Are you looking to grow your savings in 2021? Now is a great time to start. From ending subscriptions for services you don’t use, to shopping around to ensure you’re getting the best deal for a product or service, there are many things you can do to achieve this goal.
Set a target
Saying you want to save more money is one thing—establishing a target is another. Why? Because if you don’t have a target in mind, it will be harder to change your spending habits. Go through your finances and contrast your income against your monthly expenses. Determine how, why, and where you’re spending your money, set a budget, and determine how much you can set aside each month.
Track your paid subscriptions
Are you utilizing your subscriptions? Are their products or services that you’re auto billed for that you’re not using? How many dating apps, fitness clubs, and streaming services are you subscribed to? Do you know, and, more importantly, do you know how much they’re costing you? If you’re having a hard time keeping track of your digital subscriptions, there are several apps that can help with that. The most popular include Bobby, Shubby, Trim and Trubill. If you’re wary about delegating this to an app, you can always do the legwork yourself. The bottom line is this– keep the subscriptions you use and cut the ones you don’t.
Refinance (or eliminate) high-interest debt
Credit card interest fees can add up fast. If you have a lot of credit card debt and paying it off now isn’t an option, consider consolidating it. This can be done in a few ways. First, there are lots of creditors that give new card holders a 0% APR for 12-18 months for balance transfers. Second, you can also look into a low-interest credit card debt consolidation loan. Refinancing high-interest debt can save you a lot in the long run.
Talk to your CPA about accounts that have tax benefits
If you want to save money on your income taxes (who doesn’t)—you’ll want to talk to your CPA about accounts that have tax benefits. For example, in some cases, contributions to retirement accounts (such as a Roth IRA or 401K) or education savings account, such as a 529-education plan, can reduce your adjusted gross income (AGI), which can reduce your income tax liability.
Are you looking to save more money in 2021 and beyond? Call Hughes Snell & Co. P.A. today to learn how we can help you toward your goal.
