Simple Ways to Save Money

by | Dec 7, 2020 | Budgeting Advice | 0 comments

When it comes to finances, most people are looking for ways to reduce their monthly expenditures and save money for an emergency fund, a new home or car, and more. When looking at the big picture however, it is often overwhelming to know where to start in order to cut costs and save money on a month-to-month basis. Most people also experience frustration when it comes to saving money in that when an unexpected cost arises, they may not be able to save money for that month. 

While saving money seems like a near impossible task, especially if you live paycheck to paycheck, there are simple ways to dramatically reduce monthly costs and actually set yourself up for financial success in the long-term. 

  1. Reduce your grocery bill: It is easy to get in the habit of grabbing an extra bag of chips or candy when you peruse the grocery store aisles. These unnecessary items can seriously increase the amount of money you spend on groceries each month. Before you head to the grocery store, consider making a very strict list and sticking to it as you shop. 
  2. Cancel unused memberships: From streaming services to gym memberships, there are undoubtedly monthly subscriptions you pay for but seldom use. By cancelling these, you can save money monthly that is being wasted on unused items. 
  3. Eliminate credit card debt: While credit cards are useful in building credit and having available for emergencies, having a running balance ends up costing you more in interest in the long run. By paying off your balance every month, you avoid interest and save yourself hundreds of dollars each year. 
  4. Eat out less: Having a special meal out occasionally is fine, so long as you budget it. If, however, you find yourself eating out every day, consider packing a lunch or meal planning to cook at home instead. Eating at restaurants and fast-food places costs more than you realize and can dramatically throw off your budget for the month. 
  5. Reduce energy use: There are several ways to save money around your house that are simple and often require no extra money spent to see the savings. Wash more loads of laundry in cold water, replace old light bulbs with LED ones, and turn off lights and appliances when you are not using them. These simple actions can save you tremendously on your utility bills over a year’s time. 

In your first month of eliminating these costs, add up the (estimated) total and set that money aside for savings. In just a few months, you will see your savings grow and realize how cutting small costs can make a huge difference for your finances. Need more advice on saving money? Follow us at Budgeting Advice 101!