In the last few weeks of 2016, it seemed like nearly everyone was ready to leave the year behind in the hopes of a better and brighter year ahead. Many people dedicate themselves at the start of the year to New Year’s resolutions – goals they will strive to achieve, vices they hope to rid themselves of. You name it, and someone probably has it in their mind.
From quitting smoking to finding a workout plan that’s actually realistic, resolutions come in all shapes and sizes. 2015 statistics found the third most popular resolution related to money, specifically finding a way to spend less and save more. Whether you’re looking to save a little extra pocket money or hardcore trim your spending, we’ve got tips to make your 2017 thrifty and thriving.
Become a logger
While it might sound unrealistic to keep track of every transaction you make in a day, I highly encourage you to try it. Every day record in your log what you bought and how much you spent on it — this is where keeping receipts will save your life.
At the end of the week or the month take a step back and evaluate where your money is going. Chances are there are a decent amount of purchases you might not realize are eating up your funds unnecessarily.
From those morning Starbucks lattés to the extra pair of shoes you bought just for fun, it should become clear that splurging on the small things adds up quickly and clandestinely. Set aside money for your necessities — groceries, gas and rent.
Leave yourself a small weekly budget for the extra things.
In time, it’ll be easier to do without the unnecessary items, and you can wean yourself off them. Then you have the opportunity to pocket the extra cash for your savings account.
Go against the grain
One of the simpler ways to save a few bucks is actively seeking out cheaper products than the ones you might normally purchase. Going off-brand can sometimes be more financially rewarding and leave you just as commercially satisfied as you would be with a more expensive brand name.
Grocery shopping is also the perfect opportunity to supplement the little things you might have taken out of your normal routine and bring them back in a cheaper way.
For instance, making your coffee at home instead of swinging by Soma in the morning on your way to class or packing a sandwich or a salad instead of hitting Kirkwood Avenue with friends for lunch are ways to decrease spending.
Although it might not be what your friends are doing or you might feel like you’re suffering from slight “fear of missing out,” these kinds of purchases are the frivolous ones that can really derail a budget. In 2011, 40 percent of student spending was on food and random items – the unnecessary purchases.
Discover the haps on apps
If seeing your spending in color-coded form would make budgeting and saving easier, then it just so happens that you’re in luck.
There are several budgeting apps, such as Budgeting App, Wally, Mvelopes and PocketGuard, that can track your transactions, your allotted budgets and send you alerts depending on activity levels. I would recommend this type of tracking for the more intense spender because it can link up to your debit or credit cards that you might use more frequently.
The self-made, paper-and-pen tracking model from tip one might be better for the occasional spender just trying to save a little extra money each month, whereas the intensity of an over-spender might mandate using an app for effortless, visual demonstrations of their spending and saving.
Invest
After accumulating enough money, do some research on investing in the stock market or putting your money into a locked account, like a certificate of deposit account.
With this type of account, the money you put in remains in the account for a certain period of time, ranging from months to years, depending on your choosing. In that amount of time, you cannot access or withdraw the money, and a specific interest rate multiplies your amount of cash in the account.
Similar to the stock market, this kind of hands-off approach to multiply your funds proves it can be very lucrative if done correctly.
With a whole new year ahead of you to make your resolutions into realities, we hope these tips lead you and your wallet into your best year yet. For 2017 keep calm and budget on.
evanskn@indiana.edu
