How to Save Money
With rising prices, augmented mortgage rates, and the cost of living reaching an all-time high, you may be looking at your bank account statements and asking yourself how to survive in these difficult times. You are not the only one. Many people are struggling to stay afloat. Here are my five top tips on how to save money in 2024.
Watch your fixed expenses
Fixed expenses are the recurring monthly expenses. They are pretty much the same each month. They include mortgage or rent payments, property taxes, utilities, car and home insurance, phone and Internet bills etc.
Things like mortgage or rent may not always be easy to change, but you can sometimes negotiate, shop around or, worse come to worse, downsize or move to a different area. Of course, you need to ask yourself if a move or downsizing makes sense in your particular situation or it is better to wait it out. If it makes sense to move, it is definitely worth considering.
1. Shop around for a better deal on insurance
Car and home insurance and phone and Internet plans can be re-negotiated periodically. You should regularly shop around for better options. Bundling services or sharing costs with friends and family may also be a good idea.
How to save money on insurance:
- Shop plans — make it your habit to compare different insurance providers every year. It can save you a ton of cash.
- Bundle policies — Many insurance companies will give you discounts if you have multiple policies. Combining car and home insurance is a good idea. If you and your spouse or partner have more than one car, they could be covered by the same provider.
- Consult an agent — Contact your agent to inquire about discounts you can use to save even more. Consider installing winter tires on your car or using an app monitoring the way you drive.
- Home improvements — You may get discounts for adding a security system, or installing a safe.
2. Shop around for a better deal on Phone/Internet/Cable
If you are bound by a cell phone or Internet plan, you may only have a chance to change the plan every few years, but if you are not, there is a chance to negotiate more affordable deal. You may save by:
- Comparing different plan providers: Black Friday, Boxing Day and periodical deals may offer you a chance to compare providers and get a better deal. It has to be noted that the smaller companies usually offer more competitive prices to attract new customers.
- Bundle services: getting the Internet, cell phone and cable from the same provider may get you a better price than paying for the services separately. The more services you have, the easier it will be to negotiate.
3. How to save money on utilities
With the prices of energy rising, you may want to consider ways to cut down on energy bills. EPA estimates you can save up to 15 % on heating and cooling costs just by following these simple rules:
- Install Smart thermostat — Set up a schedule and adjust your heating/cooling needs accordingly. Lower the temperature when you aren’t home or at night.
- Insulation — Make sure your home is well-insulated to keep heat/cool air from your HVAC system.
- Update sealing, windows, and doors — Replace old windows and doors to save on your utility bills. If replacing is not an option, consider sealing windows or doors with adequate sealers.
- Install pipe leak detectors — These sensors can tell you if you have any leaky pipes.
Watch your variable costs
Variable costs change monthly. They include tings like groceries, entrainment, travel, beauty and clothing costs.
4. How to save money on groceries
How to save on groceries
We all have noticed that it is more and more expensive to put food on the table. What $50 bought us in the past is not nearly enough to cover the same items today. That makes us desperate to find ways to cut down the grocery costs without sacrificing the quality of the food we eat. Here are some tips on how to save on groceries:
- Create a weekly meal plan — Give some thought to what you are going to eat and when. That will help you avoid spending too much or wasting food.
- Clip coupons — Check your local newspaper and grocery stores to find coupons. You can also use apps like Flipp or FlashFood to save on food.
- Make easy, healthy and cheap meals — Consider cooking soups, omelettes, casseroles, or stir fries, as these foods are going to keep you strong and healthy at a price that will suit your pocket .
- Freeze food for later — Veggies, meat, bakery items, and leftovers can be frozen for later.
- Don’t shop hungry or at the last moment— Avoid going to the grocery store before dinner or before a party when you are forced to make quick purchases.
5. Do not buy on a whim
It is important to concentrate on the bigger picture here and not on temporary wants. What do you want more? A financial stability or a bunch of stuff you don’t really need? Don’t try to treat your depression or bad mood with retail therapy. Watch the small expenses and unnecessary purchases. Separate the things you buy into needs and wants, and avoid the latter.
Consider cutting down on:
- Food delivery/takeout — Ordering Uber Eats or DoorDash costs a lot of money.
- Retail therapy — Don’t go shopping to make yourself feel better. Don’t accumulate unnecessary things.
- Bar hopping — Prices of alcoholic beverages consummed outside of home (i.e. in a bar or club) have become over twice as expensive as than they were in 2000!
- Vaping/Smoking — Both vaping and smoking are very expensive habits.
- Spending money online — It is extremely easy to go overboard with shopping online.
To boost your savings even further, you can try a savings challenge. The idea is to make a game out of saving money. The no-spending challenge is one good example — try not to make any non-essential purchases for an entire week! Or, do not spend any money on groceries and take-out for a week, and only use what you already have in your fridge, freezer or pantry.
Even though it may not be easy, putting the above suggestions in practice may really help you save hundreds of dollars in these difficult times.
Good luck!
