We all have to do it, but few of us know how to do it right. Saving money is essential for ensuring that we can meet both our short and long-term financial goals, and is one of the keys to maintaining financial freedom post retirement. It might seem like a daunting task, but with a little ingenuity and some solid tips, you can incorporate some of the best ways to save money into your everyday routine.
Saving money is essential for ensuring that we can meet both our short and long-term financial goals, and is one of the keys to maintaining financial freedom post retirement. It might seem like a daunting task, but with a little ingenuity and some solid tips, you can incorporate some of the best ways to save money into your everyday routine.
It might seem like a daunting task, but with a little ingenuity and some solid tips, you can incorporate some of the best ways to save money into your everyday routine.
Save Money Today: Scale Back.
One of the best ways to save money is to take a comprehensive view of everything that you’re spending on and seeing if there are ways to pare your expenses down.
Eliminating debt is a crucial first step. If you have multiple sources of debt, look into consolidating them to make it all more manageable.
This is particularly true for credit card debt – the worst kind! You need to plan to reduce this debt bruden first, as high-interest rates are eating away at your finances.
For your essential bills, look for methods of scaling back.
Your cell phone plan, for example, might have additional features that you don’t really need. You can excise these to save some money.
Insurance is another area where you might be able to do with less. You might even try comparing different plans to see if you can get better rates elsewhere.
Do you have cable? You might not need it. Cable prices are going up, and a growing number of Americans are deciding to cut the cord altogether and switch to Internet-only plans.
Streaming services and internet content providers largely make cable superfluous so consider ditching the cable company if you can.
Save Money: Look For Alternatives
We’re not saying you can’t go out and have fun. What we are saying, though, is that one of the best ways to save money is to look for other options when it’s time to unwind.
Instead of a lavish vacation, think about a smaller “staycation.”
Forego movies at the theaters and think up a cheaper date night alternative. You’ll likely find that by being creative, you can have just as much (if not more) fun as before.
Save Money: Use Cash
Cash is king, they say, and using it in lieu of your debit card to make purchases is one of the best ways to save money.
Set a budget on how much you can spend weekly, and withdraw that amount at the beginning of the week.
Don’t touch your account beyond that, and you’ll find yourself becoming more judicious about how much you spend.
There is a huge psychological difference between spending money on cards and spending physical cash. It’s a proven fact that spending cash is harder for consumers than using a debit card.
Using cash will make you think harder about each purchase.
Save Money: Nix The Cards
Adding on to the above, you can also limit your credit card usage by employing alternatives to putting things on credit.
Using layaway is a way to steadily pay for the items that you want without incurring hefty interest charges.
Start checking with the retailers that you shop with to see if they will extend this service to you.
Save Money: Live Healthier
Improving your lifestyle is a great way to improve your finances.
Instead of eating out, buy healthy foods and cook for yourself. Got bad habits like drinking or smoking? Cut them out of your routine and watch your bank account grow.
On average, Americans spend about 1% of their income each year on booze, so cutting back will put a nice bit back into your usable funds.
Tuck Some Money Away
It should be obvious, but one of the best ways to save money that is often overlooked is to actually save some money!
You can set up automatic deposits into a savings account so that you aren’t tempted to spend money from your monthly earnings.
You can save leftover cash from purchases and deposit it into your account regularly.
You can also “tax” yourself for certain indulgent behaviors, putting that extra money into savings, and perhaps correcting bad habits at the same time!
Happy spending everyone!