5 Tips to Help You Save Money for the New Year

It’s a whole new year which means a whole new opportunity to save money. Saving money can be tough, especially when unexpected expenses hit but it definitely helps to try and plan ahead. While we can’t predict what the future holds, we can certainly prepare for the best and that usually means saving money. Lone Star Credit Union is here to provide 5 tips to consider in order to help save money for the New Year!

1. Reevaluate What You’re Already Paying For

A good starting point is to add up what non-essential expenses you’re already paying for such as cable TV, video or music streaming services, and online subscriptions. While of course it’s convenient to have the subscription service(s) at your fingertips, in the interest of saving money it may be time to do away with one, if not all of them.

Although, it may be hard to cut the cord, your public library may be the alternative you’ve been looking for! Most public libraries have a vast selection of VHS’ (older movies), DVDs, and even blu-rays, along with a variety of CD’s from different genres that may sometimes not even be on a particular streaming service. Public Library cards are typically free and so are the rentals as long as you don’t return the items past their due date! Just confirm with your local library for the full details.

2. Meal Prep/Cook at Home

Of course eating fast food or going to a restaurant is a quick and convenient way to grab a bite to eat but those small tabs here and there can quickly add up. A simple way to assess how much you spend on food is to check your monthly statements and tally up each food and drink expense for that month. On average a person spends around $200-300 dollars a month eating out. While your schedule may prevent you from fully meal prepping, consider taking a bagged lunch that is already pre-packed with your favorite fruit, bread, peanut butter, or other snack to help add towards that savings account.

3. Downsize Your Home/Apartment

Having a place called home is certainly a great feeling but are you fully utilizing your space? Do you have too much room? If you answered yes, then you may consider downsizing. While it sounds counterintuitive to what popular opinion may tell you, it could potentially free up quite a bit of cash flow which would be the result of paying less in monthly rent and utilities. If your lease renewal is coming up, consider downsizing and adopting the expression, “less is more”. To get an idea, take advantage of our free Home Budget Calculator on our website!

4. Set Short & Long Term Financial Goals 

Thinking ahead and setting realistic goals will put you on the road to success. A common rule to follow is to not spend more than you earn. Whichever you feel comfortable with, set your goals on a yearly, monthly, weekly, or even daily spending limit. Don’t forget to take advantage of our free Savings Goal Calculator to get an idea on where you want your savings to take you. With that remaining balance, contribute it to a separate Savings Account so you have a designated account to save and a Checking Account to spend.

Another perk you may have overlooked is a 401K benefit. Most employers who offer a 401K offer a match benefit. A 401K match means that an employer will match your contribution up to a certain percentage. We’ve provided an example below of how a 401K match works.