With the new year upon us everyone is looking for a New Year’s Resolution. If you are still struggling to find yours it is not too late, we have a suggestion! We want to make 2018 the year of saving money. While this always sounds like a good idea, a plan is needed if you actually want to start saving! Here are our New Year’s Resolutions to start saving money!
Divide up any extra income
If you find yourself come into any extra money, us the rule of thirds to decide how to use it!
Designate one third to pay on a debt owed
Put one third into savings
Use the last third on a purchase for yourself!
Contribute to your emergency fund
If an emergency pops up, are you financially ready? A lot of Americans are not prepared for large, unexpected expenses. How much is enough? While it is hard to say how much you need because emergencies, by their nature, are unpredictable, a good rule of thumb is to have at least 3 months’ worth of your monthly expenses. Take your monthly budget for everything you spend money on and just multiply by three. Doing this can prevent your savings account getting wiped out in an emergency.
Leave your debit card at home
One challenge you can make for yourself is to have a set amount of walking around money, and then leave your debit card at home! It’s a lot easier to stick to your budget when you have a finite amount of cash on you.
If you don’t have a budget, make one! (and stick to it!)
The easiest thing you can do to start improving your financial health is to write out a budget and stick to it. Write out your monthly expenses and your monthly income. Add up all of the totals of your expenses versus your income. The most important thing is to make sure you are bringing in more money than you are spending.
Make 2018 the year of saving with these simple resolutions! If you have any questions about budgeting or investing, visit our website or call us today to speak with a banker!