7 New Years Savings Tips that Work - CCCU
Thursday, January 16 CCCU
New Year's Savings Tips to Save You Money in 2020
Make the New Year a chance to start fresh and set a goal to make a few positive changes to your money habits. Read how to set a practical and effective New Year’s savings plan in 2020!
While you can set goals at any time, the New Year is an excellent opportunity to make a few lifestyle adjustments to improve your financial health. Many people vow to eat better and get more exercise, but improving your financial fitness
is another great objective to set in 2020. If saving money
in the New Year is one of your resolutions, you might be wondering where to begin. At CCCU, we’re all about setting you and our Portland credit union members up for long-term monetary health. Continue reading to learn how you can set a practical and effective New Year’s savings plan!
1. Set goals
The first step to sprucing up your financial habits and saving money in the New Year is to set achievable goals. You should be specific and map out an attainable timeline that includes short-term and long-term financial objectives of any size. That way, you’ll be able to celebrate victories as you begin your New Year’s savings challenge, which will encourage your account to keep growing.
If you commit to saving a little more and spending less, your New Year’s savings plan could become vague or ineffective. Again, set goals. Do you want to save $400 over the next two months or $5,000 by the end of the year? Write it down and remember your objective! Or better yet, enter your annual savings goals into a calendar or a spreadsheet so you have a clear visualization of your timeline. When you’re close to achieving your New Year’s savings challenge, you’ll continue to be mindful of your spending habits until you eventually save what you want.
2. Monitor your spending
New year's saving tips don’t have to be difficult. One of the most effective strategies to save money in 2020 is to monitor your spending
. People tend to think they have a pretty good idea of where their money goes. And yet, when you actually look back at your purchases, you might be surprised by how quickly each sale adds up. If you’re starting the New Year’s savings challenge for the first time, we recommend opening your banking app a few times a day to view your checking account balance. While this might seem excessive, small purchases and pending charges can make your account fluctuate throughout the day, which might give you the impression of a higher balance.
Spending apps like Mint
are excellent tools for monitoring your checking account. You can also use these to set a budget, which is an essential component of saving money and often helps our Portland credit union members achieve the 52-week money challenge
3. Cut-out things you don’t need
Once you’ve done a thorough review of the monthly debts processed in your checking account, you may want to consider cutting a few things out as you enter the New Year. Think about which habits, items, subscriptions, and bills are essential and which ones you can live without. Cutting out a weekday latte can save you a substantial amount of money –– and you might not miss it if you learn to make your favorite drink at home. Also, if you subscribe to multiple TV streaming services, you may be able to go without cable and reduce costs more.
On that note, do you have a gym membership or a recurring charge for fitness classes you never use? Are there any unused apps on your phone that require a paid membership? How about a magazine or newspaper you never read? While each of these monthly charges might seem insignificant, they can add up and prevent you from saving what you want. Nevertheless, we always tell our Portland credit union members, “If you love something, keep it. But if you can take it or leave it, you might as well save the money.”
4. Schedule transfers to your savings account
Make 2020 the year of the transfer. When money is deposited into your checking account
, it can be tough to convince yourself to save it –– especially once you’ve already seen it. Another smart way to save more in the New Year is to schedule savings transfers
for each payday. That way, every time you get paid, a specified amount will automatically be transferred to your savings account, so you’ll never miss it.
5. Save a little every week (or every day)
Speaking of savings transfers, a less common strategy is to save a little bit of money every week (or even every day). Start by setting a weekly or daily reminder on your phone. Each time you see that reminder, ask yourself if you can afford to transfer $10 (or another modest amount) to your savings account. Of course, sometimes you might have a relatively low checking account balance and may pass on saving that day –– and that’s totally OK! The point is to check in with yourself often to get into the habit of saving a little at a time. If you’ve got the cash, go ahead and transfer it over to complete your New Year’s savings challenge even quicker. For example, if you save $10 a day for an entire year, it would add up to $3,650!
7. Reevaluate your plan every month or two
Life is full of unexpected changes and surprises. You could encounter new medical bills or a rent increase can suddenly surface out of nowhere. On the other hand, you could get a raise or a job that pays more. It’s a good idea to reevaluate your savings plan every month or two and adjust your New Year’s savings plan accordingly. If you need to slow down, try not to be too hard on yourself either. If you can afford to increase the amount you save each month, try it out if it makes sense for your lifestyle.
Savings accounts from CCCU
At Consolidated Community Credit Union, we want to help our Portland credit union members plan for their futures right. In addition to primary savings accounts, we offer retirement accounts, first-time homebuyer savings accounts
, holiday savings accounts, money markets, and share certificates. Participating in the New Year’s savings challenge? Open an account
today, or contact a member of the CCCU team to find out which savings plan will best suit your needs.