Do you sometimes have trouble saving money but feel that with a few solid suggestions, you could turn things around? If so, you are not alone. Many hard-working adults are on the verge of being consistent savers but need ideas about how to realign budgets, build personal habits, acquire a bit of self-discipline, and more. The good news is that most of the tactics for setting money aside from every paycheck are relatively simple and have proven to be quite effective. Plus, you can choose to employ one or more techniques at the same time for maximum effect.
Some discover the easiest way is to automatically deduct a fixed percentage of earnings from each paycheck and send the cash directly to a locked account. Others prefer to refinance their student loans in order to lower monthly expenses. In so many instances, all it takes is a little creativity, like using a coupon app whenever you shop, planning weekly meals at home, driving less, joining a wholesale club for discounts on gasoline, and selling unneeded goods on internet auction sites. When it comes to spending less and saving more, the following suggestions are a great place to start.
Pare Down the Monthly Budget
Reducing monthly expenses is easier said than done. However, it is entirely possible if you’re willing to refinance one or more education loans into one new agreement. How can you know what the new payment will be and exactly how much you stand to save? One way is to use the Earnest student loan refinance calculator and let the app crunch all the numbers for you. A refi is an efficient way to chop monthly expenses by a significant amount in most cases. Plus, using the calculator is the surest method for setting your one time per month education loan payment.
Use the Four Percent Rule
Maybe you’ve heard of the four-percent rule, or at least a version of it. Back in the 1800s, people employed it to build long-term wealth, financial security, and save for rainy days. Its simplicity makes it one of the easier techniques to follow. You reserve four percent of all income and put the money into a savings account. Of course, some opt for a higher percentage and a few for a lower one, based on their current financial needs and income. The goal is to make saving a habit and to actually build up a nice monetary reserve. The four-percent rule can help you avoid relying on credit cards when faced with a financial emergency. When in doubt, begin with two percent and slowly work your way up to four.
Get a Coupon App
There are so many creative ways to save money and some are as easy as using your smartphone. Coupon apps are free to download, and there are hundreds to choose from. They’re also simple to use, but each one comes with its own rules and processes. Most offer a percentage or fixed-amount discounts on common grocery store items, household goods, and major appliances. It’s a good idea to compare and try out several of the apps before deciding on the one or two that suit your shopping style and the brands you use most frequently.
Get Fuel Discounts & Drive Less
For around $60, wholesale club memberships are usually a very good deal for those who don’t mind buying all their groceries from a single store. But, in exchange for that kind of loyalty, you’ll be able to save as much as $1,000 annually on the grocery bill. An added bonus is that most clubs now have on-site service stations that give members about three percent off the price of gasoline. Combine fuel savings with an effort to drive less, and you stand to chop expenses two ways.
Sell the Clutter
Give the savings account a shot in the arm by selling all the unneeded stuff lurking in your garage, attic, basement, spare bedrooms, and outdoor sheds. Use online auction or direct sale sites as well as old-fashioned garage sales to turn all those old items into cold, hard cash. For high value items, it makes sense to get a professional appraisal before setting a sale price.
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