65% of people are not saving their money, or are saving pennies.
Saving money is vital to having a healthy bank account, as it prepares you for emergencies and for the future, like retirement or paying for education. But sometimes it can be really challenging to find creative ways to save money.
Thankfully there are ways to save that are small but can add up to big savings.
Let’s take a look at a few ways to put away some cash and get you on the road to a more robust savings account.
Creative Ways to Save Money
Aside from the usual use of coupons during grocery trips, cutting the cable, or lowering your cell phone bill, there are other ways you can keep some cash in your pocket.
Make Sure Your Attic is Well Insulated
Not only can attics be covered in cobwebs, but they could be costing you money, so don’t ignore it!. A well-insulated attic, as well as a cleaned one, can save you $600 a year.
Insulation helps fill any gaps or cracks in your home wear heat or cool air could escape, thus reducing your energy costs. Insulating your attic could be done on your own, or find an insulation contractor to take care of it.
Do Check-Ups on Your Furnace And Air Conditioner
Furnaces and air conditioners work harder different times of the year. For them to be working efficiently, schedule a tune-up right before the beginning of summer for the air conditioner, and winter for the furnace.
Tune-ups are important because they can detect and diagnose problems at a time when you’re ready to pay for them. An unexpected break can put a dent in your budget if you’re not prepared. It also keeps your appliance in shape, improves the air quality of your home, and lowers the amount of energy used, which in turn, gives you a smaller utility bill.
Put 20%-50% of Your Income in Savings Automatically
If you’re saving less than 20% of your income, considering increasing that percentage.
By investing more into your savings now, whether a 401K or Roth IRA, you’re securing your financial future. It may be tough for a time, and your budget may need tweaking, but having an abundance of savings later down the road is worth it. This is one of the fastest ways to save money.
20-50% is a ballpark range and will differ according to each individual. Review your financial accounts or speak with a financial advisor and see if it’s beneficial to increase your savings when you desire to do so.
24-Hour Spending Rule
When you spot a deal, it’s tempting to buy the item right away. But have some caution. Just because it’s on sale does not mean it’s a good deal. This is typically how overspending happens.
Always wait for 24 hours before making a purchase, especially unplanned ones. Doing so could save you money because you discover you don’t need the item in the first place, or you found it cheaper someplace else. Research the item, read reviews, go over the pros and cons, and consult others before buying.
Giving yourself time to evaluate the purchase is wise and your wallet will thank you!
Keep A Minimal Wardrobe
American’s toss 70 pounds per person in the trash per year.
That’s like throwing money in the trash can – about $1,800 per year!
While it’s fun to shop for clothes every now and then, owning just a few well-made pieces in your wardrobe is good for your bank account and the environment. You’re no longer filling your closet with clothes you may or may not wear. An acceptable percentage set for clothing would be about 5% of your income.
You could lower it substantially to save yourself some money.
However, if you enjoy buying clothes, or need more for work, there are creative ways to save money while shopping:
- buy from second-hand shops
- use coupons
- wait for a sale
- buy the generic brands
- purchase pieces out of season for deeper discounts
Overall, having a slightly smaller wardrobe leads to more money in your pocket and less cloth polluting the earth.
Skip the Pricey Morning Latte
The fresh smell of coffee breezing through your car window as you grab it from the barista…can’t be beaten! But maybe you should think before picking up your morning brew from a coffee shop.
Buying coffee multiple times every week is more popular than investing. Spending $11 per week on coffee equals to $572 per year, which could be better spent on savings or investments. Every now and then a little pick-me-up won’t hurt, but the continual spending will.
This can be remedied by making coffee at home and forgetting the fancy lattes. And it’s even more convenient because there are no lines, no traffic to fight, or worries about being late. Set your coffee maker to make coffee in the morning and you’re good to go.
Settle For A Simple Used Car
New cars lose their value the moment they’re driven off the lot.
While the most extravagant car is fun for a while, it can sink you deeper in debt if you’re financing. Cars with all the bells and whistles or latest technology tend to be more expensive than those cars that are only a few years older.
Buying a basic used car saves you money because someone else has already taken the depreciation, and they’re less expensive because they lack certain features like leather seats, DVD players, or the like. As a result, if you choose to finance the vehicle, you could pay it off sooner.
If you want extra features, ask about the possibility of installing them at a later date.
Saving Money is Always Worth It
It takes work and dedication to save money and it’s not always easy. It’s often tempting to spend rather than save. But with these creative ways to save money, you can start implementing them into your lifestyle and reap the results.
Looking for help with your 401K planning or investments? Contact us today to learn more about our services and how we can help prepare for your future.