Home Business Insights & Advice How to make 2020 your best year of savings

How to make 2020 your best year of savings

by John Saunders
30th Dec 19 12:47 pm

As the year 2019 is coming to an end, you are probably reflecting on where you are financially wise. You might have had some bad money-spending habits that you want to get rid of. Come 2020, you are setting new financial goals and hoping to achieve them and finally attain the seemingly elusive financial freedom. Remember that financial freedom comes with saving more and spending wisely. You can only attain financial freedom by adopting some financially healthy daily habits. This will not happen overnight but will require great effort on your part. Here are some useful habits that you need to adopt to turn the coming 2020 into your year of saving more than you ever have in previous years.

1. Plan your purchases

The year 2020 should be the year where you have a plan for all your purchases. Instead of running to the store and buying things on impulse, you can begin by planning your shopping trips. Have a list of all the things you need every month and allocate a certain amount to cater for these things. This will help you stick to your budget and avoid any purchases done on a whim. This list should also apply to the things

you buy online because this is what you will need to avoid overspending and having nothing to save. As you plan your purchases allocate the amount to only the things you need.

2. Set up automatic transfers into your savings account

Setting up automatic transfers is one of the most effective ways to save. Set up a few dollars to be auto- transferred into your savings account every week. You can have these automatic transfers every week or every month depending on your earnings. There is no excuse for not saving, you can save as little as $10 a week or any amount that you are comfortable with. As long as you don’t save zero, you will always have a nice nest egg of savings to help with whatever project you have in mind or simply help with your emergencies.

3. Take advantage of discounts and offers

If you can pay less for any item this will work in your favor. This will help you save a few bucks which you can transfer to your saving account or use it to meet other expenses. Any reduction in your expenses is welcome news and it means less financial pressure. Any ease in the financial pressure no matter how little is always better than nothing or increasing pressure. This is why in the year 2020 you will have to keep your ears and eyes open for any discounts or offers on your favorite items. You will find yourself saving a lot of money every month and making your financial status better.

4. Take advantage of cashback apps

If you love shopping and usually don’t take time to research the best deals then you will need to have a reliable cashback app installed. A cashback app such as Paribus will cover both your budget and impulse shopping. It is an app that will help you get your money back especially when you happen to make those whimsical purchases. When the prices drop you will get your money back and you can withdraw it. You also get access to the best coupon deals through an app like Paribus. Cashback apps ensure that you save on most items you buy and this can result in a huge amount of savings when the year finally ends.

5. Substitutions are a great way to save

For you to save money in this manner, consider focusing on the important things and spend more on them. Look at your budget and note the categories that are not important to you, then find less- expensive alternatives to them and buy them. You will find that you are saving a lot of money because they will cost less and still serve their purpose the same as the more expensive item that you have been using. Look at the items you are using, even though you are a strong believer in some of the brands you

are using, maybe for the sake of saving and financial freedom, you should consider less-expensive but quality brands.

6. Pay yourself before you pay your bills

You can ensure that you are not overspending by creating a budget as we have highlighted above. Number one on your budget list before all the other expenses come in should be paying yourself. Paying yourself means taking a certain amount of cash and putting it into your savings. If you only pay yourself after you have paid all the bills, that could be the reason why you have nothing or very little saved up.

Before you spend your monthly earnings on anything, save first and then streamline your budget and make it workable with the remaining amount.

7. Save your bonus cash

When you earn your bonus cash, don’t be quick to run and spend it all on something just to feel great about yourself. You will feel great about yourself and for a long time if you saved this bonus cash and still stuck to your budget. Even if you want to treat yourself courtesy of the bonus, don’t spend all of it, put some of the bonus cash into your savings account. This will hugely boost your saving goals and make your financial year prosperous especially if you happen to receive more bonuses during the year.

8. Plan for that spare change

When you go shopping and have some change left over from your purchases don’t spend it on

something you didn’t plan for. You can always put it in a saving jar at home and use it for a certain saving goal. You can empty your jar a few times a year and you will be amazed at how the coins have added up and become some good money which you can deposit into your savings account to boost your saving goals or you can use it to boost any side hustle that you might have which is bringing in money.

9. Track your progress

How else will you know if you are saving more and doing well financially if you don’t review your money habits and achievements? Take time every month and see the kind of progress you are making. Look at how much debt you still owe and how much you have saved so far. This will also tell you how long and how far you still are towards achieving your saving goals. You will know whether you need to tighten your financial belt or what to do to make your progress more positive. Seeing results will always help keep you focused, motivated to save more and on track.

There you are, the 9 tips to make 2020 your year of saving more and spending less. After you have followed the above tips, you will be closer to financial freedom than you have ever been in years.

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