10 Tips for Your 2021 Budget
Taking a look at your 2021 budget? Here are a few tips and tricks to help you to save more this year and meet your financial goals.
1. Consider your needs vs. your wants. Think about items you purchase on a regular basis. These add up. Where can you save?
- Do you eat out at restaurants a lot?
- Can you cut back on daily expenses, such as coffee, candy, soda, or cigarettes?
- Do you have services you do not really need, such as cable television or a land line phone?
2. Set up a direct deposit and an automatic transfer to your savings account.
- When you get paid, put a portion in savings through direct deposit or automatic transfer.
- If you have a checking account, you can sign up to have money moved into your savings account every month. What you don’t see, you don’t miss!
3. Pay your bills on time. This saves the added expense of:
- Late fees, extra finance charges
- Disconnection fees for phone, electricity, or other services
- Fees to reestablish connection if your service is disconnected
- The cost of eviction, repossession and bill collectors
4. If you use check-cashing stores regularly, you might be paying $3 - $5 for each check you cash. Consider opening a checking account at a local community bank.
5. If you get a raise or bonus from your employer, save that extra money.
6. If you have paid off a loan, keep making the monthly payments to yourself. You can save or invest the money for your future goals.
7. Avoid debt that does not help build long-term financial security. For example, avoid borrowing money for things that do not provide financial benefits or that do not last as long as the loan. Examples include: a vacation, clothing, and dinners out in restaurants.
8. Save your change at the end of the day. Take that change and deposit it into the bank (every week or month).
9. When you get a tax refund, save as much of it as possible.
10. If your work offers a retirement plan, such as 401(k) or 403(b) plan that deducts money from your paycheck, join it! Most employers will match up to $.50 on each dollar you contribute. The matched amount is free money!
For more help with creating, and sticking to a budget, take advantage of My Spending - a new budgeting feature in our Online Banking access and our Mobile App! My Spending allows clients to see their purchases by category, set up spending limits, and create notifications for a full picture view of their spending habits and behaviors. Learn more about My Spending here.
Reposted with permission from the FDIC. Originally posted as part of the Savings Tips and Action Plan in August of 2013.