Once you’ve maximized your income potential, you need to start working on your savings potential. Just because you’ve earned it doesn’t mean you have to spend it. Saving money can build a nest egg for a rainy day, retirement plans, or an end of the year vacation to celebrate with family. The only way you’re going to put money in the bank, however, is to cut your monthly living expenses. It may be difficult at first, but there’s satisfaction in watching your savings account grow with interest.
Cutting living expenses doesn’t mean skipping the necessities, but it does mean saving money on them. Here’s 10 ways to cut monthly living expenses while still getting everything you need.
1. Unneeded financial fees. These can really add up. They may seem too incremental to take notice, but compiled together they can lead to considerable savings in the bank. Are you paying a monthly fee for your bank even when a free checking account is offered? If you have direct deposit, you can generally get a free checking account. You should also watch ATM fees that also eat away at your savings. Always use an ATM owned by your bank. If ATMs aren’t readily available, you might want to find a new bank. It also helps to skip the ATM and just get cash back at a store. You might have to buy something, but a cool drink, candy bar or something that you need is probably cheaper than an ATM fee from your average 3rd party bank.
2. Insurance rates. Don’t take the first offers that come along. If you are a safe driver with nothing on your record, you can often get discount rates. Let the insurance companies compete for your business by taking the lowest rate possible.
3. Cable and satellite television. With all the cable and dish companies out there, it’s become more of a buyer’s market with companies competing against each other for the lowest rates.
4. Internet. The same goes for Internet. Though you may be limited by your geographical area, compare different rates that companies have to offer. You just might be able to find a deal. If you don’t surf the web often, you may want to save money by opting for a DSL Internet line over a cable Internet line since it typically costs half as much.
5. Utility companies. Even electric companies have gotten competitive, thanks to deregulation efforts meant to stop monopolies. Seek and compare different gas and energy suppliers that can meet your needs. You may also consider going solar and letting the sun provide it all for free.
6. Interest on credit cards. Interest can eat up your savings big time. Try to consolidate debt on a card that has a lower interest rate, or better yet, work to completely eliminate your credit card debt.
7. Refinancing your home. Talk to a bank and consider your refinancing options. You may save hundreds of dollars a month. Keep in mind it requires some investment in upfront costs such as interest points, taxes and fees, but it’s usually worth it if you plan on living in the house for a while.
8. Watch entertainment costs. You don’t want to be shackled only to your bills and everyone deserves their take of fun, but remember that many enjoyable activities are free or relatively inexpensive. If you like to go out with friends, consider house parties as an alternative. Make a fancy dinner instead of eating at a restaurant. Enjoy free parks and museums.
9. Discount or generic groceries. Food can really add up. Buying the generic Cheerios that taste like the real thing significantly reduces your food bill.
10. Gas economy. Just because prices dropped, gas is still considerably expensive. Keep your car in good running shape with adequate tire pressure to insure good mileage for the road.
Related posts:
