With the New Year right around the corner, now is a good time to start thinking about saving money. There are several things you can do right now to reduce your overall spending, and increase your savings. With a little bit of determination and organization you will be able to cut back on some spending and save a lot of money over time. They more you are able to save now, the more financially stable you will become by the end of the year. Below is a look at the top five tips for saving money in the New Year.
1. Set Budget
If you do not already have a budget in place, it is crucial that you create a workable budget. This budget should detail all of your expenses, including housing, transportation, medical, food, clothing, and miscellaneous. You also want to track your spending to make sure that you are spending within your budget.
2. Add Raise to Savings
If you were fortunate enough to have received a raise this year, why not put it into your savings account instead of spending it? This will not provide you with any less money than you had this year, so you will not miss it. After all, if you were able to cover your bills this year, you will be able to do so next year too.
3. Evaluate Accounts
The New Year is the perfect time to check through all your accounts and bills. Thoroughly check through many of your bills, such as television service and phone bill. Contact the company to see if you can reduce some of the services you do not use to receive a cheaper rate.
You also want to do a complete check of your bank statement and check through all the extra charges. First, you want to check to make sure that you do not have an old subscription that you never cancelled that is still coming out of your account. Secondly, you want to see if the bank is charging extra service fees and find out what you have to do to eliminate those charges.
4. Cut Up Some Credit Cards
This is also the perfect time to lighten your wallet and get rid of some of those extra credit cards. The more credit cards you have, the more likely you are to spend more money than you have available. Start with the cards that have a higher interest rate. Even if you still owe money on the credit card, cutting it up will at least prevent you from charging any more on it.
5. Send Money Directly to Savings
Many people plan to put a set amount of money into their savings account, but they never follow through. To make sure the money makes it to your savings account, set it up with your bank so that money is transferred over automatically each pay period. This will make the money less tempting to spend and help you save more.
These five tips will help you save more money in the upcoming year. This will help you set up an emergency fund that will be there if you ever face a personal crisis. While some of these steps may be difficult at first, you will be happy once you see your savings account starting to grow. Once you start, you are likely to find other great ways of saving money.
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