The average American has over $90,000 in personal debt. Accruing debt through house loans, car loans, and school loans is nearly unavoidable. However, we take this philosophy too far by continuously borrowing money.
Before we know it, we’re buried in debt, paying hundreds of dollars a month in interest. This leads to a vicious cycle of living paycheck to paycheck. It becomes seemingly impossible to break the cycle.
But it’s not impossible, it’s just going to take a little work and a handful of sacrifices. We can help. Keep reading for our top five money-saving ideas to help you retake control of your finances.
1. Prepare All of Your Meals at Home
First, immediately stop dining out. Cook all of your dinners at home to save hundreds of dollars a month on restaurant bills. This includes preparing lunches for work rather than getting fast food or other expensive options.
Additionally, start brewing all of your coffee at home. Buying coffee from expensive coffee shops can cost you more than five dollars a day. That quickly adds up to $150 a month.
2. Limit Online Shopping
We all love shopping online on Amazon and eBay. These types of sites have everything we could ever ask for at amazing prices. They even come with free shipping.
However, this type of shopping is almost too easy and makes it difficult to regulate our spending. There’s nothing wrong with shopping online to save money on necessary products. Just avoid going on a shopping spree and spending money on frivolous things you don’t need.
3. Buy Generic and Discounted Products
One of the easiest money-saving ideas is to only buy off-brand products or items you can purchase with a significant discount. Generic products can be anywhere from 25 cents to several dollars cheaper. If you buy generic for all of your groceries for an entire year, you could save hundreds or even thousands of dollars.
This is one of the most important money-saving tips. You can even apply this tactic to your medications. Read more here about how to save money on pharmacy drugs and other medications
4. Cancel Unused Services
More tips for saving money suggest decluttering your life of unnecessary memberships, subscriptions, and services. For example, do you really need cable TV and several different TV/movie streaming services? Cut the cable and limit yourself to a single streaming service.
Additionally, if you only use your gym a few times a month, it’s probably not worth whatever monthly dues you’re paying. Also, get rid of mystery box subscriptions, magazines, and other monthly expenses that aren’t necessary.
5. Consider Downsizing
Finally, consider some of the more extreme money-saving ideas. If you want to make a big impact on your budget, move into a less expensive home. By moving to a home that’s smaller, older, or in a more affordable neighborhood, you could save thousands of dollars a year on mortgage payments or rent.
Additionally, if you have a relatively new car, you’re probably paying upwards of $500 a month for it. Replace your car for an older model to save hundreds on monthly payments, interest, insurance, and registration fees.
Want More Money-Saving Ideas and Other Financial Advice?
If you’re looking for more help with your budget, money-saving ideas, or any other area of your life, we’re here for you. Before you go, be sure to check out some of our other articles. Our blog was created for people like you looking for new ways to improve their quality of life.