If 2020 taught us anything, it is that we need to be prepared for anything when it comes to our finances. We may be out of work for months, relying on government aid, or having to live off of our savings. We of course don’t want to do any of those things, so it is a good idea to try and boost our personal finances to have something to fall back on, if the time comes! But, how are you going to do that? Well, don’t worry, we have a few ideas that we would love to share with you!
1. Don’t be afraid to stay home
This is the time to stay home and save money! Cooking from home, canceling your gym membership and working out in the garage, or having a glass of wine at dinner instead of at a vineyard, will all help to boost your finances. You will be able to still have fun and enjoy life, just from the comfort of your home. Plus, you will be keeping yourself and your family safe and healthy, which is priceless!
2. Get your budget all squared away
There are apps to help with this one, yes. But if you are a paper and pen person, don’t be afraid to get a special journal to document finances, to make sure you are on track with your budget. Once your budget is squared away, you can really make sure you are thriving in all areas of your finances. You will have every expense written out, that way you can keep track of what you are spending, and where your money is going every month. By seeing everything on paper, you can cut down on unnecessary spending and create a heftier savings.
3. Start investing
Businesses like Robinhood will allow you to have commission-free investing, and they provide you with the tools to put your money in motion. You will be able to invest small amounts and watch them grow over time. Of course, the more you risk, the more you might earn as a reward. But we recommend starting small until you get the hang of things.
4. Ask for professional help
Professionals like the tax experts at Community Tax are there to help you with anything tax related. If you aren’t sure what your tax offset number is, they will help to educate you and create a plan with you to get on track with your taxes and the IRS. This will help you to save money and boost your finances, because you will no longer be paying the wrong amounts, they can help to cut down on penalty payments, and so much more. They are able to help you along the way, judgement-free.
5. Start a savings account
You may have an ordinary savings account, but we recommend getting a second that you never touch! You can have money directly deposited to it from your paycheck, or you can create an automatic transfer from one account to the other on a monthly basis. By having the money automatically transferred or deposited, it makes it so you never even see that money. This will help you cut down on the likelihood of spending it. Out of sight, out of mind.
6. Let apps help you
Apps like Acorns will let you invest a little bit, but will really help you to save money here and there with automatic bank transfers. You can have it rounded up after transactions that leave you with an un-rounded monetary amount—building a savings account. This will be like money you never see, too, because it will round up and transfer for you. You won’t be nervous about spending it, because it won’t be accessible instantly from your debit card!
No matter which methods you choose, there is a savings plan out there for everyone. Be realistic with yourself when you pick which one is best for you, and stick to it! You (and your bank account) will be glad you did!