Simple strategies to help you save money
Staying in control of your budget and making the best financial choices to align with your goals is daunting, but there are some simple steps you can take to save money.
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Sorry New Yorkers, when it comes to saving money, it stinks.
According to a recent study by MagnifyMoney, a financial services website, New York City ranked third among the worst states for spending money.
It could be worse. Our friends from Lost Frontier finished last. High unemployment and low wage growth, combined with relatively expensive housing relative to income, make Alaska the worst state for savings. The Sunshine State is doing only slightly better – billed as the second worst state to spare – thanks to stronger wage growth and lower unemployment.
According to the study, a high median income here in New York helps offset high housing costs, giving us an advantage over Florida and slightly better conditions for saving.
We only have to look east to see the true loyal savers. When it comes to withdrawing money, Vermonters are the most disciplined savers. Low unemployment and rising wages help. From May 2020 to May 2021, the state posted an employment growth rate of 10.1% as well as an unemployment rate of 2.6%, the second lowest in the country behind New Hampshire.
You can always move to a more creditworthy state. Cutting costs is one of the most common reasons consumers decide to move. Over the past few months, the proliferation of remote working has prompted some to move to a cheaper or generally more desirable location, but MagnifyMoney’s senior content director, Ismat Mangla, encourages those people to weigh all the factors.
“Will your company adjust your salary based on where you live?” Mangla asks. “If you have to leave this job, will there be other opportunities for you in your new field? Just make sure that you make a decision like this with a clear head and that you consider all the scenarios. “
Since saving money is the foundation of financial security, the struggle remains real here in New York. You can swear to spend less and save more, but somehow, every time you commit to putting more money aside, something shows up. One week your water heater breaks down. The next week someone slips your car aside and leaves no notes.
The reality is that the right time or the right terms to save money may never come, no matter where you live. But, if you aspire to great savings, here are some tips, courtesy of MagnifyMoney.
- Keep track of your budget. Creating a monthly budget can help you track your spending, save money, and meet your financial goals. The first step is to know how much money you are making each month. Next, write down your fixed expenses and your variable expenses. Once you have a clear idea of ​​how much money is coming in and what is going out, set some financial goals. Do you want to grow your savings or create an emergency fund? Great. Now come up with a strategy. The 50/30/20 rule is popular among personal finance experts: 50% of your income goes to “needsâ€, 30% to “wants†and the remaining 20% ​​to savings or debt repayment. .
- Automate your savings. The easiest and most efficient way to record is to do it automatically. America Saves, a subsidiary of the Consumer Federation of America, suggests that your employer put a certain amount from your paycheck each pay period into a savings account. You can also ask your bank or credit union to transfer a fixed amount from your checking account to a savings vehicle. You can even put away your virtual spare currency – various financial apps, like Acorns, Qapital, and Chime, let you automate savings by ’rounding up’. Every time you swipe your debit or credit card, your purchase is rounded to the nearest dollar, and the cyber coin you accumulate is hidden in a savings account or investment fund.
- Add regularly to your savings. If you have a high yield savings account, no matter what your circumstances, make sure your savings are constantly growing by making regular deposits. According to the folks at MagnifyMoney, even a few dollars a week can grow with interest, helping you create a financial safety net and achieve your goals.
- Minimize unnecessary expenses. Take a look at your monthly expenses and find recurring expenses that you might be able to reduce. Are you still affected by ATM fees? Sure, a dollar or two might seem small here and there, but it adds up. Consider switching banks to save money. What about streaming services? Do you really need Netflix, Hulu, HBO Max, Spotify and Pandora? If you’re looking to save a few bucks, you might want to consider canceling one (or more) at least temporarily.
- Seek professional advice. Keeping control of your budget and making the best financial moves to align with your goals is intimidating. Consider hiring a financial advisor to guide you through your important financial decisions. There are also a variety of websites offering free advice. For inspiration, also check out personal finance and investing podcasts like “Stacking Benjamins†and “Millennial Moneyâ€.
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