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A penny saved is a penny earned according to Benjamin Franklin. No matter how small the amount is, as it continues to accumulate, you will end up with a substantial amount at the end of the year.
The thing here is learning how to save as much money as you can, no matter how little, every single day.
9 Ways to Cut Down on Expenses and Save More
1. Get rid of your debts.
One of the main savings-killers is debt. If you start paying your debts off one at a time – beginning with the least amount and working your way up – and eliminating them, the budget you use to pay them off can now be diverted to your savings account.
Power tip: Build your emergency funds first before going all out with your debt payments.
2. Invest in energy-saving technologies in your home.
Utilities are a constant in your budget. The least you can do is lower the costs of your monthly bills. Start investing in energy-saving technologies that can help you bring down your energy consumption monthly. Call your local utility company and ask for an energy audit. Get in touch with a sunpower panel installer and see how you can incorporate the tech in your home.
3. Pay yourself first.
Set-up an automated transfer from your checking account to your savings account each payday. Regardless of the amount, whether it’s $50 or $500 or 10% of your salary, make sure you stick to it and not touch it unless you really have to.
4. Quit unhealthy vices.
How much does a pack of cigarettes cost? How about a bottle of whiskey or a six-pack of beer? Put together how much you spend regularly on these vices and you’ll be surprised at the amount you come up with. Now imagine putting all of that into your savings? Money well “spent,” right?
5. Cancel subscriptions and memberships you don’t need or use.
Chances are you have existing subscriptions to a lot of things you rarely use. Netflix, Hulu, gym membership, Amazon Prime, and other trendy subscriptions. Cancel subscriptions to products you don’t regularly use. Consider sharing memberships with friends or family if you really can’t do without them.
6. Prep your meals.
The price of a week’s worth of groceries is about the same as two dinners out at your favorite restaurant near your office. Eating out may seem harmless, but when you put together all you spend dining out, it amounts to an average of $280 per month or $3,365 a year according to the Bureau of Labor Statistics.
Prepare your food at home and then pack your lunch. You can choose a healthier meal for yourself and add more to your savings.
7. Annualize your expenses.
List down items you regularly spend money on and see how much you pay for them in a year. That $20 a week you spend on snacks at the office vending machine can save you $1,000 in a year if you get rid of it.
8. Minimize your visits to the coffee shop.
Ouch. This hurts but if you think about it, it makes so much sense. Instead of spending $4 to $5 per visit on a latte, buy coffee beans and start brewing your own coffee at home.
9. Declutter and sell.
Hit two birds with one stone on this one. Free your home from clutter and at the same time, earn a few extra bucks by selling some of the stuff you no longer need or have not used in a while.
Start the year right by beefing your savings account. Build the habit and discipline of saving and you’ll eventually thank yourself.