Saving Money Tips for 2021
This is an article “Saving Money Tips for 2021” by Marc Primo
So here we go again. Everytime a new year begins, most of us vow to be religious in saving money only to fall short before even the first quarter passes. However, for the year that was 2020, many of us consumers have learned the value of saving more than ever before. Last year saw people purchasing more needs than wants with demands on hygiene, cleaning and healthcare products surging along with online shopping. Studies have shown that a whopping 88% of Americans have been worried about the impact of COVID-19 on the economy and most of these transcended to worries about job security as well.
If you are planning to save more in 2021, looking for the most effective ways to do so will require a proper review of where you are now financially. While there are hundreds of tips you can find online about saving up, executing best practices and learning about how to manage your finances is the only real key to being successful throughout the year.
Here are three unique ways that can help you start a savings plan this 2021:
Go for the extreme
No ifs and buts about it, saving money is hard and requires determination on your part to succeed. If you are really adamant on making a huge difference to your piggy bank this year, try committing to an extreme practice that can save you a significant amount, such as going on a targeted diet and shunning junk food or growing your hair longer while on lockdown to cut down on salon expenses for months.
There are many shops out there offering generic clothing and food brands you can try out instead of going for your usual signatures, and terminating your streaming services for more exercise time are a few more examples you can try out this year. Remember, all it takes is commitment to sacrifice a few to gain more in the long run.
Open a savings account
Regardless if you are still in debt or are free of it, opening a savings account is the usual first step when you want to save money. When you do so, go for those with a high yield of interest so that your savings earn some easy cash as well.
Some online banks like Betterment Everyday can offer upto 1.85% passive interest from the usual 0.09%, so be sure to check out online banks as well as opposed to brick and mortar branches near you which offer lower rates. One hundred and eighty-five dollars earned for a whole year may not be much but it won’t hurt if you combine it with other saving strategies to save money.
Learn how to live simple
With all the lockdowns and quarantines we all have had to endure last year, many acknowledged the value of living far more simple lives that they were used to. However, it takes more than just staying at home and paying the bills to save a significant amount of money. Learning how to manage every aspect of your financial life—from saving up to fixing your daily schedule, is a must if you really want to practice a genuine minimalist lifestyle.
First, try to organize your time throughout the day and make sure you strike the right life-work balance. This prepares you mentally on working with money you have on hand or when planning to slice a part of your future profits into your savings account.
Once your mind is clear of all the clutter, review the things you have to pay off, the things you can do without (from more time on social media to afternoon coffee breaks), and how you can automate your expenses and savings.
Making things more simple will absolutely give you more time to focus on where you can invest your money on and set financial goals for the long term. Online, there are many apps that can help you budget your monthly expenses (Pocketguard, Mint, YNAB, etc.), or organize your schedules (Any.do, Clear Todos, Fantastical, etc.) so you can look for other side hustles as well. Pick just one you’re comfortable with and let the app do the rest because that’s what tech is really for—making your life simpler so you can be more productive.