In the midst of high inflation, citizens are paying more for housing, food, transportation and more. Many consumers are worried about facing more economic challenges, and part of preparing their finances for a recession is building up their savings.
Saving money isn’t easy, but it’s not impossible either. From big steps like refinancing your mortgage to small moves like using coupons, there are ways to keep more money in your bank account.
Review your spending habits
If you want to determine how to save money, you need to figure out how to spend less. Many bank statements incorporate categorized spending reports. These can provide a good idea of where your money has gone and identify opportunities to reduce your costs. And if you’re married or living with your partner, making this review process a shared task can be helpful in reducing expenses and increasing savings.
Put your smartphone to work
Having a budget helps you plan your spending and savings by keeping a close eye on how much money is coming in and going out each month. Budgeting and money-saving apps can help you automate your savings, issue alerts for overspending and invest some of your funds.
Setting up a budgeting app may involve creating categories for your monthly expenses, such as mortgage or rent, transportation, groceries and entertainment. Once you are set up in the app, reviewing your expenses regularly can help you identify areas where money can be saved.
Compare other options for your wireless service
Speaking of smartphones and budgets, one area where you can cut costs is wireless service. An increase in service providers has led to more competition and often lower prices.
Turn off notifications that want you to spend money.
Your smartphone can be a powerful tool to help you save, but it can also be a great source of temptation to spend. Promotional emails and app notifications, including those advertising great deals, can persuade you to buy a product you might otherwise have skipped. Consider unsubscribing from these lists and disabling notifications.
Reduce your utility bills or avoid letting them grow.
In addition to saving money on housing, you can take steps to save on the costs of living there. You can help reduce heating costs by turning down the thermostat a few degrees or sealing leaks around windows.
Evaluate your entertainment expenses
Instead of paying top dollar for 400 cable TV channels, consider a more affordable streaming service with greater options, such as streaming providers.
Take advantage of free local attractions
A little research can help you find fun and affordable attractions and activities in your local area. For example, some museums and art galleries offer free admission on certain days of the week or month. Libraries may offer passes to zoos or museums on a first-come, first-served basis.
Be a strategic grocery shopper
While you will still need to shop for groceries despite higher prices, you can make a more concerted effort to avoid throwing away unused food.
As you make your grocery list, think about what you ended up throwing away last time and how to prevent that from happening again. The study found that those who made a shopping list before going to the store generally threw away less food, so take more time to plan your next meals.
Break up with brands
Speaking of groceries, consider whether you really need to pay for expensive brand-name foods. A comparison of ingredients and labels on things like noodles, cereals and spices can show that generic alternatives are just as nutritious and high quality as their premium counterparts.
The same concept can be applied to non-food items, such as paper products, hand soap and laundry detergent. Try to find more affordable alternatives for any brand-name household items you are buying. You can always go back to your original choice if you are not satisfied with the lower-priced alternative.
Compare other banking options
If you’re paying service fees for your checking or savings account, it’s time to figure out how to reduce those costs. For example, online-only institutions that don’t charge monthly service fees. Many other bank accounts charge monthly fees, but they can be easy to avoid by keeping your minimum balance set low or getting direct deposit from your paycheck.
Compare car insurance rates.
If you have a history of safe driving, it may be cost-effective to shop around for another insurance provider that does a better job of rewarding that good behavior. Compare other insurance quotes with what you currently pay to see how much you can reduce your premiums for the same amount of coverage.
Those who don’t spend a lot of time behind the wheel can reduce costs by opting for insurance based on how much you use it.
Use coupons and promotional codes
The concept of coupons may seem old-fashioned, but finding deals doesn’t always require cutting out parts of the Sunday paper. When shopping online, take a few minutes to look for a coupon code when websites offer a “promo code” box on the checkout page.
Test yourself and freeze your spending
One way that can be effective in taking control of your finances is to have a spending freeze, during which you cut out all unnecessary expenses for a set period of time. This could help you get an idea of how much you’re spending on non-essentials, such as trips to the coffee shop. The extra money you’ll have at the end of the month can be added to your savings or used to pay off debts.
If you’re struggling to save money, you’re not alone. Putting these tips into practice can improve your finances.
