Saving money has proven to be a difficult task for many Americans. That’s why so many of us live paycheck to paycheck, and according to a Federal Reserve study, almost 40% of us wouldn’t be able to pay all our bills if we were suddenly faced with a $400 emergency expense.
What if, with your current income, there were ways to save money without making drastic lifestyle changes, would you be willing to give it a try? I’m glad to know that you would because below are some tips that, if followed carefully, will put you on the path to saving at least $1000 in the shortest possible time.
1. Negotiate All Your Bills
Your bills aren’t set in stone. Yes, perhaps you did sign a contract for, let’s say, an internet service that is supposed to cost you $80 a month. After a couple of months of paying $80, there’s no reason you can’t go back to your internet service provider or any company you do business with for that matter and request a discount.
I know this is possible because I’ve done it several times. I’ve negotiated my internet bills down, I’ve gotten my bank to waive overdraft fees, and I’ve gotten a promotional rate for my monthly phone bill that I wasn’t necessarily eligible for.
I didn’t do anything special to get these discounts. I simply picked up the phone and called the companies and politely asked for a discount. When the sales associate couldn’t help me, I calmly asked them to transfer me to a manager.
I’ve noticed that the Sales Associates and Manager always have a leeway to give courtesy discounts or cancel certain charges. You’ll never know if you don’t ask.
Case study — saving money
I recently got someone to reduce their AT&T phone bill significantly. They were paying a $130 to $160 regularly in phone bills for an iPhone 6s and an iPad. We called AT&T, and the bill was cut down to $56 a month. Both the iPhone and iPad were already paid off, but she was still paying insurance on an old iPhone and an iPad that never left the house.
In this era of unlimited internet, AT&T was charging her $15 for every gig over her monthly allotment of 3 gigs. AT&T was also charging a fixed fee for data on an iPad that was always at home on the wifi.
After going through every item on the bill, we were able to reduce it, thereby saving hundreds of dollars annually.
It is very common for people to pay their bills mindlessly without checking the details. This is especially true if the bill is on autopay, and you don’t examine what’s on it.
Get your bills and go through them with a fine-tooth comb. Go over every detail and see how and where you can glean some savings.
If you can’t personally negotiate your bills, use the below apps to do the job for you.
2. Use Cashback Apps To Get Cash Back On Your Purchases
A lot of credit card users get excited about the cashback they can get when they make purchases with their credit card. But did you know that there are apps out there that will give you as much, and sometimes, even more cashback than your credit card?
The apps below will give you up to 10% cashback when you use them to make your purchases online.
- Rakuten (Get a $10 Bonus when you join)
- Swagbucks (Get a $10 Bonus when you join)
- MyPoints (Get a $10 Bonus when you join)
All you have to do is sign up with any of the apps (I signed up for all three). Then get on the app or the app’s website and search for the company from which you want to buy.
Do you want to buy from Sephora, Amazon, Walmart, Target, Bestbuy? Whatever your preferred shopping destination, you can use the app to access the company’s website. Whatever amount you spend to make your purchase, you will get a percentage in cash back.
If you use your credit card to make the purchase, then you’ll get a cashback two times over.
3. The Honey App – Get The Best Prices & Discounts
Honey is an app that will automatically find the lowest prices for the items you want to buy online. All you have to do is download the Honey app and install it on your browser.
Once installed on your browser, the Honey app with search the internet for coupons and discounts for the items in which you are interested.
It will also monitor the web and notify you if the item’s price has dropped. Visit the Honey app website and download it to start saving money.
If you are like me, you make a lot of purchases online. With Honey, rather than going straight to Amazon to make your purchase, you will have the option of choosing from over a dozen different vendors, some offering prices far lower than Amazon, eBay, or Target.
>>>Download the Honey app here<<<
4. Paribus – Get Discounts When Price Drops
Have you ever bought an item and noticed, after a month or so, that the price has dropped? Well, back in the day, you’d have to live with your loss — not anymore. With the Paribus app, you can go back and get a discount on a purchase you’ve already made. Here’s how that works:
Let’s say you bought a television for $2,999, and three weeks later, the price dropped to $2,799. Paribus, a Capital One company, can go back and get you the $200 difference.
