3 Habits That Can Help You Save More Money in 2016
Many people put “improved personal finances” at the top of their New Year’s resolution list, but few of them actually do something to manage their money in a better way. Fortunately, if you’re one of these folks, don’t lose hope since you can start anew in 2016. You can even adopt habits that will help you achieve your goals and bring you closer to financial independence. These include:
Automating your savings
The correct personal finance formula is “Income minus savings equals expenses”, but many people twist it up and end up using “Income minus expenses equals savings”. This shouldn’t be the case, but you have to admit that it’s hard to prioritize savings when there are many things you must buy or pay for.
With this in mind, you’ll see how helpful it can be if you automate your savings. Since the money will directly go into your savings account, it will no longer pass through your hands and you won’t be tempted to spend it. As a result, your savings can grow and give you a decent nest egg that you can fall back on when you retire.
Checking your credit score regularly
You’re entitled to a free annual credit report from Experian, Equifax, and TransUnion. You can get reports from these agencies at all the same time, but the best thing to do is to get one every four months. For instance, you can get a report from Experian on April, a report from Equifax on August, and a report from TransUnion on December. By doing this, you can check your credit score on a regular basis and see if everything is going well. You can also monitor if anyone has stolen your identity or if there are any incorrectly reported payments in your record (like when a payment is reported as late but you paid it on time).
Going the DIY route
If you want to save money, the best step to take is to do things on your own instead of paying someone to do them for you. Instead of paying top dollar for gourmet coffee and lunch, for example, why not make your own food and drinks at home and bring them to work? By doing this, you can still enjoy your favorite treats without paying too much. Adopt these habits now and be closer to your financial goals!