Who couldnt use a few extra dollars? If you are looking for ways to save a little each month, then look no further! Here are four things that you can do now so that you can have more cash in 2020.
Have Health Insurance
Starting January 1st, California residents will have to pay a fee if they do not have qualifying health insurance coverage or an exemption. Having health insurance can help you and your family save money on expensive doctor bills. It can also protect you from a $700 penalty fee. That fee is per-adult, so if you have multiple people in your family without health insurance, your fee could easily add up.
Health insurance plans through your employer or purchased directly from the insurer or Covered California are all considered qualifying health insurance. Medicare and some Medicaid plans also qualify. If you still need to sign up for health insurance, you are in luck. Covered Californias open enrollment period continues through January 31, 2020, and they offer some financial assistance based on income.
If you cannot afford medical insurance, there are a few qualifying exemptions that can protect you from having to pay a penalty fee. You may not have to pay the fee if your household income is below the tax-filing threshold, your health coverage exceeds 8.24% of your households income, your gap in coverage is shorter than 3 consecutive months, if you are currently living abroad, or if you are incarcerated. You may also qualify for an exemption if you are a member of a health care sharing ministry or are a member of a federally recognized Native American tribe.
Consider DIY Gifts
You may want to find the perfect gift for their upcoming birthdays! If you are planning on spending more than $30 for each person, you might notice how quickly those costs add up, especially if you have a lot of family or friends! Instead of buying them the latest board game, coffee mug, electronic device, or expensive wine bottle, consider other options. DIY gifts are thoughtful, a great alternative, affordable, and many of them are easy to make.
You dont have to be an artist to make a DIY gift. There are plenty of helpful how-to videos online to assist you. Consider making an art piece, purchasing an assortment of hot cocoa, making a handmade coupon book, or even cooking and freezing a family-sized homemade meal. These could all be a fraction of the price you were originally planning to spend. Need more inexpensive DIY gift ideas? Check out our blog. We know that the most wonderful time of the year can also be the most stressful time of the year. If you do find that you need just a little extra cash to recover from the holiday season, Net Pay Advance can help cover the costs until you receive your next paycheck.
Review Your Company Benefits
Are you currently signed up with your companys 401(k)? If not, you could be losing out on a lot of money. Talk to your jobs Human Resources representative to see if you can review your current benefits or enroll in the 401(k) plan. Traditional pensions are less popular, and 401(k) plans are becoming more common. The best 401(k) plans are the ones matched by your employer.
If your employer matches your 401(k), our advice is to try to put in the max amount that they will match. If your employer is willing to match up to $100 a month, and you are only saving $75, then you are losing out on an additional $300 a year! In addition, the money you put away into your 401(k) will be tax-exempt until you withdraw it. If you are under 60 years old and find yourself between jobs, you could consider rolling your 401(k) into an IRA or your new employers 401(k). This will help you avoid early withdrawal taxes.
Set Realistic Resolutions
Your New Years resolutions list may include things such as losing weight, traveling the world, or even saving money. Those are all worthy goals, but you should double-check that they are realistic. You may not have the personal finances needed to quit your job and travel the world. If this is the case, you could consider switching your goal to taking one more vacation next year, or actually using all of your vacation days. You may aspire to get a membership to the nicest gym in town, but if you cant afford it, you may want to consider a different tactic. You can still lose weight with a more affordable gym membership instead.
Along with finding ways to cut costs on the resolutions that you already have, it is also important to set realistic financial goals too. You may aspire to save thousands of dollars within the next year, but this may not be possible for you. Dont give up! Even if you are only able to save a few hundred dollars, you should still be really proud of yourself. Do not become unmotivated or disheartened just because you might not complete your goal in full. The point of a New Year resolution is to improve yourself or your life in one way or another. Remember to celebrate the little steps. If you fall short at the end of the month, a short-term loan can help you to avoid paying multiple NSF fees. Check out this article at paydaysoloonline.com for helpful tips on choosing the right short-term lender.
2020 is here and not only is it a new year, it is also a new decade. This is a time of change and growth. Use this as an opportunity to change and improve some of your spending and saving habits.