Most people can’t afford to place 20 to 25 percent of their paychecks into a high interest savings account like money experts suggest. However, there are a slew of other ways you can help your financial situation. The following simple ideas can add up to big savings over time if you are consistent about executing them:
Food: You can save money on produce by planting a garden with items you and your family eat on a regular basis. If you have a hearty harvest, you can also trade fruits and vegetables with neighbors.
Clothing: Stretch your dollar by repairing worn clothing. Fix broken zippers, patch holes and sew buttons onto clothing in order to continue wearing them.
Entertainment: Instead of paying an arm and a leg to see a movie at the theater, consider hosting a game night at home. Play board games and put together puzzles. You could also consider inviting friends over for a potluck. If one of your friends is a bad cook, then have him bring over a movie to watch instead.
Transportation: Walk or take the bus instead of a cab. Or, ride your bike to work when the weather is nice instead of spending money on gas for your car.
Credit Cards: Don’t use your credit card unless you can pay off the balance every month. Also, choose wisely when selecting a credit card. It’s best to find credit cards that offer rewards, such as cash back or cards that double your rewards when you patronize certain businesses. Another great option is to find a card that rounds purchases up to the nearest dollar, and then deposit the difference into a “savings” account for you.
Home: If you are in the market for a new home, wait until you are able to put down 20 percent of the costs. Doing so will save you from having to get mortgage insurance. Also, once you get your new home, make sure you organize the paperwork. You want to have easy access to mortgage papers at tax time, so you can see if you qualify for a deduction based on your payments and taxes.