The Holiday’s are past us, now we start a New year. With the new year comes plenty of resolutions to fulfill. A big one for many is to save money in the new year. Here are a few thoughts to aid you in this quest. As a part of your overall Budget plans, this should help you in moving towards financial freedom.
When discussing saving money this can be divided into two categories. One is putting money back in the savings account or retirement account. The other is saving money through smart purchases. Both of these methods require planning and discipline.
First we will discuss saving money into a savings or retirement account. For the sake of brevity, I won’t talk about the different types of retirement accounts. Some you can make monthly deposits in yourself. Some also require a minimum deposit to get started. I will simply discuss tips for putting money back. Not the different types of accounts and strategies associated with them. So when planning on putting some cash back each month, here are some general guidelines:
- Start small. It is easy to get over your head and too aggressive when saving. Don’t try to change too quickly because you mind end up frustrating yourself.
- Set a goal. Give yourself a goal with a set time line. This will give you stepping stones to work with.
- Make it Automatic. Set up automatic drafts with your accounts to deposit into your savings account monthly. This will take the step of you having to do this manually every month.
The second part is saving with smart purchases. Planning and discipline are a must here.
- Start by only paying with cash. Then carry only the amount you need with you for the day. This will help to eliminate impulse buying.
- Research the product you are buying. The internet is a great resource. You can find out the life of the product, how reliable it is and does it meet expectations.
- Determine the True Value. Often times we think that buying in bulk saves in the long run. However, often times this is not the case. Many times the price per item is the same or even more. Grab a calculator and figure this out before buying.
These are just a few ideas. I am sure many people have more. Just start thinking ahead and you will be well on your way.
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