The way you manage your money is crucial for your personal finance. Understanding how to save and spend money will help you build a more comfortable and less stressful life.
The most important step you can take is asking yourself if you really need or want to buy something, and if you can afford it. And also, always have a budget and look for ways to spend less. Here are incredible shopping and saving tactics to make the most out of your money in 2020:
1) Avoid Impulse Shopping
Impulse shopping can deeply hurt your budget and potentially lead you to debt. There are a few things you can do to avoid this bad habit, such as creating a list before shopping with the things you really need and sticking to it. If you come across something that makes you want to buy that is not on your list, tell yourself that you will come the next day, and more often than not, you will give up the purchase.
2) Find a High-Interest Savings Account
Everyone should save money and deposit it in an emergency fund. High-interest savings accounts are one of the easiest ways to save money. It virtually has zero risks since it’s insured by the Federal Insurance Corporation on up to $250,000.
3) Always Compare Prices Before Purchasing
You should always do a price comparison before buying something if you want to make the most out of your money. There is a huge variety of apps and websites you can use to find low product prices and save money, such as Skyscanner for airline tickets, RedLaser for products, and The Grocery Exchange for groceries.
4) Buy Used
Are you on a tight budget? Second-hand items are not only good for the environment and sustainability but also good to save money. If you have the patience to shop around, you´ll find products in excellent conditions at a much cheaper price. Consider going to thrift shops, pawnshops, flea markets or even buy online on sites like Craigslist or eBay.
5) Overcome Addictions
Addictions are not only bad for your health, but they’re also very expensive. For instance, smokers spend on average $2,292 dollars per year to fund this habit. For that reason, you need to get over your addictions in order to save money in 2020.
6) Join Newsletters
This is a trick that you should use carefully if you think you’re an impulse shopper. The majority of shops have opt-ins for newsletters or push notifications to broadcast sales, coupons, and promotions for their customers. Therefore, it’s an excellent way to find great deals.
7) Use Credit Cards on Your Purchases to Earn Points
Did you know that you can be rewarded for using your credit card to make purchases? If you have a good credit score you will be able to get up to 5% cash back on qualified purchases. You can also have some other benefits like free airport lounge entrance, travel insurance, cash bonuses, special discounts, and many other things.