2019 is off to a fast start and hopefully the winter is over. Now that you are getting your taxes done for 2018, you may want to look at your financial picture for 2019. This is a great time to start boosting your savings and really focusing on your financial plan. Below are tips and helpful guidelines to help improve your savings in 2019. Please feel free to add any in the comments section below.
Breakdown Your Recurring Monthly Expenses: One way to improve your savings is to assess your recurring monthly expenses. These recurring expenses eat away most of your extra money and sometimes you can drastically reduce your spending in these areas. Some of the most common recurring expenses include:
- Cell Phone: Every few years, you should shop around for a new cell phone plan. Sometimes you can save over $50 a month. You can also look into prepaid plans.
- Insurance: Insurance rates change all of the time, and you need to shop around every other year. Also if you haven’t bundled your insurance already (car, home, rental, etc.), this is another great way to save some extra money.
- Cable TV: It may be time to finally cut the cord. This could save you over $100 or more per month. I know it seems hard to do, but I promise you will thank yourself afterward.
Increase your 401K Contribution: The easiest way to increase your savings is to pay yourself more from the start. This is really easy to do and all you have to do is increase your 401k contributions which are pre-tax. There is also sometimes matching at some companies so you could get more of a savings boost than you realize!
Start A Side Hustle: Earning more money is usually the best way to be able to save more money. You can only cut your expenses so much, but there is no upper limit to how much you can earn each month. There are now so many opportunities to start a side hustle including working for Uber, Lyft, Postmaes or even renting out a room in your house on Airbnb. The bottom line is that there are so many ways to earn extra money. And you can use that extra money to boost your savings this year.
Find Higher Returns for Cash Investments: Rising interest rates mean higher returns for savers, but you need to go out and find the higher rates. There are some higher yield savings accounts that pay as much as 2.4% interest. While that is still low, it is much better than earning 0%.
Maximize Your Cash Back: Make sure you get the rewards and cash back for the spending you do. This can add up to $100s per year and help you achieve your financial goals. Look at your credit cards to make sure you are getting at least 1-2% back in points or cash rewards. However make sure you pay off your credit card every month or the rewards will mean nothing as you are going to be paying 10% in interest charges.