money saving

Want to Know How to Save Money in 2021? Find Out Here

Throughout their lives, people hustle to earn money and to live the life they wish. We won’t be surprised if just like us, you are also constantly struggling between ‘I need to save money for the future’ and ‘How to save money?, I get to live only once’. The sad story of our lives, you see! Jokes apart, but saving money is as quintessential as earning and spending money. 

There are several driving forces behind people wanting to save money. One may want to pay off the debt, go on a vacation, buy a home or a vehicle, put more money in the emergency fund, or may just want to stop living from one paycheck to the next.

No matter what the reason, if you are looking for ways on how to save more money in 2021, then this article may be exactly what you are searching for. There are a zillion ways of saving money in today’s world, and we are sure you must have tried most of the conventional ways. Thus, this article is our attempt to bring to you the most effective ways to save money in 2021.

There you go…! 

Set Up Automatic Savings

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You cannot forget to save if your savings are automated. Whether it’s your contribution that’s deducted pretax from your monthly salary, or the automated transfers from your salary account into a savings account or money market account, automating indeed helps in saving money even before you realize it.

Reassess Your Bank Accounts

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You must choose a bank that offers a savings account at the most competitive interest rate. Evaluate your existing savings account to ensure that you’re earning the most lucrative annual percentage yield (APY) available in the market.

Also, evaluate your checking account. If you’re incurring a monthly maintenance fee for not maintaining the required minimum balance in the account, you may search for a bank that offers a low minimum balance checking account or you may even have a recurring direct deposit.

Regularly compare the different savings and checking accounts available in the market to ensure that you’re earning maximizing yields at minimal fees. That’s a good way to save money in 2021.

Say Goodbye to Debt

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Prioritize repaying your existing debt or loan if you have any. You may have borrowed a home loan or may have purchased something using your credit card. Pay it off as soon as you can because the interest you are paying on your credit card or loan is much greater than what you are receiving in your savings account.

The Federal Reserve has slashed the federal funds rate; however, the average credit card rates remain high. Thus, make it a priority to get rid of all your monetary liabilities at the earliest.

Cash in on Cashback

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While making purchases in 2021, choose payment options or shopping portals that maximize the possibility of you receiving a cashback on your purchases. 

Most bank debit cards do not offer cashback rewards. However, credit cards do have cashback offers. Thus, using a credit card to make a purchase can help you save quite some money. Now it’s up to you to decide whether to make the purchase using a credit card that has an annual fee but higher cashback rewards, or a credit card with no annual fee but with lower cashback rewards. 

Leverage Your Loyalty Points and Gift Cards

Shop from stores that offer attractive loyalty points on every purchase that you make there. You can end up saving quite some money if you utilize your loyalty points to the fullest. However, depending upon the loyalty program that you’re entitled to, loyalty points may expire after a certain period if not redeemed. So, don’t waste your loyalty points and redeem them on time to avail cash benefits.

Gift cards can be another source through which you may save some money if redeemed on time. As per the report by Mercator Advisory Group, about $3 billion worth of gift cards remain unused every year. Thus, take out the gift cards or vouchers that may be lying in some corner of your drawer and redeem them at the earliest.

In fact, if you are not interested in buying anything from that store, there might be someone willing to buy from there. In this way, you can sell your gift card or voucher to that person and make some cash out of those gift coupons.

Keep a Track of Your Expenses

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If you have not done it already, we would highly recommend you start building your monthly budget. Trust us, it is not as scary as it seems. Setting up a budget is essential to ensure that your expenses don’t exceed your income. You may use a simple budgeting app, a notebook, or even a Google spreadsheet to start with. 

Enlist all your expenses and total income from all the sources in your budget sheet. Be realistic while setting up the budget and include all the items such as rent, bills, groceries, transportation, health, entertainment, etc. If you have not been keeping a track of your expenses and income yet, you may have a look at your bank account and credit card statements as your starting point.

