People grow up and realize that money does indeed make the world go round. It’s not necessarily all bad, but this undeniably places a big responsibility on an individual. So then, here are 25 ways to save money year round. Spoiler alert, we need to make money-saving a daily habit and not just a passing year-end goal.
Why The List of Ways To Save Matters
Why do people have to save money every day when they can claim their salaries every month? It’s easy to fall into the trap of seeing money as a mere reward for hard work. But in reality, people spend money every day and only get money back once or twice a month. In fact, there has been a recent report issued that stated Americans from 25 to 34 years old spend around $200 daily.
Even if they earn five-fold this amount, there’s no denying that people use money in abundance. Let’s get into the different ways of saving money all throughout the year then! Another spoiler alert, this may all be easier than it sounds.
1. Cancel Subscriptions
Subscriptions sound harmless, but these monthly responsibilities take more than most people expect. A streaming platform ranges from $10 to $25 per month, while other apps are estimated to cost more. The monthly tag on these subscriptions might not sound like a lot, but the yearly sum of these digital purchases is on a whole new level.
Canceling subscriptions won’t take much of a sacrifice. It’s one of the easiest among the 25 ways to save money year round in this list. As an inspiration, one author expressed that simply cutting subscriptions made her save $468 a month! That amount could have doubled itself over time if invested or saved.
Subscriptions are not a waste if they keep us entertained, but there may be a struggle to define their value over time. For instance, consumers can listen to the same songs for free if they choose not to pay for removing a 15-second ad. A 15-second ad is wiser to sit through than unknowingly losing a significant amount of money yearly.
2. Make Coffee At Home
Ask any adult one thing they need to consume every morning. Most of us will get coffee as an immediate response. There’s absolutely nothing wrong with looking for that caffeine rush to get things pumping. However, it might become a problem when people get accustomed to buying expensive coffees than making them at home.
A coffee lover’s yearly expense on coffee can be around $500-$1,000. That’s a colossal expense for something we can make at home. The best way to go around this is to buy coffee beans and brew them using a maker or French press or opting for powdered coffee instead.
3. Money Tracking
There’s a reason why teachers record exam scores and gym trainers measure body mass. Even before advanced technologies, tracking has always been an effective method in promoting awareness and discipline. So, the next tip is to track everything that goes in and goes out.
It works like this. Reserve two pages for money that goes in and goes out. Write down every dollar earned and make sure to include the date. On the other page, list every purchase with the price and the date. From here, it’s easier to monitor every purchase and build better financial decisions.
Most of the time, people lose money because of poor decisions caused by lacking self-awareness. The more we know about how much we exactly have, the more cautious our brains become in purchasing items. Depending on one’s preferences, this method can be done through a free tracking app or the traditional pen and paper.
4. Pay Credit Card Balance
Debt or any outstanding balances are the biggest money drainers to ever exist. People should remove the balances that take huge percentages of their money to start saving up every day. Credit balances multiply with interest and late-payment fees. This is why it’s crucial to avoid getting debts or pay them as soon as possible. There should be no compromise.
If one’s occurring card balance is more excessive than most, it’s best to cut down on all unnecessary expenses until it is paid. Debts are responsibilities that people end up paying anyway. If that’s the case, there’s no point in waiting for the interest fee to add up.
5. Open a Savings Account
In a nutshell, a savings account is a system used by financial institutions that bear interests in each deposit a cardholder places. Although its returns are slow-moving and moderate, a savings account can benefit anyone’s financial journey in the big picture.
Aside from opening the account, it’s advisable to consistently allot around 20% to 30% each month. In this way, it feels easier to save and grow money. This tip also works wonders for impulsive buyers as their money goes straight to the bank before they can even decide to buy anything. Savings accounts are passive, so people don’t have to do anything for their money to grow.
