How To Save Money In 2020

In this blog post I will help you explore ways on how to save money in 2020. In a survey conducted from GoBankingRates, it concluded that 45% of the people that responded only had $0 in their bank account. The top reasoning for this was because living paycheck to paycheck was a big factor and the surveyors would save more if they made more money. This survey was done only a month ago, so I hope that I can provide enough information on how to go about saving money in 2020.

It is still doable to save money living paycheck to paycheck. That excuse is just a fallacy and I’ll prove it to you. If you haven’t read my other posts then take a look below.

Side Note: I am not a professional and everything in this post is based only on opinion.

Living Paycheck To Paycheck

How To Save Money In 2020

Like I said above, You have the ability to save money if you’re stuck living paycheck to paycheck. The first thing you need to do is create a budget. You can do this by downloading an app like Mint or doing it in Microsoft excel. Below is an example of someone living paycheck to paycheck and I will show you the problem area that will fix it.

Reddit user Melmia88 asked The question “How can I stop living paycheck to paycheck” and provided all monthly expenses below.

  • Rent: $680 (water included)
  • Electric: $110-130 (Houston has some humidic climate)
  • Child Support: $210
  • Car: $414 (anything extra from paycheck usually goes towards payments and maintaining)
  • Car insurance: $206 (took months to find best full coverage rates, can’t do liability)
  • Phone: $137 (3 lines)
  • Furniture: $98 (improves SO bad credit)
  • Gasoline: $100-120 (share vehicle)
  • Food: $300 (family of 3)

Now as you look over all the information given above, It shows that this person is paying way too much for the car. It’s just as much as rent and this is the main problem area. The solution is to find a way to sell the car and find something that is way cheaper. The goal is to only be paying for car insurance. Accomplishing this will instantly save this redditor $400-$500 a month (and that’s not a lie). Just by reading this you can see that living paycheck to paycheck can be fixed with just minimal adjustments.

Of course this example involved someone with a family of 3, but for you single young adults that are reading this, you should not have this problem. Even if you’re in a relationship the expenses should be way less than the example above. This is why you need to see how your spending money and what you can cut back on.

Below is going to be tips from other people on how to save money in 2020.

Money Saving Tips

The first tip is to look at what you buy in terms of the hours you work. Let’s assume that you are getting paid $13 an hour and you want to buy something that is going to cost $300. Now think to yourself “I am going to need to work an estimated 30 hours which will be $390 before taxes”. If you are still thinking about getting the $300 item then you must decided on the opportunity cost (reason for spending this amount).

Second tip that is really good is if you want to buy something, wait 48 hours and see if your decision still stands. The reason for taking this much time is to see if you can live without buying something and saving the money. The hard thing about this tip is when you’re getting alerts on deals and the time is limited. This is why you should think in advance and have a mental note that you have thought about your decision and are willing to buy that product when it goes on sale.

Third tip that I came across is having some days where you don’t spend any money at all. Start with 1 and then 2. If you want to go further then go 3 days out of the week. This will really help you save money and get out of the habit spending your money just because you have it.

The last tip that you can use is the 50/20/30 rule. 50% of the check goes towards fixed expenses, 20% goes to straight to savings, and 30% can be your spending money. I suggest trying it out a few times and then adjusting the 30% to a lower amount and putting more away into savings. Below is an infographic if you’re a visual person.

thebalance.com

If you push yourself to adopt the tips I have listed above, then saving money in 2020 will be really easy and beneficial. It’s surprising that a lot of people still are not trying to find ways to save money and educated themselves in finance. I am telling you that anyone can learn to invest in stocks, retirement accounts, saving accounts, and be more deciplice with spending money.

Thank you for reading today’s post and following along with the blog. You can subscribe and get notified when I post something new or follow TheFinanceStarter on Facebook. I will be posting an update about my journey to grow this blog and show the money that it’s making (It’s not making anything at the moment).

Below is other post to read