Do you spend all your money before the month is over? Do you ever wonder what happens to your money every month? Do you find it hard to save money for emergencies, retirement, and other financial goals? Here are 10 ways to save money and get the most out of every dollar:
- Use the "envelope system" for things like groceries, eating out, entertainment, and other things you can choose to spend money on. This will help you keep track of how much you spend in each category and decide which ones are most important.
- Go to Starbucks or other high-end coffee shops less often. People often talk about the "latte factor" when they talk about how spending a few dollars a day on luxuries like premium coffee can add up quickly. For example, if you buy a $4 cappuccino five times a week for 50 weeks of the year (you're on vacation the other two weeks), you'll spend $1,000. Instead of going to Starbucks every day, try to think of it as a treat. You'll save money and likely lose weight at the same time.
- Instead of paying your mortgage every month, pay it every two weeks. You'll pay less interest on your mortgage and pay it off faster.
- Instead of going to a book store, go to the library. If you read a lot, give yourself a book budget for books you'll want to keep and go to the library for everything else.
- Plan your purchases so you don't buy things on a whim. Take a list to the store with you and stick to it. Studies show that buying things on a whim can add $10 to $50 to your grocery bill.
- Don't buy premium gas. Instead, buy regular gas. Premium gas isn't needed for most cars. Also, if your area has public transportation, use it. Use "park and ride" and carpooling to get around.
- Raise the amount of your auto and home insurance deductibles. Insurance companies like to raise rates after you file a claim, so it's not a good idea to file claims for small losses. A higher deductible will save you money now and in the long run.
- Instead of credit cards, carry cash. From a psychological point of view, spending cash is harder than using a credit card. You'll spend less money and pay less in interest.
- Think about getting rid of your home phone line. Most likely, your cell phone is all you need, and it probably has free long distance. If you get rid of your "land line," you could save $30 or more per month.
These are just a few ways you can save money and stretch your dollars. If you follow these tips, you'll find you have more money at the end of each month to put toward other financial goals, like saving for college, retirement, or just a rainy day.
