The end of the year is a great time to reinvent your savings plan! Give the gift of extra money in your savings account as you look forward to the new year. Today’s blog from Volt Credit Union talks about ways to save money at the end of the year.
Stay Under Budget for Holiday Gifts
The winter holidays are all about family time and gift-giving. Stay under your gift-giving budget to save some extra cash this year. Rather than shop for items, consider handcrafted holiday gifts made from the heart and personalized for each recipient. Many times, a handcrafted gift has more sentimental value than a plain old gift card or pair of socks!
Volt’s Electronic envelope System
Rather than a traditional piggy bank, use an envelope system to save your money for specific purposes. We can help you do this electronically! You can set up multiple sub-share accounts under your primary share account. You can name these accounts for your purposes, such as “Vacation Account”, “New Carpet Fund”, “Eating Out”, and more.
Once you create a monthly budget, put the budgeted amount in each sub-share of your share account. Take out some money from that monthly budget every time you spend something on those types of expenses.
Here’s the key: Use only the amount in the electronic envelope for that monthly budget. The idea here is to stay within your budgeted amount without going over. For example, you budget $1,000 a month for groceries and you’re paid every two weeks. You label one part of your share account “Groceries” along with the amount you budgeted. After your first paycheck, you put $500 in that portion of the account. After your second paycheck, you put another $500 in it for $1,000 total.
Advantages to the electronic envelope system include:
- Lets you see what you’ve spent
- Lets you see what’s left
- Keeps you disciplined and on track
- Holds you accountable for your expenses
Try not to shift money from one section of your account to another (although it’s very tempting). Consider having an electronic envelope labeled “Emergencies” with a certain amount of money in it.
Find Ways to Cut Costs
Do you crave that drive-through coffee every morning on the way to work? What about that quick stop to a fast food restaurant? Cut down on these types of purchases. Let’s say you buy a $2 coffee every day you commute to work. That’s $10 a week that could go towards building a nest egg, earning interest in a savings account, or putting money towards a larger purchase you’ve had your eye on (like a car or home).
Refinance Your Loans
Auto loans and mortgages offer extremely low rates as of 2020. Now is a great time to consider refinancing your loans to get lower rates and lower payments. Where can the proceeds go? Towards your savings, retirement, emergency fund, or whatever you wish. Ask Volt Credit Union how to refinance your current loans, and we’ll see what we can do for you!
End-of-the-Year Tips From Volt Credit Union
The end of the year is a great time to set your financial goals for the next year and resolve to be a better saver. Not only can you put yourself in a better financial position, but you can set your financial goals for the upcoming year. Contact Volt Credit Union today and we’ll help you develop a viable financial plan for your savings in the coming year.