All you have to do is download Paribus and authorize it to negotiate your bills on your behalf.
For this to work, you’ll have to sign up with Paribus using the same e-mail address you usually use to make your online purchase. You’ll also give Paribus access to your e-mail.
Without any additional intervention from you, Paribus will continuously scan your e-mail for recent purchases. It will then compare your purchase price with the current price of the item. If there’s a drop in price, Paribus will contact the company and request a refund on your behalf. You don’t have to do anything. In some rare instances, Paribus may contact you for additional information. But for the most part, they handle on their own once they find the receipt in your e-mail.
Imagine the amount of money you can get in refunds during the year if you have Paribus negotiating on your behalf.
5. Use Cashback Credit Cards
This is probably the most common way people get cashback — from their credit card company. If your credit card company offers cashback, take full advantage of it. It’s free money, especially if you are going to make the purchase anyway.
6. Qualify For Your Credit Card Bonus
Many of the major credit card companies offer a bonus when you spend a certain amount within a specified period. They would say, for instance, “if you spend $2,500 within 90 days, you’ll get a $500 bonus.”
If you are going to make a big purchase, let’s say you want to buy a television that costs $2,999. A brilliant way to make that purchase will be to get a new credit card, such as the one mentioned above. You’ll get your cashback on the purchase, and you’ll get your cash bonus.
7. Reduce Your Car Insurance
Your monthly car insurance premium isn’t set in stone. You can always call your insurance company and negotiate a reduction. During your negotiation, you can hint that you are looking at other competitors.
This tactic works well when you know the rate the competitors are offering. If those rates are lower, you can use them as bargaining with your current insurer.
Another way to effectively negotiate a reduced rate with your insurer is by bundling several items. If you have more than one car, a boat, an RV, and other toys, you may save a lot of money if you bundle them.
7. Cancel Insurance You Don’t Really Need
Is it possible that you are paying insurance for an item that is not at risk? There’s something called “over-insurance.” It is a situation where the coverage on the item exceeds its cost.
Most times, over-insurance can be an indicator that the person taking the insurance might file a false claim to profit from the “loss.” But it is something you can do inadvertently–without a malicious motive.
Go over all the items you’ve insured and see if there’s a possibility of over-insurance. If there is, try to reduce your coverage. Doing so will also reduce your premium.
I told you a story someone who was paying $20 every month for insurance on a 2014 iPhone 6 and iPad, though the iPad never left the house, and the iPhone is only worth $80 at most.
The insurance in that case of the iPhone and iPad did not make sense. If you are in a similar situation, consider canceling the insurance also.
8. If You Buy Prescription Drugs, Consider GoodRx
An astounding number of people in the United States take prescription drugs every day. A significant amount of those people have some form of out-of-pocket cost or co-pay associated with getting their medicine. If you are one of those people, GoodRx and similar services can help save you a lot of money.
Download the GoodRx app and search for your prescription. In most cases, you will find your prescription drug at a significantly steep discount — sometimes, up to 80% discount.
9. Buy Store Brand Rather Than Name Brand
Grocery shopping can be expensive, especially if you don’t know how to get the most bang for your buck.
One way to save money on grocery shopping is to compare the prices of similar items. For example, I usually pay $2.08 for a stick of cream cheese. On this particular day, I decided to get the store brand, which cost only $0.98. To my surprise, I liked the store brand better. Now I only get the store brand, and I’m able to save 100% on the price.
The scenario cited above is not isolated. If you check the prices of identical items from different brands, you may find opportunities to save money.
Next time you go grocery shopping, make it a duty to save $10 to $20 by switching to cheaper brands. The more you search and compare prices, the more opportunities you might find to save.
10. Choose A Cheaper Cellphone Plan
It amazes me when people pay tons of money in monthly cell phone charges. The argument they usually give is that the company they’re with has much more extensive coverage. I pay $30 a month for my cell phone, and I’ve never had a problem with coverage. I’m with Metro PCS, which is on the T-Mobile network.
There are many phone companies out there that will give you comparable and sometimes better service than the major phone companies like AT&T or Verizon.
Don’t just throw your money blindly to these phone companies. Try to make sure you’re getting the most value for the service for which you are paying. And if you don’t get it, switch to cheaper phone service.
