Saving money is an important task. In this blog we shared 3 tips on how to save money in 2020. Easy and Quick!
Our top 3 tips on how to save money in 2020
Managing money by yourself is no easy undertaking. You’re earning your own money, paying your bills, and no one is there to help you out if you get into trouble. That’s why saving is so important, not only for single people but for everyone out there.
With that said, here are three things you can do to help you save money.
1. Save Money for Retirement
Your job may offer to help you save money for retirement, but that alone isn’t something you can rely on. It’s your future, and you better make sure it is a good one. Don’t think that just because you’re young, you don’t have to worry about saving for retirement just yet. You don’t want to find yourself in the situation where you’re adding a few more working years to save a bit more money.
With that said, you need to be proactive about saving for retirement. If your workplace offers a plan to help you save, enroll right away. That way, they can make sure you’re saving money by transferring that cash elsewhere where you cannot withdraw. At the same time, you won’t have to worry about forgetting to deposit either, making it an excellent way to save money in the long run.
Remember, if you’re personally depositing money away, how much you save doesn’t matter, as long as you save something.
2. Be Prepared for Emergencies
One of the biggest problems of being single is when an emergency pops up, you’re on your own. Emergencies, such as medical issues or a car accident, can be a massive blow to your pocket.
Losing a job is also something no one ever wants to encounter. When that happens, you aren’t going to have any cash coming in anymore, leaving you with nothing left if you don’t have an emergency fund to fall back to. That’s why creating an emergency fund is vital for your survival.
The last thing you want to happen is to turn to credit cards when you don’t even have the money to pay back the debt in the first place. It might save you for the time being, but it is going to be a huge problem that’s just not worth the trouble.
With that said, every time you earn some money, set aside a small percentage of it as emergency funds. Making it automated is better, as you don’t have to worry about forgetting to put money away to save.
As to how much you should save, you should have at least three months’ worth of expenses covered. Some people even opt to save up to six months’ worth of salary, and although that’ll take a long time to rack up, it is an excellent emergency plan.
3. Make a Budget
No matter who you are, budgeting is essential in money management. By knowing where your money is coming and where it is going, you give yourself a clearer picture of your financial situation. It also allows you to figure out how much to allocate for each of your activities. For example, you can set some money for food, some more for clothes, and some other for something else. With careful budgeting, you give yourself the ability to avoid wasting money and end up saving more in the long run.
How do you create a budget? There are many software and applications out there to help you out, and it is a good idea to participate. They offer all kinds of ways to help create a budget, and it is up to you to figure out which method works for you. Your goal is to make it as hassle-free as possible to attract you to keep budgeting.
By making sure you have back up plans implemented, you can sleep easy at night, knowing that if any problem arises, you still have something to fall back on. Remember, you’re making your own money and paying your bills, so it is up to you to make the most of what you get.
If you’re looking for financial wellness tips to help you get through the rest of 2020, get in touch with us today to see how we can help.