Each new year is an opportunity to be better than the year before, and that includes your finances. So, if you’re looking to save more money this year, here are a few budgeting and saving hacks that’ll leave more money in your pocket.
1. Negotiate Your Bills
Although this may sound too good to be true, with the right services, you can make your bills more manageable. Companies like Rocket Money, formerly Truebill, reach out to your service providers to negotiate lower bill payments. Depending on your charges, you can even get refunds for bank fees. Rocket Money does take 40 percent of the savings while you get to save the rest. But if they can’t save you anything, you don’t have to pay.
2. Create a Formal Budget
Yes, you’ve probably heard this one before, but creating a detailed budget for your finances goes a long way. The way you craft your budget is first and most important part of creating one. Budgeting is more than deciding to spend less, but taking the time to track all of your expenses so you can see exactly where your money is going. This will help you better manage your money, lock in a plan and help you put money away to help build your wealth.
3. Cut the Cable Cord
Television has evolved over the past couple of years, and for many streaming your favorite shows is the new TV experience. Take a look at what your family watches the most, and if it’s not cable TV, which can run you $100 or more, it could be time to switch to a streaming service. With most streamers, you usually don’t have to worry about hidden costs, contracts or leasing equipment.
Your viewing experience can also be commercial-free, on-demand, and you don’t have to spend money on channels you don’t even watch. You’ll only pay for your internet bill and the streaming subscriptions of your choosing. There are also bundles like the Hulu offer, which includes Dinsey Plus and ESPN Plus; everyone in your household can get what they want without having to pay for separate subscriptions, which can be cost-effective.
4. 50/30/20 Rule
The 50/30/20 Rule one is an oldie but a goodie. When personal finance expert Humphrey Yang created the finance breakdown, he gave people a simple way to save. No matter how much you make, it’s a good guide to use to avoid overspending and taking care of your financial needs.
The breakdown goes like this: 50 percent of your paycheck goes toward necessities, like rent or an electrical bill. The 30 percent can go to the things you want, like clothes, the movies and other nonessential expenses. And the 20 percent will go into your savings.
5. Make Saving Automatic
Take advantage of your bank’s automated account transfer option and schedule your money to be pulled from your direct deposit straight to your savings. It takes out the middle man (you) and saves you the mental effort of transferring money into your savings. It also eliminates any procrastination or the urge to make excuses for not saving. Making your savings automatic allows you to pay yourself first, which will only help you grow your wealth.