Being told to save more money is often frustrating. You intuitively know that spending less than you make is a good thing, but often life gets in the way. The car needs a new battery, an appliance breaks down, the dog gets sick, and the savings you thought you had suddenly go away in an instant. Does this sound a little too familiar? At the end of the day, if you wait for everything to be “perfect” before you start saving money, you will be waiting forever. Life will always throw punches our way; that is a fact. The good news is we are in complete control of how we respond to those punches. There are plenty of straightforward and practical ways to save money regardless of your financial situation. They might not feel like you are getting anywhere or making a significant enough dent, but a slight change made daily has a dramatic impact on your future. Here are 12 practical tips to save more money and get you a little extra breathing room in your budget and your life.
1) Shop in Bulk.
Stores like Costco and Sam’s have their business models wholly based on customers buying in bulk. When buying in bulk, the number one thing to consider is that it’s not the price of the item you should focus on; it’s the price per unit (or ounce) that really makes a difference. My wife and I have been buying diapers from Sams Club, and we have reduced our unit price from $.25 to $.11 per diaper. This may not seem like a substantial savings amount, but she used 12 diapers a day for the first three months of her life. That’s a significant amount of diapers! By dropping the unit price by a little over half, we were able to get a savings of $151.20 just on diapers alone!
As long as the expiration date of the items you are buying you feel confident will be used by that date, buying in bulk can save you a substantial amount in the long run!
2) Coupons! Coupons! Coupons!
When used efficiently, coupons are one of the most practical tips to save more of your money. Couponing for my wife and I have become a way of life. I’m not sure we have paid full price for anything in our house. If it is not on sale, we aren’t buying it. It’s as simple as that. The average couponer, which is defined as using at least one coupon in a 30 day period, averaged a savings of $36.80 a month, which equates to an annual savings of $441.60.
Sites like Ibotta, RetailMeNot, Honey, and Groupon are just a few examples of ways to get great savings very easily.
3) Just Because It Is On Sale Doesn’t Mean You Should Buy It.
This might be the most effective of all of the practical tips to save more of your money on this list.
Do you know what’s cheaper than purchasing something on sale? Surprisingly the answer is not a better sale—it is not buying the item in the first place. Often this is a lot easier said than done though, especially if your money archetype enjoys spending.
If sales are traps for you to spend more money, knowing that about yourself is half the battle! Try some of our budgeting methods to ensure that the savings you get are not chains you are putting on yourself.
4) Compare Insurance Policies
Shopping and comparing insurance policies can be a total pain. It can feel challenging to look through all the options and find a policy that works for you. Fortunately, that’s where sites like Policy Genius come into play! Policy Genius users report an average savings of $690 a year by switching their coverage. They make it easy to compare policies, and the savings are substantial. At least take a look because you may be paying more than you need to!
5) Check Your Recurring Expenses
It seems like everyone is offering a subscription these days. It is almost scary how easy it is to pay for multiple different subscriptions such as Netflix, Hulu, Apple Music, gym memberships, Amazon Prime, etc. These prices are manageable individually, but when stacked together, the cost starts to add up.
It’s healthy and necessary to cancel any subscriptions you don’t use regularly. It may feel daunting even to know what subscriptions you have, and if that’s the case, I recommend TrueBill. They can track and let you see all your subscriptions for free in one place!
6) Compare Phone and Internet Plans
Depending on where you live, this may not be entirely possible because you might only have one provider that will service the area. However, if you live in a city, make sure you compare the cost of phone and internet plans. By eliminating data plans, phone insurance, and unneeded warranties, you can save a substantial amount on your bill.
Also, think about sharing a family plan with friends to cut back on the cost because they typically offer discounts with more than one phone line. This way, everybody wins!
7) Cut The Cord
The average monthly price for cable TV is over $217 a month, equating to $2,604 a year. With how expensive TV has gotten, the cut the cord revolution that is occurring is of no surprise to anyone. There are so many alternatives to cable, thanks to streaming services like youtube, Hulu, etc…
The goal of cutting the cord is to save money, so only purchase a subscription you will use. It is very easy to have ten streaming services with prices over what it would cost for cable if you aren’t careful. But if you are diligent, you can dramatically increase your margin with one or two streaming providers while not sacrificing any of your entertainment value.
8) Stop Buying Brand Names.
One of the most effective on our list of practical tips to save money is to ditch brand names and buy generic. Almost every major retailer has a value brand that is highly comparable to its Name brand partner at fractions of the cost. This goes from everything from medicine, food, cleaning supplies, etc. 99 times out of 100, you are just buying the marketing of the brand name rather than a superior product. Yes, the logo may be cool, but your savings are far superior to any logo.
9) Cook Your Meals.
The average family in the United States spends roughly $3,526 each year on food outside of the home. That’s almost $300 a month on eating out! It is so easy and convenient to buy food on your way home from work, or if you are just simply too tired to cook after a long day, bringing dinner home is often the choice.
By budgeting and cooking your own meals, you can save and eat better on a regular basis! For the cost of a dinner out, you can have steak for a few meals at home. It’s more cost-effective, better for you, and will produce financial margin in your lives without too much sacrifice.
10) DIY Time.
Yes, it is sweat equity time! Thanks to youtube and a quick google search, you can practically learn how to do any home project for a fraction of the cost. Want to learn how to tile, add a deck, fix your brake light, and change your car’s oil? Youtube can help with all of these things, and your savings will be substantial.
My good friend has a Costco membership, and he profits from it every year just by buying oil and following a youtube video to learn how to change his car’s oil. By rolling up your sleeves, how much you can save and learn is remarkable!
11) Bye-bye, Starbucks!
Yup. I went there. This is a tough one for many of us coffee addicts out there. Unfortunately, the math doesn’t lie to us. The $5 daily cup of coffee adds up to over $150 a month! We can still enjoy coffee; we just need to work smarter, not harder.
By buying local beans and a quality coffee maker, your return on investment will still be much quicker than buying a cup of joe, and the savings over the long run will be substantial.
12) Sell old stuff (well, really anything that doesn’t bring your joy!)
My wife loves Marie Kondo. There was a period in life when that was all we had on tv, but you know what? She has the right idea. Clutter causes stress in your life, and by selling things you don’t need, you gain a little cash plus peace of mind.
From personal experience, my own home feels like a magnet for unwanted stuff. My wife and I regularly go through our home and get rid of things that we don’t even know how, when, or where we got them. The best feeling we have is decluttering our home from unwanted or unneeded things, plus the extra cash is always a nice bonus.
