Saving money can be a lot harder than it seems. However, the beginning of the year is a great time to start changing your spending habits and begin saving more money for the future.
According to CNBC, 20 percent of Americans have not saved any money for retirement. While more than 25 percent of people have saved at least $200 thousand, more than 75 percent of Americans stated they are worried about their retirement savings and believe they will “outlive” their money.
Wherever you are with your retirement savings, developing new habits to save money can always be useful. Here are four tips to help you save money this year:
1. Make a budget: A budget is the first step in saving. It allows you to see how much money you have and what you typically spend it on.
2. Keep track of your spending: A budget only works if you keep track of your purchases, because it allows you to evaluate your spending and determine your budget accordingly for the next month.
3. Only purchase what you need: While your budget might leave room for miscellaneous purchases, try to only purchase what you absolutely need. Consider putting the miscellaneous money you don’t spend into a savings account, along with the money you had already budgeted to save.
4. Be intentional: Saving money requires you to be intentional about what you purchase. This might include eating at home more and waiting to purchase expensive items. This does not mean that you need to avoid these purchases completely. Instead, it allows you to take time to contemplate whether you really want to spend your money on certain things.
Creating an estate plan can also be a major benefit to financial success. Consult with a comprehensive estate planning attorney today to help you get started preparing for your future.