No matter what your financial means may be, it is critical to save money for the future. You never know when a job loss, health crisis, or another emergency could arise, and having money saved makes all the difference in weathering a difficult situation successfully. The important thing to keep in mind is that small steps make all the difference. Use some of the tips below to begin adding money to your savings account. Consulting with a financial professional, such as Don Gayhardt, may be helpful as well.
Bring Your Lunch to Work or School
If you are in the habit of going out for lunch on a daily basis, packing your lunch ahead of time and bringing it to class or the office is an easy way to begin saving money. Assuming that an average lunch costs $10 to $20 at a cafe or restaurant, packing a lunch just one day each week could save you $40 to $80 per month. These savings add up quickly! As an added bonus, a sandwich or salad made at home will most likely be healthier than what you would buy otherwise.
Buy Essentials in Bulk
The per-unit price of items tends to go down when you purchase a greater quantity at a time. Next time you need to purchase paper towels, toilet paper or other items that do not expire, buy a large pack of them. You will eventually use them up, and you will have paid less per item than you would have if you had bought just one or two rolls at a time. Take this tip a step farther by shopping at a bulk-buying store like BJ’s or Costco, and you will see the savings go up even more. Plus, you will save time since you won’t need to shop for these items as often.
Set Up Auto-Pay for Your Bills
When life gets hectic, it can be difficult to keep track of every monthly bill: water, power, cable, credit cards, and more. Paying these bills late can have harmful consequences. In many cases, companies will charge late fees, and your credit score may suffer. To avoid the extra expense of late fees and to protect your credit, consider setting up automatic payments from your bank account. You will have one less monthly chore to deal with, and you will eliminate any risk of paying late. Still, make sure to read your bank statements regularly to verify that everything is in order.
Refinance Your Mortgage
If you are currently in the process of paying off a mortgage and your financial situation has stayed the same or improved within the last several years, you may be able to refinance your mortgage and get a lower interest rate. Lowering your interest rate by just one to two percent could save you hundreds or thousands of dollars in the long run.
By following these guidelines and being consistent about putting away your savings, you should be able to build up your savings. It will be a gradual process, but it is definitely worth it to achieve greater security and peace of mind.