Ready to take control of your financial future? Read on for 5 ways to save money in 2019.
A new year brings new opportunities—and new challenges. And if you’ve been living paycheck-to-paycheck, or you just feel like you could do a better job at managing your money, you’re in the right place.
This article covers five top money-saving tips for 2019. Read on and take control of your finances!
- Open a High-Yield Savings Account
- Set Automatic Transfers for Savings
- Open a Credit Card
- Revise Your Tax Withholdings
- Get a Budgeting App
Tip #1: Open a High-Yield Savings Account (HYSA) Online
Do you have a savings account with a large bank like Chase or Bank of America? Chances are that your money is just sitting there, barely earning any interest. Rates of 0.01% APY to 0.09% APY are common at major banks.
But with an online High Yield Savings Account (HYSA) from Discover, Ally, Charles Schwab, or American Express, you could earn as much as 2% APY on your money. That means instead of earning $1 dollar on $10,000 at a 0.01% APY, you would get $200 per year.
It’s easy to set up one of these accounts. You can keep your current checking account and easily transfer money back and forth.
Tip #2: “Set It and Forget It” with Automatic Transfers for Savings
If you have trouble saving consistently, set up an automatic transfer to your savings account—either monthly or biweekly. Set up a transfer of $100 or $200 and chances are you won’t even miss it. This tiny step can be really helpful when budgeting and saving.
Tip #3: Stop Using Your Debit Card to Pay for Things and Open a Credit Card
There’s a caveat here. You should only use a credit card if you are responsible with credit. Credit card debt is a serious problem, and if you can’t trust yourself not to overspend, ignore this tip.
But if you can use credit wisely, you’ll enjoy a number of benefits. Credit cards have stronger fraud and identity theft protection, and offer additional benefits like extended warranties, trip protection, and even cash back or bonus points on select cards. They’re a beneficial alternative to simply using your debit card. But again, only if you can stick to a spending limit every month.
Tip #4: Take Another Look at Your Tax Withholdings
It may feel nice to get a big tax return every year, but if you think you could use that money throughout the rest of the year, rather than just on Tax Day, we recommend looking at your tax withholdings.
Withholdings determine how much of your pay is withheld for taxes every year. Using the IRS Withholding Calculator, you can estimate how much you should withhold and put your money to work all-year-round.
Tip #5: Start Using a Budgeting App to Track Your Spending and Saving
If you don't already use a service like Mint, Personal Capital, or You Need A Budget, we highly recommend it. Using these online applications, you can track all of your transactions such as monthly online purchases, short term loans, and other bills so you will know exactly where your money is going. This helps you control your spending and become more effective at managing your cash.
Personal finance is not an easy subject to get your head around. But these simple tips can help. So, think about which tips you can use in your own life, and get started right away.
Tip jar image courtesy of Shutterstock.