Getting By On Less In Order To Save More
Whether by choice or by necessity, living frugally can save a significant amount of money when compared to the average lifestyle. Here are some ways to make better financial choices so that you can put more money in savings or pay down your debt.
1. Purchase cars used. A used car does not necessarily entail body damage or unreliability. In fact, many used cars have barely been driven, and they often come with warranties, giving you peace of mind about your purchase. The savings over buying new can be very significant, even if the car is nearly new; the value of a car drops substantially once it's driven off the lot.
2. Use coupons for items that you buy regularly. The key to making coupons worth it is to only use them for products that you would buy without the coupon. Spending hours each week clipping coupons for items you don't really need or want isn't worth your time. For specific, name-brand items like diapers, formula, toothpaste, shampoo, pet food and other products, coupons can shave a little off your grocery bill.
3. Don't buy first-generation gadgets. You pay a premium as an early adopter of the latest electronics, so make do with last year's models of cell phones, MP3 players, computers and other electronics. Technology does change rapidly, but not so rapidly that your one-year-old gadget will become obsolete. Don't treat your electronics as disposable items, either; use them until they no longer work to get the most bang for your buck.
4. Keep tabs on your spending. Using online banking or a software program that syncs with multiple accounts is a great way to watch your spending in real-time; there's no reason to wait for the bank statement to arrive each month. This helps you adjust your budget quickly for unexpected bills, and it gives you ideas for trimming unnecessary expenditures.
5. Look for ways to cut back on your cell phone, Internet and cable packages. From unused text messaging plans to hundreds of channels you don't watch, there are probably changes you can make to your communication and media expenses. If you must keep cable or satellite, choose the least expensive channel package. The same goes for your cell phone plan; find a plan with fewer minutes, text messages or less data if you tend not use what you have. Unless you stream many movies or play online games, you can probably make do with slower Internet service, too.
6. Fire your bank for excessive fees. There are still a number of banks that offer free checking accounts and savings accounts that pay interest; some banks even waive ATM fees. If your bank nickels and dimes you, shop around for one that deserves your business.
7. Increase your home's energy efficiency. Investing in insulation, a tankless water heater, and efficient appliances can drastically reduce your utility costs. This is especially important if you live in an older home. Drafts, high ceilings and bare-minimum insulation make it harder to trap heat or keep the cold out, making your furnace work much harder. Inefficient refrigerators, freezers and water heaters can use a lot of juice, too.
In the quest to spend less and save more, there are a number of options available to you. Using the tips in this article can help you achieve your financial goals or stay afloat when times are tough.
