We frequently kick off the new year with ambitious intentions. If you’re like most people, those plans probably involve getting your finances in better shape.
In the Savinly community, many participants answered a survey about their goals for the new year indicating they want to put more into savings in 2020.
We’re rooting for this to be a resolution everyone keeps. Below are some practical tips to help you reach your savings targets.
1. Give Your Savings a Purpose
Having a clear motive for not blowing your entire paycheck makes it easier to resist impulse buys when temptation strikes.
Maybe you’re building an emergency stash so an unexpected car repair doesn’t sink you further into debt. Perhaps you’re saving for a long-awaited vacation.
Keep that reason front and center so you remember why you’re forgoing immediate gratification. You can even rename your savings account to reflect that objective.
2. Make Your Targets SMART
Saving in general is helpful, but you’ll likely succeed more with a goal that’s SMART — specific, measurable, attainable, realistic and time-bound.
How much do you intend to save? By what date? How much must you set aside each pay period? Can you afford that amount while covering your essential bills?
Adding concrete details to your plan makes a big difference.
3. Automate Your Savings
Savings won’t feel burdensome when you arrange it to happen automatically.
Pay yourself first by changing your direct deposit so a slice of each paycheck automatically goes into savings. You won’t miss what you don’t see.
Or set up scheduled transfers from your checking account to your savings right after payday.
4. Use an App to Do the Saving
Want assistance building your savings? There’s an app for that.
At Savinly, we like harnessing technology to help us stash cash. Check out our favorite money-saving apps. These services help you tuck away spare funds and make the most of them, even if you’re starting small.
5. Try a Savings Challenge
Putting money aside can feel monotonous — unless you turn it into a game.
Begin the year with a playful method to pile up cash. These saving challenges will keep you engaged and push your limits — and if you follow through, you’ll end up with a nice payoff.
6. Choose Cheaper Options
Trim your spending by opting for lower-cost alternatives for everyday purchases.
Hit the thrift store instead of the mall. Check out the farmer’s market rather than higher-end grocers. Pick generic brands over name-brand items.
Save the difference and channel it into your savings account.
7. Cut Recurring Costs
You’ve got monthly obligations — plus groceries, fuel and other essentials that won’t disappear. But if you shave a couple hundred off those recurring charges, that’s extra money you can save.
Call your cable, internet and mobile providers to haggle for a reduced rate, or switch to a less expensive plan. Lower housing costs by renting out a spare room on Airbnb, taking on a roommate, or exploring coliving options.
Review past statements to spot monthly fees you can eliminate — like that gym membership you never use.
8. Try a Cash-Only Regimen
Using debit or credit cards makes it easy to exceed your budget. Say goodbye to savings.
With cash, though, you have a finite amount. If you only carry a $20 bill when you go to lunch, you can’t buy something that costs $24.95.
Switching to the envelope system with cash can help you adhere to your spending plan, protecting your savings.
9. Boost Your Income
Increase your inflow so you have more money available to stash away.
Ask your manager for extra shifts or try negotiating a raise. Pick up a side hustle or a part-time position you can do from home. Or generate one-time cash by donating plasma or selling clothing online. Every bit helps.
10. Add Accountability
Just as a workout partner helps you keep to an exercise routine, a money buddy can help you hit financial milestones like saving more.
Check in with your accountability partner when you need moral support to resist a tempting purchase. Celebrate achievements with them when you reach savings benchmarks.
Another way to stay responsible is by tracking your spending regularly, which makes you more aware of purchases. Writing down daily expenses — and seeing them in black and white — can curb careless spending.
Nicole Dow is a senior writer at Savinly.