6. Bill Smoothing
This underrated tip can help conserve energy and save money without exerting any effort. Bill smoothing is a payment arrangement where utility providers divide energy bills into smaller chunks. This urges utility clients to pay frequently but in smaller amounts. So, how can bill smoothing help save money daily?
This practice is known for avoiding unexpected bill spikes. Availing of this option will help track power usage more accurately. Thus, people can have a clearer idea of conserving energy. Since the invoices are divided into smaller chunks, it won’t be as overwhelming as paying them in one go.
Admittedly, the most challenging part of conserving energy is not knowing how much we consume. Bill smoothing is just one of those things that can help us develop better money-saving actions every day.
7. Monitoring Food Consumption
Obviously, food is essential. People need it to maintain a healthier, stronger body. However, food becomes a financial problem when people spend more than required. It’s not about forcing ourselves to eat less since food is a non-negotiable aspect of life. Instead, it’s about choosing more cost-saving food options.
For instance, frequently going out to expensive restaurants and cafes will cost more than just eating at home. Individuals can have a similar dining experience if they cook things in the comfort of their kitchen. Plus, homemade meals are healthier and more fun to make.
Another aspect people should take note of are grocery habits. Shopping is like playing a game where the mission is to find the best option available. It’s becomes surprising to many customers how easy it is to buy the same thing, but for a lesser price.
8. Shared Carpooling
This is a fantastic option for those who travel to school or work without their own cars. Carpooling may involve splitting vehicle maintenance and gas bills among people. So, it’s basically dividing financial responsibilities by having other individuals pay a percentage of these expenses.
Carpooling can be done within family, friends, or an actual carpooling company. Many platforms offer this kind of service for those who don’t have someone to share a carpool with. Via transportation is one assisted-travel company.
This tip can help save a lot of transportation money while making rides twice as comfortable as commuting. In fact, one report showed that carpooling can help save expenses by over 50% or more. There’s less hassle and fewer payments, making it a must-try for some individuals.
9. Cooling Off Period
Understand brain chemistry. Let spending temptations pass through being patient and waiting to be sure things can be afforded.
Now, what should be done if there’s a powerful urge to buy something that isn’t necessary? First of all, know that it’s normal. In fact, it’s so typical that Americans spend an average of over $180 per month on impulsive purchases. But we don’t need to put credit cards on a safe and drive a thousand miles away just to avoid spending money.
It’s actually more simple. Cooling off or taking a week or two before finalizing a purchase can help our brains reassess the importance of the product. Most of the time, our brains seek instant pleasure that can be fulfilled by shopping. It has a lot to do with our brain chemistry, but it only needs time for that urge to pass by.
10. Automate Accounts
Among the 25 ways to save money year round, finance automation is one of the most passive tips we can get from this list. Put simply, it’s like setting income streams on autopilot.
What happens is that all payments and savings accounts will be paid automatically every month. Of course, the cardholder has the power to dictate how much they want to automate. This method helps avoid late fees by automating money, leading to higher balances.
Aside from that, this method helps saving feel easier since it automatically deducts money. The best features are improving one’s credit score and possibly bringing lower interest rates when needing to borrow money.
11. Grocery Loyalty Membership Cards
An efficient way of maximizing trips to grocery stores is by claiming points for each purchase. Grocery loyalty cards or membership cards are often overlooked for the great deals they contain. Availing of these can help gain bonuses, special offers, and discounts. This is highly advisable for customers who already have a favorite grocery store in mind.
Additionally, grocery stores are widely known to award their members awards or discounts after hitting a specific number of points. Membership cards may have delayed effects, but they pay off after some time. People need grocery stores, so there’s no reason not to maximize each trip.
12. Online Shopping Suspension
Everyone knows what “checkout”, “add to card”, or “online banking” mean. This is because online shopping is everywhere. In 2021 alone, 2.14 billion people bought products and other services online. There’s no denying that this advancement is fast, fun, and convenient. However, this convenience doesn’t come at cheaply.
