We are already into the new year. Time really does fly. One of my resolutions for 2022 is to do one of the most important things I can do for myself and that is to save money. Whether it’s by denying myself that $4 mocha latte once a week or putting off a vacation, we all have our own way to save. Why not make this one of your resolutions as well. The following are some money-saving tips to generate ideas about the best ways to save money in your day-to-day life.
Set Savings Goals
One of the best ways to save money is by visualizing what you are saving for. If you need motivation, set saving targets along with a timeline to make it easier to save. Want to buy a car? Get your own apartment? Buy a house? Now you have a target and know what you will need to save each month to achieve your goal. You can easily set up a savings account and use payroll deductions to save those needed funds.
Pay Yourself First
Set up an auto debit from your checking account to your savings account each payday. Whether it’s $10 every two weeks or $50, don’t cheat yourself out of a healthy long-term savings plan.
Pack Your Lunch
An obvious money-saving tip is finding everyday savings. If buying lunch at work costs $7, but bringing lunch from home costs only $2, then over the course of a year, you can create a $1250 emergency fund or make a significant contribution to a college plan or retirement fund.
Create an Interest-Bearing Account
For most of us, keeping your savings separate from your checking account helps reduce the tendency to borrow from savings from time to time. If your goals are more long-term, consider products with higher yield rates like a CD or Money Market account for even better savings. I actually have my savings account in a different bank to make it harder to access those funds.
Annualize Your Spending
Do you pay $20 a week for snacks at the vending machine at your office? That doesn’t sound like a lot. However, that’s $1,000 you’re removing from your budget for soda and snacks each year. Suddenly, that habit adds up to a substantial sum.
