More money equals more happiness, right?
That might not be completely true, but if you look at your spending and budget from last year, you might think it’s time to save more money this year. During your fresh start, keep these tips in mind to help you save money:
1, Be specific about how much you want to save
Set from the start how much you want to have saved by next year. From there, you can set monthly goals to meet as you get closer and closer to the final number. Saving on a whim is not very helpful in the long run. Without a specific amount or goal in mind, it’s hard to track your progress or figure out how much you need to save each week or month.
2, Answer the big question of how you’re going to save money
There are many ways to help you save money. It’s important to decide what makes the most sense for you. Some options to consider:
Getting rid of unnecessary costs.
We all have places in our lives where we can stop buying things we don’t need. This could mean giving up your daily trip to your favorite coffee shop or cutting back on what you spend online.
Find some work on the side.
If you have extra time during the work week, a side job that pays extra money could be a good idea. Whether it’s freelancing or an extra job as a waitress, put the money you make there toward your savings plan.
Sell your items. Have some extra clothes you’ve been meaning to sell? An old prom or wedding dress that’s still in good condition? There are a lot of websites and apps that let you sell a wide range of things. It takes a little more work than just dropping stuff off, but it will earn you more money in the end.
3, Make small monthly goals.
As has already been said, set a monthly goal. This will be easier than pushing ahead without a plan to get to that final number. With small monthly goals and milestones along the way, you will stay on track and feel less pressured as you save money.
4, Figure out where to put the new money.
As you save up extra money, find a safe and useful place to keep it (so not under your mattress). You will want the money to gain interest as it sits.
Here are a few options to consider:
A savings account.
With a savings account, you’ll earn interest on your money, but not at an amazing rate. You will still be able to touch and move around the money if you need to.
Certificate of Deposits (CD).
When you put your money in a CD, you won’t be able to get it back until you’ve waited the amount of time you chose. This can be a good reason not to touch it, but in an emergency, it could be a problem.
A Money Market Account is a type of bank account.
Money Market accounts have good interest rates, but there may be limits on how much needs to be put in the account at first and how often/how much the account holder can take out. If you are sure you can keep it there and don’t really need the money, this could be the right choice for you.
5, Stay strong and record your progress.
Keeping to your savings goal can be hard, especially at the beginning. Using online financial tools like the Central Bank’s Money Manager can make it easier to see how far you’ve come and how much you still have. It brings together all of your accounts so you can look at your finances as a whole and see if you’re meeting those monthly requirements.
As you make your savings plan, keep these five tips in mind to meet and exceed your super saver goals!