4 Tips for Saving Money at the End of the Year

coins in jar

As the end of the year draws near, take some time to evaluate your savings goals and the progress you’ve made toward reaching them. It’s always nice to start the new year off with new savings goals and a positive financial outlook. One way to do so is to see if there are any ways you can save more money before the year comes to a close. Read on to learn 4 tips for saving money at the end of the year you should consider:

1. Cancel Anything You Don’t Need and Set That Money Aside

One thing you can do at the end of the year to save yourself some money is to cancel anything you don’t need and set the money you save aside. Non-necessities include things like a gym membership you’re not using often enough, a subscription for a magazine you don’t ever read, or extra cable channels you’re paying for but never watch. Take some time to evaluate if you’re paying for any services you’re not using enough or at all, and cancel them. Put that money toward your savings goals instead!

2. Use Your Vacation Time

chairs on a beachIf you have any paid-time off leftover for the year, use it! If your vacation time doesn’t rollover to the next year, be sure to take some time off and take advantage of it. Remember that time is money. Some employers allow you to cash out your overage vacation so you put it to use, so you will want to check with your human resource department or boss to find out what the policy is.

3. Save Any Extra Money

Another important tip for saving money at the end of the year is to hold on to any extra money you are given. Whether it’s a bonus from work or cash you got during the holidays, avoid going out and spending it right away. Think about next year’s savings goals and how your extra money can give you a headstart on achieving them. If you have any debt that needs to be taken care of, consider putting your extra money toward that. When you pay down high-interest debt, you’re saving money because you will end up spending less in the long run in interest rates and fees.

4. Contribute More to Your Workplace Retirement Plan

401k fundWhen you contribute more to your workplace retirement plan, you will reduce your taxable income. You have until the end of the year to contribute up to the maximum of $19,500 for the year to your 401(k) or similar workplace retirement plan. If you are age 50 or older, you can contribute an extra $6,500, for a maximum of $26,000. If you are less than 50 years old, you can contribute up to $6,000 to your IRAs and up to $7,000 for those 50 or older.

About Tennessee State Bank

Tennessee State Bank has been serving our local community for over 48 years. With branches in Sevier County, Knox County, Cocke County, and Jefferson County, we offer convenient banking services in East Tennessee. Whether you’re looking to open a checking account, obtain an auto loan, or apply for a home mortgage, we make the process as simple and straightforward as possible. Tennessee State Bank’s motto is “Banking at its Best!”SM, and we strive to live up to that creed every day. Let us know how we can help you by sending us a message via our Contact Form.

Tennessee State Bank is Member FDIC and an Equal Housing Lender.

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References

“Five End of Year Savings Tips.” America Saves. https://americasaves.org/blog/1539-five-end-of-year-savings-tips.

“For 2020, 401(k) Contribution Limit for Employees Rises to $19,500.” Society for Human Resource Management. https://shrm.org/resourcesandtools/hr-topics/benefits/pages/2020-irs-401k-contribution-limits.aspx.