Wanting to get started on building long-term savings is an admirable goal. If you are able to free up some extra money in your budget to build that savings bigger faster, that’s all the better. Here are 10 tips to free up extra money to boost your savings.
1. Cut down on eating out
If you buy a fast-food or deli lunch every day at work you are probably spending $7 to $8 a day. Taking your lunch each day only costs a couple of dollars a day, leaving you a savings of around $5 a day that you can put toward your savings.
2. Refinance your mortgage
If you own your own home, you might be able to free up extra money by refinancing. If you plan to stay in your home for at least a few years and can get at least a 1 percentage point decline in your mortgage rate, you could significantly reduce your monthly mortgage payments and free up several hundred dollars a year to put toward savings. Use a mortgage calculator and see if you’re leaving money on the table.
3. Inquire about auto insurance discounts
Car insurance is a place you may be able to save some money to boost your savings. Inquire with your insurer about possible discounts you might qualify for, such as a good driver discount, a discount for completing a safe driver class or a multi-car discount. Consider the situation you’re in and make sure that you have the right company as your insurance provider. For example, seniors should look for a good senior auto insurance policy. Some companies specialize in those non-standard situations.
4. Increase your deductibles
Another way you can save extra money to save is to increase your deductibles on car and homeowners or renters insurance. Doing so will reduce your premium costs each month and free up extra money to save.
5. Bundle for discounts
Bundling services can get you discounts you can apply toward your savings. For example, you can bundle your cable TV, Internet and phone services with the same provider, which usually results in a discount of at least 10 to 25 percent. You can also bundle insurance policies.
6. Get a rewards credit card
You can earn 1 percent or more on your credit card purchases that you can put toward your savings. Use the card only for necessities, such as gas and groceries, and make sure to always pay the bill in full and on time every month.
7. Cut your energy costs
If you keep your thermostat a couple of degrees higher than normal in the summer and a couple of degrees lower than normal in the winter, you can save a few extras dollars each month on your heating and cooling bills, which you can put toward your savings.
8. Bike or use public transportation
The less you use your car, the less you have to pay for gas and parking. If your workplace is close enough to bike or walk to, do so whenever you can. If it’s cheaper to take public transportation than drive, do so when you can to save money.
9.Cut your entertainment spending
Stay home a watch a rented movie rather than going out to one. You might also check out free plays and concerts instead of buying tickets.
10. Look at all discretionary spending
Can you find a cheaper gym membership? Do you need all the cable channels your provider offers? Do you have the Cadillac cell phone or Internet plan when the Kia version would do? Combing through your discretionary spending is likely to find you a few extra dollars to save.