Fresh financial habits to maximize your savings.
A new year is a great time for a money makeover. If you struggle with saving, or want to save even more than you do already, here are seven strategies worth implementing.
30-day rule
One of the simplest ways to avoid impulse purchases is to apply the 30-day rule. As the name implies, this rule involves waiting 30 days before deciding whether to make a purchase. Observing this rule each month is a great way to build a long-term habit of making delayed purchasing decisions.
Shopping lists
Whether you’re grocery shopping or clothes shopping, an easy way to avoid unplanned purchases is to make a list. Make sure to stick to the list and ignore anything not on it. This strategy will help you buy only the food and clothing you need, rather than splurging on junk food that you might not eat or trendy apparel that you might only wear a few times.
Nights in
While having a night out with your partner or friends can be refreshing, it can be a pricey habit. Limit evening outings by opting for alternative entertainment and food at home. Try having a game or trivia night, or an appetizer potluck, with friends the next time you crave a get-together.
Pay down your debts
School loans and credit cards can have high interest rates that add up over time. Pay down your debts as soon as possible to maximize savings. If you’re not sure where to start, begin with the loans or accounts that have the highest interest rates.
Master the art of sewing
Knowing how to sew can help your wardrobe last longer and reduce the need to buy new clothes. For starters, learn how to sew a hem, mend a tear and hem a pair of pants. If you have the discipline and time, learn how to do basic alterations to save even more by avoiding a tailor the next time you need a piece of clothing taken in or out.
Use automatic deposits
Put modern banking methods to use by setting up automatic deposits into your savings account each time you get a paycheck. It’s an easy way to stay on track with your saving goals. It can also help to keep your savings account at a separate financial institution from your checking account. That way, it’s a bit harder to access the funds for nonessential items the next time you feel like making an impulse buy.
Make your own meals
Frequently eating out can take a toll on your savings. Cook your own meals regularly to reduce monthly food costs. You can also implement budget-friendly dishes, such as soup and pasta, into your meal plan to save even more money.
By applying these seven tips, you’re well on your way to a more lucrative new year and building healthier financial habits that will pay off in the years to come.
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