How to Save More and Spend Less in 2019
When it comes to personal finances, getting out of debt and saving money is a big focus for many Americans; so why not make it your New Year’s resolution for 2019? Below are a few tips to help you reach your financial goals in the new year.
Set Realistic Goals
Break giant long-term goals into smaller ones. If you want to pay down $10,000 in credit card debt, don’t resolve to pay it all off in 2019 if that’s not an obtainable goal for you. Instead vow to slash a quarter of the $10,000 debt. Setting attainable goals will avoid discouragement and lead to positive results.
Track Your Spending
Keeping track of everything you spend money on for one month could put your spending habits into perspective. For example, you might not realize how quickly spending $5 a day on a cup of coffee adds up ($5.00 times 365 days a year = $1825.00 a year). Sure, it’s nice to splurge every once in a while on a robust cup of coffee, but making your own coffee at home will be more beneficial to your wallet in the long run. This exercise of tracking everything you spend money on can help you see where you can cut back to help boost the balance in your savings account.
Build an Emergency Fund
You may not have anything to fix right now, but if your car breaks down or you need to fix your furnace would you be able to do so without draining your bank account and still have money to pay for necessities like rent, utilities and food? Having an emergency fund in place will relieve stress when unexpected situations arise, and ensure that all your other bills are still paid. Setting aside a set amount of cash from each paycheck to go directly into an emergency fund through direct deposit is an easy way to build up your balance without having to remember to deposit money into the account manually.
Make a Budget and Stick to It
A set budget is only as good as your willingness to stick to it. It is a lot easier to over spend when you’re unaware that you’re doing it. Sticking to a budget helps you gain control over your finances and ability to save. Simply sit down and figure out what you must spend money on each month, such as rent, food, cell phone, cable, etc. Subtract that number from your payroll and see how much you have left to save. Ensure to keep some “fun money” for a night out with friends or a splurge purchase.
Getting ourselves into a better financial position is in all our minds; making it the forefront of our 2019 New Year’s goals would be beneficial to everyone.
Sincerely,
Audrey Coffin
CUSTOMER SERVICE REPRESENTATIVE