Debt repayment is still high on the to do list, but I want to save money this year, too.
In fact, if you look at our 2020 goals, two of the three are focused on saving money. It’s fair to say it’s something that’s on my mind coming into the new decade.
Are you feeling the same way but not sure where to start? Here’s a peek at some of the super simple things I’m doing to save money this year.
Things I’m doing to save money this year
There are five key things I’m planning to do in 2020 to help me achieve my savings goals.
I’m setting clear targets
In my 2020 financial goals post, I set out three specific money projects I’ll be undertaking this year. Of those three projects, two involve saving a specific amount for a specific purpose.
Setting targets means I have a clear path forward. Knowing how much I want to save tells me exactly what I need to do to keep us moving in the right direction.
If you want to save money this year, it would be worth it to spend some time thinking about how much you want to save. The targets you set will help when it comes to identifying strategies to help you reach your goals!
I’m doing a shopping ban
Details of how it will work can be found here but the gist is this: my goal is to put off any non-essential purchases until the end of June.
There are some exceptions to this, of course — including a clause that will allow me to enjoy a couple Starbucks drinks every week — but the goal will be to not add more things to the pile of things I already own.
I expect I will fail at time with this goal, but I’m not going into this with an all-or-nothing attitude. If I can succeed more often than I fail, I’ll be happy.
During the ban, I intend to stash away my personal spending allowance in my EQ account. I have a couple ideas of how I might want to use this money but nothing set in stone yet.
If you want to save money this year, consider a shopping ban! It doesn’t matter how long it is — any time spent saving instead of spending is helpful.
I’m tracking my spending
Going hand-in-hand with the shopping ban, this is the year where I am going to start tracking my spending.
For real. I’m doing it. It’s happening.
I did this once for 30 days and found the experience to be illuminating (I wrote about that here and here). Not only did tracking my spending help me see what I actually spend my money on, it also encouraged me to think before spending.
In fact, sometimes knowing I had to write it down if I bought it was enough to discourage a purchase.
If you want to save money this year, pick up a pencil or open up the notes app on your phone and start tracking your spending.
I’m using the right bank account for my goals
Over the last couple years, I finally started branching out and opening accounts with other financial institutions. This year, I want to focus on making sure I am getting the most out of my accounts as I can.
A big part of this will involve ensuring I am storing my money in the right account. For example, our emergency fund currently lives in an RBC TFSA savings deposit. Which is…fine, I guess. But it would be a lot more beneficial to move it to a high-interest savings account at EQ bank where it can uh, actually earn interest.
So if you want to save money this year, maybe it’s time for you to assess where you’re stashing your cash and make sure you’re using the right account for the job.
I’m creating effective sinking funds
I’m a big fan of using sinking funds. I really do believe they are the best way to safeguard your budget against irregular expenses.
Currently, we have three active sinking funds: car maintenance, pet medical, and gifts. Sometimes, we have a travel fund, as well, although that is currently empty.
One thing I am planning to do in 2020 to help us achieve our savings goals is assess our current roster of sinking funds and determine if anything is missing. Right off the bat, I know I want to add one for membership renewals (looking at you, Costco!) but there might be opportunities for others, as well.
While I don’t think it’s possible to completely prevent the kind of surprises that pop up during the year to derail your budget, there are steps you can take to minimize those issues. Having the appropriate sinking funds established is an easy one for us.
If you want to save money this year, consider the steps you can take to prepare your budget for irregular expenses.
Final Thoughts
Saving money can be difficult, but it doesn’t have to be. Although there isn’t a surefire way to save money this year (or any year, for that matter), I am hopeful these steps will help us move in the right direction.
I know we won’t always succeed but if we can finish the year in a better financial position than when we started, I’ll consider it a win.
What are you doing to save money this year?
