These days, everyone is looking for a way to save money. And if those savings are not just a one-time thing, but a change in your spending habits, all the better.
Fortunately, there are expenses you have today that can likely be reduced with a little bit of attention and effort. From selecting the right credit cards to managing your insurance and even your phone plan, small changes can add up to big savings.
Here’s how you can identify those financial leaks and start building a healthier budget today.
- Track Your Spending Habits
The first step to saving money is understanding where your money is going. Many of us are surprised when we take a closer look at our spending patterns. To get started:
– Review Your Bank Statements: Taking the time to actually look at your bank statements and accounts over a couple of months will help you identify recurring expenses, such as subscriptions, and categorize your spending (groceries, dining out, gas, etc.). Think about the categories in two ways – which are expenses you make intentionally (groceries) vs. those that happen automatically (an insurance payment).
– Use a Budgeting App: There are a variety of apps available to help you automatically track your expenses and categorize them, making it easier to spot patterns. A simple search can help you identify and compare apps, and don’t forget your current bank app, which may include those features. The key here is identifying where the bulk of your money is going and determining if all those expenses are necessary.
Once you have a clear picture of your spending, you can begin to identify areas where you can cut back or optimize to free up cash.
- Choose the Right Credit Card for Your Needs
Credit cards can be both a tool for saving money and a source of debt if not managed properly. By choosing the right card and using it strategically, you can save hundreds of dollars a year. Here’s how:
– Match the Card to Your Spending: Evaluate how you normally use your credit card or expenses that make up a bulk of charges, such as groceries, travel, or dining. Look for a credit card that offers rewards in those areas. For instance, travel rewards cards can save frequent travelers on flights and hotels, while cash-back cards can offer returns on everyday purchases like groceries and gas.
– Leverage Sign-up Bonuses: Many credit cards offer lucrative sign-up bonuses. While it’s tempting to choose a card for this reason alone, ensure that the spending requirements to earn the bonus align with your normal expenses so you don’t spend more than necessary.
– Look for low APR Offers: If you have a large upcoming purchase or want to consolidate debt, consider a credit card offering a low introductory APR. This can allow you to pay off the balance over time without incurring interest, which could save you a substantial amount on finance charges. Make sure to pay attention to the details of the offer so you don’t incur unexpected costs.
– Pay Off Balances in Full: The best way to avoid costly interest payments is by paying off your credit card balance in full each month. Interest rates on credit cards can be as high as 20% or more, so carrying a balance from month to month can quickly add up. If you can’t pay off the entire balance, always pay off more than the minimum.
- Optimize Your Mobile Phone Plan
Mobile phone plans are another area where consumers can save big. The major carriers often charge premium prices for services you may not need or use. Consider switching to a more affordable carrier without sacrificing quality. Twigby Mobile is an excellent example of a high-quality, low-cost provider.
– The Same Network with More Savings: Mobile Virtual Network Operators (MVNOs) like Twigby lease networks from major carriers but offer significantly cheaper plans. Since MVNOs use the same infrastructure, you’ll likely get the same service quality. Twigby Mobile features a savings calculator that can give you a great idea on how much you could save.
– Review Your Data Usage: Many people pay for unlimited data plans they don’t fully use. Review your past few months of mobile data usage and consider downgrading to a plan with limited data if it fits your needs.
– No-Contract Plans: Consider switching to a no-contract plan, like Twigby, which gives you more flexibility and can result in lower monthly payments. With no-contract plans, you’re not locked into long-term agreements. Also look for new customer offers. You can easily find plans and prices, such as those from Twigby starting at only $5 a month.
– No Need to Compromise: Lower costs shouldn’t mean compromising on features or service. Not only does Twigby deliver comprehensive services like unlimited talk and text, 5G coverage, International calling, and international calling but back it up with 100% U.S.-based customer service.
- Audit Your Subscriptions
Subscription services are convenient and businesses of all kinds are motivated to establish a long-term commitment from you. But when you sign up, they can become a major drain on your finances if you’re not careful. It’s easy to forget about small monthly charges that add up over time. To avoid those unwanted expenses:
– Identify Unused Subscriptions: Review your bank and credit card statements for recurring charges. You may find you’re paying for streaming services, cloud storage, or magazines you no longer use.
– Use a Subscription Management Tool: Apps like Truebill or Mint can help you track and cancel subscriptions with ease. These tools often automatically detect your subscriptions and let you evaluate which ones to keep or drop.
– Rotate Services: Instead of subscribing to multiple streaming services at once, consider rotating them. For example, use Netflix for a few months, then switch to Hulu or Disney+ after canceling the previous one. This way, you only pay for one at a time, saving you money without losing access to your favorite shows.
– Negotiate Rates: Contact your service providers to ask for discounts or promotions. Many companies offer loyalty discounts or special rates for customers who are considering canceling their service.
- Save on Insurance Costs
Insurance is a necessity, but you don’t have to overpay. Whether it’s home, auto, or life insurance, here’s how to reduce your premiums:
– Bundle Policies: Many insurance companies offer discounts if you bundle your home and auto insurance together. This can save you up to 25% on your premiums.
– Increase Your Deductible: By opting for a higher deductible, you can significantly reduce your monthly premium. Just be sure to set aside enough in an emergency fund to cover the deductible if you ever need to file a claim.
– Shop Around Annually: Don’t just auto-renew your insurance policies without shopping around. Compare quotes from different providers every year to ensure you’re getting the best deal.
– Take Advantage of Discounts: Many insurers offer discounts for things like safe driving, good student records, or even installing home security systems. Ask your insurance provider what discounts are available, and make sure you’re taking advantage of all that apply to you.
By taking the time to evaluate your current expenses and making small, strategic changes, you can start saving money every month without drastically altering your lifestyle. Start with one or two of these tips, and you’ll be surprised at how quickly the savings add up, setting yourself on the path to long-term financial health.
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