If you’re like most people, you’re always trying to find ways to cut costs. You want to start spending less and saving more. That can sometimes be easier said than done. You might dread the thought of giving up your morning bagel or taking the bus to work. However, you can make some small changes that won’t dramatically affect your life but could make a big difference in your savings account.
Take Your Lunch
Eating out costs have gone up considerably and what used to cost just a few bucks now costs $10-15 on average per meal. This cost adds up very quickly when you’re eating out multiple times a week. Instead, make your own lunches to take to work. You can grocery shop and do meal prep on the weekend. This will save you not only time but also a lot of money.
Buy Used
While it might feel more exciting to buy some things brand new, it’s usually a waste of money. Cars and electronics can lose as much as 20% of their value just by you purchasing them. Because of that, it makes a lot more sense to buy things used.
If you need a new car, browse through the local ads online or in the newspaper. Or, go to a reputable car dealer that sells used cars. Make sure that you have the car looked over by a mechanic before you purchase it. There is nothing that will swallow your savings faster than a car that turns out to be a lemon.
If you need a new phone, buy used iPhone XR. In some cases, you can buy two or three used phones for the price of a new one. When buying a used phone, ensure that you’re buying it from a well-known and respected company. If you buy it from a random person you met online, you might find that you just threw away your money.
Pay Yourself First
When working on building your savings, you likely worry about paying your bills first. However, this usually leaves you with a month’s worth of spending and little to no money left at the end. What usually happens is that you see extra money in your account and look at it as free to spend, so you buy things you probably don’t need.
Instead, every time you get paid, transfer your predetermined amount into your savings account. Make sure that it’s a realistic amount and that you will still have enough to cover your expenses. This way, the money will be out of your account, and you won’t have as much to buy things that aren’t necessary.