No matter your age or income level, we’re all guilty of spending irresponsibly at some point in our lives. Truth be told, you could be the most fiscally responsible individual out there and still make poor decisions. We’re only human.
For the new year, among the many other possible resolutions you may have mustered up, consider also taking a few steps back and evaluating your spending habits. Could you be paying off your debts more by omitting a few luxuries? Do you have more credit cards than you know what to do with racking up interest? If you haven’t started or are slow to make progress on becoming more responsible with your money, there’s no better time to start than now. With the following tips on how to cut back and save in the new year, you’re one step closer to achieving or staying on the right path to achieving your financial goals.
End Recurring Charges
First and foremost, you can cut back by taking a meander in your bank account at your past charges. Do you have monthly or even weekly recurring charges? Perhaps a subscription to an overpriced food delivery service, a streaming service used by friends and family more than you, or a membership to a gym you rarely go to? If this sounds like you, you’re not alone. It turns out that 84% of Americans grossly underestimate the amount they spend monthly on digital subscriptions, spending around 40% more than expected. These weekly or monthly contracts that aren’t deemed necessities are the first things that need to go in the new year.
Limit Small Expenses
We all do it, spend a few dollars here and there on things like coffee, cigarettes, food delivery, and more thinking it doesn’t add up to be too much. Wrong. It’s small purchases like these that are daily or almost daily that end up costing us a fortune in the long run. According to a new study, it’s estimated that smoking cigarettes for 5 years would cost around $4,628. By kicking that habit, think about the money that could go to paying off debts or to your rainy day fund. If you’re an avid coffee drinker and are spending more at the coffee shop than you are on making it at home, you can expect to spend around the same.
Start a Side Job
The last and final tip is one that we’re all familiar with in this day in age— the side job. As mentioned before, it doesn’t matter your income level or your age, there’s a side job for everyone out there, and there’s no shame in having one. In 2017 alone, over 7.5 million people held multiple jobs. Whether it’s freelancing, driving for a rideshare app, or finding a seasonal job through the holidays, there’s plenty of options for those looking to earn a little more cash.
What are you doing to cut back and save in the new year?