Knowing how to save money is an important skill to have. When you have excellent money-saving skills. You will find yourself in better financial situations later in life. This means that you will be able to retire without worries. Saving up enough money for that dream home, or have that emergency fund will not be as hard as before. Luckily, many people already know how to save money. These people are often taught ways of saving money here and there. But, in this article, you will learn how to focus on the biggest savings first. Focusing on these will save you thousands of dollars a year and help fund your savings account.
We have gathered 7 saving tips you can focus on to save big!
Get Rid of Your Credit Cards
If you are an impulsive shopper and experiences deep pleasure in spending the money that you don’t have. Especially through your credit card debt, then this tip is for you. Getting rid of your credit cards can do you wonders because once you get rid of them, you are no longer relying on a “safety net” of money. You will start to be more conscious every time you spend which will save you money in the long run. Habits are often performed because it’s become second nature to us. Thus, having that mental check-up when purchasing will help you not fall on your “safety net”. This also makes you check your decision whether it is worth it to make this purchase.
Cancel Automatic Subscriptions and Memberships
If you are an American there is a 75% chance that you have at least one online subscription. There is a 58% chance one of these subscriptions include streaming services such as Netflix or Hulu. And a 41% chance you having an online subscription shopping like Amazon Prime, and many others. The point is that if you are the average Joe, then you most likely have lots of automatic subscriptions and membership billings. These billings can become very automatic to the point that you forget that you are even paying for them. A good way to counteract this is to cancel all these subscription bills and to pay for them. This makes you more conscious of whether this service is worth your money or not. Thus, saving you lots of money in the long run.
Cut the Cable Bill
For decades, cable television was the way to go for getting the best quality shows geared towards different audiences. For example, you were able to watch cartoons as a kid or the late-night show with the family. But times are changing, and cable television is not as popular anymore and there are other better alternatives. Today, streaming services such as Netflix and Hulu are revolutionizing on-demand entertainment. Now don’t get me wrong, there are a lot of good TV shows but most of them can be viewed online anyways. Most adults have cable TV in their houses but only 49% of them use it. Chances are you are part of that 49% and it is time for you to switch to better alternatives, now cut that cord!
Save Money Automatically
Saving money is already a very tedious process. But, being a techy myself, there are ways to save money automatically. First, is to have an automatic coupon searcher that scavenges the entire internet before every purchase which is exactly what Honey does for you. There are also ways to save money from every paycheck you get depending on where you live. For example, there are 401(k) and 403(b) plans for Americans. There are also round-up apps available such as Acorns and Stash. During 2018 nearly $5.6 billion were saved and transferred into their savings account. Saving money depends a lot on your situation and what your needs are. You will just have to do your research to find out what works for you.
Pack Your Lunch
If you are someone who commutes to work a lot and eats on the way there, then you are spending a lot of money just by eating outside every day. The top spending categories most Americans find themselves in are housing, transportation, and food. Now, housing and transportation usually cannot be cut down. But food can be cut down and you’ll be surprised by how much you can save just by packing your lunch. Most people buy food without thinking and that is where marketers get you. To counteract this, you can take steps such as meal planning. So you don’t have to constantly decide whether you should eat at that one place or not. This works very well because when we are in “decision mode” we are more likely to give in to our impulses. However, when you have already decided on hand, you will not be in “decision mode” anymore meaning you won’t be giving in to your impulses.
Lower Your Cell Phone Bill
Cell phone bills come in different ways, but the most common one is a phone upgrade. Did you know that your smartphone is built to last more than 2 years? Surprising right? On a serious note, a smartphone can last up to 5 years without being completely obsolete. Nowadays, people are so eager to get a new phone when they don’t really “need” it.
Stop Eating Out to Save Money
When eating out, you might have wondered why restaurants are so expensive? This is because they charge about 300% markup on the items they serve. This means that you could be paying $15 on a meal when you could have made it for $5 yourself. However, this does not mean you need to stop eating out altogether. This just means that if you make two meals a day at home instead, you could save almost $1,000 a year.