Giving up your Starbucks fix for a couple of days at a time or cutting coupons every once in a while can help you save a few bucks, but if you are looking to save cash long-term, you need to modify your lifestyle.
The following are changes that can be made over time to significantly reduce the amount of money that is extracted from your household budget each year:
Energy efficiency: You can save significant amount money by being energy efficient at home. Switch to energy-efficient appliances and lighting. In addition, make sure your home is properly insulated and that your windows are not leaking. While these modifications may cost some money up front, they can net decent savings over time. If you cannot afford major changes, then stick to simple ones, such as installing a programmable thermostat and turning off lights in rooms that are not occupied.
Avoid driving: If you live in a temperate climate, consider walking or biking to work or school. For those who live in places where the weather hiders walking outdoors during the winter months, take public transportation. You can also carpool and share travel expenses with co-workers.
Refinance: Mortgage rates are at historic lows. If you have been putting off refinancing your home, now is the time to stop procrastinating. You can save hundreds of dollars a month by switching to a lower rate. Now is also a good time to consider debt consolidation loans. These financial opportunities allow you to combine high interest loans into a single payment with a low interest rate.
Modify insurance deductibles: If you have a fair amount of money in a savings account, you might consider increasing your insurance deductibles, including home, auto and health. Higher deductibles translate to lower premiums which can help you save a decent chunk of change over time.