To effectively prevent online shopping splurges, one must do an online shopping hiatus. This online detox means that people can’t open any online shop for a week or month or more until their urge to buy slows down.
Online shopping isn’t limited to just stores. There are algorithms and product advertisements that linger every day. The more we interact, the greater the ads will come our way. The only solution to separate ourselves from all these is a strict hiatus that will surely pay off in the future.
13. Reassess Phone Bills
A recent census reveals that the average American aged 25 to 64 pays around $114 monthly on phone bills. While this sounds necessary to connect with our loved ones, we might be paying more for the same service others buy for less.
Often, people tend to shrug phone bills because it feels like there’s nothing they can do. However, simply tracking their data consumption and calculating whether their chosen plan suits them can save money.
For example, cutting down the insurance plans with additional fees in a phone bill can do one’s wallet good. As urgent as it sounds, it’s pretty unlikely for most of us to need insurance plans for our phone bills. Make sure to check any miscellaneous fees included in the monthly phone bill. It’s common for most people to pay more for services they never use, and you could make sure that won’t happen.
14. Refinance Mortgage
From the word itself, refinancing is the practice of replacing one’s current debt with a new one. This means trading a mortgage to get a new one with more favorable conditions. People do this for many reasons, like lowering the interest, shortening terms, and consolidating any active debt.
Doing this can help save money since people can get better deals with lower costs. Since people can negotiate their way out of some mortgage’s conditions, financial burdens are reduced. Refinancing any debt or mortgage is wise as it provides more space for the borrower to pay at their own pace and terms.
15. Add Spending Limits
A spending limit is like hiring a personal fitness coach on credit and debit cards. Surprisingly, not many know that they can add a daily, monthly, or yearly spending limit. This is one of the most practical tips in the different 25 ways to save money year round.
Having a spending limit encourages self-control in purchasing items. People have different opinions on which spending limit is the best. However, the most chosen option is usually the monthly spending limit. Many appreciate that a designated monthly goal is not too easygoing neither very restrictive.
16. Analyze Current Rent Status
Unfortunately, the USA has one of the highest renting costs globally. The average monthly rent costs over $780. This amount of money can afford three months of rent in some other countries. Since this obligation is obviously a money-drainer, it’s helpful to reassess whether we’re on the right path in our renting options.
The rule in renting is to never go for a unit most people can barely afford. If a person is renting alone, getting a roommate can help divide the cost and lessen the financial responsibilities of paying rent and other maintenance fees. However, if a person wishes to rent alone, the best decision is to reconsider getting a cheaper place.
Rent is a financial duty people tend to every month. Since we’re paying for something monthly, we have to make sure to choose the most financially comfortable path our pockets can sustain.
17. Fixing Things At Home
While hiring people to fix broken things for us is convenient, it certainly costs more than just doing it ourselves. Convenience or labor fees are something we can completely cut off without exerting much planning or action. So, what is the right thing to do when something gets broken?
Taking advantage of free online sources like Google Search or YouTube can fix broken items without paying a single dollar. Not only can this save money, but it can also assist with learning a new and handy skill. This tip opens a unique opportunity for us to save more money and grow as a person at the same time.
18. Staying Healthy
Believe it or not, a financial journey is a physical journey. While it’s textbook knowledge that health is a top priority, people sometimes forget it’s also a financial responsibility. The healthier people get, the fewer hospital, medical, and other health-related bills they need to pay.
Above all, a healthier body can support us in building our income streams and multiplying our assets. Having good health is essential in saving money despite what others believe. So, the next time someone jeopardizes their eating habits and sleep cycle for work, think about the possibilities humans can’t fulfill if they’re sick.
Remember that one of the primary reasons people save money is to live a free and comfortable life. This lifetime goal can’t be achieved in an unhealthy lifestyle and a weak body. Prioritizing health will always be a must regardless of who we are and what we do.
