll save every month. Just tweak your contributions to ensure you’re left with enough cash to meet your financial obligations.
4. Look for Uncategorized Spending
Start tracking your real-life spending and compare it to the plan you’ve outlined in your budget. If you’re like most people, these two won’t match perfectly because of small, uncategorized spending, like adding a few impulsive snacks to your grocery basket or another item at the digital checkout to qualify for free shipping.
While small on their own, they can add up over time to take a big chunk out of your paycheck. And, because they aren’t listed in your budget, it’s easy to overlook these bad habits. But once you start tracking this kind of spending, you can be mindful of it.
That’s what good money management is all about — making informed and deliberate choices with your cash. Remember this as you strive to meet your new year’s resolution. These tips can help you save more than ever