5 Ways to Save More Money in the New Year

iQuanti: Saving more money is a common New Year's resolution. But many people who express the desire to save more may not know some good ways to do it. Luckily, saving money can be easy if you make simple habit changes. Here are 5 ways to save money in the New Year:

1. Pay yourself first.

Ever noticed that when you wait until the end of the month to save, there seems to be nothing left in your bank account? Paying yourself first means you're skimming money off the top of your paycheck to set aside for savings. Then, what's left is yours to spend. This approach gives you peace of mind that you can add to your savings, no matter what else comes up during the month.

2. Cut back on subscriptions.

Many families pride themselves on cutting the cable bill by moving to streaming services. But the financial reality is that having too many streaming services or other monthly subscriptions can cost just as much, if not more.

If you know you've gone subscription crazy, create a list of all current monthly subscription services, television or otherwise. Then, prioritize based on the ones you actually use. Be ruthless as you cut back. Then, move any money saved directly into your savings account.

3. Increase contributions to tax-advantaged savings accounts.

Savings that go into a tax-advantaged account, like a company-sponsored 401(k) plan, may actually benefit you more than savings that go into an everyday savings account. If you're not already doing so, make sure you're contributing enough to a company retirement plan to get your employer match.

If you're already contributing to a tax-advantaged savings account, commit to saving 1% more this year. Then, next year bump it up again. These small savings will add up over time and set you up for retirement success later in life.

4. Put credit card rewards directly into savings.

Many credit cards now offer reward points in some form. If you've been using a cashback credit card to earn rewards, start to funnel that money directly into savings. At the end of each month, choose to send those savings right to the bank instead of spending them on gift cards or a statement credit.

5. Consider apps that help you save automatically.

Money-saving apps like Digit or Acorns can help you save just a few dollars a week without you noticing. Just setting aside $5 a day each workday can result in considerable savings. Over a year, just $25 extra each week can amount to $1,300. Then, at the end of the year you can use those savings to pile on and meet your savings goals.

Alternatives to consider if you need money fast

Saving money requires consistency, and it takes a bit of time. But if you need access to money fast, whether to cover bills or cover a sudden emergency, there are loan options to consider. For example, if you have a steady income, you may want to consider a cash advance that you can repay using an upcoming paycheck. Then, once you repay the loan, you can switch gears right back into savings mode.

Installment loans and lines of credit are two other loan options to consider. These options may be better than cash advances when you need access to more money. An installment loan, like a personal loan, can be a lower-interest loan option that has predictable monthly payments. And a line of credit can give you ongoing access to money up to your credit limit.

If you're unsure which loan option is right for you, research the most reputable lenders, eligibility criteria and interest rates. Then, choose the loan that can get you the amount you need with the right loan terms for your situation.

The bottom line

 New Year's is a great time to start fresh and resolve to save more money. Making small changes like paying yourself first, cutting back on subscriptions, increasing retirement contributions, sending credit card rewards to savings, and using automatic savings apps can all help you hit savings goals faster. But if you still need money now, looking at loan options like cash advances, installment loans, or lines of credit might be a smart move.

Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.

Source: iQuanti, Inc.

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Categories: Personal and Family Finances

Tags: personal finance, save money, savings