There’s a lot more to getting and being rich than just making money. The key comes by diversifying income channels. It helps to have multiple passive income streams. In fact, saving money is how you stay rich. For instance, when you list your car for sale it helps to have a plan in place for the money from the sale. You should strongly consider putting part of the proceeds into savings. The type of savings you choose will vary according to how much you are planning to put aside.
A typical savings account has a fairly low interest rate, so this method doesn’t allow your money to grow very quickly. CDs or certificates of deposit offer fixed interest rates that pay out at the end of a specified length of time. Now that you know some simple ways to handle your savings, here are some ways you can add to your savings.
1. Make a Grocery List
When you go to the grocery store, it helps to have a list prepared. Think of a grocery list as the GPS for your grocery trip. A list can do a lot to prevent you from wandering into aisles you had no intentions of going down. By steering clear of unplanned purchases, you can save yourself quite a bit of money each trip. Whether you go grocery shopping once a month or once a week, whether you meal plan or not, having a list is essential to staying within your grocery budget.
2. Brand Flexibility
Major brands make millions of dollars in profits because of brand loyalty. Many people only use the brands they use because it’s what their parents used. They’ve never tried anything else. When you are doing your household shopping, it will save you money to brand flexible. This doesn’t mean you can’t buy your favorite major brands anymore, it just means that you try less expensive brands to see if they meet your expectations. If they do, then you start purchasing that brand to keep more money in your pockets.
3. Change Your Thermostat
You can save money on your energy bill by adjusting your thermostat. The key to making it work is to set the thermostat to the coolest heat you can handle and the warmest cool you can handle. Many energy companies recommend a temperature of 78 degrees Fahrenheit or warmer in the summer months and 70 degrees Fahrenheit or cooler in the winter months to save on your monthly energy bills. Check with your utility companies or energy providers about any savings programs you may be eligible to participate in.
4. Buy Bulk
Buying everyday items like toilet paper, paper towels, detergent and more can do a lot to cut your monthly expenses. You can even buy certain grocery items in bulk to cut costs. Herbs, spices, grains and nuts are just some things you can save by buying bulk. You save because you don’t have to pay the cost of packaging and labeling.
5. Make Your Own Coffee
Large chain coffee stores can be overrated. Of course they may have some cool flavors and add-ins that you just don’t have at home, but making your own coffee in the comfort of your own home as often as possible will save you buckets. Did I forget to mention, there aren’t any lines at home and you don’t have to be dressed to get service? Who knows, you just might come up with a new favorite flavor.
6. Pay Off Monthly Credit Card Balances
Credit cards are great for building credit and allowing you to pay for things without having to front the money right away, but paying off your monthly balance is essential to shaving down your monthly expenses. When you don’t clear your monthly balances, the leftover is subject to fees and interest. That means that what cost you $200 just might end up costing you $225. It all depends on the terms of your issuing company, so read your contract carefully to know exactly how your finances are being affected.
7. Get Rid of Cable
Consider ditching your cable provider. You may be able to save money by switching to a streaming media service. If you’re not ready to make that leap, you should at the very least call your cable provider and see if you can negotiate a better price. You may even decide to downgrade your current package to save money.
8. Get Car Insurance Quotes
If you have a car, insurance is unavoidable. It will be to your advantage to shop around. Check with your current insurance provider as well, they may lower your rates when they hear you are considering going with another insurance company. You just might be surprised at the money you can save by making a few phone calls and asking questions.
9. Reconsider Your Cell Phone Plan
Check with your wireless carrier to see if you are eligible for any promotional billing or other money saving perks. If not, you can ask about downgrading your plan if you aren’t making the most of your current plan, or switch your carrier altogether to get a great deal that saves you more each month.
10. Wash Your Clothes in Cold Water
Washing your clothing in cold water only is another way to reduce your energy costs. Your clothes will be just as clean, but for a little less money. Using cold water can also help preserve some of your fabrics. Hot water tends to put more stress on fabrics and colors than cold water. Not to mention, water temperatures above 75 degrees can decrease the effectiveness of many laundry detergents.
11. Drive Less, Walk More
Using your car less often is better for the environment, your health and your budget. Walking more often means you spend less money on gas. Driving less will also put less strain on your vehicle and allow you to save on car maintenance as well.
12. Go Green
Installing solar panels on your home can save you money on your energy bills. There are many companies that can help you solar power your home and there are also DIY kits that you can use. You can also start a garden so you don’t have to purchase as many fruits and veggies.
13. Switch Pharmacies
If you depend on prescription medicine, you may find big savings by switching pharmacies. There are many online pharmacies that can fill your prescription and deliver it to you with plenty of time to spare for less than what you currently pay.
14. Always Shop Sales
Never pay full price. There are coupons and coupon codes for almost any retailer you can think of. And even when there’s no coupon available, keep an eye out for sales. And always ask yourself if you really need to make a purchase or if it’s one you can certainly do without.
15. Refinance Your Home or Car
Refinancing your home or your car can lower your monthly payments, thereby saving you money each month.
16. Ditch Your Gym
Consider working out at home or at a local community center instead of at the gym. If you have a membership and you don’t make the most of it, you can boost your savings by canceling. Just make sure that it won’t cost you more to cancel than to stay on.
17. Pack a Lunch for Work
Instead of buying lunch at the cafeteria or a restaurant or food truck, you can keep more money in the bank by taking a homemade lunch to work. You might be surprised at how little your grocery budget will be impacted.
18. Switch Your Cleaning Products
Have you ever wondered how people kept things clean hundreds of years ago? One of the main ingredients in homemade cleaning products is plain old white vinegar. You can mix it with water to create window cleaner, as a fabric softener, furniture polish, fruit and vegetable wash, toilet bowl cleaner and so much more.
19. Quit Smoking and Drinking at Bars
Reducing the number of cigarettes you smoke in a day or quitting can free up a nice chunk of change each month. There are also savings at the bar. Buying beer, wine and spirits to drink at home is a lot cheaper than drinking at a bar.
20. Air Dry Dishes and Clothing
Another way you can reduce energy costs is to air dry dishes in the dishwasher and clothes. You can save your dryer for rainy days or freezing temperatures. And even when the weather is not optimal for air drying, you can still air dry inside as long as you have the space.
There are so many creative and innovative ways to cut your monthly expenses and these are just a few of them. Saving money doesn’t make you cheap, but it does make you a smart and savvy consumer. The more money you save, the more comfortable you may feel about the future. Knowing that you are prepared to handle unplanned expenses is very comforting, because there is no way to avoid those.