Many people have good intentions and they want to save their money. But when there’s a limited amount of disposable income each month, increasing one’s personal savings can prove difficult. Although many families recognize the value of coupon-ing and reducing unnecessary spending to save money, these are not the only options available. Several families have had success with less common methods of saving.
Savings options with your bank
Speak with your bank and you’ll discover that saving money is easier than you think. Practically every bank has a product to help increase your personal savings. While traditional bank accounts feature a low interest rate, investment tools such as a money market account or a certificate of deposit offer a higher rate of return. Deposit your money in one of these accounts and earn interest daily. In addition, some banks promote a special savings program.
For every debit card transaction you make, your bank deposits $1 from your checking account into your savings account. Your bank may even give the option to round up your purchases, and then deposit the extra cash into your savings account. Contact your bank to see what options are available to you.
Say goodbye to credit cards
Frequent credit card use can keep you in debt, wherein you become a slave to interest. Cut your credit cards in half and develop a plan to pay off your balances. Contact your credit card company to negotiate a lower interest rate. This reduces how much you owe in interest each month. Pay more than your minimum payment each month and you’ll reduce your balance quicker.
Switch to a natural gas and electric company
When brainstorming ways to save money, many families do not consider a new energy supplier. However, shopping energy plans can reduce your monthly energy bill. Enjoy cheaper energy rates and use the extra cash to build your emergency fund. For more information on how to compare energy suppliers and reduce your cost, visit www.saveonenergy.com.
Shop when your kitchen is empty
If visits to the grocery store are part of your weekly routine, you might spend more than necessary on food. Here’s another approach: finish all the food in your refrigerator, freezer and pantry, and then go grocery shopping. This will result in fewer trips to the grocery store and your family will not waste food.
Fewer health issues equal fewer trips to the doctor’s office. You’ll spend less on prescription medications and pay cheaper insurance premiums. Eat a wide variety of healthy foods, such as whole grains, fruits, vegetables and lean meats. Be active as a family and engage in at least 90 minutes of physical activity a week. Play a sport, go bike riding, walk around the block or participate in another fun activity.
Maintain your credit
Unknown to many, but a good credit score can save you money. People with good credit typically pay lower insurance premiums. What’s more, they qualify for the best interest rates on mortgages, credit cards, auto loans and other types of financing. This translates into lower monthly payments.
The more you spend, the harder it is to save for your future. Saving at least 10% of your income puts you on the right track. But to maximize your savings, it pays to incorporate less common approaches. Experiment with the above suggestions and determine the method that best suits your needs.