All of us are wishing to start the new year right. You may have already started your New Year's resolutions earlier this year, but it is never too late to add saving money on your list.
Most people live paycheck to paycheck. This is the excuse they use for having no space to save some cash. According to CNBC, millions of Americans have no emergency funds, while other reports claim that less than 50% will retire broke. The reason is that they don't save money - enough to cover emergencies, retirement, and other future expenses.
The good news is, anyone can save money - only if you put enough patience and work on achieving a financial goal. Here are five smart ways to save money and hack your way towards financial freedom.
Prioritize your needs and delay instant gratification.
First, pay for necessities first before indulging on your wants. Always prioritize the things you can't live without such as food and shelter, and pay for your utilities, bills and monthly debts before buying items you can live without. By giving in to temptations without thinking of the consequences, you won't only end up broke, but also with negative credit and bank account.
Before you go on purchasing that expensive bag or going on a field trip, try to delay it for days. This way, you'll have enough time to think through if it is worth your money, thus letting you categorize it whether or not if it is an actual need or just a want.
Avoid opening new lines of credits.
If there is no immediate need for you to open a new credit account, then refrain from doing so. Having another credit card will not help you improve your FICO score, nor will it do any good for your finances. You’re only adding debt under your name since you’ll have another access to funding your cravings.
Click the unsubscribe button.
You might think you’re getting the best deals by subscribing to tons of newsletter from your favorite brands. But in reality, you’re only tempting yourself to spend more than what’s necessary. Unsubscribing to promotional emails lets you save cash and put it somewhere that will benefit you for more extended periods.
Think of saving as part of your expenses.
The best way to save money and keep on doing it is by treating your savings as one of your major expenses. Every time you receive your income, set aside at least 20% of it as your savings then put the majority of the rest for your needs and the remaining as your budget for wants. By doing this, you’re obliged to save up money every month, thus increasing your chances of growing your savings account.
Do spend on items that will help you earn.
Saving money doesn’t necessarily mean you can’t buy anything other than your needs. For one, you can make purchases that will help you earn more money such as a faster computer to replace your old and slow pc. Or maybe if your current car needs major repairs and buying a new and reliable vehicle would be more beneficial, then opting for the second option would be the best decision for you.
Prioritizing needs and delaying instant gratification, saying no to new credits, clicking the unsubscribe button, treating savings as an expense and spending things that can aid you in earning more, you get to save more and achieve financial goals in no time.