25 Apr 5 Creative Ways to Save an Extra $500 a Month
You may not think there is money for savings because you have too much debt. However, household spending often contains expenses you fail to track, opening the door for additional savings without painful spending cuts. Saving an extra $500 a month can fast-track debt negotiations or add money to your emergency fund, increasing your chances of successfully eliminating debt balances.
To accelerate your quest to be debt free, take these five creative ways to painlessly cut spending, allowing you to save more money faster.
- Pay Attention to Small Purchases. Mindless spending occurs when you make small dollar purchases without much thought. You believe that because the amount is so small, it could not possibly have a big impact on our overall budget.
These $5, $10, or even $20 purchases often adds up to hundreds of dollars each month. Dubbed the latte effect, a $5 daily latte amounts to a $150 per month coffee habit. Be bold and name your own ‘latte effect’, meaning, it may not be coffee, but something else that saps cash. Save up to $500 per month by eliminating one or more mindless spending habits and stash your savings toward debt reduction.
- Evaluate Every Bill and Each Charge. Conduct a line by line review of every monthly bill to uncover savings. The bills might include utilities, cell phone, cable, monthly subscriptions, or insurance policies. Much like small purchases, savings can add up to a significant amount. For every $10 in monthly bill reduction, you will save $120 annually. Find $10 worth of savings across ten bills, and you will save an extra $1,200 without changing anything else
Look for charges or paid services, you are not using like reoccurring charges for an app you don’t use, insurance riders, or unwanted warranties. If you don’t have the time or interest to do it yourself, use an app like Trim, which evaluates your monthly bills and splits the savings with you.
- Negotiate Down Rates. Another way to save money without giving up anything of value is asking for lower rates from companies or services you use. For example, if you have subscribed the same cell phone provider, ask about new offers at lower prices than your current plan. Companies tend to offer low initial rates and then raise the price each year. Asking for the introductory rate each time you get a rate increase notice, or the current term expires, can save you up to $100 a month.
In addition to negotiating down monthly service charges, you can also contact credit card companies and request a rate reduction. If you have made on-time payments for the last 12 months, companies will often lower your rate.
- Stick with Cash. Using cash limits spending and reduces impulse buys common with credit card purchases. Cash encourages you to stick with your intended budget and can reduce overall spending because you become more aware of your spending habits.
- Seek out Discounts and Freebies but Know Thyself. Whether you want to eat out or find entertainment look for ways to do the things you like for less. Online coupons and discounts make it easy to find savings on websites such as Groupon, LivingSocial, or RetailMeNot. But take pause – if you know thyself and it’s easy for you to splurge on small things you don’t need because it’s a great bargain on such shopping platforms, looking for coupons, it may be best to even avoid these all together. Marketers are good at knowing what you like considering your browsing history. Be careful to stay on track and focused.
You can find ways to save money without requiring major changes to your spending habits. Use these strategies to reduce costs, leaving you with more money for debt reduction.
About Titan Consulting Group
Titan Consulting Group helps consumers evaluate various debt relief options and choose the right program that best fits their short-term and long-term financial goals. We work with consumers seeking debt consolidation loans, or who may be considering options like debt negotiation or bankruptcy. Through our network of partners, we can help you find the right solution to reach your goals and get back to living a life free from high interest credit card debt.
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