Achieve your 2020 New Year's Resolution Of Saving More

Posted by Diksha Sharma on December 27th, 2019

People take all sorts of New Year's resolutions such as going to the gym regularly, improving relationships, eating healthier, traveling more, among many others. But these resolutions don’t always have to be reserved for health & lifestyle but can also be about financial well-being. It must be given a fair share of attention. 

Our spending habits can make a big difference when it comes to financial planning for a secure future. With the beginning of a new decade, 2020 is the right time to take up a habit to save more money and boost your financial health. So without further ado, here are some ways to achieve the resolution of saving more:

Develop a plan 

You don’t start a road trip without figuring out how you’re going to get to the final destination, right? If you want to save, you’ll need a long-term savings plan in place to help you get there. But first and foremost, it is important to identify your financial goals - are you going to buy a home/ or plan to pay your auto loan? You should be specific in defining these goals after taking out the time to go over what financial qualities you can improve this year. Research also suggests that having a well-defined written strategy can make a substantial difference in one’s economic outcomes. So, outline your plan of action after considering your outlook and financial goals. 

Start Investing 

We often tend to be laidback when it comes to investing since it takes time to understand this space. If you are feeling intimidated about the budget for your investments, it is absolutely okay to start out with a small amount in the beginning. One can start with an advisor or an agent to invest in stocks, bonds and other types of assets/funds which can result in big returns. Investing at the end of the year can help employees save taxes. 

Save a percentage of your income for an Emergency Fund 

Unexpected challenges can come your way anytime and it is better to be prepared than to look back and regret that you didn’t save. You can start to save a comfortable percentage from your monthly income to build an emergency fund that can come in handy in times of need. For some people, it’s 20%, for some it's 30%, and for others, it is even 40% or 50%. It totally depends from one person to another and has to be in line with your current financial situation. And if you can’t afford to put away 20 percent of your income, remember that no amount is too small to start. 

Use your employee benefits properly

If your employer offers some type of employee benefit, you should use it wisely. In case your organization currently isn’t providing any kind of employee wellness benefit, you may not be out of luck quite yet. Various employers are beginning to understand the significance of providing benefits to employees as it helps to retain and attract the best talent. More and more employees are seen to be opting in for Meal Cards and other employee benefit cards for a plethora of reasons. 

For instance, through the 100% tax compliant Sodexo Meal Pass, you are procuring the tax savings up to Rs. 12,000 annually are also enabled with wider choice and freedom to choose from India’s largest meal network. With the innovative Multi-Benefit Pass, you have access to  multiple employee benefits on a single card including meal and non-meal benefits like fuel, books & periodicals, leave travel allowance, telecom, etc. There are numerous benefits that the workforce can avail with these digital solutions including paperless management of expenses and claims, tax savings.  More importantly, with a wide range of exclusive deals and discounts, additional savings can be achieved other than the annual tax savings of Rs. 75,000, adding greater delight. 

If your organization is not offering these benefits already, you must reach out to your HR and request for such employee benefits solutions. 

Pay Down Your Debt

Focus on decreasing the amount of debt you owe and pay special attention to the loans with the highest interest rates. Paying those down first will save you money. In addition to paying off the debt you already owe, make it a goal not to add any more liability to your current financial situation is not its emergency.

Cut Back Unnecessary Spending

Take a look at what you’re spending each month and track spends with the help of a range of apps. While you do this, you will be able to identify places where you are going over budget and need to cut down. Having a strict budget for yourself could be the best thing that you do to improve your finances in the new year. Sticking to a budget often seems more difficult when you’re depriving yourself of the things you want, so it’s not a bad idea to keep one or two of your favorite subscription services going. But if you can, cut back on some of the more other unnecessary expenses, like eating out frequently, or splurging on expensive clothes. 

Make sure you don’t set your goals too high, or you’ll feel burned out quickly and may give up it up entirely. It’s quite common to start easing back on the resolutions after a few weeks or a couple of months but remind yourself throughout the year why you set those financial goals in the first place - so that you can save for a better future. Moreover, with the help of Sodexo tax savings, you can be in better place financially. Give Your Best!