Ways to Save Money in the New Year
by Katie Farmer
The start of the new year offers the opportunity to set goals, which often trend toward focusing on money. There are many avenues you can venture down to help reduce debt, build wealth and improve your credit score. By focusing on your financial resolutions you can end the year better off than where you started.
Investing is one of the fastest ways to build wealth. By investing in stock, bonds and other assets you have the ability to have a profitable return. This can get confusing and is difficult to understand but contacting a financial adviser helps with a lot of these questions. There are also some Apps that do help invest for you; Acorn and Stash are a few that are worth looking into.
2. Emergency Fund
Starting an emergency fund is very important when it comes to being financially stable. Accidents happen; people loose their jobs; having an emergency fund of 3 months of living expenses helps the blow of such tragedies. It does help to have a savings account to help allocate money from paychecks so you are not tempted to spend it. It is okay to start small and build throughout the year.
3. Pay off debt
You can start by adding more money to your payments and by paying off the debts first that hold the highest interest rates. These rates add up and will cost you in the long run.
Another important factor for a healthy financial life is to have a budget. Create one that you can stick to and that works for you. There are tools online that have outlines and calculators if you are needing assistance. Also, they can be altered as life happens so don't worry about getting it perfect the first time.
Having a retirement account is great for your future. A lot of companies help invest and match a portion of your contributions to help, but if they do not you can set up your own retirement account. It also is worth considering a Roth IRA or Roth 401 (k) which we do offer at Wahoo State Bank.
6.Spend less money
A common sense practice would be to spend less money in 2020. This frees up money to invest with or put into savings; building your overall wealth. Try to start with doing some research and maybe finding a cheaper cell phone company, cutting cable, reducing your Starbucks trips, bringing your lunch to work or even a meal delivery service.
7. Side Hustle
Last but not least, many people have invested time into a side hustle. This can be something that is more of a hobby that you enjoy doing but brings in some extra money. Also, Lyft, Uber, Rover and Shipt services are just a few businesses that offer unique money making opportunities to anyone looking for some extra cash.
Think about what you want the upcoming year to look like; make a plan, set some goals and make the most of 2020!