Saving money is important – there are no two ways about it. Saving money is the key to enjoying greater security in all aspects of your life. There will always be unexpected and sudden expenses – dental work, car repairs, bigger electricity bill than expected etc.
If you have never been a saver, learning how to save money 2020 is the best time to start. Having cash reserves ensures you are never caught out financially – meaning less stress and worry. You are also less likely to rely on credit or loans and more able to invest or treat yourself. The best way to save money is to reduce your expenses and live within a budget.
Budget, Track & Plan Your Expenses
Without a doubt, the best way to save money is to create a budget and stick to it. The best way to create a budget is:
- Start by setting goals, debts you want to pay down, things you want to save for etc. This helps you focus your budget.
- Identify your income.
- List all your expenses. (groceries, bills, food, gifts, fuel, transport, seasonal etc)
- List your needs vs wants.
- Balance your budget – ensuring you are not spending more than you earn.
- Put your budget into action and stick to it!
Once you have your budget set up, it is a good idea to track your expenses and plan ahead. This helps you stay on track and live within your means. One of the best things you can do when planning how to save money 2020 is to pay yourself first.
As soon as your salary is paid, refer back to your budget and pay all debts and bills. Set aside your funds for necessary expenses such as groceries and savings. Keeping your savings in a nominated, high-interest account is a good incentive. Avoid touching these funds unless absolutely necessary.
Consider Purchases Carefully
Arguably one of the most challenging aspects of saving is resisting the impulse to spend. Particularly if you are not used to living to a budget. If you are wondering how to save money 2020 then a good way to reduce your spending and learn to live with less is to pause before you purchase.
Before spending on something, ask yourself:
- Do I need this or want this? A want is not a priority and impacts your ability to save.
- Can this purchase wait? If it can, consider adding it to your savings goals and planning ahead to purchase it later.
Saving requires ongoing discipline and sacrifice.
Focus On Paying Down Debt
Ask any financial planner and they will tell you that before you save, you should reduce or clear your debts. This is because paying interest on debt is counterintuitive to saving. Ideally you would pay off credit cards and ensure you are making all repayments on time.
If you have numerous debts that are impacting your ability to save, consider consolidating your debts or negotiating your debts. The benefit of this being that you may be able to reduce your repayments, minimise the debt and clear it faster.
Seek Out Better Deals
One of the easiest ways how to save money 2020 is to shop around for the best deal. We all have necessary expenses such as electricity, rent/mortgage, phone bills, health insurance etc. Successful savers revaluate the providers of these necessary expenses regularly. Comparison websites can help you determine if you are with the most competitive lender, energy provider, phone company and more.
New deals and incentives come up all the time, so it quite literally pays to review these regularly. Depending on the local rental market, you may even be able to negotiate a lower rent. During 2020, rent has dropped dramatically, many landlords would rather discount your rent than lose a good tenant.
By finding ways to save within your budget, you have more to set aside for a rainy day – helping you learn how to save money 2020.
Review Your Earnings
If all of the above still doesn’t help you save, consider other ways to boost your income such as:
- Asking for a raise or volunteering for overtime if available.
- For families; review subsidies and payments available from the government to help with the costs of raising a family.
- Sell unused items via an online marketplace.
- Take on an additional job.
Gain Control Of Your Debts And Save Money 2020
Knowing how to save money 2020 sets you up for future success. If your debts are impacting your ability to save, speak to the experts at Debt Consolidation Australia. Our friendly and knowledgeable experts can help you to get out of debt and save for your future. Contact us today.