A piggy bank for saving money

Ways To Find Money For Savings

We all know that saving money is key, but a savings plan can be a hard thing to initiate. This is especially true for those who seem to spend every dollar that they make on bills. Where do you find the money for savings? Believe it or not, you can find money for saving on nearly any income, you just need to look deep at where you spend your money. Take a look at some ways that you can cut your monthly expenses and find money for savings.

How To Find Money To Save

Almost everyone can save money, you just need to find where you are wasting it and redirect the money to a savings account. Here are some of the easiest places to look to find money for savings.

Your Cable Or Satellite Bill

You shouldn’t have to be told to ditch your expensive cable or satellite bill, especially if you are having trouble saving money. There are just far too many other options out there that can entertain you for a fraction of the cost. Hulu, Prime TV and Netflix can all be had for around $10 a month and there are plenty of free apps as well.

Ditching your subscription television plan can save the average person $100 a month. If you put that money towards your savings, this is $1200 a year. Even better, you will cut your dependence on television and start consuming entertainment on demand, how you see fit.

That Auto Insurance Policy

If you have not shopped your auto insurance in years, now might be the time to do so. Auto insurance companies almost always increase your premium every time it renews and before you know it, you are paying an inflated rate. in addition, they save their biggest discounts for their newer clients. You can be one of these new clients.

To get started, you will need at least three quotes from auto insurance companies. You will notice right away that rates are all over the map. Choose the one with the best rate that still has acceptable reviews. The last thing that you want to do is save money in the short term only to be left holding the bag in the event of a claim.

Credit Card Debt

The average credit card interest rate is close to 20 percent. If you are carrying any debt on a credit card, you are throwing money away each month. Money that you could use to build a sizable savings account over time.

A debt consolidation loan is one of the best ways to reduce your monthly payment and the interest that you pay. Transferring all of that debt to a loan with a single digit interest rate can cut your interest by more than half. If you are carrying $10,000 or more in debt, you could save almost $100 a month in interest charges. That is a nice contribution to your savings.

That Food Budget

Your food expense is one of the easiest places to make cuts and meal planning can help you do this without sacrificing your quality of life. The whole idea behind it is to eliminate food waste. Here is how it works.

At the beginning of the week, sit down and plan all of the meals that you will make. Include breakfast, lunch, dinner and snacks. Once you have your list in hand, write down all of the ingredients that you need to make these meals. Finally, check your refrigerator and pantry to see which items you already have. Cross these things off and you have your shopping list for the week.

Meal planning helps you cut out food wastage and the average family of four can save an easy one or two hundred dollars a month by doing so. It might sound tedious, but it gives you money for savings and it will make your week a lot easier.

Miscellaneous Expenses

Most people waste a lot of money in small chunks. A few dollars here and a few dollars there can really add up. Tracking your spending is a great way to find this money that you are wasting.

Take at least a week, but preferably a month, and write down every dollar that you spend. What you find in the end will probably surprise you.

That morning cup of coffee you like to buy, that could be $100 a month or $1200 a year wasted. You fast food lunches could be another $200 to $300 down the drain. All of these tiny expenses add up in the aggregate which is why it is so important to track your spending.

Let’s Start Saving

There are a lot more ways to find money for savings, but by now you get the point. You just need to look for it. So now, once you have found the money to start saving, what should you do with it.

Open An Online Savings

The easiest thing for you to do would be to open up a savings account at the same bank as you have a checking, but this is a mistake. Why, because it is too convenient.

You want an online savings account because transfers take longer. They are not instant but instead take about 1 business day, on average. This gives you time to think about your decision should you decide to raid your savings account. You can still get to the money quickly in the even of an emergency, but you will have a cooling off period.

Another benefit to online savings accounts is that they typically pay more interest. We are still only talking about a one percent interest rate, but it is far better than what your local bank will give you.

Automate The Saving Process

Once you have your account, it is time to automate the savings process. You want to take any work out of savings and reduce the possibility that you might succumb to temptation and forgo a deposit.

The best way to do that is to deposit money directly from your paycheck with the help of your work’s payroll department. Many companies will allow you to split your paycheck into multiple accounts. If you can go this route, do so because then you will never see the money. You can not miss what you never see.

The next best solution is to set up automatic transfers from your checking account. Make them for the same day that you get paid so that you are less likely to miss the money or cancel a transfer.

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James Car is a finance, loan and budget expert based in the United States. After attending Brookhaven college, he went on to become a successful entrepreneur. He now enjoys writing articles that help people save and make the most of their money.