Simple Ways to Save Thousands
With the economy in the shape that it’s in, it’s not surprising that many consumers are worried about their finances. You might fret over the plummeting value of your home. You may be worried that you won’t see a pay raise any time soon. You might be anxious about the performance of your investments in the stock market. For the most part, though, these things are outside of your control, which means it does you no good to worry about them. Instead, it makes more sense to devote your attention to something you can change—your spending habits. Spending carefully and attentively can help you save thousands of dollars annually. Below you will find a list of six areas where you can reduce your spending and save $500 per month.
Cut the Cost of Six Items
A recent article in Consumer Reports estimated that the average American household can save $500 per month, or $6,000 annually, by reevaluating the costs of the following items:
- Cheaper car insurance: $65/month. When was the last time you shopped around for car insurance? If you’re like most consumers, you’ve stuck with the same insurer and policy for years. However, what was the best insurer for you back then may not be the best choice for you now. Get a couple of quotes from different car insurance companies to see if there’s a better deal out there.
- Optimize your life insurance: $110/month. Again, shopping around for life insurance can help you save. Especially if you are older or in poor health, the premiums for similar policies can vary drastically from insurer to insurer.
- Smart food shopping: $200/month. If you buy a lot of pre-made or frozen food, your grocery bill is probably a lot higher than it needs to be. Cooking your meals instead of buying them prepackaged can save you a bundle. You can also try to buy generic food items and make multiple meals from the same ingredients.
- Phone bills: $35/month. Chances are, you are paying for a lot of services on your phone that you don’t need or use. For instance, you might be paying for long-distance charges when you could use your cell phone for those calls for no extra charge.
- Bank fees: $25/month. With so many offers for free checking and savings accounts these days, there is no reason you should be paying monthly fees for banking. If your bank won’t waive the fees, take your business elsewhere.
- Pay down credit card debt: $65/month. Paying as much money as you can toward credit card debt will help you avoid costly interest charges. If you have a considerable amount of debt, you could stand to save even more than $65/month by paying it off.