There is never a wrong time to start saving money. Whether you are saving for something down the road or just looking to keep a little more money in your pocket, saving is absolutely a worthwhile endeavor. Here are nine tips to help you reach your saving goals.9 Ways Your Family Can Save More Money! #savemoney Click To Tweet
Track Your Expenses
The first thing to do when building a budget is to determine where your money is going. Keep a log of your expenses. Make sure you account for every bill paid and coffee bought. Your budget will be of little use if you do not have accurate records. Create categories for your expenses and double-check your numbers with your bank statements.
Pack Your Lunch
One of the simplest ways to start saving money is by packing your lunch. Do you spend money at a coffee shop or a restaurant near your work? Even if you spend just $20 a week, that adds up to more than $1,000 a year. Cut down on those expenses by preparing most of your meals at home. Make your own coffee and bring it in a thermos. It might not feel like a lot in the short term, but this can make a big difference over time.
Use the 24-hour Rule
Sometimes it can be challenging to discern the difference between a need and a want. Furthermore, wanting a purchasable item can be justified. However, it can be good to avoid impulse purchases. A good rule of thumb is the 24-hour rule. When you find something you want, sit on it. If you still want to make the purchase after 24 hours, it is safe to assume it is not just an impulse buy, and you can allow yourself to spend your money. If that does not work for you, feel free to adjust the rule. Waiting a week can provide additional thought and clarity to the situation.
Unsubscribe From Subscriptions
One way you lose money that can be harder to see is on subscriptions. Although most of these have small recurring payments, they add up over time. The more subscriptions you have, the more this effect compounds. Determine which services you do not use often and which are extraneous. Even by eliminating a few, you can save yourself a large sum in the long term.
Set Savings Goals
A great way to incentivize saving is by setting goals. What are you saving money for? Is there a purchase you would like to take down the road? Are you just saving for retirement? A great tactic is setting small saving goals to hit over time. Seeing this payoff and your savings increase can help incentivize you to do the same where more significant sums of money are concerned.
Reduce Your Debt
If you find yourself in a position where you owe money, often, payments made will only cover the interest, not the capital itself. Pay off your debts as quickly as you can to minimize the effects of interest. Additionally, if you cannot immediately pay off your debts, make sure your payments are going towards the capital itself, not just the interest. You eventually want to pay off the debt, not pay it off in perpetuity.
Learn How to Compare Car Insurance Quotes
A great way to save money is by lessening your expenses. If you are trying to save money, there is a good chance you may be eligible for a better car insurance rate. Learn how to compare quotes. Many insurance companies reward different kinds of drivers. Companies like AARP give incredibly discounted rates to military personnel, veterans, and military families. Nationwide offers average annual rates of under $1,000 to customers aged over 60. There are several special groups that different companies will reward with better deals. Do your research. Figure out how these discounts might benefit you and which you may be eligible for.
Some insurance companies also offer programs that reward good driving habits with redeemable points and other discounts. Safe driving habits include avoiding hard braking, speeding, and late-night driving. Be wary, though, some drivers with less savory driving habits have reported increases in their rates.
Consider an Extended Warranty
The extended warranty is aptly named. It is effectively an extension of the original manufacturer’s warranty. Most policies will only cover you in the event of a collision or an act of nature. However, this kind of warranty will protect you when your car breaks down, needs maintenance, or repairs.
Despite the now-infamous scam phone calls, extended warranties can be a great way to save money. There are reputable companies like CarChex, which has a long-standing reputation for great coverage and customer service. An excellent way to weed out the scams from reputed companies is by checking online reviews. That way, you can be sure to get an amazing deal, as well as ensure protection from scammers.
Make the Saving Automatic
Almost every bank offers some form of automated transfer between checking and savings accounts. Whenever you get paid, set up your account to automatically put a portion into your savings account. Not only does this make saving easy, but it also makes it less tempting to spend the money that you have already set aside.
Saving money can be challenging, but the name of the game is good habits. Finding ways to reward good behavior and stave off instant gratification is crucial. Using the tips above and some common sense and patience, you will be sure to see your nest egg grow.