For most people, they prefer to save money rather than spend it. However, some people do not know how to save. They will come up with reasons or excuses on why they must spend on something.
To help you will your spending habits, we will be going into detail about 10 smart ways that you should know so you’ll know to save $1,000 a month! We will even tell you how much each method will save you!
10 Smart Ways to Save
Create a penalty jar
Not everything is about big dollar bills, the little coins will add up eventually. Give yourself a nudge by putting a penalty tax on your excess splurges. Take certain impulse purchases, drinks, fast food, and cigarettes and put the same amount of each payment with a savings deposit until you build a decent sum worthy to deposit into your bank. Assuming you use this method, you could save as much as $200 or more a month.
Stop loaning money to Uncle Sam
Your income tax refund is essentially an interest-free loan to IRS. If you get a large refund during tax season, it’s a sign you should to review your W4. Determine whether you’ve selected the right number of withholding allowances.
If you’re getting a refund of $2,400, that’s about $200 a month you could put into savings to earn interest before tax time comes around. You will save around $15 per year by doing this.
Take on the 5% challenge
It’s hard to cut out entire categories of spending such as gas, essential items, house expenses, etc. but on the categories that you think you can spend less in, make a little compromise. Spending 5% or less in a certain category such as going out to eat when you can cook at home can save you easy money. By spending around $20 or less a month, you’ll save $240 in the span of a year.
Make a strategy for the supermarket
One of the biggest budget killers is grocery shopping. Even a small family can easily rack up grocery bills of $150-$200. Grocery shopping is a weekly occurrence and will use a lot of your savings so if you can learn how to set a plan, you’ll have a bit more in your savings. Always create a shopping list and stick to it rather than browsing unnecessary items.
Another good tip is to never shop while hungry, or you’ll buy all sorts of stuff you don’t need. Don’t forget to look at coupons and fliers for some deals and use a credit card that gives back money for your grocery shopping. This method will allow you to shave off at least $50 each week.
Improvise for income
A side hustle is one of the best ways to increase your savings fast without sacrificing your lifestyle. Take advantage of opportunities that are right in front of you. Consider that there are opportunities for you to make money grocery shopping for neighbors and taking seniors to doctor’s appointments, or taking other people’s kids to their after-school activities.
Don’t be shy about letting people know, especially seniors and single mothers who may need your help and are willing to pay. If you squeeze in just six hours a week at $12 per hour, you can earn an extra $3,744 a year.
Be fanatical about fees
If you look at all the fees and find ways to eliminate them, you could have huge monthly savings. This includes the $2-3 you pay when you use an ATM other than your bank’s and the late fees on credit cards that can be $20-$30 and more a month. You may be paying a monthly fee for a checking account when other banks would be willing to give you one for free.
Go through your financial accounts and you may be surprised by some of the fees you’re paying. See what you can eliminate, consider switching service providers, and set up automatic payments if you are a late payer. You can be rewarded from this work with at least $15 per month.
Review your technology
In our technologically based society, you have all forms of technology in reach. Convenience isn’t always cheap. Look for the best deal on your cell phone package, Internet service provider and cable television. Check to see if there are new deals that make it worth switching.
At the very least, see where you can bundle services to get the best deal. It could also be time to get rid of your landline at home if you aren’t using it. This method is estimated to save you $50 per month.
Rethinking your recurring expenses
Have a reality check. What do you have and what do you really use? If you’re paying for a gym membership and you haven’t gone in months, realize that you won’t go, cancel your membership, and put that money toward savings instead.
The same goes for subscriptions to magazines, streaming services, etc. Shop around for your insurance policies, and you may be able to save a few hundred dollars monthly. Assuming at least one of these areas is one you can get rid of, you could save $150 a month.
Forget about brand names
Brand names are just a label. You can easily save 50-60% when buying generic items at the grocery store. The strategy is smart when shopping elsewhere too. Whatever the reason that has you on the hunt for luxurious brands, it is not worth it unless you’re getting them at a deep discount from the outlets or discount retailers. At the very least, you should be able to save around $60 a month.
Be smarter about using credit cards
When you understand the use certain credit cards, you can save up real cash. Certain cards will reward you for your spending with cash back or rewards, such as on groceries, gas, etc. If you don’t get distracted and spend money just to get a deal, you can earn funds on money you would spend anyway.
For instance, some popular cashback programs will give you as much as 5% back on up to $1,500 each quarter. So at a minimum, that’s another $25 in your wallet each month.
There are many ways for you to change, manage, eliminate, etc. to save money. If you are in need of some help, those top 10 smart ways are things that you should know to help you Save $1,000 a Month!
If you’re interesting saving even more money, we’ve also composed a list of other ways to Save Money that you can check out. Also if you would like to see all the latest bank deals nationwide, be sure to view our full list of Bank Bonuses and find one in your area!