You may or may not have an income or a money management issue. Life can make it difficult for anyone to implement successful money saving methods! Between rent (or a mortgage),food, and additional expenses associated with being an adult, it’s often difficult to stash a little money away for a rainy day! Implementing money saving methods are beneficial! However,Rainy days will come and the best way to prepare for them is to save Click To Tweet
If you’re struggling to save money, here are a few simple money saving methods that could help you save an additional $1,000 this year.
Do a financial check up
Review all of your credit cards, loans, and insurance policies to ensure you are receiving the best rates possible and identify any discrepancies. This is especially important when reviewing insurance because we often pay for coverage we don’t necessarily need and underpay for services that may truly be beneficial.
Also use this time to review your credit report. Make sure the information is up to date and reported correctly. Your interest rates are determined by your credit history. Ensure your report is completely accurate.
By checking these items annually, you can save hundreds of dollars. In fact, according to Nerdwallet.com,“Americans can save an average of $859 a year by shopping around for car insurance.” Click To Tweet
That doesn’t even include the savings from shopping around for health and life insurance as well as transferring credit card balances to lower interest cards.
Automate savings in phases
Instruct your bank or employer to withdraw a small amount from your account or paycheck twice a month or monthly. Slowly increase the amounts throughout the year. For example, start by deducting $20 from each paycheck, then increase that amount by $5 each month ($2.50 per paycheck if you are paid semi-monthly).
This allows you to build up your savings muscle.
Cut unnecessary expenses
One of the most effective ways to save money is by cutting expenses that are eating away at your budget. Typical budget gobbling expenses include cable and internet services, landline telephones, dining out, and monthly subscriptions. Examine your budget to see what expenses are necessities and temporarily get rid of the wants.
Find inexpensive or free alternatives for the wants. For example, instead of cable, opt for a streaming service such as Hulu, Netflix, or Amazon Prime. Consider this math: If your cable bill is $100 per month, that’s $1,200 annually. By switching to Hulu, you spend $8 per month, which adds up to just $96 a year -less than one month of cable. That’s $1,104 dollars in savings for the year!
Tip: Some cell phone providers allow you to utilize your cell phone hot spot and offer unlimited data. In those instances, internet service isn’t necessary.
Whether you choose to “cut the cord” or not, the point of this suggestion is to free up money in your budget to place in your savings.
Participate in financial challenges
Challenges are fun. They are competitive ways to get amped up about taking charge of your money and they often provide free or inexpensive tools, tips, and tricks to change money habits in short amounts of time. The “Live Richer Challenge: Savings Edition” by The Budgetnista is an excellent challenge to jumpstart your financial goals because it’s only 22 days. You’re able to implement savings strategies while being empowered and uplifted by other women who are also participating. It only takes 21 days to build a habit, so this is a great way to kick off your year and build healthy financial habits that can last a lifetime.
These are just a few ways to add more money to your savings account. These 4 ways are not an exhaustive list. What are some of the ways you’ve successfully saved more?
Ashley Narcisse is the founder of Budget Brain Consulting where she focuses on making budgeting easy.
Her mission is to be an asset to the community by providing accurate and quality financial and money management services while maintaining a high level of integrity and adhering to a uniform code of ethics.