It’s a fact: spending comes naturally to many of us. Saving, on the other hand, can require some practice. This article provides tips on how to save more money whether for a new house, retirement, or financial emergencies. No matter the reason why you choose to do this, more and more people seem to realize how important it is to keep some money aside.
However, before you get started, make sure you review any outstanding debts you have. There is no point in paying 17% in interest on credit card debt if you earn 1% (or even less in some situations) on a savings account. Consider tackling both at the same time, putting some money towards your credit balances and some towards savings.
The sooner you pay off your high-interest debt, the sooner you’ll be able to put more money into your savings.
Budgets are tight for almost everyone right now due to high inflation rates and out-of-control gas prices. So, if you’ve been searching for methods to reduce the amount of money you spend, you’re definitely not alone.
Doing this requires some creativity, so we’re here to give you the necessary inspiration. Here are some of the most effective techniques to cut down on your spending and save more money immediately.
1. Cancel Subscription Services
The first step in cutting on spending should be to reduce or cancel your subscription services. Check your credit card and bank statements and make a note of all your recurring expenses including:
- Food delivery apps
- Streaming services
- Fitness and gym memberships
- Grocery and meal prep services
Our advice would be to check your credit card statements from the past year as some services renew on a yearly basis. Once you’ve made a list of all the paid services (you may want to use a budget planner for this), think of how often you use them.
When was the last time you had food delivered to your home? Do you go to the gym regularly, or do you just go there occasionally? You may find that you spend quite a lot of cash on unused subscription services, which is counterproductive if you want to save more money.
For instance, if you have a fitness membership but only use it once a week, consider canceling and replacing it with free YouTube workout videos. If you have several streaming services, think of which ones you truly use and which you can cancel. Keep in mind that you can easily reactivate those services later.
2. Switch to a Prepaid Cellphone Plan
Here’s another way to save more money! When we think of cellphone providers, most of us think about AT&T, Verizon, and T-Mobile. However, their recurring monthly bills are quite expensive and their plans may offer newer phone technology, faster speeds, and more data than you actually need.
Switching to one of their prepaid plans may allow you to cut your cellphone monthly bill in half. Or maybe you want to try another cellphone provider that is more affordable. Ting, Republic Wireless, or Mint Mobile are a few inexpensive options that can help you save more money.
Paying in advance for at least two months of service can also help.
3. Consider Switching Banks
While checking your recurring expenses, you should also pay attention to any regular fees your current bank charges you. If you’re paying a monthly maintenance fee, just do the math and see exactly how much money you spend in a year. You may come to the conclusion that it isn’t worth it, especially when there are some banks that don’t charge any monthly maintenance fees.
In this case, switching banks can help you to save more money. Based on Bankrate’s 2021 checking account and ATM fee data, nearly half of checking accounts are free. Some banks may even offer you a hefty bonus for opening an account.
When it comes to your savings account, look for one that offers a competitive yield. Compare all savings account offers you got to get the best one for you.
4. Refinance Your Loans
The interest rates are now rising. That’s a fact. But this doesn’t mean you can’t refinance to get a lower interest rate. If your goal is to reduce your expenses and save more money, you can also go try refinancing to get a longer term, which would mean you’ll lower your monthly payments.
But how does this actually work? Let’s say you’ve applied for a $60,000 car loan with an interest rate of 8% and a 10-year term. If you decide to refinance to an interest rate of 5%, you’ll have to pay $92 less each month. But if you refinance and get a 6% interest rate and a 15-year term instead, you’ll have to pay $222 less each month.
If you have a credit card balance, consider switching to a 0% APR card that will allow you to pay off the loan faster while saving money on interest. There are many 0% APR offers that are valid for up to 21 months. Choose the longest available deal to give yourself extra time to repay the balance.
5. Take Advantage of Grocery Sales
Food prices have been one of the most affected by inflation. If you want to save more money but still enjoy your favorite goods, check the weekly sales at your local grocery store. Then, start creating a personalized meal plan based on the sales.
If you find a great deal on a product you buy frequently, don’t hesitate to stock up. For instance, if chicken breast is on sale, buy as much as you can afford and then store individual portions in the freezer. This way you’ll take advantage of the deal while avoiding waste.
Reducing waste can help you save more money. Consider purchasing frozen vegetables and fruits, which provide the same nutritional benefits as fresh produce but last longer.
6. Earn Cash Back on Your Purchases
This isn’t just a way to save more money but a way through which you can also earn some cash. Even in the worst of times, you’ll still need to buy food and other essentials, so you may as well earn cash back on your purchases. There are several cash-back credit cards available to help you get cash rewards while using them to make purchases. Look for those that don’t have an annual fee.
You may find that your existing credit card has a cash-back offer at some retailers, but you may need to give your consent to redeem this benefit. These offers may include an expiration date or other conditions and restrictions, so double-check to avoid being caught off-guard.
If you don’t want to apply for a credit card, you can also try using cash-back apps to save more money while purchasing.
7. Do a No-Spend Challenge
You may think that pushing yourself not to spend money for a week or maybe more will simply result in a lot of pent-up demand. Will you not buy more groceries later if you don’t buy them now? Maybe. However, you may find yourself reconsidering those purchases you put off.
If you can survive a week of sipping ice water instead of Coke Zero, maybe you can give up this can-a-day habit, or at least reduce the number of cans purchased per week.
Also, stay away from making impulsive purchases of unnecessary items. You’ll save more money than you ever thought. You may also try to find a free way to spend some time with a friend. A no-spend challenge, whether for a day, a week, or even a month can boost your account balance significantly.
Here are some other tips that may help you save more money: Experts Shared 8 Tips to Budget Your Groceries.