When you are living paycheck to paycheck, the idea of ever saving any money may seem nearly impossible. However, there are a few things that you can do to save money. When it comes to saving, every little bit adds up. By saving even small amounts, you will find yourself with more money at the end of the week or month and before you know it, your savings will begin to increase.
Here are 6 very simple steps that you can take to start saving money quickly:
- Set up automatic bill payments
With busy schedules, it is very easy to forget to pay some of your bills on time. By paying your bills when they are due, you will save yourself money by not having late fees. Most companies charge anywhere from 10% to 15%. While this may seem like a very small savings, it will certainly add up quickly with minimal effort.
Setting up automatic payments can ensure that you pay your bills on time and avoid late payments altogether. A word of caution is to keep up with your bank account balance in order to avoid overdrafts and fees.
- Consider switching banks
All banks make their money from fees of one sort or another. Three of the top banks earned upwards of $6.4 billion in ATM and overdraft fees last year. If you are paying a monthly fee for either a checking or savings account, then you should look for a new bank. There are many banks that offer free accounts and perks just for opening a new account.
- Open a short-term CD
If you are in a position where you can comfortable afford to leave your money in a CD for up to a year, then a short-term CD is a good idea for you. You will want to shop around and find the highest paying yield before you invest in a short-term CD. If you think that you will need the money before the year is up, it is best to put your money into savings instead in order to avoid a penalty for early withdrawal.
- Sign up for loyalty programs
By signing up for rewards and loyalty programs, you can reap great rewards for the everyday things that you do such as grocery shopping and buying gas. Make sure you sign up for emails as that is often a way that they reach out to customers. Many stores also offer apps now and that is another great way to keep up with savings options.
- Buy with cash rather than credit
By taking cash with you when you shop, you can avoid overspending. If you are paying with a credit card, you are not limiting yourself and will end up spending more than intended on needless items.
- Avoid paying for convenience
America, as a whole, has gotten into the habit of paying for convenience. Rather than make things at home, such as coffee, we make the purchases while we are out resulting in spending much more than we should. Taking time to do things at home will save you a tremendous amount in the long run.
- Use coupons
Whenever you make a purchase, make sure you use coupons and coupon codes. Whether you’re shopping for groceries or buying things online. Use sites like https://www.yourbestdeals.com/ to get discounts on anything from socks to computer software.