There are numerous reasons to save money in the coming year. Whether you’ve recently graduated college or have been in the workforce for years, it’s never a bad time to take a good, hard look at your finances. You never know what 2019 may bring, but you want to be ready for anything. Here are some good excuses to boost your savings account over the year.
Getting a Pet
Most people want a furry animal to come home to after a long day at work. Whether you are a dog person or prefer cats, you can never start saving too early for a pet. The ASPCA released a table of common expenses that come with animals, showing that pet owners can expect to spend $120 annually on food for a medium-sized dog.
You also need to consider medical expenses, toys, treats, crates and training classes. With everything added together, you will likely spend upwards of $1,000 a year to care for your furry companion.
It’s also important to have enough money to cover medical emergencies. Certain medical procedures, such as removing an obstruction from a dog’s intestines, can cost thousands of dollars. Make sure to save enough money to handle these expenses, so you’re not at a loss for what to do when emergencies happen.
Pet owners should also seriously consider purchasing pet insurance to help cover the cost for these emergencies. It may sound like a lot, but pet insurance gives you the peace of mind of being able to provide for your pet.
Invest in New Tech
There are all kinds of cool gadgets that are coming out this year. Virtual reality has taken the world by storm, and you can get in on the action with the HTC VIVE Pro Virtual Reality Headset. It features sharper graphics and colors than ever before. You get 360 degree controller tracking to cover all of your movements. The immersive audio provides sound all around you to really add depth to any game you play.
Is virtual reality not your thing? There are plenty of other great toys to look into. Some of the most popular include:
- LG Signature OLED TV R9
- MoodoGo Portable Diffuser
- Nreal Light Mixed Reality Glasses
- Lenovo Smart Clock with Google Assistant
- Gillette Heated Razor
- Withings Move Activity Tracking Watch
- Harley-Davidson LiveWire Motorcycle
- Mophie Juice Pack Access
- Samsung TVs
- KitchenAid Cook Processor Connect
You may not think you have a reason to invest in a food processor or heated razor. However, once you start using it, you’ll wonder how you ever got by without it.
Purchase Your Own Netflix Account
Most people get by with using someone else’s Netflix or Hulu account. While it is free, this can be inconvenient. With a standard Netflix account, only two people can watch binge their favorite TV series at a time. If you share an account with more than two people, you may get locked out on Friday night with nothing else to do.
Consider getting your own account. A basic Netflix account only costs $8.99 a month. You’ll feel much better when you don’t have to constantly ask your parents for the family’s Netflix password.
Buy a New Car
Are you tired of driving the same hunk of junk around? One of the most common reasons to save money is to finally purchase a new car or motorcycle. In 2018, the average car buyer had to borrow $31,453 to get a new set of wheels. Even with a good down payment, the average monthly loan payment was $523 in the United States. If you want something new, then you should be ready to pay more.
There are ways to save money for a car. Instead of purchasing a new vehicle that came out in 2019, you can purchase something a few years older. It will come with many of the same features, but it’ll be substantially more affordable.
Either way, you need to look at your current monthly expenses and budget accordingly. You want to make sure you will be able to make your car payments while still affording everything else. It is a good idea to start saving now, so you can make a higher down payment.
Subscribe to a Food Delivery Service
Services like Blue Apron and HelloFresh have changed the way many people eat. When you get home from work, you may not feel like spending an hour over a hot stove. With many of the recipes from these services, you can prepare a delicious meal in less than 30 minutes. You will learn how to prepare new meals you may not have through of before.
Signing up for one of these services can also help you cut down on waste. You get the exact amount of food for as many people as you want. That means if you need to make food for you and your partner, you each get a full serving. You do not have to worry about leftovers and throwing food away. Plus, you’ll be able to branch out and try new meals. With a food delivery service, you’ll actually enjoy the time you spend in the kitchen.
Repay Your Debts
Not all reasons to save money are exciting. While it’s fun to consider purchasing a new video game console, you also need to be practical. If you have student loan debt or debt from credit cards, then you need to think about how you will repay those debts.
After saving some money, you can tackle these debts more effectively. You can make higher payments, so you’re not resorting to the minimum. You can also focus your payments on the debts with the highest interest rates. With more money in the bank, you can start working toward financial freedom.
Develop an Emergency Fund
You should have enough money in the bank to cover six to eight months of living expenses. This is money you keep in a savings account that you don’t touch unless you have genuine emergency on your hands. If your car breaks down or you need to unexpectedly see the doctor, you have the funds necessary to do so. With an emergency fund, you do not have to worry as much about falling deeper into debt. You won’t have to pay for these expenses with your credit card, so they won’t accumulate interest over time.
Plan for Retirement
Whether you’re 25 or 65, you need to think about retirement now. Out of all the reasons to save money, this is arguably the most important. You should be able to retire when you are 65. But if you don’t have enough money in savings, you may need to work longer. If your employer offers a 401(k) match, then you should take advantage of it. Even investing 1% of your total income will help you in the long run. You should also consider opening a Roth account. Using this account wisely can help you stay in a lower tax bracket.
A great way to save more money is to open a savings account that gives you compound interest. By investing wisely, you can passively earn more money without doing anything. It’s a great way to have more money for when emergencies arise or when you want to retire sooner. Credit.com can help you save your money appropriately, so get in touch with us today.