The new year is here and it’s a great time to make some changes to your finances.
If you’re worried about the mounting amount of debt every year, I have a solution for you!
Implement some of these 14 fool-proof saving tips for household expenses in your life and see how much you benefit from it.
1. Budget Your Money
The 50/30/20 budgeting rule is famous for effective budgeting.
It means you should spend 50% of your income (after tax-deduction) on your needs, 30% on your wants, and 20% on the savings and debt payments.
The budgeting process can keep you aware of your spending and you can save a lot by cutting down the excesses.
Plan your retirement during budgeting as well. You can plan your retirement by investing in an IRA, 401(k) or other means. The savings will benefit you in the long run.
2. Save on Energy Bills
The most common saving mistake is not saving on utility bills.
Install compact fluorescent light bulbs instead of standard incandescent bulbs.
Buy energy efficient appliances for your home.
Do laundry in cold water. Lower the temperature of the heater. Turn off lights timely when not in use. Unplug all the unused electrical appliances.
And check out more tips here to save on your utilities.
3. Save on Communication Bills
Avail the opportunities of free calls on weekends and others network discounts. Yes these still exist.
Phone bills silently take up a huge part of our income. Look out for coupons and deals on cable, internet, and phone services to save money.
4. Watch for Sales
Grocery spending can be cut short by utilizing different coupons and sales.
Usually, you can save only 15% by using coupons for the first time. But, the savings can increase up to 50% by becoming a regular coupon user.
Besides groceries, special sales like Black Friday and end of season sales are a great chance for saving on clothes and home appliances.
5. Discounts on Insurance
Insurance is a must-have, but an expensive investment.
Look out for cheaper auto insurance rates, and ask the provider to offer you discounts. This will save you a lot from the premium insurance accounts.
On older, paid-off vehicles, you can cut down on collision coverage by canceling it entirely.
For health insurance, find a deductible insurance plan if you don’t have to visit the doctor regularly and only require coverage for medical emergencies.
6. Buy Secondhand
If you’re getting secondhand household appliances and secondhand cars at a cheap rate, why not go for it.
Most people fear the maintenance costs of a secondhand investment. But, not all secondhand products need lots of investments for maintenance.
As a precaution, if it’s a vehicle, get it examined by a trusted mechanic before you proceed to buy it.
Dave Ramsey says you can typically rebuild a car two or three times for the amount of money you save by buying used.
7. Make Your Own Cleaners or Use Coupons
Excessively spending on household cleaners is a huge mistake.
Use DIY Cleaners or buy a bottle of vinegar to wash windows, cooking utensils, and countertops.
Besides this, you can find out sales and coupons to purchase cleaners at a low price. We often overlook the extravagant expenses on housecleaners, but they take a significant part of our earnings.
8. Cut Down on Transportation Expenses
Try public transport to go to work.
Why not go for a long walk to the store, if reasonable?
A lot of your spending on maintenance, gas, and parking can be cut short by finding alternates ways of travel.
9. Save on Entertainment
Go for cheap thrills and rides for only a year. If you watch movies thrice a month, why not cut the expenditure by visiting cinema once a month?
You can arrange gatherings and movie nights at home. Enjoying a movie in the comfort of your home is irreplaceable!
10. Cut Gym and Massage Expenses
Make your own gym at home.
Buy some necessary exercise equipment for your home and cut down on the yearly health & fitness bills.
Changing your lifestyle by going for a long walk each day for regular groceries can be a huge plus.
Beauty products, massages, and salons have turned into a necessity. After all, personal maintenance is essential. But, why don’t you try something homemade or DIY?
11. Eat Homemade Food
An estimated 40% of our expenses is spent on food items.
Change the way you live and eat, and replace frequent gatherings at restaurants and bars with at home parties including home-made cuisines.
A greater sense of satisfaction will overpower you!
12. Become a Minimalist
Make a record of all the furniture, clothes, shoes, and household items.
Once you’re done, spend only on the necessities.
Cut down a little on your wants and desires. Stop comparing yourself to others, because there are always differences in income and expenses.
Know your limits and never step beyond them.
13. Set the Thermostat
Set the thermostat higher (over 80f) in summers to cut the monthly costs.
In winters, set it at around 62. Both the conditions can be uncomfortable, but it will benefit you in the long run. Of course, the decision is yours on whether you would rather save money or be comfortable.
Moreover, buy a programmable thermostat that can automatically change the heating and cooling temperature of your home when no one is home.
14. Plant a Garden
Have your vegetable garden for cooking healthy and fresh recipes. It will save you a lot of daily grocery expenses.
Plus, green vegetable gardens are a great place to spend your time. You’ll mentally feel relaxed and peaceful.
These little saving steps can make a huge difference in your life!
About the Author:
Sarah Smith has been a personal finance author for the last five years. She is also an independent and a very passionate finance and investment advisor. She regularly posts at Personal Income.
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