2020 has been the year of lower spending. No matter how much money you’ve managed to save this year, it’s going to have an impact on your 2021 budget. There are many tips that you can try to help get the most out of your money over the next year and beyond.
With many of us having stayed home for much of the year. You may find that you’ve spent a lot less money than usual. Whether you’ve saved money, from not heading out for regular date nights, or even from the fact you’re not having to commute into work each day.
Determine your income
This is probably one of the most important steps. Knowing what money is coming in each month. Whether you work full-time, part-time or have a side hustle, it will help you to budget and determine what you can put aside each month for saving.
What are your financial goals?
If you’ve managed to save some money this year, you may be working towards making a big purchase next year. Once you’ve considered your finances, take a look at what your goals are. Do you have to save to buy a house or car? Or maybe you’re saving up for a once-in-a-lifetime trip around the world when travel restrictions are lifted. Whatever you’re saving for, make sure you have a monthly budget to allow you to achieve these goals.
Calculate your expenses
Take stock of your regular monthly and ad hoc expenses. By knowing what’s heading out of your account, you’ll know what money you have left. What can be used to save and what you’re able to spend on the things you love. Whether you set aside the same amount of money each month for things like clothing and eating out, or you prefer to change this up depending on demand is up to you. Either way, keeping an eye on your expenses will help any financial goals you may have.
Separate your needs from your wants
Understanding your wants from your needs is super important when it comes to money. Your needs include anything from your household bills to putting food on the table. Your wants are everything from that new winter coat you had your eye on as soon as it came into store, to your regular cup of coffee on the way to work. By separating the two, you may be able to reach any financial goals you have sooner than you think!
By adopting some of these money tips, you could be a step closer to those big purchases in 2021!