25 Bullet Points to Save Money in the New Year

Whether you buy a bike to commute to work or start a side hustle, there are plenty of ways you can increase your income this year.

The start of a new year is the perfect time to refresh your personal budget. Consider these 25 things to improve your finances over the next 12 months:

1. Decide on financial goals

What is your long-term goal? A three-bedroom apartment or a long trip to Europe? Once you have chosen your goal, you set the amount of money you need to make it happen and start working for it.

2. Design a spending program

Many people spend two-thirds of their income on three essentials: food, housing, and transportation. However, there are many other things that require money, such as savings, household items, entertainment, etc. Design a yearly budget by allocating spending percentages to each category.

3. Resist the temptation of shopping

It is the job of salespeople to entice us into spending money with sweet words. However, if you are alert, you can resist these temptations. Promotions, discounts, chances to win prizes... are some of the tricks that retailers use to attract buyers. Think first about whether the item is really essential and say "no" if you don't want to buy it.

4. Track your spending

Record every single expense every day and track it every two weeks to see which ones are wasteful, such as eating out or taking a taxi. You can write it down in a notebook or, more conveniently, on an online tool so you can track it from anywhere using your mobile device.

5. Don't be afraid to bargain

List prices often have a margin for negotiation. Take advantage of it and don’t be afraid to bargain everywhere.

6. Research the product online before going to the store.

Looking at products online before you go to the store is the quickest way to find the cheapest place without having to go out. Or when you search online, you can find a place that sells cheap items and also delivers to your home for free.

7. Earn money from more than one source

Having only one source of income puts you at risk if you lose your job or your salary decreases. A side hustle can help you earn more this year. The place to look for work can be the internet, with its hundreds of different ways to make money, or a night job.

8. Own business

Many people have decided to quit their jobs to start their own businesses, in order to gain control over their finances. Even the smallest businesses are worth considering, such as starting a website, blog and making money through advertising, or starting a small garden to grow vegetables or flowers to sell.

9. Negotiate a salary increase

If you are still working in a company, you are still luckier than many people who are unemployed. If you have not had a raise for a long time, this is an opportunity to negotiate with your boss to increase your income.

10. Pay off high interest debts first.

Credit card interest is one of the highest interest rates on debt. If you have outstanding balances, you need to pay them off right away.

11. Try to pay off all debts early

In addition to high-interest debt, do you have other debts such as student loans, home loans, or car loans? If so, you may need to work more than usual to pay them off quickly.

12. Minimize investment costs

When you invest your money through companies or organizations, you are often charged fees. Minimize those fees by choosing companies with low fees or choosing low-fee investment types.

13. Start early, invest often

The power of compounding is that the earlier you start saving, the more money you will have to invest and save for retirement. Don't wait until mid-career to start saving.

14. Don't watch the market every day

The market has its ups and downs. If you are investing for the long term, there is no need to stress yourself out by watching the charts every day. Instead, you should review your portfolio quarterly and make adjustments as needed.

15. Calculate your financial plan for retirement

Your personal financial plan should include how much money you want to have when you retire. If you want to retire comfortably without having to rely on your children, you will need to save more.

16. Save for retirement in small steps

Saving 10% of your income for retirement is too much. If you start saving when you are young, 2 to 3% of your income each month for retirement is enough. Then you can increase this amount by gradually increasing your savings rate or investing for the long term.

17. Living with relatives

If you are not married, living with your parents or siblings will save you a lot of money.

18. Learn to say "No"

Before agreeing to help someone, you must consider your personal financial situation. If lending or borrowing money will affect your family life or put you in debt, you should refuse. You can choose other ways to help that do not involve money.

19. Live simply

The recent financial crisis has led many people to adopt simpler lifestyle habits, such as learning to do things themselves instead of hiring a handyman, cooking at home more often instead of going out to restaurants, cycling instead of spending money on other forms of transportation. Men can even cut their own hair at home instead of going to the salon. Small changes in your life can help you cut down on your monthly living expenses quite a bit.

20. Find simple hobbies

The hobby of shopping should be replaced by other hobbies such as visiting museums, joining groups or going for a bike ride.

21. Plan your meals for the week

Food can be a big part of your monthly expenses. Especially if you eat out often, the cost can add up. To avoid unexpected meals out and save money on your food budget, plan your meals for the week and shop in one go. A roasted chicken for dinner can be saved for breakfast the next day.

22. Consider the timing of giving birth

According to statistics in the US, raising a child from birth to age 18 costs a quarter of a million dollars, not including college costs. If you don’t have enough money saved up to raise a child, plan ahead and wait a few years.

23. Use fewer products

There are things you use that you don’t need but still use, like expensive bathroom cleaners, body lotions, and perfumes. Consider which products are essential and which are okay to do without.

24. Turn off the device when not in use

Devices such as televisions and DVD players should be turned off immediately if you are not watching or listening to them. You should only turn on the lights in the room you are in. Turning them off when not in use will help you save some money on your monthly electricity bill.

25. Do charity

Giving is receiving. You can donate things that are no longer used but still in good condition such as old clothes, toys, music CDs or donate blood or money. Giving old things to people who need them is also a way to help you clean up your house.

According to VNE