Concentrate on the major expenses. The prototypical example of how to save money is to cut back on lattes. This will save you 4 dollars a day and maybe 80 dollars a month. At the same time, you may be renting in an expensive town, and moving one time over may save you $1000 dollars a month. So, the latter may be the place to concentrate on first. Also, consider moving to a smaller space if you don’t require it. This change alone can translate into tens of thousands of dollars in saving over the long run. Especially when you start considering that these savings could be used to reduce high-interest rate balances that you may have, or they can be invested and produce a decent return on investment.
Consider the type of car you buy carefully
Unless you are living in a city with an amazing transportation system which are few and far between, having a car is a necessity. Having a brand new Chevy Camaro as that car is a desire and not a necessity. The focus should be more on practicality, economy, and reliability and less on looks and trying to impress the neighbor. If you drive a fuel-efficient car that gets 25 miles per gallon versus one that gets 15 miles per gallon will result in savings of about 40% on your gas bill.
Shop around when you are making major financial decisions
The higher the cost of an item or a service, the more it is recommended to get several quotes for the item. Home remodeling, car purchases, appliances, home and auto insurance. All these are good examples of when it should pay off to comparison shops and get multiple quotes.
Constantly check your bank and credit card statements
Are there any subscriptions that you are no longer interested in receiving them? That magazine subscription that seemed like a good idea 6 months ago may have converted into a pile of unread magazines.
Are there any charges you don’t recognize? Make sure to validate them and if you do not incur these expenses, make sure to dispute them.
Are there any charges you wish you had not made? Make sure you to track them in your budget. Writing them and tracking them can be a great motivator to avoid these charges in the future.
Cut the cord
More and more people are getting rid of the cable bill by having only internet service and using a streaming service for their entertainment needs. A recent report from Decision Data pegs the average American household cable bill at more than $200 per month. Using a streaming service instead can slash that bill by an average of $70 per month.
Consider changing your cell phone provider
The big four when it comes to cell service are Verizon, AT&T, Sprint, and T-Mobile. However, there are a variety of alternatives that don’t have the brand recognition but actually use the same cell towers and many times are significantly cheaper. Some examples are:
- Cricket Wireless
- Boost Mobile
- Consumer Cellular
- Xfinity Mobile
While focusing on the major items that will have the biggest impact on your finances, every little bit that you save will make a difference. Come up with a holistic plan and a budget, instead of tackling each of these items one at a time.