If you’re looking for clever ways to save money, keep reading. We have 8 ideas that will save you money right away!
Let’s face it. Life will only become more expensive. And with everything from real estate to gas and groceries rising regularly, it’s more important than ever to learn how to throw away your money every month for your future self.
So when it comes to saving money in its true form, that’s not actually possible by spending less at your local discount grocery store by buying sales. (And yes, counting your pennies is absolutely clever, but being frugal is only part of the equation.)
“We are committed to providing a range of financial services and financial services to Kopka Financial, LLC,” said Megan Kopka, certified financial planner and registered financial advisor for Kopka Financial, LLC.
In this article, we’ll explain eight clever ways to save money. This will help you stay within your budget and achieve your financial goals.
1. Automate your savings
Kopka shares this strategy with her clients. “The best thing a woman can do on her own is to set up automatic savings, preferably automatic transfers from savings to investments. For example, you can automatically transfer funds from your bank to your IRA.”
She says that this method can be used to save on short-term goals such as vacations, down payments for cars and homes, and long-term savings goals such as retirement. (Think 401(k) and individual retirement accounts).
Some of these can be set up automatically using direct deposits using your checking account, using your employer payroll. This means that you will need to move all your pay percentages to your retirement account, your savings account, and the percentages to which you should use the rest. Some people consider this a bucket method. There you pay yourself first and put your money in another bucket for different goals.
Kopka practices what she preaches and uses Acorns to automate some of her savings.
“My client turned it on for me,” she said. “Think of one philosophy when some stores ask, ‘Would you like to round up the balance of XYZ’s nonprofits today?”, she says Acorns is a program you can use to do that for yourself. All transactions you make will automatically round up your totals and send the changes to your Acorn account. So it automatically invests in the market in the ETF (of your choice), she says.
2. Learn to love leftovers
There are various other ways to reduce your spending, so you can save more for your future goals. One place to do this is to see how much you spend on food, including what you eat at home and all the food you eat from home. You may be surprised at how much of your monthly budget is consumed by the pre-prepared food you purchase.
You are not alone. Americans now spend more money on food they cook and eat at home, such as restaurants, by ordering food they buy from home and takeaway. A study of consumer dietary habits from the USDA Economic Research Service revealed that adults spent $1.5 trillion on food purchased from their homes. In comparison, they spent $1.1 trillion on food at home over the same period.
How can I save money on what I eat? Find recipes that you and your family love and start planning your meals and preparing your meals.
It helps streamline your grocery list and reduce food waste, allowing you to plan exactly what you eat. You can reduce costs by cooking extra pieces to freeze as leftovers later that week, choosing ingredients that work with multiple meals, and reducing impulse purchases while grocery shopping if you are already planning all meals or snacks.
It’s a great way to reduce the cost of your food.
About tips: To avoid impulse purchases and food waste, it is wise to shop from the pantry and fridge first before making another trip to the grocery store. When you go to a local grocery store, don’t forget to use coupons to grow your food budget in other creative ways. Don’t forget that vegetables, beans and rice are often nutritious, tasty, low-cost foods.
3. Switch insurance company
Sometimes, if you’ve been with the same insurance agent or broker for several years, your premiums, or premiums, may be creeping up for your home and car planning. Even if you ask an agent for a good rate, you may not always be eligible for the best (and lowest) rates booked for new customers. That’s why I shop every year for new homes and car insurance.
If you want to shop online from the comfort of the sofa, the people at Neld Wallet are tracking who claims what to do with car insurance, so you can get a sense of monthly payments you may be charged.
4. Request a low interest rate on your credit card
If you don’t ask, there is an old proverb that always says “no.” This philosophy can also be applied to asking for a salary increase at work or asking credit card lenders to lower the interest rates they pay in high-interest accounts. And while many people couldn’t imagine this might work, don’t dismiss the idea right away.
A recent Lendingtree report found that 76% of individuals who have requested low interest rates on their credit cards within the last 12 months have succeeded, down an average of 6.5 percentage points. Depending on the balance, it can save hundreds of interest each year. You can also take this a step further depending on your credit score and apply for a Zero-In Test credit card and transfer your high balance to a new card.
5. Request a higher interest rate on your savings account
In recent years, interest rates on money markets and other savings accounts have improved, so not everyone is making more money with their own money. If you already have a high-yield savings account when the rate goes up, you may be at a financial institution that did not automatically adjust your current account owner.
So if you find yourself in such a situation, contact your financial institution to find the best interest rates you advertise for your new clients. Get ready to take your business elsewhere. Or, at least if they acknowledge on demand, tell them that’s what you’re planning to do.
Are you wondering if you can make more money than what you’re currently making? Bankrate tracks the highest interest rates offered by financial institutions each month and reports their findings here.
6. The less you learn to live
Learning to live less, also known as living under your means, sounds really wise in theory, but achieving when you are constantly being fired in a way that uses hard-earned money everywhere you look is extremely challenging.
So, how fewer can you learn exactly to live together? For some, it may mean getting the next pay raise and moving it directly to the 401(k) to fund future retirements. It could also mean:
- Buy a used car instead of a new one
- Living in a house or apartment that is cheaper than you can afford
- Move to a cheaper city or state (without income tax)
- Reduce vacation time
- Choose a state university from a private university
- Buy general items instead of name branded products
- Discard consumables like paper towels and use cloth towels and napkins instead.
7. Limit streaming services and membership
If you’re not closely watching where your money goes each month, you might be surprised to find out how much you’re bombarding for streaming services of everything, including music, movies, TV shows, sporting events and other entertainment. Also, look at how much you will spend on repetitive expenses like gym memberships and auto clubs, especially if you have cheaper options available.
In a survey from Self, nearly 86% of respondents said they had at least one paid subscription they didn’t use for a monthly cost of around $33. The survey found that Amazon Prime was the most common paid subscription they had not used last month, and Netflix was reported as the least used TV streaming service.
When it comes to digital entertainment, you can find many of the same modern amenities available for free at your local library. Whether you’re streaming TV or movies, or checking e-books or audiobooks, you can find these services for free in many libraries via platforms like Libby, Overdrive, Hoopla, and Kanopy.
9. Reverse budget
The Certified Planner of Filip Telibasa, owner and planner of Benzina Wealth, is a big advocate for what he calls reverse budgeting or backwards.
“The fundamental approach is to set up an automated savings plan for clients who are tied to their goals first,” he says. To do that, he asks his client to tell him what he wants to achieve in life in the short term and in life.
This method is often referred to as inverse budgeting, as the funds paid for all these goals are not the last thing to store, but are first taken from someone else’s account from each wage period (or month).
“It helps you make sure that things are met that are important to you,” Terrivasa says. “If you have money left, you can use it freely and there is no regret for the buyer.”
A clever way to save money rapap
Whether you want to pay for a new home, save more for retirement, or build emergency funds, saving more money each month can set the path to financial freedom. You may need to change your spending habits, but now you can make a big difference with just a few steps.