Having a plan to cut back on unnecessary expenses and cultivate a culture of building up an emergency fund and wealth reserve is the only way to ensure peace of mind.
Most people need a substantial amount of money to shield themselves in the wake of unexpected misfortune. So, here is a round-up of some of the best money saving tips financial advisors recommend.
Create Automatic Savings
On payday, the cash seems to disappear faster than regular days. That’s why financial advisors recommend the ‘pay yourself first’ approach. With the multitude of bills calling out, self-discipline can be a trick. Experts recommend creating automatic contributions to a savings account to keep from skipping so that there are savings consistently all year. An alternative to a savings account could be automating the funds to a recurring investment account like acorns. Acorns help put the savings to work through simple investments like EFTs.
Use Credit Card Perks and Cashback Wisely
It’s natural to treat oneself when there are additional earnings like cash backs and credit card rewards, but financial experts warn against such a move. These are ripe opportunities to put the extra cash to better use. Instead of indulging in a shopping spree, purchase essential items like groceries and home effects. Make money saving a priority instead of spending.
Grab Everyday Saving Opportunities
Financially healthy people add up their savings fast by finding and utilizing everyday opportunities. They choose cheaper streaming services, save on shopping by intentionally going for online sites that give incentives, and throw the spare change from debit and credit card purchases into a savings account. Financial planners recommend using a financial app like acorns that offers features to save on purchases with big retailers such as Nike, Airbnb, Walmart on their Found Money portal.
Beef Up the Insurance Deductibles
Researching insurance options is a great approach to save money that would have otherwise gone into a way expensive deal. It is always best to shop around for deals and make comparisons.
Some helpful strategies are; increasing the deductibles on home and auto policies, bundling up the plans, or purchasing different insurance plans from the same company. Opting for a premium plan saves you money in the long run. Insurance comparison websites can easily make the analysis. A good example is Gabi’s comparison and insurance shopping services.
Consider a Long-term Investment Plan
Creating savings, investing in stocks and bonds is good, but real wealth lies in long-term investment. This year every person working towards financial fitness must consider at least one such plan.
While there are many long-term investment options out there, settling on one that fits one’s style can be challenging.
Diversyfund offers innovative real estate investment options for the everyday investor through non-traded REITS.
Implementing money-saving tips is the first step to solve money worries. Consider these and other useful ideas from financial experts for a better year.