When it comes to saving money, it’s not tricky. Yet many people find it almost impossible to build up savings. The key to building savings is to reduce spending. If you make saving money easy, then it won’t be difficult to build up a little nest egg. Based on our findings, here are the top five easiest ways to save money by reducing spending.
1. Stop Unnecessary Spending
Everyone has areas in life where they waste money. The key is to find your weak spots. Common areas of unnecessary spending include buying lottery tickets, overpaying for designer coffee to go, splurging on luxury food items and more. An easy way to check your unnecessary spending is to review last month’s bank statement.
2. Lower Car Insurance Premiums
Another easy way to save money is to lower your car insurance premiums. First, review your declarations statement from your car insurance policy. See if you can reduce coverage in certain categories that might reduce your premium. Next, contact two other reputable car insurance companies and see if you can get a better rate. Be sure to compare apples with apples, using that declarations statement as your coverage comparison sheet.
3. Cancel Subscriptions
If you’re like most folks, you have at least one subscription to a service you barely use, or don’t need. Many people are re-thinking their subscription services to things like streaming accounts. After all, how much TV can you possibly watch in a day? You can cancel things like magazines, food delivery subscriptions and more. Calculate how much you just saved and transfer that amount into your savings account each month.
4. Buy Used
When you buy used, you can save a ton of money. The only thing you should never buy used is food. That would be gross. But other than that, you can buy used clothing, used office equipment, used fashion accessories, etc. So where do you access all this great used stuff? Online, of course. Check out eBay, Etsy, Facebook Marketplace for starters. Factor how much you save on each used purchase and then put the difference right into your savings account.
5. Use Cash Not Credit
There’s something about swiping or tapping a card that doesn’t feel like spending money. You can’t physically see your balance going down, for one thing. An easy way to save money is to pay cash not credit and not debit. Take out however much cash you think you’ll need for a week. Consult your budget to calculate the amount. Whenever you buy something, you’ll see that clump of cash dwindling down. It will make you think twice about how much you’re spending. It may even keep you from buying things, especially when there are only a few bills left.
These are the easiest ways to save money with practically no effort on your part. If you do these things, you’ll find that the next time you look at your savings account balance it’s actually got some money in it!