Every new year, we try to find ways to begin the year with fresh, healthy resolutions. Whether it’s living a healthier lifestyle, getting out of debt, being more adventurous or traveling, we set goals to become a new and better person. People often give up on their resolution after a few weeks and then start another one at the end of the year. Start building healthy saving habits with these tips so you can conquer your savings resolution.
CREATE A BUDGET
Spending money is so easy when we have credit cards and online shopping at our fingertips. Setting a budget with percentage allocations will help you keep track of what you’re spending. The 80/10/10 allocation is probably the most familiar way of budgeting. Eighty percent of your income goes to living expenses, 10% to savings and 10% to charities, churches or other organizations. Nerd Wallet suggests a different way to budget your money with the 50/30/20 allocation. This budget suggests 50% of your income to go to living expenses, 30% to your wants and 20% to savings. This allocation is great for people who are trying to get out of debt or who want to save for something quickly.
REFRESH YOUR KNOWLEDGE
Another way to help you accomplish your New Year’s resolution is to refresh your knowledge. Some financial institutions offer online tools and educational pieces on different topics to help you stay on top of your finances. Seminars are also a great way to get tips and insights to help you get on the right track to managing your finances.
OPEN A HIGH-YIELD SAVINGS ACCOUNT
If you have extra savings and want a super easy way to make them grow without having to work for it, consider investing them into a Money Market account, certificate of deposit or other high-yield savings account. If you do not have extra savings, consider trying to save at least the 10–20% recommended above and invest it into a Money Market account or other kind of savings account.
GET RID OF DEBT
Having debt may also prevent you from growing your savings so try to get out of debt as soon as possible by using 20% of your income toward your debts — this could even help you save on interest! Try to limit your spending on your credit cards and pay off the amount due instead of accumulating more.
Look ahead to what you really want. Whether it is a vacation in the new year, getting out of debt, buying a car or making a down payment for a home, think of your long-term goals instead of your short-term wants. While it may seem difficult and almost impossible to accomplish a savings resolution, try to have someone keep you accountable. Speak with a financial adviser to see how they can help you meet your goals.
GECU is available to help you save more. Federally insured by NCUA, GECU has the tools and solutions that you need to save. Visit gecu.com today or call 778.9221, toll-free at 1.800.772.4328, to see how GECU can help you save and to find out how easy it is to become a member.