Cut back on spending
Initially it may seem difficult to limit spending and stick to a budget, however there are a few practical changes that you can make everyday that will cut your spending more than you expect.
Firstly, alter credit card behavior. Start to pay cash whenever possible. This will help you avoid making a purchase unless you actually have the money available. If you decide to make a credit card purchase, be prepared to pay all the balance off monthly. This will save you a lot of money through avoiding interest charges. If you already have a credit card balance, then transfer to a card with a low interest rate. Also, find a card that does not charge an annual fee.
Another tip is to pack your lunch everyday. All of those lunch hours spent at restaurants will add up. Bringing your own lunch can save you several dollars every day, which will add up over time.
Check with your phone service provider and switch to a plan that better cater for your needs. This will help eliminate paying for services you do not require or being penalized for services you require but did not sign up for.
Stop throwing away the Sunday newspaper before skimming through the advertisements. Clip some of those coupons and check out the sales. This may seem tedious, but the savings are often worth it. Many stores will double or triple the amount of the coupon. This technique can save you up to 20 or 30 dollars each time you head to the food store. You could also subscribe to website that offer coupons and monitor those sites for coupons that fit your needs.
Additionally, refinance. Refinancing your mortgage to a lower interest rate can save you a ton of money. This will be a great opportunity to reduce the monthly house payments significantly. In case you have a timeline by which you want to have your house paid off then you will have to take that into consideration before you refinance.
Finally, bundle your insurance. Many insurance companies will offer their customers lower rates if they purchase multiple policies. For instance, some people use the same agent for multiple cars, and others combine their cars and house. Always keep in mind that a dollar here and there really begins to add up. Avoid the temptation of thinking that changing your spending habits wouldn’t save that much money. All those savings/cutbacks will build up into something substantial.
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