HAPPY NEW YEAR!!!! Another year has began, another decade is upon us! One of the biggest goals people set on new years is to make more money, or to save more money. However, most people don't really know how to do it. Here's a few tips on how to actually start saving money and seeing results. Lets make this decade the best one yet! #Welcome2020 #Newdecadenewme
1. Think twice before paying off student loans fast
Of course you should continue to pay your regular payments, but take the rest of the money you would use to pay it off and invest it. I suggest trying that for 6 months. See if the rate of return you made was higher than the rate you are being charged on your student loans. If it turns out you made money, continue doing this. If you were better off paying the loans, pay the loans!
2. Start saving for retirement
Most companies have a 401K plan, but some don’t. If you’re company does and you don’t contribute, start contributing asap! If you start saving now, your money will make money for you, saving you from having to make higher payments later on to catch up. If you're job doesn't offer a 401K, you can open an IRA account. IRA is an individual retirement account, and it works pretty much the same way as the 401K.
3. CREDIT CARDS
You guys know how much I love to talk about credit cards and all the benefits they have. Yet, still so many people I speak to are afraid of them. Consumer debt is a scary thing. But using credit cards responsibly is not something to be afraid of. By using your credit card in place of a debit card (if you use a point generating card) you are making money every time you spend. As long as you are not spending more than you can pay back, you are always winning. As long as you pay off your balances properly every month, you will not be charged anything extra. In other words, for spending money you would be spending anyway, you could make some extra cash. This is an easy way to add money to your pocket. Don’t be afraid. Especially, with all the digital advances banks have, like automatic payments. Setting up an auto-pay makes things that much easier for you.
By making more, you have the potential to save more!
4. Try the 30 Day Savings Rule
The 30 day savings rule is when you decide to set aside the money of a potential purchase and wait 30 days before buying it. If after the 30 days you still want to make the purchase, go for it. Most of the time, we get caught up on impulse purchases and spend way more then we should. If you end up not wanting the item anymore, the money stays in your savings account and in turn, helps you boost your savings over time.
5. Divide your income into separate bank accounts
I used to have my entire paycheck go into my checking account, until I realized I was never saving any of it because my access to the money was too easy. When I opened a separate savings account, with a separate card number, that’s when I really began saving for real. 20% of my direct deposit paycheck goes into my savings account that I do not touch, and the rest into checking, where I have access to move it around. After a while you get so used to that balance coming into your checking account, that you naturally adjust your lifestyle and don’t even miss the other 20% that you’re saving. Out of sight, out of mind.
6. STAY BUSY.
This is a huge one for me. When my days are action packed and I’m accomplishing what I need to do (working on my blog, going to church, volunteering, going to the gym, meal prepping, reading, working on my course, studying, etc.) my pockets are a lot heavier. I don’t know about you, but when I’m bored, I like to go shopping, I enjoy having fancy lunches, brunches, and dinners with my friends. I plan spontaneous vacations without much planning… lol. If you're like me, and realize that you spend more money when you're bored or don't have things going on, get busy!!
7. Find ways to INVEST
There are many new apps and websites for investing. A great one I recently began using was acorns. Acorns will round up your change to the nearest dollar and invest it for you. Over time it really adds up, and will generate you more cash than it would've sitting in a savings account. Acorns is a great option because it doesn't really require you to really put anything in, it just rounds your change. Another great option is dabbling in websites like Robinhood and other investment apps. I would suggest to invest 10% of your savings and see what happens. You might be surprised and want to increase that number. The key is to invest in something. Do not leave your money idle in your bank account. Bank interest rates are extremely low and are not doing you any good.
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