Budget, budget, budget! If you’re like most Americans you may be feeling the effects of overspending this past holiday season, whether you broke the bank buying your kids the newest Xbox for Christmas or splurged on festive home decor, we all can cut back a little and replenish our savings. Remember, the more you save now, the better off you’ll be the rest of the year. So here are a few ways you can save some money this year.
1. Coupon when you can.
The one thing people don’t do enough of is coupon. If you’re planning to shop for food or clothing, chances are there’s a deal for it. Additionally, a company is essentially giving you free money to purchase their product at a discount, so why wouldn’t you take the offer up?
You can find coupons online, in store, or in print material such as, magazines, receipts, or newsprint, so before you head out, do a bit of research and plan.
Unfortunately, not all coupons are worth it though. Saving money is great, however some coupons actually require you to spend more to get the deal. For example, many coupons require you to spend a certain amount to receive a discount on your total, while others require to you to purchase multiple items to get the sale. So, unless you really need 4 boxes of cereal or can actually spend over $200 to receive a discount, it’s best to ignore coupons like that. Don’t spend more than you need to, because then you’re not really getting much of a deal.
Additionally, look for coupons that fit within your needs and brands you trust, again don’t spend money just to get a discount. Use coupons on products you actually need or typically purchase. Moreover, store brands are often always cheaper than their big brand counterparts, so if you can’t find a deal or coupon on an item you normally buy, opt for the store brand.
2. Cut expenses you don’t need.
Another major reason it’s hard for people to save money is because they’re constantly spending money on products or services they really don’t need. Things that aren’t a necessity can swallow up your savings and make it harder for you to pay for essentials such as, food, housing, basic utilities, transportation, and insurance.
If you have a cell phone, chances are you probably don’t need or use your home phone, and if you’re not watching TV all the time, spending $200 on cable is wasteful, especially when you have to prioritize your money elsewhere.
Additionally, if you’re paying monthly for something like a gym, streaming service, or special retail goods, and you’re not actively using your subscription or membership for it- it may be time to cancel if you don’t have a contract. By paying for something you’re not actively using daily or weekly, you aren’t getting your money’s worth. You’re basically throwing away money you could be saving or putting into other high priority expenses.
Another way to save money is to consider buying gently used products instead of buying them brand new. Thrift or second hand shops are a great place to look for inexpensive, gently used clothing. Plus, with the addition of Facebook’s marketplace, you can snag great deals from people in your local area on a variety of goods from used electronics, to appliances, to furniture. So, look around before you make a major dent in your wallet.
3. Review your bills.
Essentials are a necessity and typically most people spend a large portion of their income on these needs. However, there are ways you can even save money on such expenses.
Utilities such as, heating, cooling, and electricity can be expensive, especially in the winter or summer seasons. So, how can you save?
1. Shut off anything you aren’t using such as, lights, fans, electronics, or water.
2. Appliances such as, dishwashers, washing machines, and dryers can add to your electricity bill. Opt to hand wash and dry your dishes and hang your clothes outdoors or indoors on a rack when you can.
3. Inspect your home for any leaks or cracks, especially before the summer or winter time. Leaks and cracks allow warm or hot air to escape, causing you to use more energy than you need to.
4. Use thick curtains around your windows. Not only will this help keep your home warm in the cooler months, but in the summer, thick curtains provide shade and help keep your home cool.
5. Invest in a dehumidifier or humidifier. In the warmer months it can get humid, making the air feel sticky, and hotter than it actually is. Additionally, in the cooler months the air can get very dry and harder for the air to retain warmth. Therefore, using something such a dehumidifier or humidifier can help keep your home environment cooler or warmer without costing you a lot of money.
Additionally, consider reviewing your current insurance. If you have a vehicle or home, you’re going to need insurance and it may be tempting to purchase the most minimal coverage, but cheap insurance can actually cost you more in the long run.
Therefore, consider reviewing your current insurance. Sometimes your monthly rate can go up unexpectedly, even if you maintain a clean record and pay on time. However, that’s why we work with multiple carriers and can shop around to find you the best rate. At our insurance agency, you aren’t stuck with just one option. Additionally, you may also qualify for discounts
So, if you feel your insurance rate isn’t in your budget, speak with one of our agents and we can help you get the best coverage for the best price.
Housing can be another large expense many families face, and with the increase in the market many look for options to save every month. It can be hard, but you can:
• Live outside of the city, or away from “downtown” metro areas. This may not be possible for everyone, but if you’re in the market for a new home, living in a more rural area has its benefits. Not only is housing much cheaper, but you’ll often have the option to get a much bigger space than you would in an urban environment. The only downside is you may have to commute further to work, and local attractions may be a bit lacking.
• Consider renting out a room to a friend or family member who may need it. Not only can this help you with certain expenses like a mortgage, but you’ll be giving someone a safe and stable environment to live in. Of course, if this is something you plan to do make sure you notify your mortgage and insurance company of the change, and be proactive about taxes. In fact, rental income is taxable.
4. Formulate a budget.
Another way to save money is of course to budget all of your expenses, this can be tedious and time consuming, but it can really show you how to effectively and efficiently save money.
The popular 50/30/20 plan suggests using 50% of your take home income for necessities like housing, utilities, and food. Whereas, 30% goes to expenses such as, clothing, internet, eating out, cable, phone, etc. and the remaining 20% goes towards any savings or loans you may owe. However, defining your expenses between wants and needs can get a bit muddled, especially if you need dress clothes for work or need internet because your children do their homework online.
Therefore, writer, Paula Pent offers a simpler and more realistic alternative called the 80/20 budget– where 20% of your take home income goes to savings and 80% goes towards everything else.
Pent also suggests using 20% as the bare minimum you save each month. This is because depending on your needs and income you can always shoot to save more, and the more you save, the better off you’ll be in the future.
5.“Do-It-Yourself”.
In the age of information, there really isn’t much you can’t learn online. People are constantly uploading content with tips and how-tos for just about anything. Whether your vehicle needs an oil change or you need to fix your broken jacket zipper, it’s incredibly helpful to have a plethora of information at your disposal- especially when you want to save a few extra dollars in the process.
Of course, there are going to be times when you really need a professional. For example, if your home has a faulty wiring problem, it’s best you leave it alone. Not only is this dangerous, but trying to fix it yourself can cause more damage in the long run.
However, when it comes to cooking, simple home fixes, repurposing old furniture, or making clothing- the internet is the place to be. Pinterest and YouTube in particular have thousands of creative users who upload helpful step-by-step videos and blogs that allow you to “do-it-yourself”. So, instead of throwing out a broken chair and buying a new one, save your money and find a way to fix or repurpose it.
So, no matter what you do, every effort you make will help you have more money in the long run. What are some ways that you plan on saving money this year? We’d love to hear about it in the comments below.
