15 Small Moves That Can Lead to Big Savings
Most of us would like to establish an emergency fund or pay off student loans. Big goals are great, but they can also be intimidating. There are small steps that nearly anyone can take to lead to big savings. Small steps are more comfortable and believable. For example, a moderate diet is easier to follow than a strict one. It becomes a mindset, to either be overwhelmed with the big picture or the focus on the steps to get there; the mind is the most powerful tool one can hold, so we need to be responsible to training and strengthen it.
Implement these small moves and reap the monetary benefits:
Make one extra mortgage payment each year. It doesn’t have to be one extra payment made at the end of the year, though it could be. Instead, send in an additional 1/12 of a payment each month. Or round up on the payment. On a 30-year mortgage, you’ll shave 5 years off your loan term by doing this.
Automate your savings. Maybe you can only save $50 a month, but those regular deposits will eventually grow into a significant amount. Save what you can and do it on autopilot. Pay yourself first and you’ll ensure there’s some money in the bank. It helps to have a savings that you aren’t going to touch or look at very often- out of sight, out of mind…
Watch less television. Consider cutting down your cable package. After all, how many of those 250 TV channels do you actually watch each week? I actually cancelled my cable over a year ago and stream. I have a few apps, like Disney +, Yippee, and PureFlix that I pay a yearly membership which eliminated the monthly payments and gave a discount on the overall costs.
Use automatic bill payment. If you avoid late payments, you’ll also avert late fees. Many banks include an automatic bill payment feature with their checking accounts, and sometimes you may get a deal to do so.
Drop your bad habits. Tobacco and alcohol products are pricey items. Your health and your bank account will both benefit if you stop drinking and smoking. I remember when my brother told me how much a pack of cigarettes cost and how many he goes through… I told him that was a car payment. And others like my aunt who just swipe the card, without wanting to know how much her bad habit costs her. These are addictions, and it is important to recognize them as such; it is time to break free from what the enemy has been using to deter you from your dreams.
Keep your old car for one more year. If you can stick it out for one more year, you can delay costly car payments and higher insurance premiums for another year. After I received my settlement, the first thing I did was pay cash for my vehicle, I didn’t want to be a slave to another lender and needed a low monthly budget to better provide for my family while continuing my education.
Consider refinancing your mortgage. Do a few calculations and see if refinancing makes sense for you at this time. When interest rates are low, it can help you better pay off your mortgage faster. But be sure to consider everything that maybe in small writing in your decision making.
Examine your cell phone plan. You might find that you can go with a cheaper cell plan without noticing the difference. If you are financing the phone in your monthly payment, even if it is at a 0% interest rate – paying it off sooner will decrease your bill dramatically and can allow negotiation for a better cell plan.
Shop generic. From cereal to pharmaceuticals, there’s a lot of savings to be found with generic products. Some you might dislike, but you’ll find many that are exactly the same as far as quality. Costco products are great alternatives and can be bought in bulk which can help as well. Definitely be smart when it comes to anything related to medication though; for me, living without a thyroid, my body will only allow brand name thyroid replacement medicine. With a lot of my other medical I have turned to Homeopathic remedies; our bodies were created to heal themselves with the right tools. 😉
Books!!!
Use the library. Since you pay taxes, those books in the library are partly yours. Go get your free library card and check out a few books instead of buying them. Interlibrary loans ensure that you can get your hands on nearly any book, free of charge. However, some books, especially for school may require purchasing…
Buy used books. Many websites have used books for a fraction of the price. Two such websites are abebooks.com and alibris.com. You can even sell your books when you’re done.
Eliminate your home phone. The number of households with a landline lessens each year. Since you now have a cell phone, it’s hard to justify also needing a home phone. Home phones are nice when it comes to an emergency, and if that is why you have kept yours, consider investing in an emergency radio – if an emergency happens, it can be much useful then a telephone anyways.
Avoid ATM fees. Stay within your ATM network or get cash back at the store when you use your debit card. It’s unnecessary to pay for accessing your money. After all, it belongs to you.
Prevent yourself from overdrawing your bank account. Some people seem to do this regularly. At most banks, every overdraft cost roughly $35. Even if you’re only overdrawn a dollar, you’re now $36 in the hole. Having overdraft protection is an asset as emergencies do happen. But as I was taught in school, always keep $100 in the account that you don’t consider part of your account balance – money to once again, out of sight-out of mind.
Take your lunch to work. Eating out is expensive, especially if you do it daily. Even fast-food costs significantly more than bringing your own lunch. This can help you better budget, shop and eat healthier – make it fun, a goal within a goal.
Budget! Make yourself accountable, stop swiping the card & get on the Baby Steps. It is time you start making your money work for you, instead of being a slave to debt. There are some great apps that are Free that will help you in this process. Of course, Dave Ramsey’s Program are my favorite!
Are you currently saving money in any of these ways? Could you benefit from adding a few more? Add up how much money you could save by implementing these financial moves and imagine what you could do with all that extra money!
