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Smart, simple ways to start improving your savings habits in the New Year.
While you may already be saving some of your money, you can always set aside a little more for nest eggs, emergency funds and dream vacations. Follow these tips to supersize your savings in 2020.
A little bit of tax planning can go a long way when it comes to savings. Those who claim what they can – entrepreneurs should be claiming every business trip and every mile driven, for instance – could save thousands in payments to Uncle Sam.
There are plenty of reasons to give to charity, but one is that charitable contributions are tax deductible and can significantly reduce your amount owed. According to Charity Deductions*, Americans in the highest tax bracket can save nearly $20,000 on a $50,000 donation.
Receive any income from dividends or rental property? Instead of reinvesting every dollar, consider saving some of it in an emergency fund – you can never be too prepared.
You can likely do a lot with your money, but if you want to save a little more this year, you’ll have to prioritize. Rather than taking a lavish luxury trip, choose a less costly option and put the difference into your savings account.
Tom Corley, author of Rich Habits, Poor Habits, says** the wealthiest Americans save a significant amount of their income. He suggests setting aside 20% of your income. Follow this model, set by the highest-net-worth individuals, and start saving more than you already do.
Regardless of what strategy you employ to increase your savings, start now and automate the process as much as possible – for example, by setting up monthly bank transfers. Follow these tips and you’ll be a much better saver in 2020.
* Charity Deductions
** CNBC
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