World Executives Digest | 7 Crucial Money-Saving Ideas to Improve Your Finances | If you’re struggling to make ends meet each month, you’re not alone. In fact, more than 78 percent of American workers live paycheck to paycheck. This makes it tough to build your savings and maximize your earning potential.
Though it’s tough, it’s not impossible.
With hard work and dedication, you’ll be able to improve your financial situation without taking on more hours or working a second job. Here are a few money-saving ideas you can try to help you save money quickly.
- Pay Down Outstanding Debts
More than 55 percent of American adults with credit cards carry a balance each month. Every dollar carried over each month earns interest and increases the total amount owed to the credit card company.
If you’re one of the many people with outstanding debt, you know just how much of your hard-earned money goes toward repaying it. The easiest way to save money is to pay down your outstanding debt as aggressively as possible.
The smaller you get the outstanding balance, the less interest it earns and the less money you’ll owe in the long-run. Once you pay off your balance in full, you’ll have access to the cash you haven’t been able to use in a long time. This makes it easy to rebuild your savings quickly.
- Look for Expenses You Can Eliminate
The chances are that you’re paying for subscriptions and services that you don’t really need. Take a long, hard look at the services you pay for each month.
Do you have memberships to several streaming services that you never use? Are you paying for unlimited data on your phone bill when you’re always connected to your home internet? Are you paying for services for your home business that you don’t actually need?
If so, get rid of those expenses. There’s no harm in cutting back the things you subscribe to in favor of freeing up cash. Once you do, you’ll be better equipped to manage your cash inflow and start building up savings.
What you do with those savings is up to you. There’s no right or wrong answer, but you can gain inspiration on how to better utilize your cash management strategy here.
- Automate Your Savings
If you struggle with spending and have a hard time setting money aside, try automating it. Talk to your employer’s payroll department and let them know that you need to change your direct deposit allocations. Set a portion of your paycheck to automatically get deposited into your savings account.
If you don’t have direct deposit, set up a savings account with your bank and set up a recurring monthly transfer of whatever amount you decide is appropriate. Your bank will transfer money from your checking account to your savings account automatically.
When you don’t have easy access to all of your funds in a single account, you’ll find it easier to avoid spending every dime you bring in. Over the course of the year, you’ll be able to increase your savings without having to think about it.
- Don’t Hesitate to Ask for Discounts
Many companies and service providers offer discounts, but they don’t always advertise their current discounts. You need to ask for them.
Get into the habit of asking if there are any current promotions or discounts before you make a purchase. For example, many hotels, restaurants, and even entertainment venues offer discounts for members of organizations like AAA, AARP, and other similar clubs.
At best, you’ll end up saving money. At worst, you’ll learn that the company isn’t offering any discounts on their services and you’ll have to pay full price.
- Create Shopping Lists
If you’ve ever gone to the grocery store without a list, you know just how easy it is to blow your budget on food you don’t need. Worse, you often get home without the ingredients you needed in the first place.
Save yourself the frustration by creating shopping lists before you head to the store. These can be physical lists or notes on your phone, whatever works best for you.
As you shop, cross each item off on the list and avoid picking up anything that’s not absolutely necessary.
- Turn Your Attention to Your Inbox
Inboxes have a way of getting cluttered with promotional emails and this can be a serious problem for your budget. Those subject lines advertising significant discounts or fantastic sales make it tough not to browse the company’s selection.
Commit to going through your inbox at least once a week. Unsubscribe to email lists that encourage you to spend too much money or don’t advertise sales you’ll actively use.
- Declutter Your House
Many people and business owners alike have a major clutter problem on their hands. All that stuff collects on shelves, in drawers, and in closets. Not only does it make your space feel overcrowded, but it also makes it harder to keep track of what you have on-hand.
Instead of letting that stuff take up space, sell it. Host a garage sale twice a year until you get the clutter under control. If you’re tech-savvy, you can also sell your stuff online and find buyers across the country that will be willing to pay you more for your belongings. And for things that have a higher value, both material and emotional, like gold rings, necklaces, or watches, try to find a local place to sell. This way you can sell gold jewelry you do not ever wear and be sure you got a good price for it.
Set your earnings aside in your savings account or invest it to grow your income over time.
Keep These Money-Saving Ideas in Mind
When it comes to great finance advice, the most important thing to keep in mind is your overall savings. By decreasing your spending and increasing your savings each month, you’ll improve your finances for the long haul.
Try these money-saving ideas for yourself and see how much you can improve your finances over the next few months. If you’re diligent and careful, you’ll be able to make a lasting change in your spending habits.
For more helpful finance tips and tricks to improve your savings and grow your income, check out our latest posts today.