7 tips to save money in 2020. Need some advice regarding saving money? This need is an excellent resolution. At some point in our life, we need to think about how to prepare for the future, financially.
People have different reasons to save money; it could be for rainy days, emergencies, or for retirement. One might want to save, And if you are not naturally a savvy person, you might want to think about ways to make the habits.
Here are 7 tips to save money in 2020 and get rich.
1 – ESTABLISH A BUDGET
The first thing to do is to know how much is coming in, the income. And how much is going out, the spending? Know your spending habits, and from that establish a budget, and a financial plan that suits your needs, and try to stick to it.
2 – STOP WASTING MONEY ON THINGS YOU DO NOT NEED
Once you establish your budget, you should only spend on things you need and not things you want. It would help if you refrained from following the trend, that always incites, and encouraged spending on things you do not necessarily need. Only buying things you genuinely need will surely increase your savings.
3 – LIMIT THE USE OF CREDIT CARDS, STORE CARDS
You should limit your use of credit cards or store cards as usually, the interest could be high, especially if you fall behind your payment.
If you still want or need to use a credit card, consider Moving credit card debt to an interest-free balance transfer credit card means you are not paying high interest and can concentrate on paying back the money you own.
4 – USE MORE DIRECT DEBITS, CONSIDER CARRYING CASH
To avoid penalties, and late payment fees, which could be quite a substantial amount, consider using direct debit for your essential bills such as energy, water, and car insurance.
It is a good idea to carry cash for your shopping; this will somehow motivate you to stick to the amount of money you only have. Therefore help you to save.
5 – SHOP WISELY, USED SECOND-HAND ITEMS
It would help if you were wise when spending on things. Only spend on things you need, and stay away from offers or promotions such as buy one get one free, half-price sale, that sometimes encourages you to purchase things you do not need.
It is a good idea always to make a shopping list when going on groceries shopping, make sure to stick to your list.
Consider buying some items second-hand, such as household items, cars… There are most of the time very good, and you will save a ton of money.
6 – OPEN SAVINGS ACCOUNTS IN A DIFFERENT BANK
Another thing to do is to open your saving account in another bank especially if you are someone who likes to do online banking; as this will take the temptation away of you seeing what you are saving and wanting to use those savings. By doing so, check different saving rates and chose the best one.
7 – CHECK YOUR BILLS AND YOUR BANK STATEMENTS
Know when your bills contracts with providers are ending. After initial deals, prices usually increase. Understanding your energy, broadband, car insurance, and home insurance terms of the agreement is essential. Knowing when a contract will allow you to switch providers or haggle with your existing one.