Amid high inflation, citizens are paying more for housing, food, transportation and other items. Many consumers are worried about facing more economic challenges, and part of preparing their finances for a recession is building up savings.
Saving money is not easy, but it’s not impossible. From big steps, such as refinancing your mortgage, to small moves, such as using coupons, there are ways to keep more money in your bank account.
Review your spending habits
If you want to determine how to save money, you need to figure out how to spend less. Many bank statements incorporate spending reports by category. These can give you a good idea of where your money has been going and identify opportunities to reduce your spending. And if you’re married or live with your partner, making this review process a shared task can be helpful in reducing expenses and increasing savings.
Put your smartphone to work
Having a budget helps you plan your spending and savings by keeping a close eye on how much money is coming in and going out each month. Budgeting and savings apps can help you automate your savings, issue overspending alerts and invest some of your funds.
Setting up a budgeting app may involve creating categories for your monthly expenses, such as mortgage or rent, transportation, groceries and entertainment. Once the app is set up, reviewing your expenses regularly can help you identify areas where you can save money.
Compare other options for your wireless service
Speaking of smartphones and budgets, one area where you can cut costs is wireless service. The increase in service providers has led to more competition and often lower prices.
Turn off notifications that want you to spend money
Your smartphone can be a powerful tool to help you save, but it can also be a great source of temptation to spend. Promotional emails and app notifications, including those advertising great deals, can persuade you to buy a product you might otherwise have passed over. Consider unsubscribing from these lists and turning off notifications.
Reduce your utility bills or prevent them from increasing
In addition to saving money on housing, you can take steps to save on the costs of living in your home. You can help reduce heating costs by turning your thermostat down a few degrees or sealing leaks around windows.
Evaluate your entertainment expenses
Instead of paying a bundle for 400 cable TV channels, consider a more affordable streaming service with more options, such as streaming providers.
Take advantage of free local attractions
A little research can help you find fun and affordable attractions and activities locally. For example, some museums and art galleries offer free admission on certain days of the week or month. Libraries may offer passes to zoos or museums on a first-come, first-served basis.
Make a strategic purchase
Even if you still need to shop despite rising prices, you can make a more concerted effort to avoid throwing away unused food.
When you make your grocery list, think about what you ended up throwing away last time and how to prevent it from happening again. The study found that those who made their grocery list before going to the store tended to throw away less food, so take more time to plan your next meals.
Break away from brands
Speaking of grocery shopping, consider whether you really need to pay for expensive brand-name foods. If you compare ingredients and labels on foods like noodles, cereals and spices, you’ll find that generic alternatives are just as nutritious and high quality as their high-end counterparts.
The same concept can be applied to non-food items such as paper products, hand soap and laundry detergent. Try to find more affordable alternatives for any brand-name items you buy at home. You can always go back to your original choice if you are not satisfied with the cheaper alternative.
Compare other banking options
If you pay fees for your checking or savings account services, it’s time to look for ways to reduce those costs. For example, online-only institutions that do not charge monthly service fees. Many other bank accounts charge monthly fees, but it’s easy to avoid them by maintaining a low minimum balance or direct deposit of your paycheck.
Compare car insurance rates
If you have a history of safe driving, it may be cost-effective for you to shop around for another insurance provider that better rewards that good behavior. Compare other insurers with what you currently pay to see how much you can reduce your premiums for the same coverage.
People who don’t spend a lot of time behind the wheel can cut costs by opting for insurance based on how much they use it.
Use coupons and promotional codes
The coupon concept may seem old-fashioned, but finding deals doesn’t always require cutting out parts of the Sunday paper. When shopping online, take a few minutes to look for a coupon code when websites offer a “promotional code” box on the checkout page.
Test yourself and freeze your spending.
An effective way to take control of your finances is to freeze your spending by eliminating all unnecessary expenses for a set period of time. This can help you get an idea of how much you spend on non-essentials, such as going to the coffee shop. Any money left over at the end of the month can be added to your savings or used to pay off debts.
If you’re struggling to save, you’re not alone. Putting these tips into practice can improve your finances.
