7 Ways To Save Money In The New Year
If you’re looking for ways to save money in the new year, chances are you might be looking in the wrong place. Sure, cutting down on your shopping or subscriptions can make a small dent, but probably not the substantial savings you are hoping for.
This guide will cover ways to save thousands next year, as well as how to put those thousands to good use.
Ways You Can Save Money
In this article, you will find out the 7 ways to save money in the new year and the areas you will need to make adjustments in, such as:
- Housing
- Transportation
- Automatic savings
- Bonus income
- And more…
It’s time to lower your expenses by 20%, 30%, or even 50+% to reach your financial goals faster. So, let’s learn how.
1. Reconsider Where You Live
Too many people immediately say it’s “impossible” to change where they live, but that simply isn’t true. Housing eats up an average of 30% of everything you make, so if you can cut that down or even eliminate it completely, you’ll be thousands of dollars richer by the end of next year.
Buying a luxury home in a pricey neighborhood isn’t an asset – it’s a fat expense. Buying a duplex that pays half or more of your mortgage each month is an asset. Renting out spare rooms or creating a mother-in-law suite to rent out and cover most of your rent or mortgage is an asset. Google “house hacking” to learn more about this concept.
Also, moving closer to work will save you not only hundreds of dollars but hundreds of hours spent on a grueling commute.
2. Cut Down On Transportation Costs
The average American commutes roughly 26 minutes and 16 miles to work each day and the average vehicle costs $0.54 per mile to run. If you’re making $50,000 per year, you’re averaging $25 per hour.
Put all of these facts together, and you’re likely spending $17+ in commute costs per day, plus $21+ in lost time per day. That’s more than $10,000 per year!
By living close enough to walk or bike to work, you could instantly save thousands. Talk about one of the best ways to save money in the new year! Combine this with changing your living situation and you’ve just cut down more than a third of your annual expenses.
3. Make It Automatic
Now that you’re saving all of this extra money, it’s important to make sure it’s stored in a safe place. Set up an automatic savings account that moves that money at the beginning of the month. You were spending it before, so act as if your bills haven’t changed and saved the difference.
4. Pay Yourself First
Part of automatic savings is paying yourself first. This means putting money into your savings account before using it to pay for anything else. Bills come after and then discretionary spending, but this is a surefire way to save, and – because you don’t have much of a choice – you’ll make due and pay what you need to afterward.
5. Pick Up A Side Gig… And Ignore The Income
As you’re using these ways to save money in the new year, another way to up to ante is by taking on a side job, side gig, or second some kind of second income – whatever you want to call it. Babysitting, dog walking, freelancing, or creative projects are all great ways to make some spare cash. Just by working one evening per week, you could pocket a couple of thousand extra this year.
The key is not to make this money and spend it or up your lifestyle; you need to put it straight into your savings or investments and act as if it doesn’t exist.
6. Learn To Cook
Cooking can be a pain, especially if you don’t enjoy it, but the truth is that food is another one of our largest expenses during the year. If you can cut back on those lunches at work and instead pack a healthy one made at home, you’ll save hundreds while also likely cutting back on calories.
Meal prep one day a week to save time and buy your groceries using a predetermined list. You’ll save money and improve your health in the meantime.
7. Be Prepared For Emergencies
Once you’re into the rhythm of saving, you’ll quickly build up a nice emergency fund. This should be able to cover at least 3 months of your expenses.
If you are still on your way to this fund, you may lack the resources to cover an urgent bill. In these cases, you can use Auto Cash USA to connect with online title loan lenders near you.
Spare Your Savings And Use A Title Loan Today
If you are still using our ways to save money in the new year and find yourself in a financial emergency, an online title loan could give you the cash you need by using your paid-off car as collateral. You get to keep your car during the loan and can get cash quickly to pay off that urgent bill.
The application process is quick and easy and can be done from your home. Fill out our online form to get started and wait for a call from one of our trusted lenders. We’re happy to help you through the online title loan process as you stay on track financially in the new year. Reach out to us today to get more details!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.