What if I told you there could be some proven methods to save you money each month? How much money? Well,the average is a little over $1,800 each month. That’s right, just shy of $2,000 of money you could be saving by just doing these things. Now, the basis of the savings is two fold. It’s based on what you could be spending and what you can do to reduce that spending. You’re not going to save $1,800 every month, effectively reducing your bills to $0. In order to lessen the effects of your bills, you need to make more money. I don’t know anyone who doesn’t owe some company something each month.
15 Ways to Save Money Every Month
To accompany this article, there is an infographic below that will show you these proven techniques in order to help you cut back on your expenses. I’m all about saving money here and I want you to keep more of your hard-earned cash in your pocket. We work hard in order to afford life’s luxuries, so don’t let expensive monthly bills get in your way. That is not how you should live life.
These savings methods are focusing on five main areas of your monthly expenses. They are food, healthcare, personal insurance, clothing, and housing. Obviously, housing is where the bulk of your savings can come in. If you plan accordingly, you can really save good money with your mortgage and your utility bills.
Everyone has a big opportunity to save good money when it comes to food. Heck, I saved around $125 by packing my lunch for work while I was in debt. It was a huge motivator. Most people think they can’t save any more money on their food. Whether you are by yourself or you have a large family, there are always cost cutting opportunities.
One of the few ways is to shop in bulk when you can and when applicable. You can push a good amount of money back into your wallet when you buy in bulk. You should also focus on shopping only with a list and not when you’re hungry. I’ve fallen off the wagon a few times when shopping hungry. I don’t even want to mention when I don’t have a list.
On top of the simple things, also you should be including coupons in your repertoire. This should include printable coupons, but also using grocery store rewards cards. They are an easy way to get better deals with not much effort.
This is an area where I could and should do much better. While I don’t buy a lot of clothes (I get a lot of t-shirts for free at conferences), I do purchase too many clothes for my son. Anyone with kids knows they outgrow everything quickly.
My wife has done a great job and shopping thrift stores and consignment shops for clothing. I might be walking through some store and find clothes and buy them. They aren’t necessary and definitely aren’t in the clothing budget.
You should focus on buying clothing out of season, so buy winter clothes in the summer and the opposite. This gives you the best deals. Also, make sure to buy some clothes online. I just bought some Exofficio underwear on Amazon. They are awesome BTW, but they are $7 cheaper on Amazon then they are in the stores around my house. Always make sure to use online coupons when shopping online for clothing.
This is an area where it’s much harder to save money, but it’s still possible. I’m not going to dive into the healthcare act, so let’s just move on about that. Beyond your plan, here are some ways to save on healthcare costs.
If you’re eligible, you should be using a HSA account (health savings account). This is a great way to save good money on your healthcare expenses, but also save for retirement if you don’t need the money each year. They are only available for those who have a high-deductible plan. Here’s more information on HSAs.
Don’t be afraid of asking your healthcare provider for a cost estimate of the services you need rendered. You can use that to help you manage costs, but also look for other providers. Did you know that no two hospitals charge the same amount. You can go to another provider in a different town and it can be up to 50% cheaper in some cases. Always search and look for better deals and always get a second opinion.
You can and should also ask for a discount for paying upfront or paying the bill in full. You never know what you can if you just ask. On top of that, make sure you ask your doctor or healthcare provider for a generic of a drug you might be on. This can help you save considerable money each and every month.
You can save a big chunk of change when it comes to your housing. The biggest way to keep more of your money is to not buy more than you need. I know this seems very obvious, but you’d be surprised how many buy too much house. Don’t listen to your bank on how much you can “afford!” That number should be created by you. You shouldn’t pay more than 25% of your monthly salary on your mortgage payment. That’s just not a good idea. The lower that number, the better.
If you’re about to buy a place, then make sure you put down at least 20% to keep your payments manageable. This also keeps you away from PMI, which can be costly. My wife and I were paying $80 a month just for the PMI and that didn’t go toward anything but the bank. That’s money I could have saved every month.
If you live by yourself or have an empty room, why not think about renting that room out? This can bring in some good money each and every month and it will reduce your costs considerably. While this may be difficult for some, there are many who are making part of their homes rental units to earn that sweet, extra income!
Personal Insurance Savings
This is an area where I just saved a good about of money over the past year. I was able to save money by just calling a new insurance company when we bought out house. We saved on both our house and our cars. I just saved about $15 a month by reducing some insurance on my Jeep Wrangler. I don’t drive it often, so it didn’t need the cadillac plan we were paying for. We keep that reserved for our newer cars.
These are just a few things you should be doing with your personal insurance. Shop around every time your plans come up for renewal. While it might seem like a lot of work, it really only takes a few minutes every 6 or 12 months. That’s not too bad in order to save good money.
Shopping around also bodes true for life insurance. I’ve been looking for a good plan, but then found that I could shop multiple quotes at once with PolicyGenius. It’s a free service that I’d recommend you try out to find the best life insurance rates.
If you have a healthy emergency fund, think about raising your deductibles. Doing so can instantly reduce your insurance rates. Just use your emergency fund when you need to pay for something big on your car. That’s what it’s for.
While there are many other ways you can save money each and every month, these 15 ways (shown below) are proven to work. Remember, it’s not magic in order to save money. It takes some time, but also just takes action. If you want to save money, just work on getting it done. Below are 15 ways you can do it right this month and enjoy the savings to follow.
The $1,800 savings is just an average of savings. This does not mean you will save $1,800 a month by doing these things. What this shows is you can save money by making changes. It might be less or might even be more. Just take some action and see the savings!
The following infographic was provided by Montana Capital.
Do You Know Your Credit Score?
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