2020 was tough. A massive economic fallout left many people with additional debt and economic anxiety. Increasing your savings in the new year can be easier with the right strategies. Try these effective ways to build up or replenish your savings account.
Start off by hitting unsubscribe from all those store email lists. Even if we have the intentions to save, seeing an email for 70 percent off at our favorite store will always be tempting. It’s better to eliminate all those risks. Next, unsubscribe from any phone apps and subscription services that are hardly in use. Check with your monthly bank statements to see what you’re paying for and track all your subscriptions. Take it a step further and set up automatic monthly transfers for the same amount of the subscriptions you’re cancelling. Even a $15 monthly streaming service can turn into a $180 for your savings account by the end of the year.
The 50-30-20 Budget
Take a new approach to your budget with the 50-30-20 rule. With this formula, take 50 percent of your take-home pay and use it for needs like housing, food, utilities and other must-haves. Use the thirty percent towards any wants, like meals out or monthly subscriptions. The final 20 percent goes towards savings and debt payments, prioritizing high-interest debt or emergency funds.
Next time you’re out shopping for groceries or essentials consider buying in bulk. This will ultimately reduce the cost per unit and limit the trips to the store. You’ll also cut back on any impulse purchases when out shopping.
Sign Up Bonuses
Many credit cards offer bonuses when signing up for the first few months. The key here is to take advantage while limiting actual spending with the card. If you do decide to spend, only use it for purchases you can afford at the moment and will be able to pay off by the end of the month.
Source: Apartment Therapy