Despite rising prices, statistics say many Americans saved more money this year, primarily because we spent more time at home. But while the specter of a prolonged pandemic still hangs over us, the slow return to movie theaters, travel and restaurant dining may make it harder to hang on to our money in the months ahead. Here are some money-saving tips to keep your wallet full this year.
- Pay Yourself First – If you’re not already doing so, resolve to skim 10% off the top of every paycheck and bank it before you start paying monthly bills —even if that means you have fewer bucks to spend on stuff you want but don’t need.
- Automate Savings – Pull that belt in a bit further and ensure that a percentage of every paycheck is automatically deposited into your savings account.
- Rein in Credit Card Spending – Credit cards are a useful tool, and often provide benefits like travel rewards or cash back. But if you aren’t paying off the full amount of your credit card balance every month, you’re probably negating the value of any perks and paying interest on your debt.
- Diversify Your Income Stream – When you rely on one job or revenue stream for all your income, you could face enormous financial pressure if that tap goes dry, as many realized during the pandemic. If you have the time or ability, taking on an additional part-time job or side gig could be a smart move.
- Build up Your Emergency Fund – As 2020 demonstrated, an economic shock like losing a job can deplete your emergency fund in a hurry. Experts recommend keeping at least three to six months of cash in an emergency fund. If you have the means, now is the time to be sure your emergency fund is large enough to help get you through a financial calamity.
