How to Improve your Saving Strategy for 2020

Improve your Saving Strategy for 2020

The new year is just around the corner, and it’s time to make some positive changes to your life. For some people, that will mean losing some excess weight or giving up a bad habit. However, it’s safe to say that most of us could benefit from a new year’s resolution that centres around saving.

If you haven’t come as close to your financial goals this year as you had hoped, the new year is another opportunity to rethink your strategy and take another crack at it. To help you get started on the right foot in 2020, here are some quick tips that could improve your savings strategy.

1.    Spend Now to Save Later

Sometimes, you need to spend money to save money. For instance, while it might seem like you’re saving a lot of cash by opting for the cheapest computer that money can buy for your home office, you won’t accomplish much if that computer is constantly breaking down or making it difficult for you to get work done. On the other hand, if you invest in something slightly more expensive with the help of a loan, you could potentially benefit from better productivity and more earnings in the long-term too.

Rather than just making your purchasing decisions based on price, ask yourself what kind of value each choice will bring to you in the long term.

2.    Automate your Savings

Automating your savings is one of the easiest ways to trick yourself into saving more money. When the cash that you want to save comes out of your bank account at the start of every month, you don’t see it lingering in your current account, tempting you to use it. Money that goes unseen often gets forgotten about until the time comes to check what kind of progress you’re making towards your goals. Setting a direct deposit is easy with most bank accounts.

You can also consider taking an alternative route by using the Bank of America program, which rounds your debit card purchases up to the nearest dollar, and then transfers from checking into savings.

3.    Access Apps and Plugins

The tech world is full of solutions that could help you to manage your money more seamlessly. For instance, next time you’re shopping online, consider downloading a plugin for your digital browser that automatically applies discounts to whatever is in your basket. You won’t always find a discount code this way, but you could end up saving money or getting free shipping on a couple of purchases.

You can download apps onto your phone that work in similar ways, giving you an insight into some of the offers and sales that are available from your favorite stores.

4.    Play Mind Games with Yourself

Sometimes, we’re our own worst enemies when it comes to saving. We know we should be keeping our money aside for the future, but it’s just so tempting to spend. However, you could always change the way that you think about money. For instance, bill yourself each month for the amount that you want to put into your savings, and treat that as just another mandatory expense. You don’t grumble paying your other bills (most of the time), so this should be no different.

You could also consider hiding your dollars in a place that you can’t see them. If you’re too tempted to check on your savings account when it’s on the same online banking system as your current account, open different accounts with two separate banks. The less you see that money, the less tempted you’ll be to use it.

5.    Get some Help

Often, saving money and learning how to spend less is a complicated process., It will mean changing a number of your most common routines, and learning new habits. If you’ve ever tried to change a habit before, then you’ll know it’s not easy. Sometimes, the process can go a little more smoothly when you have some extra support. If you live with someone, like a partner, ask them to work with you on making your budget work. You can sit down together at the end of each month and see how far you’ve come towards your goals.

Alternatively, if you’re by yourself, you can still find a savings buddy in the form of a family member or friend who also wants to improve their saving routine in the new year. Having someone to hold yourself accountable to can make a big difference.

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