Budgeting tips to save money easily in 2021

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A lot of budgeting advice focuses on cutting back on expenses and limiting things that bring you joy, but there are plenty of budgeting tips that make saving easy.

Designing a basic budget for yourself is the first step, investing early is important, and be sure to automate the process where you can.

Related

How to start saving for Christmas in 2021
How to start saving for Christmas in 2021

Learning how to budget isn’t so hard, and it makes it easy to save money. Here are a few tips on how to save money in 2021.

Track your expenses
Track your expenses Photo credit Ridofranz / Getty Images

Track your expenses

As they say at the gym, what gets measured, gets improved. Recording expenses is the first tip for saving money from Bank of America, and it makes sense. Saving money is partly about cutting down on major costs, but it’s also about plugging all those little holes where money seeps out without you noticing. Make sure to review all your bank accounts, debit cards, and credit cards.

Automate savings and regular payments
Automate savings and regular payments Photo credit AndreyPopov / Getty Images

Automate savings and regular payments

Whether you’re socking away money for Christmas or saving over the long term, automatic withdrawals can help keep you to monthly or yearly savings goals. CNBC also points out that automating regular payments can help you avoid late fees.

Set up a retirement account through your employer
Set up a retirement account through your employer Photo credit Casper1774Studio / Getty Images

Set up a retirement account through your employer

It may not initially seem like it matters whether you save on your own or through an employer, but if you’re building up a retirement nest egg, it pays to go with the company 401k if your boss offers matching contributions, aka free money.

Keep the pandemic savings going
Keep the pandemic savings going Photo credit Fevziie Ryman / Getty Images

Keep the pandemic savings going

2021 may be the year you transition from lockdown mode at home back toward regular-ish life, but that doesn’t mean you need to give up all the ways you’ve been saving during the last year. If you’ve already cut down on expenses at restaurants, movie theaters, and other entertainment venues, consider keeping to those restrictions in your own life.

Adjust your tax withholding
Adjust your tax withholding Photo credit Piotrekswat / Getty Images

Adjust your tax withholding

According to USA Today, if you’re regularly getting tax refunds from the IRS, it means you’re withholding too much from your paycheck. Free up that money and invest it to start earning returns.

Get started as soon as possible
Get started as soon as possible Photo credit HAKINMHAN / Getty Images

Get started as soon as possible

Another tip from USA Today is to start saving immediately, instead of waiting until you clear up debt or have more cash available. The sooner you are able to start investing any money available, the sooner you start earning that compound interest. Saving is a long game.

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