Often preparing for the New Year is an opportunity to look back on our finances and evaluate how we can improve moving forward. Saving doesn’t always have to mean cutting back on expenditures or making January a no-spend month. Instead, you can make smarter choices to grow your investments and maximize your savings without feeling the need to cut back on the things you enjoy. If you are doing a deep dive into your finances, here are some smart strategies to help you prepare for the New Year and save more in 2025.
1. Maximize Retirement Contributions
It’s easy not to think about retirement in our 20s and 30s, but as retirement age draws closer do you have enough saved? In the New Year, take a look at retirement calculators to see if you are contributing enough to retirement savings. Especially, if your employer matches your contributions, it may be a smart money-saving strategy to max out your contributions this year.
2. Maximize Your Credit Card Rewards
Are your credit cards working for you? With rewards cards, you can save on purchases you are already making. According to Bankrate, the average return on credit card points is around 2.1% per dollar spent which adds up to roughly $210 per year if you spend $10,000 annually on your card. While this might not seem like a lot it’s money you wouldn’t have before.
3. Time Your Purchases
If you are planning on making big purchases this year, make sure to time them accordingly so that you get the best deal. For example, if you’re buying furniture the best time to buy is around a holiday weekend such as President’s Day, Memorial Day, or Labor Day. The same is true for buying a car.
4. Increase Your Savings Slowly
If your goal is to save more this year, there are ways to do so realistically. You can prepare for the New Year by putting a savings strategy in place. To save $10,000 this year try the $27.40 rule. Every day if you put $27.40 into your savings account, by the end of the year you’ll have $10,000 put away. Doesn’t this sound doable? Breaking down savings goals into more manageable chunks will help you stay on track.
5. Reevaluate Your Insurance Policies
Are you paying too much for insurance? The New Year is a great time to try and negotiate lower premiums for home and auto insurance if you didn’t file any claims last year. In addition, take a look at what you spent on health insurance. Did you meet your deductibles and how much did you spend on visits, medication, procedures, etc.? You may be able to adjust your policy to save you money next year.
6. Try The 30-Day Rule
While you don’t necessarily need to cut back on spending to save more, many people find the 30-day rule helpful with impulsive spending. The idea is that if you are tempted to make a large purchase, wait 30 days to make the decision. In that time period, you can continue to do research and hunt for the best price.
Prepare for The New Year
Take this opportunity to review your finances from last year and find ways to save as you prepare for the New Year. It doesn’t take much to make minor adjustments that could have a big impact on your financial health in 2025. How do you find smart ways to save? Let us know in the comments.
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