If your plans for 2020 include buying a house, focus now on keeping your spending in check and building up your savings for a down payment, closing costs and moving expenses. We asked Katie Bossler, a financial counselor with GreenPath Financial Wellness, to share simple tips for reduced spending and increased savings.
Here are Bossler’s suggestions:
1. Don’t transfer money from your savings account to your checking account unless it’s an emergency. If you find yourself doing this often, consider having a checking and savings account at two different financial institutions. It takes longer for the transfer to go through, and the extra barrier can help you avoid unnecessary purchases.
2. Read the fine print when signing up for a new subscription or service. Otherwise, you may find that you enrolled in a service with an automatic payment plan. Review your credit statements each month to make sure you didn’t unknowingly sign up for a service. Don’t forget to include monthly and annual subscriptions when planning your budget.
3. Auto-deduct savings from your paycheck each month. If your employer offers direct deposit, have your deposit split into two different accounts: a savings account and a checking account. If you are paid biweekly, depositing $150 from each paycheck will net you almost $4,000 per year.
