It’s that time of year again when we all set forth to achieve our New Year’s Resolutions. This year and every year, why not make saving money a top priority? You will save yourself a headache later on by not worrying about how you will pay bills, if you’ve saved enough to buy your kid’s birthday presents, or if you can fill up your gas tank or not. Here are tips to keep your New Year’s resolution of saving money to keep your budget on track this year.
Rule of Thirds
Anytime you get unexpected money or a bonus, divvy it up into thirds
- One third for the past to pay down debt
- One-third for the future by investing or putting into a savings account
- One-third for the present to buy yourself something you want or to fix up your home
Keep an Emergency Fund
In life, something always comes up be it car repairs, medical bills, or a job layoff that can put your bank account in the red. Make sure you are prepared by saving enough money to cover your bills for at least 3-6 months. Opt to invest your money in a money market account since they tend to yield slightly higher interest rates than basic savings accounts.
How much is enough?
Most financial experts advise having enough cash stashed back to cover your monthly expenses for about six months. To calculate how much you are going to need, first track your spending for a month. Determine how much you pay in bills, and how much you need for gas, groceries, and extra spending cash. You may find that you can cut corners and up the ante on your savings.
ATM or debit cards tend to cause us to make impulsive purchases. You may not realize it, but those small, seemingly insignificant purchases add up quickly! You could easily be busting your budget by spending money on frivolous purchases such as a candy bar at the gas station, a pack of gum, or eating out for lunch every day. Instead of using your ATM card, withdraw enough cash from the bank to last you all week as your “walking around money.” You will think twice each time you go to spend it!
This may sound silly, but you must pay yourself every payday. You write checks or pay bills online each month, but what are you paying yourself or your future self? Be sure that you are saving for retirement; even it seems like a minimal amount now, it will add up throughout the years.
Set a Budget
This sounds daunting, we know, but tracking your spending is the only way to stay on top of your money flow. You have to collect all information including your income, bills, and costs for gas, groceries, and other necessities. Be sure that you get detailed about your spending, and track it on a spreadsheet or in a notebook that you can refer back to later on. Check your budget each month to make sure you remain on track. Never spend more than you make.
Cash Advance in Murfreesboro
Even when you are working on getting to a comfortable spot financially, sometimes you still need a little help. That is where A1 Cash comes in – we provide cash advances, car and title loans, check cashing services, and more!
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