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Did you decide that 2020 is finally going to be the year in which you hit your savings goals?
If so, then you are ahead of the pack. In fact, about 21 percent of Americans do not save any of their annual income.
In order to hit your savings goals, it is very important that you have the right money management habits in place.
If you are someone who struggles with money management, then you have come to the right place. Read on to discover the top money management tips to hit your savings goals in 2020.
1. Sleep On It
If you are someone who is constantly giving in to impulse purchases, then this tip is for you.
Whether you are thinking about buying a $50 pair of jeans or a $500 flatscreen TV, give yourself some time to decide if the purchase is really worth it. The first thing you want to ask yourself is, "Is this purchase necessary?" Then, ask yourself, "Do I really love this purchase?"
While the answer might be yes when you first look at an item, you may find that in two weeks’ time, that purchase no longer seems so special. Give yourself at least a week before making a big purchase, and at least one night before making any small purchases. At the very least, this will give you time to do some price comparison and potentially find a better deal.
2. Take Advantage of Discounts
Whether you are buying your weekly groceries or shopping for a new dress, there are discounts all around you.
When you are mulling over your next purchase, take some time to look up some discount codes and coupons. Many people think that taking advantage of these discounts means giving up your Saturday to clip out coupons from your local paper.
Gone are the days of print coupons being the only way to save money. There are many websites out there that offer coupons from everything from shampoo to laundry detergent to high heels.
3. Pick Up Some Cheap Hobbies
There is nothing wrong with spending your free time and weekends going out for dinner and drinks. However, it is important to be aware of how much these nights on the town add up.
Luckily, if you are a social butterfly, there are plenty of ways you can get out of the house without spending hundreds of dollars each weekend on drinks and food. Here are some inexpensive, yet exciting hobbies we recommend taking up in the new year to fill your time:
- Join a running club
- Learn to draw or paint
- Join a book club
- Teach yourself a new language or skill
- Host board game nights for friends
- Become a movie buff
- Become a bookworm
- Take up sewing
- Learn how to cook
- Spend the weekends hiking and camping
- Restore old furniture
- Foster animals
- Try your hand at stand up comedy
- Learn the ukulele
- Start a small garden
- Teach others a new skill
Not only will picking up an affordable hobby help you save money, but it will also benefit your health. In fact, studies show that those who have hobbies are less likely to suffer from low moods, stress, and depression.
4. Set Goals and Break Them Into Easy Steps
If your goal for the new year is simply to "save more money", you are likely not going to get very far.
In order to stay motivated in your money-saving endeavors, we suggest setting a goal. You should have one big goal that you want to achieve by the end of the year, as well as several smaller goals to help you stay motivated along the way.
For example, let’s say it is your goal to save $10,000 by January 1 of 2021. In order to reach this big goal, figure out how much money you are going to need to set aside each week or each month.
Also, set up some markers to keep you motivated. For example, maybe it will be your goal to be at $5000 by the end of July.
5. Figure Out Where Your Money is Going
Do you ever find yourself asking, "Where did all my money go?" If you feel like your money is disappearing out of your account at lightning speed, then it is time to get a better sense of your spending habits.
Spend a month or so tracking where all of your money is going. Is most of it going to groceries? Are you spending way more than you thought you were going out to eat? Or, are you splurging on clothes way more often than you should?
Whatever it is, split your spending into categories, and then figure out where you can cut down. For example, if your grocery bill is out of control, then shop at a cheaper store, join a loyalty program, research cheap recipes, and put more attention towards finding discounts and coupons.
6. Use the Snowball Method to Pay Down Your Debt
Saving money in the new year can feel like a daunting task if you still have debts to pay off.
While there are a lot of strategies and advice out there for paying down debt, one of the most tried and true strategies is the snowball method (also known as the avalanche method). With this method, you first pay the minimum amount on all your debts. Then, move onto paying down the debt with the highest interest rate.
Continue to do this until that debt is paid off, then put the minimum you would have put toward this debt plus any extra cash towards your next highest debt.
Are You Ready to Hit Your Savings Goals in 2020?
Now that you have these money management tips in mind, hitting your savings goals in 2020 should be no problem.
Before long, hitting your savings goals will become second nature.
And, if you are looking to save money with coupons and discount codes, be sure to sign up for our service today.