Debt Consolidation

5 Very Practical Money Saving Tips That Can Save You A Fortune

There are virtually endless ways to save money, but the five money saving tips that we are going to discuss here are very special in a sense that they can help you save a great deal of money while you are already living on a tight budget. They are very practical, no-brainer ways with great savings potential. In order to make the best use of these tips, you must also consider building and maintaining an emergency or saving fund. Here is successfully. You will have to show some great financial discipline by depositing a certain portion of your paycheck into this fund every month. The money you save using the following tips will be a big bonus for you, which will allow your overall savings fund to grow very fast.

Clean Up Your Home And Get Paid For That

Have you ever tried to calculate the hidden costs of having too much stuff at your home? In most cases, it costs too much. Therefore, if you are looking out for some very practical money saving tips, you can start with this step, where you just have to clean up your home and you will be paid for that. There’s no prize for guessing – the idea is to hold the mother of all garage sales. Cast a critical eye on the junk stored in storage and the stuff kept in your closet. You will not have to work hard to find out all those things that you have not used since long. The reason why you still have them at your home is probably because you think you may need those things in future. But, the thumb rule is that if you have not used a particular item even a single time within the last six months, the chances are that you do not need those things at all and that you can easily live without them. Now, let me tell you how much annual savings it can bring for you. Well, the actual figure will depend on how much junk you have at your home. But, I have a colleague who says his garage sale potential is not less than $5000. For me, it is at least $1000. You can do your own analysis and find out how much extra money you can save through garage sale. I am sure you can get enough to pay off your payday debt.

Smoking Is Injurious To Your Finances

Smoking is as injurious to your finances as is to your health. If you are already living on a tight budget, it does not make sense at all to carry on with your pack-a-day habit. If one pack of cigarette comes at $5, it means you are smoking over $1800 per year. So, one of the best money saving tips for you is to quit smoking and you will have a healthy saving of $1800 per year. Besides that, you must also take into consideration the very fact that smoking leads to an array of health related problems, which means “unexpected” medical bills. It is this type of financial emergency that encourages people (especially the ones who live paycheck to paycheck) to borrow risky payday loans, which often pushes them into a viscous cycle of debt. When you quit smoking, you do not only save a lot of money but you also reduce your medical bills. It is true that it takes a lot of pain and effort to quit an addiction like smoking, but when you have something to motivate you, you can easily do this. What can be a better motivation than a saving of $1800 per year?

Reduce your “driving expenses”

Driving addiction also costs a fortune. Instead of working on 101 money saving tips, you can get better results by just taming your driving addiction. It means you will have to consider making some compromises, such as using public transportation instead of driving your own car. This can save you a large sum of money in terms of maintenance cost, insurance, and gas. In order to get a clear picture on how much you can save with this strategy, you can do a calculation on your own assuming the cost of commuting is 36.5 cents per mile (which is actually the mileage reimbursement rate offered by IRS). If you travel 25 miles (roundtrip) a day, you are spending $3330 (0.365*25*365) per year. Now, if you cut down this expense to half, you can easily save $1665 every year. You can save a much higher amount of money if you take a more drastic approach and decide to get rid of your car. This drastic approach may just work if you are living in a city like Washington, Portland or Seattle because these cities have progressive programs (such as Flexcar) that can allow you to use a car without dealing with the hassles of ownership.

Shop At Consignment Shops And Auctions

As per the latest survey on consumer expenditure conducted by the U.S. Bureau of Labor, the average cost of clothing and its upkeep for one consumer is $1750 per year. If you shop at consignment shops and auctions, you can easily reduce this cost to half. However, since the life of these goods may not be as high as it can be when you buy it new, but you can still save at least 25%, which is $437 per year.

Cut Down Your Expenses On Eating Out And Entertainment

As per a recent report, an average consumer spends $2276 per year just on eating on and a whopping $1800 per year on entertainment. If you focus all your energies into cutting down these two expenses to at least half, you can easily come up with an annual saving of $2038.

Overall, you can find out some great money saving tips by doing a thorough analysis of your spending habits. If you follow these five tips thoroughly with good discipline and with a strong dose of determination, you can save as high as $9000 per year or even more.

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Posted in Budgeting, Debt Consolidation | 3 Comments »

3 Responses to “5 Very Practical Money Saving Tips That Can Save You A Fortune”

  1. alice says:

    In today scenario every one wants to save money. It does have a good impact when collecting money at the end of the month. If you want to save money that you should have to control on you expenditure you can cut the cost on minor thing such as grocery budget. There are some important aspects that you should consider if you want to save money on grocery. There are some tips that provide how to save money on groceries. Always go alone for shopping, don’t take your wife and kids with you as they demands will add in your bill. Always make a budget and list for your shopping. Purchase according to the list only. Don’t waste your food at home. This will leads you to buy excess of grocery items. For saving money on groceries always check other stores also and purchase if there will be same quality of products at a cheaper rate. In some of the grocery stores, they stands the expensive product at eye level and in expensive products are kept lower down so you should check those product at the floor level. Many of the departmental stores provide a discount coupon if you are the regular customer. Always keep the discount coupon in your pocket while going for shopping. If it is possible then buy vegetables and fruits from the local farmer’s market instead of departmental stores. From there you will get fresh and inexpensive food.

  2. abel says:

    Saving money is not a very difficult task. Save money not only helps you in future but in present life also. If you save small part of your salary it will helps you and your family in future. You keep some of the amount of your salary and even taught your kids to do the same from childhood. Saving money takes a lot of efforts but when you will see of your hard work than surly it is treating. For saving money first of all start by making a budget plan this personal budget helps you in your expenditure on the basic needs and luxuries when ever you get a salary cheque then first of all make a list of necessary things and spend only to the budget plan. You can also save the money on grocery items. Try to cook at home instead of eating outside. Don’t spend much on junk food. Always carry a limited amount of money when you are going outside with your family or your friends. If you have two debit cards than keep only one and no keep extra cash with you. When ever you get your salary keep 1/3 of the total amount in your saving account. You have to practice this for every month. It may be difficult in beginning because it may happen when the money will fall short. But this short money helps us to cut down your expenditure. Don’t save your money under pressure. Always calm your self while saving your money. Spend wisely when you out with your friends. Always spend your money from the current account and not to use your saving account.

  3. John says:

    Great points. It is very true in the article that these five tips are very special in a sense that they can help you save a great deal of money while you are already living on a tight budget. In the present life, saving money is a very important and great issue. It is not a complex process; it is very organized and simple process. The most important factor for saving the big money is that you should be very organized and follow the strict rules of Management. Planning and Organizing are a very important factor of Management. If every one should follow according to Management Rules, it is sure that you will get success everywhere in your life and get the good amount. As mentioned in the article, that cut down your Expenses on Eating out and Entertainment. It is very right because these types of expenses can become the source for saving the amount. If you go for lunch or dinner constantly in a Mall, try to minimize it that is once a month. Don’t make a habit. You will find yourself a good health as well as big amount. Also, do not purchase daily routine items, vegetables and fruits etc from a grocery shop.

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