Most families would like to save more money. It may be in an effort to buy a new house or car, send the children to college or just put aside some money for emergencies. Unfortunately, it often seems like an overwhelming task to put anything significant aside.
Often, when we find ourselves needing money unexpectedly, we seek to get a loan. Loans aren’t automatically bad, but they should be entered into with caution.
Unfortunately, when people are desperate, they want money in the shortest time possible. Traditional banks tend to be slower to process loans so other institutions are attractive. You should, however, note that these loans often come with high interest rates and if you don’t pay back on time, the fees can be exorbitant. You should only seek them in genuine cases of emergency. If you need additional information, visit www.KingOfKash.com for more.
What you need to do is employ some simple money-saving strategies during good times. Get every member of the family involved and it will be easier than you think to reach your goals. Here are five methods you need to consider.
Revisit your bank account type
Do you have a bank account which charges you a monthly service fee? Do you have to pay a penalty if your account drops below a certain balance? It may be time to ask your bank about a different account or switch to a new bank. Interest rates have been falling but not all accounts are the same. If you really want to save more, you should move your money to an account which pays higher interest and/or doesn’t charge you a fee.
Seek out customer reward programs
Many supermarkets and stores offer store cards or other reward systems. If you’re loyal to a particular store, these can pay off in the long run. Some businesses send you discounts if you sign up for their newsletter or join a mailing list. Don’t discount how effective these can be. You can also use credit cards which offer cash back rewards. Make sure you manage the card properly so you don’t run into debt. Here are some tips on how to use credit cards wisely.
Reduce, reuse, recycle, repair
Don’t buy things you don’t need. When you go through your shopping list, try to buy only things you can use multiple times or repurpose. Things like paper towels or paper plates may seem convenient but you need to buy them often. Think of what you can do with the money you save when you scrap this monthly expense. You should also try to repair damaged clothing or appliances instead of buying new ones.
Monitor your energy usage
Turn off the TV and other unnecessary appliances when they are not in use. Remember some pieces of equipment use small amounts of electricity once they are plugged in, even if they are not in active use. That little red light is a giveaway. Switch to energy efficient lighting and appliances wherever possible. If you have a thermostat, makes sure it’s programmable. Heating or cooling an empty house is a waste or energy and therefore money.
Cancel anything you do not regularly use.
Are you watching YouTube videos while your kids watch Netflix? You probably don’t need cable subscription. Are you paying a gym membership every month but hardly ever making it? Cancel it and walk, jog and do at-home exercises as a family. Do a bunch a magazine show up at your door every month but you barely skim through them? Cancel those as well.
Saving can seem really hard if you think about making several big changes all in one go. However, if you take small steps consistently, it will be much more manageable.