Refine Your Budget

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Refining your monthly budget could be a great way to save money in 2021. Have a look at your budget or monthly expenses if you don’t have a proper budget in place yet. Ensure that you are not overpaying or paying for items that aren’t being used. Check out for more ways of saving in your monthly budget. Find out if you can cut back on unnecessary or avoidable expenses such as dining out or on coffee or some other spending. You may even try to renegotiate items in your budget.

Revisit Your Employee Benefits

It is rarely possible to modify the benefits you receive from your employer. However, you might still have a say in how much you would like to contribute to your employer-sponsored retirement plan, such as a 401(k).

Reducing your net taxable income can potentially help you in saving money. You may want to rethink how much you wish to put aside for long-term goals like retirement or you may even adjust your withholding for taxes.

Look Around for Better Deals

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Monthly bills such as phone bills, internet bills, insurance, or for that matter expenses on groceries constitute a significant portion of your monthly expenses and can quickly add up. Just because you are availing of the services of a service provider doesn’t mean that you are stuck with them for a lifetime (unless you’re on a contract)

Phone providers, for example, offer some exciting deals for new customers on a regular basis. So, roam around and hunt for better and more economical deals in the market. 

You might also be able to negotiate your existing rate/cost with your current provider, as most of the time, they’ll usually try to do everything in their power to retain you as their customer.

Do Away with Gym 

2020 has been a year full of learnings and realizations. If it has taught us anything, it’s that there are a lot of things that can be done at home. Working out is one of them, especially if you’re a beginner who’s just venturing into the world of fitness. Unless you’re following any specific program that requires specialized equipment, you can easily do away with gym memberships and can save money.

Moreover, YouTube has a lot of fitness channels providing free workout regimes that you can follow along. It is an amazing way to get into the habit of exercising. If you are someone who loves fresh breeze, you may even try working out at a park. However, if you’re someone who’s very particular about fitness, you may look out for gyms that are offering online classes as online classes are usually cheaper than offline ones.

Cut Out on Eating Out

We all love dining out; if not dining out, we love ordering takeout. Don’t we? 

No matter how eating outlets fool you with minimum prices and exciting offers when you do the math of cooking your own food, the latter always wins. Now that you have YouTube at your disposal, you can yourself make lip-smacking food at home anytime!

Thus, make sure you’re cooking most of your weekly meals and treat yourself to your favorite restaurant only occasionally. You can even take a step further by opting for the daily special at the restaurant when you are dining out to save another few extra dollars.

Also Read: Savings Tips That Will Help You Have A Wealthy Retirement

Stock Up Non-Perishable Items When They Are Up for Sale

Canned and packaged goods last for a very long time, so we recommend you purchase these items when they go on sale and stockpile them for the future. This way you’ll always have ample staples on hand, and you won’t even have to incur the full cost. You can leverage the mobile apps, if any, to find out about local grocery sales and places to go for the best prices and deals.

Plan Your Big Purchases for the Year Well in Advance

Did you know that certain items are cheaper at certain times of the year? 

It is better to plan out your purchases for the year depending upon the best time to make that purchase. You can do a simple google search to get more ideas about the preferred time to purchase something. 

For example, if you’re thinking of upgrading your mattress, you may plan to make the purchase during the 3-day holiday weekends as there are plenty of deals on mattresses during those days. 

Another advantage of this is that you can plan your budget and can save well in advance to purchase what you’ve been longing for. 

Now that you know how to save money in 2021, what are you waiting for?

The new year is a great time to assess our lives and make them consistent with the life we have envisioned for ourselves. However, it’s strange how people skip on financial health while making new year resolutions relating to good physical health and better relationships. Financial health affects every area of our life and it needs to be treated as a priority, too. Hence, don’t neglect your financial health, spend judiciously and save abundantly to live a better, fulfilling life.

Check out this space for more interesting content on the money. Happy reading!

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