Nobody wants to waste money unnecessarily. That means everyone loves saving money, right? Not necessarily. I’m sure everyone knows that saving money is hard work. We often spend less by sacrificing on certain things, i.e. eating home-cooked food most of the time, buying fewer clothes, skipping vacation days and many more. While effective, these methods are often painful as it sacrifices your lifestyle. What if I told you there are other ways to save money that are relatively pain-free?
By being a little bit imaginative, you’ll notice that there are many ways to reduce spending without drastically hurting your lifestyle. This article will attempt to get you started and will offer several money-saving tips which are guaranteed not to let you feel the pinch.
Take care of your health and stay healthy
The first one is to get healthy. As most of us might realize, eating healthy and staying fit is easier said than done. But here’s the thing, if you are in good shape, a lot of money can be saved on life insurance and health insurance plans. Why waste the extra money? If you’re already fit, good job! If not, get started. It’ll be worth your while.
Review and re-examine your auto insurance
It is recommended that you review and reexamine your auto insurance policy every year for opportunities to save. Consider this: should you be raising your deductible to a lower premium? If you’re driving an old vehicle, do you really need to have collision coverage which covers damage to your car when your car is hit by another vehicle or objects? Also, it is a good habit to compare between auto insurance quotes by different companies annually. This can be done online within minutes. Why not do it?
Improving your credit score
Many successful people will tell you that that the best way to save money without hurting your lifestyle will be to improve your credit score. This is very true and improving your credit score is arguably one of the most important tips you can follow. Every loan you take, whether it is a home loan, car loan or even credit cards and auto insurance, the interest rate all depends on your credit score. By improving and maintaining a good credit score, you will save yourself quite a small fortune which can easily reach to tens of thousands of dollars.
Invest on the cheap
It doesn’t matter if you are a passive investor who invests only in mutual funds or whether you invest on active stocks and options, there are many ways you can consider to save your hard-earned cash. If you are investing in mutual funds, only invest in funds that have reasonably low expense ratios. The rule of thumb is to make sure the weighted average expense ratio for all mutual funds stays under 50 basis points which is 0.50 percent. When compared to funds that fee charges are over 1 percent annually, you’ll notice that the savings can be substantial in a long run. As for active trading, it is recommended that you stick with brokers that charge $10 per trade or less.
Save on your internet, cable and phone bills
In this age of technology, it is a necessity to stay connected. This does not come cheap and paying for internet, cable and phone services is undoubtedly one of the biggest monthly expenses for most households. The majority of providers today often offer discounts when you bundle together all three of these services together in what is called a triple play. This way you will also get the convenience of a single bill every month.
Pay as you go
Consider switching over to prepaid services for your cellphone. While this option is not for everybody, you can save a small fortune with prepaid cell phone plans. There are prepaid cell phone plans that charge only just $0.10 a minute. Do your research and get yourself the best rates. Also, since they are prepaid, there is no need to commit yourself to long-term contracts and be tied down for years to come.
Get cash back on your credit cards
If you have a good credit score, there are many credit card providers which offer cashback solutions that can pay up to 5 percent on purchases. Forget about loyalty points, get cashback for your purchases. To maximize your savings, use the card for monthly bills and everyday expenses which you would have to pay for anyway. Do not charge items that you do not need. For monthly bills that can be paid by credit card, put in an instruction for auto-debit standing instructions. It is vital for you NOT to forget to pay the credit card bills on time every month to avoid late charges.
Jenny Corteza blogs for Better Price Paid and regularly writes about money-saving tips. She delights in finding change underneath her sofa as it pleases her no end. When she’s not helping people save money and avoid bad debts, she can be found laughing at viral cat videos and trying to recreate her own kitty memes with her temperamental Manx, Elvis.
Category: Personal Finance