(ThePennyWaatcher.com) – 2024 is shaping up to be another crazy year, and who knows whaat that will bring. But, we only can control what we can control, and our personal finances is probably the most important in what could be turbulent times.
With inflation on the rise. unstable political events on the horizon, and overall public anxiety about the future now is the time to have your financial house in order.
So when it comes to your money, let’s see how you can maximize those savings and perhaps even increase your income.
Budgeting and Spending:
There are some general ways we know that will help you put your wallet on a better track in the new year.
Automate savings: At this point all of your bank accounts should have some sort of automation for transfers. So when you get paid, increase the amount that is automatically transferred into savings. This is something you don’t have to worry about. Just set it and forget it.
Budgeting: We have discussed this in other articles here in The Penny Watcher, but it’s important to re-iterate. Download a budgeting app that works for you (there are many to test) and connect your most used debit and credit cards.
You will be able to see analytics, and easy to understand charts as to where your money is going.
No-spend periods: This may be new, or even hard for you to implement. But if you can go set periods without spending a dime, it can help you get into some good habits.
You most likely have some good food in your house, so don’t eat out. Or you probably don’t have to go out and buy that new shirt just yet, so don’t.
50/30/20 rule: Here’s the rule: 50% of your income to essentials, 30% to random spending, and 20% to savings and paying off debts.
Adjust percentages based on your needs and goals. Get after it!
Financial Hacks:
Explore the gig economy: Many things you can do to get some cashflow going. You can freelance various jobs on UpWork, or drive for Uber.
Coupon Apps: There are various coupon apps and price comparison tools can help you find the best deals. Put them into action.
Prioritize energy efficiency: Invest in energy-saving appliances, LED bulbs, and smart thermostats to lower utility bills in the long run. Consider renewable energy options like solar panels if feasible.
Embrace DIY and secondhand items: Look for ways to repair or repurpose things instead of buying new ones. Utilize thrift stores, garage sales, and online marketplaces for affordable furniture, clothes, and other goods.
Adapting to Uncertainties:
Prepare: As inflation continues, we may perhaps be in another recession at some point if not already. Building that emergency fund and diversifying your investments is now more important than ever.
Focus on value and needs: Impulse purchases can kill your plan. Prioritize essential needs over spending on luxuries.
Negotiate bills and expenses: Do you really need that car payment? Probably not.
Do you need to be spending any money on Amazon prime, probably not. Or HBO, Showtime, etc.
Stay focused, make the right adjustments and you should find yourself in a much better situation.
