5 tips to save money for 2021
LOS ANGELES, June 10, 2021 / PRNewswire / – Every dollar saved is money someone can spend on a financial goal, whether it’s building a retirement nest egg, saving for kids’ college, or to buy a house. Everyone needs more tips on how to put aside a few extra dollars, so here are five tips on how to save money in 2021.
1. Track expenses
Tracking expenses is a similar tactic to creating a budget, but can be easier to learn and get started. People can use a simple spreadsheet to record expenses or track them in budgeting apps by linking their bank information.
These tools can make it easier to keep track of every penny spent for a few weeks or even months. From there, people could discover expenses that are easy to reduce. For example, they might see that they go out to lunch four days a week at work. Reducing that by making lunch at home makes for easy savings.
2. Audit subscription services
Subscription services have exploded in popularity. Consumers can subscribe to anything from streaming sites to monthly skincare boxes and more.
The problem is, people sometimes lose track of all of their subscription services. They might not use them as much or stop using them altogether, but they still pay for these services every month.
In this case, people should go through their bank statements, make a list of each subscription service they pay for, and seriously think about how much use or need for each service. Chances are, many can cut off one or two subscriptions (or at least downgrade their plan) and save a good chunk of change each month.
3. Refinance the debt
The high interest rates that borrowers have to pay can add up. Fortunately, borrowers can often refinance their debts at a lower rate and save each month.
Many borrowers use personal loans to do this. Some also rely on balance transfer credit cards, which allow the borrower to transfer balances to the card and pay them off without interest over a set period (e.g. 12 months).
Either way, borrowers should make sure that the new debt has an interest rate that is lower than the weighted average interest rate of their old debt. Homeowners can also refinance their home at a lower interest rate and potentially save hundreds of dollars on monthly payments.
4. Take advantage of cashback
People rarely have to pay full price for much of their purchases these days, thanks to credit cards and websites. Cashback Reward Cards allow cardholders to accumulate points for their daily spending on the cards, then spend those points or convert them to cash or credit on a statement each month.
Rewards sites and apps work the same. Consumers visit their favorite stores through the rewards site link, make purchases and earn points redeemable for cash. Buyers who combine these methods can earn a substantial amount of cash back without changing their spending habits.
5. Get a higher interest rate on savings
Traditional savings accounts earn interest, but not a lot. With high yield savings accounts, consumers can earn more on their savings.
These accounts are excellent for emergency funds. Consumers who are struggling to fully fill their emergency funds can use high yield savings accounts to get there a little faster. Then, they can use the additional interest earned on their fully funded fund to fund other savings and investing goals.
Save more money this year
Saving money doesn’t have to be complicated. These are people who monitor their personal finances and are consistent. Applying the above tips may represent small changes, but they represent substantial savings over the months and years, helping anyone who follows them build more wealth and strengthen their financial security.
Notice: The information provided in this article is for informational purposes only. Consult your financial advisor about your financial situation.
SOURCE Advancing America