Yahoo Finance If You’re Not Going To Budget in 2024, at Least Do These 7 Things To Save Money
The No. 1 rule of personal finance is to create a budget so you can track your income and expenses, assign a purpose to every dollar, prevent overspending and meet your savings goals.
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But some people don’t have the meticulous nature to keep up with it all, don’t feel they need to or simply don’t want to spend time keeping tabs on what’s coming in and what’s going out.
No matter the reason, if you’re living without a financial roadmap in 2024, at least take the following steps to avoid financial failure.
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Keep Up With Your Accounts
If you’re not going to track your income and expenses, it’s imperative that you stay on top of your bank and credit card accounts, which will be your only way to get a snapshot of your spending.
“Even better, it means you can stop problems in their tracks, whether it’s fraudulent charges or simply being a little too close to your overdraft limit and the fees that come with it,” said Liz Hunter, commercial director of Money Expert, a platform that helps people save money and spend less on essential services.
Either way, regular check-ins with statements and balances are the only tools the budget-deprived have to take their financial pulse.
“This might be a weekly sit-down session where you review what you’ve spent and what you’ve got left to spend, or, if it feels more achievable, a quick balance check once per day,” said Hunter.
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Review Your Bills Regularly
Anyone who refuses to budget must keep tabs on their bills and look for opportunities to save money.
“Setting aside some time to go through your utility, broadband and phone bills a couple of times in 2024 and beyond could potentially save you hundreds,” said Hunter. “Use comparison sites to see if you can reduce your monthly or annual outgoings for broadband, TV and mobile services, as well as car, home, life and pet insurance payments — especially if you’re out of contract or it’s due for renewal. If you do spot cheaper deals, it’s always worth haggling with your current provider, who’ll often be keen to keep you on board.”
Automate Your Savings
Most budgets assign your dollars to needs, wants and savings. If you’re not following one in 2024, then saving money consistently can get tricky. The easiest way to simplify saving without a budget is to put paying yourself on autopilot.
“Life is busy, which means transferring money into your savings account might be the last thing on your priority list,” said Hunter. “That’s why setting up a standing order from your checking to your savings account is a great way to automate the savings process. Scheduling it to go out immediately after you get paid is a good idea, too. This means you’ll make saving a priority over your non-essential spending, rather than just saving whatever happens to be left in your account at the end of each month.”
Create Buckets for Different Savings Goals
If you refuse to create a budget, it can be hard to manage your savings when everything is jumbled in one account.
“Having an everyday savings account is a great idea, but having to dip into it for Christmas, birthdays and summer travel can make it feel impossible to build a substantial fund,” said Hunter. “Instead, consider creating a savings bucket for specific occasions that you know you’ll need extra funds for each year. Most banking apps allow you to set up unlimited buckets and automate the amount you put in each month.”
Round Up Your Spending
If you’re not following a budget, err on the side of caution and enable round-ups in your banking app to save a little extra while you spend in 2024.
“It works by rounding up anything you spend to the nearest dollar and putting the difference into a savings bucket or account,” said Hunter. “For example, if you spend $3.70 on a coffee three times a week, your bank will round this up to $4 and automatically put the $0.30 difference into your savings, which, over a year, would add up to an extra $46.80 saved.”
Review Non-Essential Expenditures
If you refuse to track your overall income and expenses, you should at least get in the habit of monitoring how much you’re spending on wants.
“Reviewing your non-essential spending could greatly impact your financial health in 2024,” said Hunter. “Once every few months, take a look at your bank statement and write down what you’ve spent in the previous month and why. It can be helpful to split these into categories — for example, eating out, gifts for friends and family, shopping and takeout. Once you have the figures in front of you, it should be easy to see where you can cut back. This way, you can adjust your spending and direct money to where you need it more, such as into your savings account or to pay off debt.”
Commit to Intentional Spending
When you follow a budget and live by a spending plan, you get a clear picture of how much throwaway money you can afford to blow on impulse spending. When you don’t, every purchase must be intentional.
“Shopping for items you don’t need but spontaneously notice can add up fast,” said Hunter, who offered the following intentional spending tips:
Add items you genuinely need to a shopping list to control your spending and reconsider impulse purchases. If it’s not on the list, you probably don’t need it.
If you spot something you really want to buy but don’t necessarily need, wait 48 hours before buying.
If you have something specific in mind, look for the best deals, compare prices online and seek out discount codes before buying.
Avoid being taken in by sales. You’re not saving money by purchasing something you don’t need at a lower price.
Avoid BNPL and other payment options that encourage spending beyond your means.
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This article originally appeared on GOBankingRates.com: If You’re Not Going To Budget in 2024, at Least Do These 7 Things To Save Money
