Your New Year's Frugal Resolution to Save Money
Posted by
Alexis
Labels:
frugal living,
save money
By Budget Girl, Frugal Living Examiner
Happy New Year! Now is a great time to re-look at your finances.
One key thing to remember that everyone should have an emergency savings account that equals to about 3-6 months of your income. This needs to be established even before you start saving up for a down payment on a home or a new car. You need to protect yourself just in case you lose your job or any other emergencies that may come up. If you currently don’t have this much in liquid cash, make this year the year you start saving up.
Below is a list of common frugal resolutions. You don’t have to commit to them all of them. Just choose a couple from the list to focus on so that you will have a bigger saving account by the end of the year:
1. Stick to a consistent saving strategy without making unnecessary withdrawals. If you haven’t already, set up an automatic deposit from your checking account into your savings account. But don’t get overzealous and try to save more money than you can afford each month. You don’t want to feel like you need to dip into your savings account every month, so pick an amount you can stick to. Leave the money in your savings account and forget about it.
2. Switch to an online savings account with banks like HSBC or ING. Because their operations are mainly online, they avoid the overhead cost of brick-and-mortar banks (Wells Fargo) and pass on higher APY (interest) to you. Plus, it takes a few more days to withdraw money from an online saving versus just taking a trip to your ATM from your brick-and-mortar bank. Although I don’t recommend having your sole checking account as a online account, it makes a perfect account for holding your emergency savings
3. Reduce your amount of impulse purchases. Try to use cash when shopping to prevent you from spending more than you plan. Stick to a list. Allow 24 to think about whether you really need an impulse purchase. Don't free bad for giving back items at the check lanes. View my blog post on impulse spending for more details.
4. Explore thrift stores and consignments shops when you are in a shopping mood. You will surprised what treasures you will find and it won't cost you as much damage to your wallet.
5. Start a garden this year. Try to grow your own vegetables this year that will give you organic produce for virtually free. It is also quite rewarding.
6. Shift your paradigm towards budgeting. This year, start to look at budgeting as a financial opportunity instead of a punishment. Embrace the idea that your money does have limits (even the rich has limits on their money.) Instead of feeling depressed that you can't buy new clothes every month, get excited as you see your savings account balance grow over time!
Hears to a frugal and prosperous New Year!!!
Source : Examiner.com
Happy New Year! Now is a great time to re-look at your finances.
One key thing to remember that everyone should have an emergency savings account that equals to about 3-6 months of your income. This needs to be established even before you start saving up for a down payment on a home or a new car. You need to protect yourself just in case you lose your job or any other emergencies that may come up. If you currently don’t have this much in liquid cash, make this year the year you start saving up.
Below is a list of common frugal resolutions. You don’t have to commit to them all of them. Just choose a couple from the list to focus on so that you will have a bigger saving account by the end of the year:
1. Stick to a consistent saving strategy without making unnecessary withdrawals. If you haven’t already, set up an automatic deposit from your checking account into your savings account. But don’t get overzealous and try to save more money than you can afford each month. You don’t want to feel like you need to dip into your savings account every month, so pick an amount you can stick to. Leave the money in your savings account and forget about it.
2. Switch to an online savings account with banks like HSBC or ING. Because their operations are mainly online, they avoid the overhead cost of brick-and-mortar banks (Wells Fargo) and pass on higher APY (interest) to you. Plus, it takes a few more days to withdraw money from an online saving versus just taking a trip to your ATM from your brick-and-mortar bank. Although I don’t recommend having your sole checking account as a online account, it makes a perfect account for holding your emergency savings
3. Reduce your amount of impulse purchases. Try to use cash when shopping to prevent you from spending more than you plan. Stick to a list. Allow 24 to think about whether you really need an impulse purchase. Don't free bad for giving back items at the check lanes. View my blog post on impulse spending for more details.
4. Explore thrift stores and consignments shops when you are in a shopping mood. You will surprised what treasures you will find and it won't cost you as much damage to your wallet.
5. Start a garden this year. Try to grow your own vegetables this year that will give you organic produce for virtually free. It is also quite rewarding.
6. Shift your paradigm towards budgeting. This year, start to look at budgeting as a financial opportunity instead of a punishment. Embrace the idea that your money does have limits (even the rich has limits on their money.) Instead of feeling depressed that you can't buy new clothes every month, get excited as you see your savings account balance grow over time!
Hears to a frugal and prosperous New Year!!!
Source : Examiner.com
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