Posts Tagged ‘practical money saving tips’

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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