These days, just about everybody is looking for easy ways to save money. Even saving a few dollars a week on things you do everyday can add up quickly. In fact, that is where the majority of people can painlessly save enough money to make a real difference in their financial picture.
To save money, you need both commitment and a plan . Evaluate your largest expenses first, because those offer the greatest potential for savings. You’ll notmally find such budget busters and mortgage and other home related expenses, transportation costs, and in some cases, health care costs and consumer debt can contribute to draining the monthly budget. Once you’ve determine where your larges expense categories are, you can figure out where you can pinch the most pennies.
Start at housing expenses . If you’re renting , investigate the possibility of moving to a less expensive location, or, if you have the space, take in a renter. Examine all the many other bills that go into keeping you warm, dry, and entertained, like electricity, gas, and cable TV .
Many people save a ton of cash by changing TV service, for example. Not only can you switch providers, such as exchanging cable for DirecTV or Dish Network , but you can often negotiate a deal with your provider by simply asking them. It’s true! In many cases you can save about 50% by simply asking them, or informing them that you’ll be taking your business elsewhere to take advantage of this or that special offer.
If you’re paying astronomical energy costs, you can take advantage of one of the may government programs to weatherize your home, which can save a great deal of money on your gas or electric bill. Even if you simply go to the local home store and pick up a few cans of caulk and a couple rolls of weatherstripping, the effects can be major. For example, if you have only a 1/8” gap under a 36 inch wide door, that’s equivalent to having a 2 in square hole in your door. You would let that go unimpaired, would you? Of course not, and it is a major energy waster. Fixing such problems are an easy way to save money.
If you’ve ever looked at your energy bills, you’ll note that in the colder winter months and the hot summer months (if you have A/C) your electric and gas bills go up substantially. You can ease the shock of this quite a bit. Set your thermostats back in the winter and up in the summer. Adjusting the temperature set points on your thermostat to 64 in the winter and 76 in the summer can save you substantial money over keeping it at 68 or 70 year round, depending on the climate where you live. Obviously, people living in hotter and colder locales will benefit more from this technique.
Take a look at your appliances. Have they been around since D-Day? You can replace them with something newer and much more energy efficient, and save big bucks, not only on your bill, but possibly on the purchase price as well. Many states have programs that can get you substantial rebates to offset the cost of new, energy efficient appliances. These will lower your utility bills, and pay for themselves in short order. The largest energy users are refigerators, water heaters, dishwashers, and clothes dryers, so these will obviously be the best ones to replace with energy efficient units.
One of the msot common places people spend money every month is paying credit cards and other consumer debt. Much of that payment is just interest expense, something that you get nothing for, but must pay anyway . A recent survey revealed that the average American family had $25,000 in consumer debt, mostly in the form of credit cards and car loans . Just paying the interest on the debt can take a huge bite out of your finances every month. The interest payment alone on $25,000 in debt, assuming only 12% interest (the average credit card interest rate is much higher, currently around 16%) is around $250, before any principle is paid. In addition, most credit card companies currently determine their minimum payment based upon 4% of the total outstanding balance, so you’d be paying a hefty $1,000 payment of the $25,000 was all credit card debt.
A great way to save money is to get the high interest credit cards transferred to lower interest cards or personal loans. It is better to eliminate credit card debt entirely, of course. The most common way to do that is using a debt consolidation loan, but while that can be effective, it can also be fraught with peril.
The mechanism such loans use to lower their interest rates is the fact that the new loans are secured by collateral. A secured loan represents lower risk for the lender, so they can offer a lower interest rate, and thus a lower payment, to the borrower. Unfortunately, the collateral used in these loans is typically the borrower’s residence. If the borrower fails to pay as agreed, the lender can take their home. So, although a debt consolidation loan can save money, it is definitely not without risk.
Another place may people can save money is on their transportation expenses. The first place to look is at the vehicle itself. Is it draining you emotionally and financially every month? This can easily be the case with either a newer or older vehicle. Older vehicles have the advantage of being less expensive to purchase and insure, but can clobber you with ongoing maintenance costs. Newer vehicles, on the other hand, may substantially lower maintenance costs, but cost much more in depreciation, debt service, insurance, licensing, and the cost of the vehicle itself.
Many people try to save money by skipping maintenence on their vehicles. Although this will doubtlessly save you money in the short term, it is a recipe for disaster. Have you checked auto repair prices recently? . Modern vehicles are very dependable, but they are also incredibly expensive to repair. Regular maintenance is essential to protect yourself against a sudden repair bill. Typically, your warranty is contingent upon regular maintenance. In many cases, failure to follow the manufacturer’s recommended maintence schedule will void your warranty .
In addition to the vehicle itself, take a look at your auto insurance. Are you taking advantage of all the discounts to which you are entitled? Most insurance companies will offer you discounts for such things as insuring multiple vehicles with them, insuring your home, business, and car, or completing a defensive driving course. You should also shop around and compare car insurance rates from different insurance companies. Different companies assess risk factors, such as vehicle type, distance driven daily, driving record, area of residence, and so on, differently. They have different areas of specialization, so your situation may be priced lower by a different company.
There is one area that affects everyone. Saving money on your mortgage doesn’t work if you don’t own a home, and discovering how to save money on your credit card bills doesn’t do you much good if you have no credit card debt. The one thing that everyone has to buy, and one place that affords everyone an opportunity for savings is food. That’s right, everyone has to eat. Thankfully there are some great strategies that can save you a fortune on your food bill every month. Here are some tips that can really put cash back in your wallet. Consider eschewing the big name grocery stores such as Safeway, Albertson’s , Von’s, A&P, and Kroeger. Instead, shop at one of the many warehouse food stores throughout the country. You’ll find just about all the same brands you’re used to buying at the big name chain grocers, but you’ll pay anywhere form 30% to 60% less for the exact same items. Somehting elese you can do is switch to store brands or generic type products. In many cases it is the exact same food as the big name products, only in a different package at a 20% – 50% savings.
We often take it for granted that jumbo or family sized packages are less expensive on a per unit basis. While in many cases this is true, it is not true all the time. When it is not, you buy more than you need, and pay too much for each ounce / gram / pound / kilo/ quart or liter of it. The next time you’re about to purchase the jumbo sized whatever , take the time to look at the tag and see what the price per unit is. You may be surprised .
These are just some easy ways to save money every month. If you follow them all, pretty soon you’ll have more money than you thought possible. Happy saving !
Mail this postPopularity: 4% [?]