Tips for Saving Money in the New Year
Posted on Monday, December 25th, 2017 at 7:00 am
* Which of your credit cards, or loans, has the highest interest rate? Focus on putting a little extra money towards paying down that debt. In other words, pay more than is asked for. Getting rid of that debt will take time, but is worth it. Paying it off frees up money that can be put in your savings account.
* There is an alternative approach. Focus on the credit card or loan that is the smallest amount of the debt you owe. Pay back more than the minimum each month. Chipping away at that small debt won’t take as long as paying off the bigger ones. Getting rid of a small debt can motivate you to work on getting rid of other debt.
* Cook your meals at home instead of dining out. Doing this forces you to use up your groceries before they go bad. If the groceries go in the garbage – you wasted your money! For convenience, make several large meals that can be frozen in individual portions. Those can be quickly heated up as needed.
* Compare prices before you make a purchase. One store is going to be selling that item for less than the other stores are. For best results, wait for a sale (that will bring the cost down more).
* Those techniques can be used on anything, but are especially effective on groceries. Check the store’s weekly paper to see what is on sale. Collect coupons that the store will accept. Get the store’s loyalty card for extra discounts.
* Start a savings account (if you don’t already have one). Set up an automatic transfer of $25 a week to go directly into your savings account. You can pick a higher amount if you are able. Over time, that little bit of savings can add up. Pick a specific goal to save for, like a nice vacation. Don’t take that money out of savings until you reach the goal.
* Walk instead of drive. This trick works best for people who live in places where the weather is generally nice all year round. It helps if you live in a place that is small or that has lots of nearby places to shop. Walking is a good way to get some exercise, and it saves you the expense of burning gas and paying for parking.