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Saving More Money in 2020

Saving More Money in 2020

| January 03, 2020

As we turn the page to the New Year and a new you, it’s about time to stair yourself down in the mirror and verbally commit to these New Year Resolutions that you worked so hard to create at 11:45pm. While you can’t go wrong with “Get in shape” or “more family time”, I’d argue that you need more Actionable items today! So let’s rip the Band-Aid off baby! (in my best Dick Vitale voice). Roaring Twenties 2.0 are back baby!

Are you ready to make some behavioral changes to last a lifetime? 2020 is the year that we capitalize on saving more money.

To put my financial planner hat on for a second, prioritizing savings and investing is one of the best ways to start every year off right. Creating savings objectives, not just for your summer vacation but also for your future retirement is critical. Statistically, most Americans are dangerously behind in the savings department, with an estimated median savings of only $63,000 for the average 45 year old.  Fidelity recommends that you have three times your annual salary saved by the time you reach 40. So, if you’re making $50,000, you should have a balance of $150,000 already banked. At age 45, it is recommended you have four times your annual salary saved and six times that level by the time you reach 50. (1)

Needless to say, whenever you get a bonus, birthday money, inheritance or any other unexpected income, save it!

Now it seems only right that since it is 2020, we get with the times and stop SPENDING so much money when it’s not necessary. For those of you, who operate under the “if it ain’t broke, don’t fix it” rulebook, let this serves as a recommendation to challenge yourself to accept change. Saving money is a universal love and no one should be denied.

Here are my 5 tips to help you become a better saver in the Roaring Twenties 2.0:

  1. BYE BYE DIRECTV: it’s time to cut the cord! Your cable bill is killing you with extra rental costs and miscellaneous fees. Today is the day that you switch to a less expensive alternative: streaming services. Apple TV, ROKU, Amazon Firestick are all ways to access digital streaming services like Netflix and eliminate the need for a cable contract. Not too mention, you also have to ability to watch tv on your smart phones and tablets. As long as you have a solid internet connection at home, this saver is a no-brainer and can cut the cable bill in half.
  2. NEVER PAY RETAIL PRICES AGAIN: Use Groupon to look for promotions or special discounts when dining at a restaurant or planning an outing. Take advantage of military, senior or student discounts, if any of those are applicable. Lastly, check out grocery apps like Southern Savers for weekly coupons to your local Publix.
  3. SO EASY THAT A CAVEMAN COULD DO IT: Get your insurance policies through the same company for discounted rates: Combining your home and auto insurance under one insurance company often gets you a solid discount. Also called a multi-policy or companion discount, bundling typically saves customers anywhere between 15-20% on their insurance premiums.(2)
  4. LEARN SOMETHING NEW: Cooking lessons with Wolfgang Puck? Gymnastic Fundamentals with Simone Biles? Singing lessons from Christina Aguilera? All of these can be had through Masterclass.com for $15/month. Say goodbye to $500 Spanish lessons. Explore new interests for a fraction of the cost.
  5. SAVE TIME & STOP SPAM CALLS: All phones have a built-in spam blocker that need to be activated. On iPhones, search “silence unknown callers” to turn it on.

So there they are: My Top 5 New Year’s Saving Resolutions.

Continue to maximize your savings by implementing these new habits that will lead to a better life and retirement. Spending less and saving more is only the first part of the equation. Once you feel that you have conquered Phase 1, you will be ready for Phase 2.

 

 

Footnotes

(1): The Average Retirement Savings by Age: https://www.investopedia.com/articles/personal-finance/011216/average-retirement-savings-age-2016.asp

(2): 44 Legit Ways to Save Money Fast. https://www.thepennyhoarder.com/budgeting/save-money-fast/?aff_id=86&aff_sub2=top-money-saving-posts-2019&aff_sub3=124825&aff_unique2=ITR-1833230&utm_source=daily&utm_medium=email