Here are eight simple tips on how to save money that you can start today.
1. Review and remove unnecessary subscriptions to save money
Subscriptions that you’re paying for each month can really add up. And it’s easy to forget that you’ve subscribed to something that’s pulling $20+ out of your account each month. Take a few minutes to review your account transactions and see how many subscriptions you have, and what they cost. Are you willing to part with any of them? If you don’t feel quite ready to end a subscription forever, start taking notes of how often you use it. Some memberships like Hulu give the option to pause the subscription. You can use the ‘pause’ option for a month and see how much you miss it before deciding whether or not to cancel it. Sometimes calling the service and asking to cancel will prompt the salesperson to offer a promotion, giving you a lower monthly rate. Start with increasing your awareness of how much you’re spending in subscriptions and begin looking for better offers and alternatives.
2. Visualize what you want to save money for and discover how much it costs
It can be much more difficult to save money when you don’t have a clear vision of what you’re saving for, or how much money you’ll need. The clearer your goal, the easier it will be to save money for it. Write down a detailed description of what you’re saving money for. If you like, create a vision board or use Pinterest to show the items and lifestyle you’re saving for. Research the cost of what you want and write down that number. When you find yourself getting ready to buy something you don’t absolutely need, think about contributing that money towards your goal instead, getting you closer to what you want. Small contributions lead to big results.
3. Increase your credit score to save money
Increasing your credit score will allow you to obtain a mortgage loan or an auto loan at a lower rate. If you already have a loan, increasing your credit score can give you the opportunity to refinance and get a better deal. Practicing good financial habits will increase your score, so be sure to pay off your credit cards regularly and don’t miss a payment. Set up automatic payments or set a reminder on your phone to make a payment each month to stay on track. Get your free credit report online to see where you stand and check back 1-2 times a year as you improve your money habits.
4. Get a savings account with APY to earn on the money you save
You may hear about savings accounts with APY, which stands for Annual Percentage Yield. This means that you will earn money each year for keeping a savings account. APY is the percentage that you can expect to earn. For example, if you have a savings account with $10,000 and a 3.75% APY, you can earn up to $375, just for keeping your money in that account. Not all accounts offer this, so make sure the one that’s holding your money is working in your favor.
See United’s Elevate Money Market and talk to an advisor to see how much you can earn through your savings account.
5. Open a Health Savings Account (HSA) to save money on taxes
One way how you can save money on health and wellness expenses is by opening an HSA account. A Health Savings Account will eliminate taxes on purchases made using your HSA Debit Card. You can use your HSA card to purchase items like eyeglasses and medicine, and for doctor visits, dental appointments, and more. Taking the tax out of these expenses can lead to impactful savings throughout the year and is another way how you can save money.
6. Join a family member’s account for discounted services and memberships
Do you have your own phone plan or gym membership? Adding on to a family member’s account instead could save you money each month. Services and memberships often have a family plan or discounted deals when you have multiple people on one account. Talk to your family and see what options you might have. Even if you decide to do this temporarily, it could save you more than $100 a year. You can also consider this option to help you save money before creating a new account – see if a family member is willing to join you!
7. Make temporary sacrifices to save money
Giving up something forever sounds harsh and unrealistic, but how about making temporary sacrifices? Could you sacrifice shopping sprees and brunch for a month? Three months? How much money would you save? Identifying a few spending habits to temporarily pause could help you save hundreds of dollars over the course of a few months. Knowing that you don’t have to give it up forever can make the sacrifice easier, especially when you know that you’re working towards improving your lifestyle or paying off stress-causing debt.
8. Avoid the cost of convenience to reduce wasteful spending
There is a cost that comes with convenience. Going to the nearest grocery store to save time, even though it costs more than the store in the next neighborhood over, can lead to extra spending on the same items. The same is true with gas stations – taking note of the most affordable gas station within reasonable driving distance can help you save money each week, rather than always pulling into the quickest stop. Being mindful of your spending choices based on convenience can help reframe your thinking, and with a little extra planning, you can change your habits and make the more affordable option part of your regular routine.
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