MONTGOMERY, Ala. (WSFA) -It’s one of the most popular new year’s resolutions; 42 percent of Americans want to save more money in 2021, according to a new survey from TopCashBack.com.
The website has some tips to help you hit that goal.
“Start off with a goal in mind. So whether you want to pay down debt, save more money, anything in between, start with a main goal instead of a bunch of different ones,” suggested Rebecca Gramuglia, public relations specialist for the website. “And once that’s in your routine, then slowly add any other subsequent resolutions to it.
Gramuglia says a helpful tip when making resolutions is to make them measurable by adding an amount.
“So if it is something financial adding a dollar amount, as well as making it time-bound. So, for example, save $300 by March 2021. That way, you can go back, revisit it, and see if you met, exceeded, didn’t meet those goals around that time.”
Gramuglia recommends the 50/20/30 plan to help start setting up a budget and put money aside.
“It really splits up your finances into the needs savings wants. So what it entails is spending up to 50 percent of your after-tax income on any essentials, such as housing and food, and up to 20 percent on any financial priorities such as debt repayments and savings, and then up to 30 percent on any wants and splurges such as shopping and anything that really doesn’t fall into those other two categories.
Gramuglia says this rule is really helpful because it doesn’t have an income set to it.
“It can really go with anyone’s current situation, their income, whatever they are earning, and really divvied it up into a smart way to manage your budget.”
Gramuglia also advises setting up an automated savings plan.
“So when you get paid, having a portion of that paycheck, go into a separate account that way it’s out of sight out of mind, whether you put it in a savings account, put it in your 401k you know that way you’re not tempted to pull from it from that main spending account that you use, you know what, let it put it aside. That way, you are really just focusing on what is in front of you, what you have, what you give a lot of yourself to spend.”