2020 has been a year like no other. The COVID-19 pandemic has pummeled the economy and put a financial strain on many families across the globe. Now more than ever, people are finding it difficult to get ahead. Even with the considerable disruption that the virus has caused, it is still possible to save a lot of money. With a little creativity and some diligence, you can create a substantial nest egg.
Set a Goal
You can’t expect to save any money without setting a target. Just like any other goal that you set, saving money needs to be approached with consistency, motivation, and accountability. Whether you want to save $100 or $10,000, a benchmark can help you see it through to the end.
Automate Your Savings
Schedule recurring paying biweekly or monthly from your checking into a high yield savings account. This tactic reduces your temptation to spend your money before you can save it. Adjust your lifestyle to live without the extra capital that you are setting aside. Automate your employer contributions as well, so it’s out of sight, out of mind.
Find Online Deals
With a little digging, you can find some fantastic deals from the comfort of your computer. There are many great online deals websites out there ready to be found. With a bit of research, you’ll be saving money in no time. You might have more time to browse around on Sunday afternoon, but you could potentially land a lot better price on Wednesday. Search for any coupons or promotions to save even more money. Pay attention to all of the trends, and watch your savings skyrocket.
Save Your “Extra” Money
A lovely birthday gift, tax refund, or pay raise are some extra funds that are tempting to spend right away. Every little bit of cash will add up over time, and you’ll find yourself in a great position.
Saving money alone can be challenging, so why not involve your family or friends. A husband and wife or best friend combo can accelerate your savings to uncharted territory. Set up the terms, and keep track of each other’s contributions to prevent any arguments when it’s time to collect.
Limit Credit Card Usage
A debt of any kind will hamper your saving goals. Imagine investing your credit card payments towards your savings each month. Once you’ve paid off your credit card debt, begin using your cards responsibly in order to improve credit. Use them to get gas or buy groceries with the intent of paying off the bill in full at the end of every month. Doing so demonstrates proper credit usage while avoiding the debt trap associated with using credit cards on a regular basis.
Quit the Daily Coffee Run
Small charges can add up quickly if you’re not careful. Coffee, fast food, and mindless spending will prevent you from reaching your financial goals. Invest your daily five-dollar coffee run into a stock or savings account, and you’ll be surprised how much you accumulate in a month.
It’s easy to save some money as long as you put in the effort. While you don’t need to save every penny you make, it’s a good idea to create a savings plan that is consistent and realistic. Slow and steady wins the race!