Metro PCS, Boost Mobile, Cricket, and all these budget companies offer unlimited internet for a fraction of the price the larger companies charge.
11. Develop A Budget And Stick To It
Have you ever gotten your paycheck and didn’t know exactly how you spent it? Yeah, you paid your mortgage or rent, you paid your car note and other fixed expenses, but beyond that, you didn’t know exactly how you spend the rest of the money.
If you have, don’t worry. It’s a common occurrence. Many people, just like you, are unable to account for how they spend their earnings. But with a budget, you can change that. If you structure your budget in the right way, you’ll be able to account for your paycheck down to the very last penny.
Zero-based budgeting comes to mind. With zero-based budgeting, you have to account for your earnings down to the last cent. Here’s where you can get some useful zero-based budgeting apps:
- YNAB (you need a budet) (Start a Free 30 trial)
- Personal Capital (Free)
- Trim
- Truebill
All of the apps above can help you put your finances in order and also help you save money towards your goals.
READ:
- 10 Best Budget Apps To Manage Your Finances
- YNAB (You Need A Budget) App Review: Pros & Cons
- TrueBill Review: An App That Saves You Money Automatically?
- Smartypig Review: What You Should Know Before You Sign Up
12. Refinance Your Debts (student loan, auto loan, mortgage)
If you can refinance your debt and save $200 to $300 or more every month, it will be worth it. Remember, interest rates are always changing. There’s no need to be stuck with an interest rate this is significantly higher than the prevailing rate.
A tiny reduction in interest rate can translate to significant savings over the life of your loan. This is especially true if the loan is a considerable amount spread over a substantial period.
Here are some places to refinance your debts:
- Lending Tree (Get up to $250,000)
- Payoff (get up to $100,000)
- Credible (get up to $100,000)
13. Consolidate Your Debt (Credit cards, Personal Loans)
Debt consolidation provides convenience and, hopefully, a lower interest rate, and ultimately, savings. When you consolidate your debt, you take out a loan and use that loan to pay off all your other debt.
Usually, the debt consolidation loan offers a lower interest rate than the interest rate on most or all of your other debts. Consolidating your debt will give you peace of mind that comes from dealing with just one creditor, as opposed to many. It will also save you some money.
Here are places to find debt consolidation loans:
- Lending Tree (Get up to $250,000)
- Payoff (get up to $100,000)
- Credible (get up to $100,000)
14. Rent Your Car Out When You’re Not Using It
Most Americans have their cars parked 95% of the time, according to a Fortune Magazine article. If this is true, and I have no reason to doubt that it is, people could be missing out on a new business opportunity: renting your car out.
There are several companies out now that are considered to be the “Airbnb of car rental.” Turo is one of those companies.
Here’s how Turo works: You list your car for rent on the platform whenever you’re not using it. Someone contacts you on the platform and pays to use your vehicle for a specified time. It’s that simple.
Turo vets all the customers and vendors. People are known to make an average of $706 a month on Turo. Visit Turo’s website and find out all you need to know.
15. Take On A Roommate
Depending on how big your home is, and the average cost of rent in your neighborhood, you can make up to $1,500 a month by taking on a roommate.
Getting a roommate comes with a bit of inconvenience, but it also comes with a substantial amount of money to help with the rent or mortgage. Most people who do this don’t do it long term. And to be successful with a roommate, you have to get someone whose values are compatible with yours.
16. Skip Your Vacation This Year
According to Business Insider, the average person spends $1,979 on a summer vacation. Imagine how much money you will save if you just skip your vacation for one year.
Sometimes, saving money comes with making sacrifices. You have to forego certain things to gain others. In this case, you’re foregoing a vacation to save almost $2,000. I’d say the sacrifice is worth it.
17. Rent A Room Out On Airbnb
According to CNBC, you can make up to $924 a month, on average, renting a room out on Airbnb. This is a good option if you don’t want a permanent roommate in your home.
All you have to do is sign up with Airbnb as a host and you can list your room on the platform.
18. Buy In Bulk And Save Money
When you buy groceries in bulk, you tend to save a significant amount of money. This is especially true if you buy from wholesale stores like Costco and Sam’s Club.
