A frequently made New Year’s resolution is saving more money in the coming year. It is also the one that is most frequently broken. Getting into the habit of saving more money can be difficult with all of the financial pressures that people experience today. Fortunately, there are some ways to ensure that you are saving more money in 2016. Here are some of the most effective methods of saving more money.
Set Specific Savings Goals
It is great to want to save more money, but if you do not have a target to aim for, it will be difficult to make a true effort. Instead of saying that you will save what you can, set a concrete goal for an amount to save over the course of the year. Once you have set a savings goal, you can calculate how much you need to save each day, week or month to reach it.
Cut Expenses
It is much easier to cut expenses than to earn more money for saving purposes. Many of us are overpaying for things like cable bills, cellphone plans, and prepared foods. Simply trimming these costs to be more reasonable can result in hundreds of dollars in savings over the course of a year. Go over your budget to see if there are areas of spending you can trim as part of your New Year’s resolution without considerably affecting your quality of life.
Reduce Spending On Unnecessary Items
Daily coffees and fast food lunches can add up quickly, but many people do not realize how much they are spending each month because the amounts are so small. Tracking spending with a smartphone app will quickly show you how much money you are wasting on these items. Change your daily habits to eliminate these additional costs and transfer the difference to your savings account.
Reduce Interest On Debts
Interest payments can take a big chunk out of your monthly income. Reducing the amount of interest you pay can help you with saving more money for other needs. Contact your debtors to see if they would be interested in reducing interest amounts on your current balances. Next, consider consolidating your debts with a low interest loan and transferring credit card balances to a card with a 0 percent promotional interest rate for balance transfers.
Automate Your Savings
Saving more money is easier when you don’t have to think about it, so automating your savings is a good way to keep your New Year’s resolution. You can set up a recurring direct deposit into your savings account through your employer or set up an automatic transfer from your checking account to your savings account through your bank’s online tools. The amounts to be deposited can be changed at any time, if needed.