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5 Resolutions to Cut Costs and Reduce Stress
With the new year approaching, now is the perfect time to make a money-saving resolutions. These five tips will help you cut your costs, build your savings, and reduce stress in 2025.
1. Pay it off.
Make a resolution to pay off your debt to save money. Let's say you have a $2,000 balance at 18% interest. If your minimum payment is 2% of the balance due each month, it will take you 19 years to pay it off and you'll incur $3,862 in interest. But if you increase your monthly payments to 8% of the balance due--much more than the minimum--you'll reduce the payback time from 19 years to three years and nine months, and your interest costs now are only $433. You've just "saved" $3,429.
2. Conserve.
Another great resolution is to make small changes in your home and day to day life that make a big difference on your utility bill. Consider the following:
3. Every dollar counts.
No matter how big or small you want to go with your resolutions this year, there's something for everyone since evrery dollar truly counts when you're aiming to save money. Grab a calculator and add up what you spend on what you would consider "little things." Consider cutting out one or two of these items to help cut costs and reduce your financial stress for a better 2025!
4. Tune it up.
Make a resolution to get regular automobile maintenance—including low-cost oil changes, filter changes, and tire rotation— which can save big bucks by preventing costly repairs. Keep your engine tuned and your tires inflated to their proper pressure. On the road, stay within speed limits; gas mileage decreases when you drive faster than 60 MPH. Avoid "jackrabbit" starts, unnecessary idling, remove excess weight from the trunk, and combine errands.
5. Transfer it.
Finally, create a resloution to pay yourself first by setting up automatic transfers to your checking account. Consider having your paycheck automatically deposited to your credit union account, using direct bill payment from your share draft account for recurring payments like household bills, insurance premiums, automatic investment and savings plans, mortgage payments, auto loan payments, and charitable donations, setting up a Holiday Club Account, and/or participate in your employer's tax-advantaged retirement plan. These are all great tools for building your financial wellness in the new year.
Use these five resolutions to build a plan for 2025 that works best for you. If you have any questions or are in need of advice, don't hestitate to reach out to one of our representatives. Learn more at https://www.kitsapcu.org/.
1. Pay it off.
Make a resolution to pay off your debt to save money. Let's say you have a $2,000 balance at 18% interest. If your minimum payment is 2% of the balance due each month, it will take you 19 years to pay it off and you'll incur $3,862 in interest. But if you increase your monthly payments to 8% of the balance due--much more than the minimum--you'll reduce the payback time from 19 years to three years and nine months, and your interest costs now are only $433. You've just "saved" $3,429.
2. Conserve.
Another great resolution is to make small changes in your home and day to day life that make a big difference on your utility bill. Consider the following:
- Properly insulate all ducts.
- Use programmable thermostats. Turn your thermostat back 10% to 15% for 8 hours each day during the winter to save as much as 10% a year on your energy bill.
- Use ceiling fans to reduce both cooling and heating bills.
3. Every dollar counts.
No matter how big or small you want to go with your resolutions this year, there's something for everyone since evrery dollar truly counts when you're aiming to save money. Grab a calculator and add up what you spend on what you would consider "little things." Consider cutting out one or two of these items to help cut costs and reduce your financial stress for a better 2025!
- If you spend $2.00 a day on soda, that adds up to $730 a year.
- If you spend $5.00 a day on coffee, that's $1,825 a year.
- If you spend $7.57 every weekday on fast food, that's $1,968.20 a year.
- If you spend $6.20 a day on cigarettes, that's $2,263 a year.
4. Tune it up.
Make a resolution to get regular automobile maintenance—including low-cost oil changes, filter changes, and tire rotation— which can save big bucks by preventing costly repairs. Keep your engine tuned and your tires inflated to their proper pressure. On the road, stay within speed limits; gas mileage decreases when you drive faster than 60 MPH. Avoid "jackrabbit" starts, unnecessary idling, remove excess weight from the trunk, and combine errands.
5. Transfer it.
Finally, create a resloution to pay yourself first by setting up automatic transfers to your checking account. Consider having your paycheck automatically deposited to your credit union account, using direct bill payment from your share draft account for recurring payments like household bills, insurance premiums, automatic investment and savings plans, mortgage payments, auto loan payments, and charitable donations, setting up a Holiday Club Account, and/or participate in your employer's tax-advantaged retirement plan. These are all great tools for building your financial wellness in the new year.
Use these five resolutions to build a plan for 2025 that works best for you. If you have any questions or are in need of advice, don't hestitate to reach out to one of our representatives. Learn more at https://www.kitsapcu.org/.
December 11, 2024