19. Selling Over Collecting
Collecting novelty or specific items like celebrity merch, designer clothes, or products from one brand can instantly drain people’s savings. Hoarding habits contribute to ordering particular products to keep as a collection. Most of the collected items are barely used, thus making them a poor financial decision. This repetitive buying pattern can be reduced by starting fresh and selling them instead.
Not only can selling stop an unhealthy cycle of buying, but it also saves plenty of space. Selling helps regain a portion of money lost by impulsive purchases. Plus, it can even be a starting point in fully operating a small business!
20. End Some Vices
As straightforward as it may sound, vices are neither good for the health nor the wallet. Quitting vices like smoking cigarettes or drinking alcohol can save thousands of dollars per year. In fact, the National Cancer Institute reports that people who smoke a pack-a-day pay around $2,292 yearly. That is a painful price to confront.
Cutting back on vices like these are easier said than done. But starting with baby steps can definitely help reach one’s financial and health goals. Ending vices is excellent in almost all aspects of life. It can save money, promote better health, and redirect our emotions to more positive things life has yet to offer.
21. Save Energy
Saving energy at home is a valuable skill beneficial for the bank and the planet. The best part about consuming less is that it takes almost zero effort to master. We use energy to power lights, heaters, and other devices. Thus, learning to do the same tasks using less energy is a must.
For example, small efforts like turning off the lights, using energy-efficient bulbs, and lowering the thermostat can result in significant leaps after some time. Within a couple of weeks of adjusting to these changes, energy-saving habits come as an automatic response.
22. Choosing To Open Windows
The human body is fantastic. It can adapt to whatever environment it gets placed in. The practice of opening windows instead of turning on the AC every afternoon or night can help save money from electricity bills. Of course, this tip doesn’t apply to days with extreme heat, but it works best for those moderately hot and cloudy afternoons.
Fresh air has plenty of health benefits for our body and brain health. This tip is a great way to enjoy the beautiful sunshine we fail to see with the windows down and the AC up. So get to saving with natural methods!
23. Avoid Retail Therapy
Retail therapy is an embraced lifestyle, based in emotions mostly. It is the term used to describe the act of buying things for comfort. When people feel stressed out, they tend to purchase products to numb down negative emotions. This might be effective for some at first, but the effects are unsustainable and temporary.
First of all, try to avoid any platform that encourages buying anything during stressful moments. Remember that retail therapy can’t free anyone from stress. It can even induce discomfort by making people feel more guilty, anxious, and financially drained afterward. Instead of relying on these methods, practices like journaling, meditating, exercising, and sleeping are effective and absolutely free.
24. Research Everything
Teachers weren’t lying when they said that knowledge is power. Make it a habit to know all possible options, deals, programs, benefits, and alternatives before making any money-related decision.
Track these things when gaining the knowledge, like some kind of flowchart to determine the best choices per situation.
The Internet has unlimited options everyone should check out before settling on anything. Aside from calculating the better value and saving money in every purchase, researching is free and requires no extravagant skill to start.
25. Shop Secondhand
Secondhand items are great deals some people fail to acknowledge. These products are usually sold for half the original price without losing functionality. Instead of buying a new one for the same job, shopping secondhand is a more budget-friendly option. After a few touches of cleaning or redesigning, people might end up getting more value for the item they purchased.
Take books as an example. These are expensive when bought on bookstores or online. However, if a student buys a secondhand textbook from seniors for example, they get the same information for less. It’s a win-win situation since sellers who put their products on the market just want to get rid of the items. This in turn makes better deals with lower prices for the buyers.
Conclusion
These 25 ways to save money year round presented above prove that making efficient financial habits customary does not require anything extreme. One doesn’t need to deprive the self or turn life upside down to save money.
Truthfully, it’s all just a matter of gradually adapting to minor changes until the mind can adapt to a new normal of making only sensible purchases. There’s no best time to save money other than today. All these small efforts will surely pay off someday.
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