It's the new year, which means we’re setting shiny new goals! From finding a fitness routine that sticks (oh boy) to nurturing our mental health (#selfcare), now is the best time to restart, refresh and really think about what we want to accomplish in 2020.
Say goodbye to debt and hello to that vacation you’ve been meaning to take! We’re helping you regain control of your finances and ultimately achieve financial freedom with these 5 smart money-saving tips from TopCashback’s personal finance expert, Rebecca Gramuglia.
1. Define financial freedom.
So, what does this term mean exactly? In truth, it really comes down to your personal financial goals. Whether that’s being debt-free, being able to take spontaneous trips without affecting your finances, or having a fully-funded emergency account, knowing what you want is key to making any change.
2. Start living within your means.
Spend, save and splurge reasonably by applying the ‘50/20/30’ rule. The 50/20/30 rule is a basic budgeting tool that can keep you from hitting the skids. Generally, you should spend only up to 50% of your after-tax income on essentials, such as housing; 20% on financial priorities, such as debt repayments and savings; and 30% on lifestyle choices, such as vacations.
3. Track your spending.
Once you know where your money should be used, list every expense on a spreadsheet for the first month to see if you’re on the right track. This will help you determine whether your budget is realistic and give you an accurate picture of where your money is going and where you’d like it to go instead.
If you’re techy: Forget the spreadsheets! Instead, follow your spending electronically with your debit or credit card via the single-card method. Eliminate all cash expenses and only use debit or credit to help you manage your funds.
4. Cut costs.
Don’t be scared to peek into your expenses. You’ll see where you’re overspending, so you can start spending less and saving more. Any money you “save” can go toward paying off debt or toward your retirement pool. For example, driving the “no tolls route” is a costless alternative that can save you a hundred dollars – or more – a month!
5. Set measurable goals.
It’s easier to stay afloat and hold yourself accountable when you set a goal that’s specific and time-bound (ex: I want to save $X by March 1, 2020). To avoid feeling overwhelmed, know the difference between a long-term goal (costly vacations) and a short-term goal (a new phone) to have you budget accordingly. Once you achieve that, increase the amount saved for the next time period.
With the daily use of these 5 tips—and our cashback offers—we see a warm, sunny tropical getaway in your future!
What are your financial objectives for the new year?
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Related Posts: Our 2020 Resolution Challenge