Buying in bulk from budget stores like Walmart and Target can also accrue significant savings.
19. Cancel Subscription You Aren’t Using
It’s common to subscribe to a service and forget to use it. And though you forget to use the service, the service does not forget to bill you. Many people are paying $12 here, $8 there, and so on, for services they no longer use.
There are apps that can help you locate these unused subscriptions and cancel them. Below are two of the most popular ones:
All you have to do is sign up with any one of the services listed above, and it will find all your unused subscriptions and cancel them. It can also help negotiate a reduction in your bills.
20. Give Up At Least One Luxury Activity
Do you indulge in a luxury activity that you can give up without causing a significant decline in your lifestyle? For the sake of saving money for a rainy day, it might make sense to cut off at least one luxury item and save that money towards a goal or an emergency fund.
21. Stop Eating Out
Most times, when people decide to be frugal, one of the first habits they cut off is the habit of eating out. There’s a good reason why they choose to do that: Eating out is a costly habit.
If you decide to cook your meals, you can potentially save a lot of money over the year.
Here are some ways to stop eating out:
- Pack your lunch from home
- Prep your meals for the entire week
- Deprive yourself of an indulgence every time you eat out.
There’s a temptation to believe that you can’t stop eating out, maybe because you live alone or because you can’t cook. But those are situations that you can fix quickly by learning how to cook. When you start to prepare your meals, you’ll realize how much money you can save.
22. Buy Your Car Used, Not New
According to Carfax, a brand new car loses about 10% of its value within the first month of driving it off the lot. It also loses another 20% within the first year. That’s a total of 30% in value that’s lost just within the first year.
If you purchase your car at least one year used, you’ll potentially get a 30% discount off the bat. The next time you’re shopping for a vehicle, consider comparing the prices of the used versions of the cars in which you are interested.
23. Force Yourself To Save Money
Forcing yourself to save money doesn’t involve corporal punishment; don’t be scared. It only means you’ll automatically save a portion of your income every time you get a paycheck.
There are many tools out there to help simplify this process. You can decide to save $50 or $100 a paycheck. With the right tools, the money will be taken out of your account automatically and either invested in a diversified portfolio of financial assets or kept in a savings account.
Here are some tools to help you save and invest your money.
Most of these tools, besides Trim and Truebill, are also investment platforms. You can invest your monthly savings in a diversified portfolio of exchange-traded funds.
24. Make Your Own Coffee
There are books written on how to transform your finances by cutting off the things on which you spend your money. For example, if you spend $5 every day on a cup of Starbucks coffee, you may end up spending up to $1300 ($25 a week X 52 weeks).
If you invested that money ($25 a week X 4 weeks) every month for 25 years in an ETF paying an 8% annual return, you’d have a little over $87,700.
Imagine having $87,000 to spend during your golden years! You don’t have to give up your coffee habit to achieve this. All you need to do is make your coffee. The moment you start making your coffee and ditching the trip to Starbuck, you’ll be on your way to saving significant amounts of money.
Here are some places to start investing — right from your mobile phone.
- Stash Invest (See Our Stash Review)
- Personal Capital (See our Personal Capital Review)
- Acorns (See Our Acorns Review)
- M1 Finance
By the way, the scenario cited above is also true for bottled water. If you only drink bottled water at home, you may be throwing money down the toilet bowl. If, for some reason, you don’t want to drink the tap water as it is, you can get a portable filtration system like the ones listed here on Amazon. With these systems, you can drink purified water, perhaps more purified than the ones in the plastic bottles.
25. Pay Off Your Debt ( if you can)
Paying off your debt can come with significant savings in interest expenses. It can also mean the availability of money you no longer have to pay to your creditors.
READ:
- 15 Amazingly Simple Ways To Pay Your Debt
- Letgo Review: How To Use The Letgo App To Sell Your Stuff
- 4 Tips For Selecting The Right Credit Card For Yourself
- This Guy Increased His Credit Score By 84 Points In One Month! Here’s What He Did
Bottom Line
Saving money is not an easy task. There’s always a tradeoff of delaying instant gratification for some future goal. Depending on what your goal is and how quickly you want to achieve that goal, any one or a combination of the tips here can help you achieve your savings goal.
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