Almost 30% of Americans have higher debt payments compared to what they have in savings.For many, this is usually due to bad luck—sudden medical expenses, losing a job, being in an accident, etc.—but it can also be because of poor spending habits too.
Sometimes, people are unwilling to cut back certain luxuries or their quality of life even if it means being in debt. In other situations, people are just not aware of where their money is going.
The following tips will immediately help you start saving.
Stop Eating Out and Start Cooking
When you go to a restaurant you aren’t just paying for the price of the food, you’re also helping to pay for the marketing, the staff, the building expenses, and everything else.
For example, a $2 burger from a fast-food restaurant seems cheap compared to the cost of all the ingredients at the store. But what many forget is that you won’t use all the ingredients to make one burger. In fact, the burger will only use a small fraction of the ingredients leaving you a ton left over.
That means you can use those ingredients to make more meals throughout the week.
Suddenly, that $20-60 you spent on ingredients can become all of your meals for an entire week.
Cut Back on Drinking or Do It at Home
This one requires less explanation.
The cost of a drink at a bar is so much higher than when you buy it from a store and that isn’t even including what you also pay in tips.
All those rounds or shots you get add up and can quickly become a huge part of your monthly bill without even realizing it. If you do enjoy drinking weekly, cut back and be amazed and how much you save.
Compare Your Necessary Bills to the market
Gas, water, internet, insurance—when we first move into a place we tend to go for the first good deal we come across because we need to.After that, we tend to accept the bills as they are and not switch until we move again or if we notice a huge price increase.
Be proactive and look at your bills compared to what’s on the market, you may find deals which are far cheaper than what you pay now. For example, the Metromile pay per mile car insurance is ideal for people who don’t do a lot of driving.
And if any of your contracts have cancellation fees, you can always call the company’s customer service to see if there are any new deals you can switch to within your contract.
Ask This Important Question Before Making a Purchase: “Do I Need This?”
It could be an incredible item of clothing or a video game you’ve been waiting years for, whatever it is, if you’re low on cash right now, it is probably not the best time to buy it.The good news is, if you wait, then you’ll be able to buy the item again in future when it’s on sale.
You’ll still get what you want, just not immediately.
Buy in Bulk
Memberships to companies like Costco seem steep, especially when you’re low on money. But buying bulk items is a fantastic way to lower your costs over time.You may drop over $250 in household items like toothpaste and toilet paper but remember that each item is 20-50% cheaper than from a normal store.
Not only that, but it will last you for months saving you a lot of time as well.
Accept Temporary Sacrifices
It can be hard to give up the things we love especially when times are tough. Often, they are the only thing we look forward too. However, if you cut back and be patient, you will not only be better off financially in the future, but you’ll be able to return to doing what you love but without worrying about money.
For more excellent life advice, check out our other articles.