If you’re having trouble bringing your spending under control and saving money, you’re not alone. Surveys show that most Americans have so little savings that they’re one unexpected bill away from a financial crisis.
If this sounds like you, we have eight suggestions that could help. And we promise they don’t involve creating spreadsheets or living on bread and water.
1. Automate Savings and Investments
Let technology remove the pressure of saving money by automating your finances. Most finance institutions will allow you to set up automatic deposits to your checking account. Then you can schedule transfers of the money in checking to other accounts.
For example, you could set up regular transfers from checking to your savings account, investment portfolio, retirement fund, or other accounts. The advantage of automation is you don’t have to make the same decisions each month about what to do with your money. Also, the money moved to savings and investments won’t be available for impulse spending.
2. Use Cash
It’s easy to make unnecessary purchases when you have a credit card handy. Try leaving your plastic at home and use only cash. Most of us don’t like to carry a large wad of cash, so that prevents us from being able to make as many unscheduled purchases as we would with a credit card.
3. Request Generic Medicines
Generic medicines are required to contain the same beneficial ingredients as the famous name brands. But generics are only a fraction of the price of their competition.
4. Reduce Your Internet Service
Do you need the fastest internet speed? Unless you process a tremendous amount of streaming data, you can probably switch to a lower speed without interrupting your daily activities.
5. Eat More Often at Home
Understandably, after a long day at work, you have no motivation for whipping up a home-cooked meal. However, eating out or ordering delivery may cost more than you realize.
Why not review your credit card statement to see how much you typically spend on meals each month? Then think of what you could have done with that money instead of eating fortune cookies.
6. Create a Grocery and Anti-Grocery List
Grocery stores are designed to make you spend money on items that aren’t on your shopping list. Notice the snacks near the register. They’re impulse items that hungry people grab while waiting in line.
Here’s a tip to outsmart the grocery stores. Add to your shopping list a separate column labeled “Do Not Buy.” Write down everything you want to remember to leave out of your cart.
7. Take Advantage of the Modern Library
The modern library contains all sorts of free entertainment and education options. There are book clubs for adults, book readings for children, and lessons for aspiring writers, musicians, and artists.
The library also can save you considerable money on audiobooks and DVDs. You can’t get cheaper than free.
8. Rethink Extended Warranties
How often have you ever used an extended warranty for an appliance? They do offer peace of mind, but if they’re unlikely to be needed, they represent an unnecessary drain on your pocketbook.
