We are starting the New Year with tips and tricks to help you build up your savings in 2022. While saving money may seem like a straightforward task, goals for saving may have been put on the back burner because of all the challenges the past year has thrown at us. With the right tools and a few changes in spending behavior, you can be on the right track to reach your goals for saving in 2022. Keep reading to discover some of our top suggestions for saving money.
Grab a Pen and Paper
By tracking your expenses with a list or a digital record, you can get an overview of how much you're spending daily, monthly, and annually. By writing down your expenses it will make it easier to acknowledge certain expenses that can be eliminated and possible savings for the future. Once you are aware of your expenses, it will be easier to set a fixed budget.
Use the 50/30/20 Rule
50/30/20 is a popular budgeting tool that helps you divide your monthly income into three categories.
Timex or Rolex?
- 50% of your income should go to needs such as, housing, food, transportation, and other necessities. These are considered bills you have no matter what.
- 30% of your income can be dedicated to your wants. This can include monthly subscriptions, travel, fancy shoes, or other extras that are not considered essential.
- The remaining 20% should be devoted to savings or paying off debt. This is a great way to create an emergency fund or to put money away for a special purchase.
- Here’s a handy version of the
To help you stick to your budget it's important to set a list of necessities versus luxuries. This could mean looking for fun in simple things, such as staycations instead of vacations, meal planning instead of eating out or saving certain purchases for a later date.
Target a Number
Overall, saving money is an essential skill that is so important. Whether an emergency arises, or a fun trip is in the works, having savings set aside can be the first step to a financially healthier 2022.
- Now that you have a budget and you’re tracking expenses with a focus on your priorities, it would be beneficial to have a target savings amount. A great way to grow your savings is by opening a savings account.
Take the first step to a financially successful new year. Open an O Bee savings account today.
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