Keeping your finances healthy isn’t just about making more money. In fact, you can end up with a much higher bank balance simply by avoiding wasting money. A lot of the things the average consumer spends on regularly can end up costing them thousands over time. You don’t have to cut these out completely- just learn how to spend wisely. Here are 5 personal finance pro tips to stop wasting money.
1. Spend Less on Coffee and Lunch
While these costs can seem minor on a day-to-day basis, they can end up costing you thousands over the course of the year. Let’s say you grab a $3 coffee and a $5 lunch every work day. That’s $40 a week, $160 a month, and almost $2000 in a year. Not to mention some people spend more on coffee and lunch!
With that said, you can save thousands simply by cutting these costs. Many workplaces have free coffee makers, but you can also brew your own at home. It might even be a good opportunity to cut back on your caffeine habit.
You can also make plenty of cheap lunches from home and bring them to work. It’s a simple change that’ll save you tons over time.
2. Cut Back On Grocery Spending
Spending less on your groceries is a personal finance tip you’ve probably heard all too often. But it’s for good reason. Let’s say you can cut back $10 on your grocery bill- that can end up being $520 saved over a year. But you can even save more with a few simple tricks.
First off, head for the frozen aisle before the fresh. You can find frozen chicken, fruits, and vegetables which taste just as good as their fresh counterparts. The difference is they’re cheaper, and you can keep them for months without expiring.
You should also cut back on expensive brand products and look for cheaper alternatives. Buying a few store brand products can save you a ton of cash over time. Also, price check online with other grocery stores to see if you can get your shopping cheaper and look into customer rewards.
3. Save On Your Energy Bill
Between using your computer, your television, and having appliances like your fridge-freezer and washing machine running, your energy bill can add up fast.
Start trying to make your home more energy-efficient to save on a lot of money. Start with energy saving light bulbs. Look for energy-saving settings on your TV, computer, and other electronics.
You can also take this a step further by buying energy-saving appliances. You could even cut back on your heating by using natural methods to keep warm. All of this will contribute to your savings over time.
4. Think Twice Before Making A Purchase
Stores are always aggressively pushing deals and promotions, but that doesn’t mean you have to whip your wallet out. The more you resist consumerism, the healthier your bank balance will be. Learn how to say no to yourself when it comes to spending.
Before you make any purchase, think twice. You should even sleep on it. Consider whether it’s something you need, something you can make money from or something you can wait for. Even if you miss out on a quick sale, at least you’ve saved money.
Simply by showing some willpower, you can start avoiding all those impulse purchases that you’ll quickly regret. You’ll end up with much more money in your bank account to spend on the things you really need in the long run.
5. Cut Out Monthly Costs
A lot of businesses get your money by requiring a monthly subscription or membership. It’s a smart idea- many people are far too lazy to cancel their monthly fees if they think there’s still a chance of using it.
However, these can add up fast. Even if you’re spending $15 here and $15 there, that’s a solid $360 over the course of the year.
Cutting out monthly costs can mean more money in your bank account each month. You don’t have to cancel out everything- just the things you don’t need. If you’re only going to the gym once or twice a month, cancel your membership and take up running. If you barely use NetFlix, cancel it and find shows through free services.
6. Assess Your Bills
Your monthly utility bills and other such costs will also add up. A lot of these can be reduced significantly, so it’s worth assessing them.
You may be able to find a cheaper deal on your water, electricity, and internet bills by taking to the internet and price comparing. Talk to different companies and see if they can offer you a better deal for what you’re paying or even a lower cost.
The same applies to your phone bill. Many people pay for expensive contracts to have the brand new phones. However, you can save a ton of money by simply investing in an earlier model and getting a cheaper monthly plan without the unnecessary trinkets.
7. Find Essentials For Cheaper
There are various essential items you need on a regular basis. However, you don’t need to spend a lot on them.
Paper towels and toilet paper are good examples. It might cost $4 for a pack in your local grocery store when you could get the same amount at the local dollar store. Things like condiments, sauces, and bulk foods like rice can also be found much cheaper in discount stores.
Bottled water is another expense that can cost you tons over time. If you feel unsure about tap water, get a water filter jug so you can enjoy clean, pure water for free.
Just by cutting out some of the most common money wasting expenses you can save thousands in a year. This can result in even bigger savings in the long term. Always look for cheaper deals and cut out the costs you don’t need.
Of course, you don’t need to cut everything out. Some luxury purchases just make people feel better. It’s all about choosing to spend wisely and not going overboard. You can enjoy a much healthier bank balance, stop wasting money, and feel better about your finances.