Whether you take advantage of online banking or not, it’s a good time to review your budget and finances before 2020 ends. January 2021 will be here before you know it. There are many ways to build your savings even if your income hasn’t changed. No matter what your long-term financial goals are—paying down a mortgage, getting out of debt, or saving for a vacation—these four tips can help now.
1. Stop Splurging
Few of us focus only on essentials when spending money, but you can reduce indulgence by eating out less, planning your visits to the grocery store, taking advantage of coupons and sales, and weighing your wants versus your needs. Avoid buying items in bulk, which can eventually leave you with expired food that must be wastefully thrown out. Plan ahead for big purchases, or even procrastinate when the latest gadget comes out. Buying on impulse goes hand in hand with spending money you shouldn’t.
2. Cancel Subscriptions You Don’t Need
Nowadays, it’s not only magazines or even computer software subscriptions to consider. With so many streaming services on the market, you’re likely paying for at least one or more of them. Think about which subscriptions you’re getting any value out of. Also, review your credit card statements to see where they’re getting charged. Keep a list of the memberships you’ve signed up for and how much they cost, which can help in making cuts or suspending subscriptions that aren’t necessary now.
3. Pay Yourself
If setting aside money is a challenge, try an automatic draft with your bank, so that a pre-determined amount of cash goes from your checking account into savings each month. Also, add up what you’re spending on unnecessary items. Put the same amount into savings on a monthly basis to stock away extra cash or contribute to an emergency fund. If you’ve paid off loans, don’t stop making payments; instead, set aside the amount you were paying so you can soon afford to buy a new car or start saving for retirement.
4. Contact Your Financial Advisor
Review your financial situation with an advisor before the year’s end. A thorough review can look at whether you’re on track to meeting your financial goals or determine if adjustments are needed. This is also good for tax planning, as you’ll have an idea of what you’ll owe Uncle Sam in a few short months. You may also find opportunities to reduce your taxable income and contribute more to your retirement savings plan. At the very least, a financial review reduces the odds of surprises and can minimize worries related to money.
Use Our Products/Services, Tools, and Resources
The People’s Federal Credit Union offers checking/savings accounts, loans with low-interest rates, and e-Services, as well as a Financial Wellness Center to help you save, invest, and otherwise manage your money. Our services, tools, and resources are designed to give you maximum control over your finances. To learn more about our credit union and what we have to offer, continue browsing or call 806-359-8571.