One of the biggest benefits of budgeting is you achieve your financial goals, according to the New Jersey Agricultural Experiment Station. This is good advice for the 45% of millennials who say they plan to spend big in the coming years. Almost three-quarters of people already use a savings account to help manage their money. But what else can you do to save and budget for the items you most want in the future?
Make money from your money
Home goods are popular among the nation, with 40% saying they’d like to spend their cash on items such as furniture and home furnishings. Hat City Pawn reports that the average household has $6,000 worth of home furnishings, so if you want to completely overhaul your home, you’re going to need a lot of savings. An effective way to get as much cash as possible is to make as much interest on your money as you can. A high interest savings or checking account is ideal. Another way to make money is to join a credit union. This is financially beneficial as interest rates are higher than average on deposits made. If you don’t mind moving your money around, it can pay to switch bank accounts regularly. Most banks offer monetary incentives to new customers. The amount offered varies, but is typically $100 or above.
Cut costs & save
44% of people say that they want to spend their cash on traveling. Americans say they plan to spend an average of $2,000 per person on their next vacation. There’s no denying that this is a big expense, so you’ll want to ensure you’re getting the most for your money. Ways to cut your travel costs include using comparison sites, flying on a Tuesday or Wednesday as these are usually cheaper, and choosing a hotel slightly further from the beach and similar amenities. You’ll be amazed at how much you can save. For example, Airfare Watchdog reports flights are around $85 per person cheaper on Tuesdays than any other day of the week. The money you save from your vacation can then be put towards your other big spends. Home renovations are costly but worth it as they add value to your home. Or, you could save the cash and add it to your house deposit fund.
Trade & wait
As the world gets smarter, electrical devices have become more popular. 38% of Americans plan to spend a large sum of their cash on electronics in the immediate future. But electronics aren’t cheap. Millennials spend $238 per year just on their phones, then there’s the cost of laptops, tablets, smart kitchen gadgets, and more to factor in. You can budget for these devices by selling or trading-in your old electronics. This will help to lower the cost of your new, shiner electronics. Electrical items regularly go on sale, so it’s wise to wait until the price of the item you want is reduced before parting with your cash.
People are planning to treat themselves to some big purchases this coming year and beyond. Follow these budgeting tips and you too could indulge in some new purchases.