Thursday, May 20, 2021

Money-Saving Tips to Lift Your Finances in 2021

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2020 has been one of the toughest years of most of our lives. The Covid-19 pandemic wreaked havoc on the world and impacted almost everyone in some way. It has been emotionally, mentally, and physically taxing for some and financially straining for others.

Businesses that saw their revenues take a plunge during the pandemic had to let go of a major portion of their workforce. People who lost their jobs or were furloughed in this period had to learn the art of saving money.

Flash forward to today, things are slowly improving and the economy is getting back on its feet. But even without a threat of a pandemic and economic recession, money-saving is a good skill to possess.

If you’re someone who wants to master this art, 2021 can be your year. All you need to do is to follow tried and tested money-saving strategies

Be it searching for discount coupons, using financial apps, or making small investments, there’s plenty of things you can learn to lead a financially stable life.

Here’s how you can go about it.

Best money-saving tips to stick to in 2021:

Following are some of the best money-saving tips you should apply in 2021:

1. Create a new budget

It may sound cliché, but to have a great financial year you must have a fresh start. Your first step should be creating a budget from scratch. We all know budgeting is the foundation of a financial tree. 

Your financial needs are specific to you. This means you cannot imitate somebody else’s footsteps to achieve your financial goals. You need to create a system that works for you.

You can get inspired by the people with a successful financial life. However, pick only those habits that work for you. If you want a budget that is easy to follow, make it natural and specific to your financial needs.

How to make a budget | ASB - YouTube

To create a budget that works for you, follow the following steps:

  • Get a hold of the basics:

Before creating a budget, you must know the basics including your income and your expenses. Keep track of your current cash flow to create a new budget.

  • Three pillars of an effective budget:

Every effective and successful budget requires three pillars including automation, tracking your expenses, and an emergency fund.

  • Add your values to your budget:

Your budget should be personal to your financial needs. Therefore, before creating a budget, you must identify your values and incorporate them to create a budget that works.

  • Select the right budgeting principles:

Choose the right budgeting principles to adhere to. Not every budgeting principal will work for you. Select the principles that suit your lifestyle and your financial goals.

  • Create a frequency budget:

Breaking your budget into smaller chunks makes your financial goals more achievable. Dividing your budget into a smaller pay-check-sized frequency budget will make it easier to keep track of where your money is going.

To create a budget that works, you need to set achievable financial goals. This way you will not burn out and quit when your budget doesn’t work for you.

2. Do a “No spend” month challenge:

This money-saving hack is as simple as it sounds. All you need to do is not to spend anything for a month. This does not include essentials for example groceries, fuel expenses, utility bills, rent or mortgage, and insurance payments. 

All you need to do is to say no to additional expenses for a month.

You can cut down various expenses such as non-essential products, coffee, pre-prepped lunches, takeaways, meal deals, movie tickets, and more. 

You should set yourself an end goal and cut down extra expenses to save a fortune. The “no spend” month challenge will put you on the right track to achieve financial goals.

It will be difficult in the beginning but will get a lot easier as days pass.

Print & enjoy this FREE printable no-spend month calendar--for any and  every month! If you're lik… | Money saving plan, No spend challenge, Money  saving challenge

3. Invest smartly with fintech:

If you want to grow your capital, you should invest smartly. Today, various technologies enable better finance management. 

Whether you are saving for post-retirement life or to pay for your child’s college tuition, using fintech makes it easier for you to achieve your financial goals. 

 Finance technology helps those who are new to financial management or find it hard to stay consistent with their money-saving practices.

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  • Fintech solutions for smart investment:

For those who are investing for the first time, it can be a scary experience. However, with the latest fintech tools, it gets easier to automate your finances. These tools keep you on the right track and guide where to invest.

You can create an investment portfolio with fintech. It should be based upon the amount of time you want to keep your money invested as well as your financial goals. 

Having an investment portfolio ensures smart distribution and diversification of money. This distribution is based upon your monthly expenses.

Fintech apps allow you to:
  • Invest money in a savings or retirement account
  • Automate a specific percentage for every part of an investment portfolio
  • Distribute of money based on factors such as tolerance to risk

4. Work towards increasing your income:

No matter which stage of life you are at, you should work towards increasing your income. It gives you financial security and makes it easier for you to achieve your financial goals. it doesn’t matter if you have single or multiple streams of income, you should always try to increase your all-around income. 

Having a plan for the future keeps you on the right track and allows you to achieve your goals faster.

4 Way to Increase Your Income Without Breaking the Bank - Business 2  Community

You can increase your income in four ways including:
  • Working to get a promotion at work
  • Get a pay raise while working at your current position
  • Look for a higher pay job
  • Invest in a business

5. Comparison shopping:

One of the best ways to save money is to shop smarter. This can be achieved through comparison shopping. Before purchasing an item online, look for its alternatives and compare them in terms of pricing. Compare their pros and cons and choose the option that suits your need the best.

With the entire world under lockdown, it is safer to shop online.

Smarter shopping includes waiting for your desired item to get on sale. One of the common mistakes people make while shopping online is forgetting to compare the store, product, or service.

Digital Trends in Comparison Shopping - Think With Google

Various browser extensions provide you access to a variety of deals for various eCommerce platforms. You can utilize Buy One Get One (BOGO) offers and find free shipping on your desired.

One of the best Chrome Web Store extensions you can use is the Amazon exclusive extension. You can use this extension to compare stores and make online shopping a lot more convenient.

6. Using discounts and promo codes:

According to the latest data on coupon redemption, over 90% of consumers utilize coupons in one way or another. Paper coupons were extremely common in the past. 

People used to cut out coupons from newspapers to redeem in-store while shopping for groceries and other essentials. While they are still popular today, digital promo codes are gradually taking their place.

These coupons are available on mobile apps, social networks, websites, and emails. In 2019, over 25 million people in the US redeemed coupons through couponing apps to save money on their purchases. 

Coupons allow people to save money regardless of their social status. If you want to save more money in 2021, you should redeem as many coupons as you can.

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Wrapping up!

2020 has been one of the life-changing years for most of the world. The increasing uncertainty is causing more people to get into the habit of saving. 

There are various money-saving tips you can follow to make 2021 one of the best financial years of your life. By following the above-mentioned tips you can add more financial balance to your life.

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