It’s hard enough to save money in the present, but now that 2020 is just around the corner it seems like an impossible task.
The world is changing and, with it, so are the ways we spend our money. The most significant changes are coming in 2020 when things like digital transactions and the legalization of marijuana become standard. Here, are five ways to save money in 2021.
Use technology to save money
For years, I’ve called Black Friday the first major sign of consumerist society’s descent into madness. With cyber Monday soon to follow it was only a matter of time before the other major shopping days and deals would join in the fun.
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It’s worth noting that online shopping has put many of the biggest deals back into the hands of consumers. That means that your old faithful local stores can no longer match the deals you see online. There’s no point continuing to drive to the local store if you can do the same thing from your couch with ease.
So, use tech to your advantage. Check out Google Alerts for deals and deals you didn’t know about.
Automate your finances
By 2025, many people will own robots, so it’s probably a good idea to automate your finances in 2021. By taking charge of your own finances, you will be able to pay down your debt, save more and ultimately feel less stressed about money.
Teach kids about money
When kids reach an age where they want to learn about money, it can be hard to teach them about saving. However, if you teach them the importance of investing, they will develop a strong financial mindset. Teach your kids about concepts such as risk, interest rates, compound interest and dividends. With these skills, they will be able to save and invest themselves, or at the very least, teach their children how to do so.
Give your budget a ‘glow up’
What if you weren’t just worried about paying the monthly bills, but could actually save money in the short term by tracking your spending? Or what if you started to think of your savings as an expense that doesn’t come without repercussions?
The most common way people turn off their spending is to live paycheck to paycheck. But what if you weren’t only thinking about your long-term goals but rather the monthlies as well?
Set goals that will lead to a noticeable difference in your paycheck instead of a few bucks here and there. The key to success is to set smaller and more achievable goals, and to put together a budget to follow to get there.
Try a ‘savings spree’ for one month
How much do you really spend on coffee? There are so many ways to cut corners on your coffee bill, but the easiest is to switch to a Keurig. You’ll spend significantly less than you would on a high-end coffee machine and, most importantly, you can save a ton of cash by doing it for one month.
Save on your health
The days of going to the doctor to get an annual checkup are over. Thanks to the Affordable Care Act, it’s now up to the consumer to make sure they get annual checkups. Most insurance providers provide a discount on a yearly or bi-annual physical. Go to visitdoctorfind.com to see which companies have reduced prices, as you’ll be glad you did when your annual physical costs drop.
Increase your annual retirement contribution by 1%
You don’t need to contribute to an IRA or 401(k) in order to save for retirement, but you do need to save some cash for the future. If you want to retire by age 67, you’ll need about $260,000.
If you contribute 1% of your income to your IRA, that’ll add about $7,500 per year. If you do the same at a traditional 401(k), you’ll put away another $5,500. That’s a total of $11,200, and you’re contributing about 25% of your income.
Keep your credit card balance low
Think of your credit card as a loan. That means your mortgage payment, or car payment or student loan payment, is just another payment you need to make each month. You can pay it off, but you should try not to.
If you pay off your credit card every month, you’ll be in a better financial situation in three years.