Today we will be sharing 7 simple tips to maximize your future savings. The more money you save now, the more you will have to invest later, and it will make you better off in retirement. As Financial Planners, we always have our sights set on the future, and the quality of your financial future starts with the decisions you make today.
Money Saving Strategies to Add to Your Financial Plan
1. Ask For A Discount!
This technique especially applies when you make recurring payments, such as your phone bill, TV, or trash service. Most of the time, all you have to do is call up and ask, and they will discount your rates. This can save hundreds each year.
What’s the best part of this technique? It’s risk free!
The absolute worst thing that can happen is that they say no, and you continue to pay the amount that you originally budgeted for.
2. Buy Your Car, Don’t Lease
When you lease your car, you will never own it. Yet, you still make high monthly payments for up to three years as the car continuously loses value.
Alternatively, you can make a small down payment on a car and make the same payments you would with a lease, and when it’s over you get to keep the car, payment free.
3. Know Where Your Money is Going Each Month
Budgeting is a great idea and all, but will you really stick to it? Probably not. The trick to creating the most efficient savings plan is to track where, and how much money you actually spend each month, regardless of where it’s budgeted to be spent.
Once you understand how and where you spend, you can decide where you want to cut back, and what areas of spending bring you the most value.
4. Eat Dinner at Home!
Eating out can eat away a huge portion of your budget without you even noticing. Cooking can be a fun experience and great way to spend time with family and friends. Not to mention, it’s much cheaper than going out, and can save you thousands of dollars each year.
5. Use a Browser Plug-in
Free browser plug-ins are an incredible way to save money if you do your shopping online. They automatically find and apply coupons to your purchases.
Some of the most popular include:
- Amazon Assistant
- Honey
There are plenty more to choose from. Figure out what works best for you and start saving instantly.
6. Do It Yourself!
Why pay someone to do something when you can do it on your own. Things like indoor cleaning, routine yard work, and home repairs often get outsourced by homeowners. However, doing these things on your own, or better yet, making your kids do them, can put a lot of money back in your pocket.
7. Eliminate Your Debt ASAP
It’s far too common to see people only paying off the minimum amount of debt each month. This is a mistake that can cost many thousands of dollars over time in interest payments.
If you have $10,000 in debt with 18% APR and are paying 200$ off each month, you will pay an additional $8,622 in interest. That’s $18,622 for a $10,000 purchase. By paying the debt off quicker, you can eliminate much of this interest, and put over 200$ back in your pocket every month.
Always be on the lookout for new ways to save. Try a Fee Only Certified Financial Planner!
Think outside the box, this is just a basic list, there are countless ways to save money. The different techniques will benefit everyone differently based on their lifestyle, but here is the best way to start:
Track your spending for several months, then begin to analyze places that don’t yield very much value. From there, you can begin to decrease spending in certain parts of your routine, and increase it in others.