Money-Saving Strategies to Implement Now
For people who are willing to make a small effort, there are dozens of effective ways to save money and cut fat from the monthly budget. The median amount in an average person’s savings account is more than $4,500 but that is far lower than financial counselors say it should be. If the ideal savings amount is equal to six times a person’s monthly expenses, the median account should contain closer to $30,000. The question is: how can you increase savings without getting a raise? Logic dictates that answer, and it’s related directly to cutting expenses. The following are among the most effective ways to bolster savings accounts, according to financial experts:
Join a Shopping Club
Shopping club memberships save the average income-earning nearly $2,000 per year on groceries, medicines, and gasoline. There are several of these giant clubs all over the nation and anyone can take advantage of membership. The usual fee to join for a year is around $40 but with the enormous savings on essentials like food, fuel, and medicine, there’s no reason to miss out on this easy savings strategy.
Take a Stay-cation
Families and single people can save a bundle by taking a so-called “stay-cation.” That means spending your work holiday in town or in a nearby city. What you save on hotel bills and rental cars can really add up, and you don’t need to forgo fun and adventure. This strategy works especially well for those who live in large metro areas, where entertainment and sightseeing opportunities abound.
Minimize the Tax You Owe
Many taxpayers don’t get the refund they should. There are lots of reasons for this oversight but most of them are related to not taking all the allowed deductions or missing out on interest income at the expense of large refunds. By opting for large refunds and setting withholding amounts high, people are actually allowing Uncle Sam to hold their money for several months. During that time, the government earn and keeps the interest on that cash. When you use a smart version of tax-planning software by going to https://turbotax.intuit.com, you can set withholding percentages precisely and reap the interest on your own money. When refunds total several thousand dollars, that can mean substantial income you’re leaving on the table by opting for a refund instead of taking your money on payday.
Sell Your Extra Stuff
Getting rid of your extra stuff can be a way to earn a couple of dollars. Depending on how much-unneeded stuff you have in storage cubes, you can make money two ways: on the things you sell and the now-unnecessary storage unit fees. With sites like eBay, Amazon, and Craigslist, there’s an unlimited chance to turn your unwanted items into cold cash.
Reduce Credit Card Use
Financial experts note that one of the biggest “money drains” for the average consumer is credit card interest. That’s because too many people carry high balances and end up paying huge amounts of interest that could go toward savings. By paying down credit card balances as much as possible, it’s possible to save between $100 and $1,000 per year.