6 money mistakes to avoid at the beginning of the new year

Limit eating out, gambling, swiping cards or spending most of your money to save will help you enter the new year with more money.

1. Don't spend everything before saving.

Instead of waiting until the end of the month to see how much you have left after spending lavishly to save, save money from the beginning. That is, apply the "pay yourself first" model.

You can set up your bank to automatically transfer money from your checking account to your savings account each month. Experts recommend saving about 10-20% of your annual salary.

2. Spending a lot of money on eating out

Of course, there are plenty of things you don’t know how to make, or you just don’t like to cook. But consider that eating out can be a drain on your budget. For example, if you eat out five times a week for $15 each time, you’ll spend $3,900 a year on eating out. But if you only eat out twice, you’ll save $2,340.

3. Gambling

Gambling has always been an attractive activity for many people in the world. And if you win, you will have a lot of money. However, the growing number of casinos is certainly not because there are more winners than losers. Therefore, every time you step into those places, consider your wallet carefully.

4. Stop using easy payment methods

Every day, retailers and payment systems come up with new ways to make paying faster and easier. But the further you move away from cash, the more likely you are to spend, says Dan Ariely, a behavioral economist in the US.

“When you automatically deduct money, you don’t feel as uncomfortable as spending cash, and you’re less conscious of the cost,” he says.

So force yourself to pay in cash, or at least re-enter your credit card number every time you buy something online to remember that you’re spending money. Never save your credit card number on your computer, retailer’s website, or e-wallet.

5. Don't be silent about money issues

Research shows that we’re not only bad at spending money, but also bad at talking about it. Yet research also shows that the more we talk about it, the more confident we become, and the more information we have, the better decisions we make.

When you talk to people about money, you learn more about how they save—the things that don't show on the outside, in addition to how they spend. It can help you make smarter financial decisions.

6. Stop buying in bulk

A recent study found that shopping at wholesale supermarkets can make you spend and eat more than you would at retail. It won't break the bank, of course, but "if you're looking to save money, you're doing it wrong," says Dartmouth professor Kusum Ailawadi, who authored the report. The solution is to go to the supermarket once a week to avoid overspending. And before you go, make a list of what you need to buy and stick to it.

According to VNE