The Complete Guide for Saving Money and Still Living Like a King
Getting into the habit of spending less than you make is the key to saving money. You may be looking at your monthly budget, thinking, “it’s impossible!” But we have collected unexpected tips to help you save money. And the best part is, it doesn’t have to hurt!
You don’t have to sell your TV or eat beans and rice each and every day in order to save money. Instead, start incorporating these effortless tips and tricks into your monthly financial plan. You will soon save hundreds–or even thousands!–of dollars per month.
Let’s save some money:
Saving Through Better Money Management
Organize your payments to avoid mistakes. Electricity bill got buried under a stack of papers? Dental bills sent via email and forgotten in the wrong folder? It’s time to get organized and avoid late-payment penalties. Use a binder or a designated folder on your desktop to aggregate all the bills. You can even download a money management app and pay straight from it. If you DO miss a payment, no worries. Call your creditor, explain the error, and ask them to remove the penalty fee. They’ll usually be willing to oversee the mistake. At least the first time.
Use only cash to pay. Make sure you stock up on enough money to last for one week and pay only cash (when possible). Sticking to a 100% cash budget is the best way to control your spending. Try to avoid other banks’ ATMs because they usually charge significant fees.
Set a weekly allowance. By using a quota to limit your monthly/weekly spending, you’ll find you’re spending less and still manage to indulge from time to time. It’s just a matter of regaining control and monitoring your expenses.
Automate your savings. Call your banker today and set up an automatic way of putting a certain percentage of your paycheck into savings every payday.
Transfer your credit card balances to 0% interest. If you qualify for one of these 0% interest credit cards, that’s the best way to pay when trying to save money. Transferring your balances saves you a lot of money when you pay off debt. If you do not qualify for a 0% interest option, ask your current credit card provider for an interest-rate reduction.
Set a budget for seasonal maintenance of your vehicle, home, and appliances. It’s cheaper to pay for an annual tune-up of your car or maintenance for your AC system than to deal with major malfunctions down the road. Set aside money for yearly checkups and find service providers that offer reasonable pricing.
Save Money on Redundant Services
Cancel your landline telephone. When was the last time you received a call on your home phone? If you can’t remember – it means you don’t need a landline. If you DO feel you need it, consider reducing your service to the minimum, and only use the phone in an emergency.
Eliminate some cable/pay-per-view services. You probably accumulated several content provider services over the years. You don’t need Netflix, HBO, Hulu, and cable TV. We are not recommending you get rid of all your subscriptions, although that’s certainly a way to save money. Take a look at all the charges on your cable bill and pay-per-view subscriptions, and consider getting rid of some services. You can also connect your computer to the TV and watch YouTube content free of charge.
Slow down your internet service. If you’re not constantly streaming videos or playing high-resolution video games all day long – you probably don’t need the maximum internet speed that companies try to push. You can pay $15 per month and enjoy a decent internet connection that will suit your needs.
Cut out extended warranties. An expensive 3-year warranty extension on a product that costs $400 is just not worth it. Unless the product you wish to insure is crucial to your work or your health – the 1-year free warranty will suffice.
Check all your insurance policies. Make sure there are no duplications. Some people don’t realize that their life insurance offers the same coverage as their health insurance. Don’t pay for more insurance coverage than you need. It’s also advisable to contact your provider once a year and update the rates.
Compare insurance providers and combine policies. You can save tons of money by insuring your home and cars with the same provider. This will also make your life a whole lot easier when it’s renewal time. Increase your deductibles. Your insurance deductible directly affects how much you get paid in a claim. You can save thousands of dollars if you increase your deductible using the right strategy. You can save roughly 5% to 10% on your premiums, depending on how high you increase the deductible. The more you increase it, the higher the percentage discount becomes.
Wait before submitting an insurance claim. Sometimes, the claim money you receive from the insurance company is not worth the increased premiums you’re likely to pay. Our rule of thumb is to avoid submitting a claim on a loss that is less than twice the deductible. Do your homework first: Contact your insurance agent and find out how a claim will impact your future premiums.
Freeze your car insurance when you’re out of town. If you’re going abroad and leaving your car to sit idly in the garage – downgrade or freeze your insurance (the cheaper option your provider offers). You can drop your liability coverage, reduce your premiums for a couple of weeks, and save money on insurance for a vehicle that’s not moving.
Save Money at Home
Switch to energy-saving light bulbs. Incandescent bulbs with compact fluorescent light (CFL) use 75% less energy and last ten times longer. Apart from being environment friendly, they help you save money while keeping your house well lit.
Run an energy-efficiency checkup. You can get a local utility company to check your home for free. They will examine your house’s insulation and give you tips on how you can make improvements to save energy and money.
Install a gas water heater. While electricity rates are increasing, gas rates stay more or less stable. Water heaters that run on gas are not only cheaper, they are also more efficient and quick. Plus, they still work during a power outage.
Buy only energy-efficient appliances. When you buy a blender or a washing machine, check if they have an Energy Star. They may cost more, but you will save hundreds of dollars on electricity and product lifetime.
Wash your clothes on cold. You don’t need to boil your clothes anymore; the detergents that are sold today are built to clean and remove stains on the cold cycle too. Washing on cold will save you money and even make your clothes last longer.
Get a solar water heater. Solar panels are not expensive and they pay themselves in the money you save on electricity very quickly.
Say goodbye to paper towels. Buy 5-4 of those super-cheap white towels sold in kitchen supply stores to replace the stocks of paper towels stashed in your pantry. All restaurant kitchens use them because they’re cost-effective and eco-friendly.
Limit your grocery shopping. How many times did you throw away expired cheese or moldy cucumbers? Buying too much food is a massive problem today. Don’t be part of the problem! Shop for groceries only once a week. If there’s a warehouse store near you, hit it up once a month for condiments and then just stop for fresh food once every 1-2 weeks.
There you have it! These are the essential tips we recommend implementing to see immediate savings in your bank account.
While you may not be able to change all your spending habits overnight, with time and consistency you will be able to put some money aside every month. Trust us: When it comes to building your nest egg, these little moves can add up big time.
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