What are your new year’s’ resolutions for 2019? The new year is just starting, but it’s the best time to set goals for your finances. That includes savings. Here are some hot tips to make the new year a great one for savings:
1. Create a debt strategy (if necessary)
If you’re starting 2019 in the red, then one of your New Year’s resolutions should be to get out of debt. Not only that but try to achieve that goal as soon as possible.
Make sure to prioritize not only debt but also the high-interest debt. That includes things like credit cards and short-term loans. Then focus on less expensive debt like for homes and cars.
2. Revisit your monthly budget
January is the perfect time to take this step. It’s reasonable for your finances to get a little out of control during the holiday season. Afterwards, it’s time to get back on track, and one way is to revisit your monthly budget.
2019 is also the Year of the Pig. The start of the year is the perfect time to revisit your budget and trim the fat. See where you’re spending too much money so you can save more in 2019.
3. Consider monthly school fees
This might seem to go against conventional wisdom. If you pay your child’s tuition in a lump sum won’t you get a discount? Yes, that’s the case.
On the other hand, if you make monthly school payments, you’ll pay the same amount each month. You also won’t be charged extra interest on the balance. So in a sense, it’s like an interest-free loan although you aren’t taking out a loan.
4. Save any surpluses
What if you have a surplus at the end of some months during the new year? Save as much as possible. Yes, you can treat yourself to something small like a movie or pizza.
However, it’s highly advisable to save most of your surplus for a rainy day. Keep in mind there probably won’t be a surplus every month, so it’s important to be ready for those times.
You should also take this step if you’ve received a salary raise. This is another chance to blow all of it on “stuff”, but you should arguably try to save as much of the surplus wages as possible.
5. Revisit insurance costs
January is a good time to reexamine your short-term insurance costs. Just because you were paying the lowest rates last year doesn’t mean that’s still true in 2019. Shop around.
Get quotes from different providers and make sure you’re paying the lowest rates available. Take this step for different types of insurance like home, auto, and health.
6. Set financial goals
The start of a new calendar year is the perfect time to set financial goals for the next 365 days. Do you want to dig yourself out of debt? Do you want to boost savings for home, college, or retirement? Would you like to save up for the down-payment on the house?
While saving is important, it’s just as important to have a plan/foundation for that saving. Setting financial goals is critical, so you have a purpose for your saving. This also serves as a good motivational tool for saving.