With tax return season upon us, now is a great time to think about stashing some extra cash in savings. Don’t have a specific savings goal? How about vacation, school, retirement or emergency fund savings?
It’s not as hard as it may seem, and it doesn’t require a major life change. According to the Dec. 2017 Money Magazine, many Americans are using these simple strategies to successfully cut expenses and meet savings goals:
1. Ditch the cable.
Millions of Americans are switching to online streaming services, and for good reason. The average cable bill last year was $103 per month (Leichtman Research Group). A similar steaming package is around $40 per month, providing quite a savings.
2. Switch cell phone plans.
The average cost for a family of four was almost $3,000 last year. A family plan could be less than half that at around $1,200. It is definitely worth investigating.
3. Switch credit cards.
Carrying a balance on a credit card? Consider switching to a card with a 0 percent balance transfer offer to save on interest while paying it off.
4. Work on personal credit.
Increasing a credit score could directly affect the rates that are offered for new credit and will save money down the road.
5. Refinance student loans.
Those with student loans will want to do some checking to see if this option can save them money. On a $90,000 parent PLUS loan with a 6.6 percent interest rate, students are paying $1,025 a month on a standard repayment plan. Refinance to a private loan at 4.5 percent and they could free up $93 a month.
6. Skip the gym.
The average monthly gym membership fee is $50. Add on specific classes, and users are paying even more. There are many fitness gurus with free videos on their YouTube channels. Stream their videos right to a smart TV, invest in some hand weights, grab a friend and follow along any time, day or night, from the comfort of home.
Once these steps have been taken to cut expenses, don’t forget to automate a savings payment. Add up the money that would have been spent and set up an automatic transfer to a savings account for that amount each month (for applicable expenses).
The process of setting a savings goal, making a plan and sticking to it doesn’t require major changes, but it does require thought and effort. Be sure to reward oneself when the savings goal has been reached!
