Ways to Save Money in the New Year

It’s almost the end of the year and 2020 has raced by in the blink of an eye. No matter how fast (or slow) this year has gone for you, one thing we should all be doing is considering how to save money in the new year of 2021. Here are a few ways to pad your savings account with a little more dough this January.

Revisit Your Budget 

Many of us establish a monthly budget, live by it, and never revisit the plan. First thing’s first, take another look at that budget. Dust off your checkbook or whip out that spreadsheet and look at the percentage you’re putting into savings. Could you perhaps increase that amount, in the new year, even if only by, say, 5%? This type of small change can really impact your savings over time without hitting your wallet too hard in the day-to-day. 

Also, look at what you are spending day-to-day. Do you really need that second caramel macchiato, or can you limit your spending to one coffee a day? Take a look at expenditures like that — they can really add up over time, and that’s money you could have just as easily saved. 

Try to decrease the amount you spend on unnecessary ‘wants’, if you can. Even a little decrease in this type of spending can see big savings over the course of 2021, and as we learned with the economic crisis of 2020, you can’t ever have enough in savings.

Find Ways to Lower Your Bills

Easier said than done, right? I know, this seems obvious, but think about it. Your essentials are just that; essential. But that doesn’t mean there aren’t ways we can save on our day-to-day bills.

Can you look into other car insurance rates for a competitive, lower premium from another provider? Are there ways you can score discounts with your current provider? Some companies offer safe driver discounts, direct deposit discounts, student discounts, and more. See if there’s an opportunity to save here that you hadn’t utilized before. 

You could also save on homeowner’s insurance by upgrading your home’s appliances or security systems, too. Sure, this requires an investment on the front end, but it’s an investment that will increase your home’s value or security and also potentially save you on an insurance premium. 

Also, I recommend ordering an energy audit for your home from your utility provider. This audit will tell you where you’re using the most energy, which can tell you where you need to cut back on usage. This can push you to be more environmentally conscious and help you save each month on utility bills.

Use Gift Cards!

In the spirit of the season, you’ll likely receive some gift cards or certificates later this month. Save at least some of those for a rainy day! 

One of the best ways to buy things you want or need later down the line is to save your gift cards and then when the time's right (perhaps the item is on super-sale or you have rewards or coupons), buy it with the applied discounts and your gift cards. This can make, say, a new home appliance a 1/4 of the cost to you, and instead of having bought something you probably didn’t need or use on a whim right after the holidays, you waited and bought something you really wanted and/or needed.