The New Year is only 31 short days away. Man, this year went by fast! At this point of the year, most folks are thinking about their New Year's resolutions. However, New Year's resolutions take much more work to keep up with than expected. According to a study from the University of Bristol, 88% of New Year's resolutions fail, despite 52% of participants being confident of their success. In another report from Strava, only 9% of resolution setters were successful and pinpointed January 19th as "Quitters Day," where 91% of participants gave up on their resolutions before or on that date.
Here's a New Year's resolution you can easily keep up: Saving! Saving money is an easy resolution that anyone can accomplish. Here's how you can easily sail past that January 19th date and have the cash to save for your dream house, next car, trip, or anything else you want.
Start a budget
Setting a budget is best if you notice your bank account getting emptier each month. The easiest things to budget are monthly payments, rent, and food. The USDA publishes a monthly guide for how much food should cost per month, depending on your paycheck and lifestyle. Consider how much you may pay per month for the Big Three Expenses: Food, Housing, and Transportation, as those three expenses are non-negotiable. Set aside a portion of your paycheck into a savings account every month. Now, these numbers can change every month. There is likely no way to predict if food, gas, insurance, and more costs will fluctuate. That's why you should have a set amount per month to save. For example:
Aim to save 20% per month, every month
If you save 10-20% of your paycheck each month, that's a great start, especially if you're fresh out of college and new to the job market. Using our average monthly paycheck of $3,791 as an example, you should save $758.20. After a year goes by, you'd have $9,098.40 saved up. That's around two months' worth of expenses saved after a year. You don't have to save 20%, but saving a consistent amount every paycheck is a good way to start. But, if your income is infrequent, or if you can't save 20%:
Save what you can
Budgeting can get you far, but don't fret if life takes hold and you have an unanticipated expense. You don't have to save 20% of your paycheck every month, in any case. Sometimes, you may spend more one month than you do another; take this time of year, for example. No matter if you spent a lot this month vs. last month, saving any money is still helping you towards your goal.
