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20 Mini Money Hacks To Save You A Lot

20 Mini Money Hacks To Save You A Lot

Do you like to save money? Dumb question, right – you work hard for your money, so you want to keep as much of it as possible. There are plenty of ways to save money without spending hours to do so. Here are 20 simple mini money saving hacks that can help you save a lot. Let’s get straight to the point and start saving…

1. Put your savings on auto-pilot

You can automate just about everything; and you should. It takes a lot of weight off your shoulders and frees up your time. Saving is easy to automate with online banking – simply set up an automatic transfer from your checking to your savings each month… Or try Digit! Digit is a free tool that automatically transfers different amounts from your checking account to your savings. It’s an intelligent tool that knows when you can and can’t afford to save; but don’t worry, if for some reason Digit causes you to overdraft by taking too much, they will fully reimburse any fees and charges (though it’s so smart I’ve never even heard of it causing an overdraft).

2. Make a meal plan

When people ask how my wife and I feed our family of six for under $400/month, I have two words: “meal plan”. Planning your meals will save you a ton. It eliminates buying extra food that you don’t need. It also helps you plan ahead for making more affordable meals, rather than buying what looks good when you’re at the grocery store.  I’ll go over how we make our meal plans even cheaper in the next point.

3. Plan meals around sales

You don’t have to spend hours going through sale papers to find the best deals on everything. Just make your meal plan, but leave the specifics open. For example, one of your meals could be a stir-fry, so you need meat, veggies and a grain. When you get to the store, buy the best-priced meat and veggies. Then look for a grain, like rice or quinoa and buy whatever is the most cost-effective, weighing the price and health benefits.

4. Drink more water

This may seem obvious but the statistics show that it isn’t. You’ll save a lot of money if you stop buying the 24 packs of soda and bottles of juice. Bottled water is cheap – tap water is cheaper. There are many great options for filtering if you’re not a fan of the tap taste. Weigh the cost and see whether you prefer bottled or tap. When you’re eating out, a family of six can easily save $12-$20 per meal just by drinking water instead of soft drinks.

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5. Set an automatic budget

There are plenty of free services like Mint and Personal Capital that allow you to link your accounts and automatically track your budget. If you’re not one for spreadsheets and inputting numbers, this is for you. You are able to view it and oversee the budget, but once you set your categories everything is automatically sorted for you. Occasionally something will go into the wrong category, but it’s easy to switch it and change the category for all future transactions.

6. Set a plan to pay off debt

If you want to get out of debt, you need a plan. There are a few options, but the two most common are the debt snowball and the debt avalanche. How do they work? For the debt snowball you simply write down all your debts from the smallest balance to the largest, then you use any extra money to pay off the smallest balance first. Once that’s paid off, take that payment plus any extra money, and put it on the next smallest balance until you’re debt free. With the debt avalanche it’s the same idea, except you sort by interest rate (highest to lowest) instead of by balance.  The debt avalanche will save you more money in interest, but you may prefer the small wins that the debt snowball provides in the beginning.

7. Get a second job

If you’re trying to reach a goal that seems to be taking longer than you’d like, you may want a second a job. It’s not forever; just a temporary job to get past whatever situation you’re in. If you’re in debt a second job is a great way to pay it off faster. If you’re building an emergency fund: get a second job to get it knocked out. The service industry is great for this, such as waiting tables or delivering pizzas. Service jobs are great for maximizing your extra working hours, since you’ll be getting tips and likely making more than you would at a regular hourly job.  If you aren’t able to get a second job then don’t worry!  There are plenty of other ways below to save money without working more.

8. Challenge everything

Challenge every single expense you have. Do you really need cable? What about those magazine subscriptions that you don’t read? Both of them cost money on their own and the ads could possibly persuade you to spend even more. Odds are you can cut something out. Perhaps you’ve been paying for a service so long that it’s second nature? It’s time for a challenge and here’s how to do it:

  1. Write down every single expense you have
  2. Look for expenses you can fully cut out
  3. Find ways to save money on the remaining expenses

9. Compare insurance rates

When was the last time you checked insurance rates? This is something you should be doing annually. The cheapest isn’t always the best, but usually you’ll find that you can get the same coverage for less money if you shop around. Once a year take a look at all your insurance policies. Call around or go online and see if you can find better rates. Most of the time you can!

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10. Use coupons wisely

There are primarily two crowds when it comes to coupons: the first crowd says coupons aren’t worth the time you spend cutting them; the second crowd says coupons are always worth it because they save you money. However, there exists another crowd: the savvy couponers. Be discerning with coupons. It may not be practical for you to spend hours each week cutting them, but you should be on the lookout for coupons that save you a lot of money. Check out popular services like Groupon or Living Social to look for a coupon every time you’re about to spend money. It takes seconds and could save you a lot, especially on services like an oil change or a massage.

11. Review your card statements

Whether you use a credit card or a debit card, review your statements each month. It’s not uncommon for random or bogus charges to appear on your account. It’s easy to overlook these charges when you’re not checking your statement each month. If you have multiple cards, use a service like Personal Capital to link all your accounts. This way you can see all your transactions in one place for an easy review.

12. Start an emergency fund

Emergency funds are something you should set in place to avoid using a credit card in an emergency. When a crisis hits you don’t want to turn to a credit card and pile on the debt.  Debt can turn a crisis into a catastrophe. Dave Ramsey popularized the idea of having an emergency fund instead of a credit card. Dave recommends getting it to $1,000 quickly; however anything is better than nothing. Even if you can just put $50 or $100 in your emergency fund each month, you’re still making progress.

13. Use the 30-day rule

When you’re considering making a large purchase, use the 30-day rule. If you still want it just as much after 30 days, consider making the purchase. Often you’ll find that you no longer care about whatever it is you wanted. This eliminates spontaneous purchases made out of excitement or emotion.

14. Take it down a notch

Set your thermostat one degree cooler or warmer depending on the season you’re in. You will barely notice the difference and a month later you can do it again since you’ll be fully adjusted to the new temperature. According to the U.S. Department of Energy, you can save as much as 1% on your yearly heating bill for each degree.

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15. Don’t replace, repaint

If you’re planning to replace an item in your home, such as an appliance, cabinets or bathroom components; consider painting before replacing. If you’re only replacing it because of the appearance, painting may be your best bet. Anything from appliances and cabinets to sinks and bathtubs can be painted. You just have to buy the right paint. Always make this consideration before buying something new.

16. Know your options

Home Depot and Lowes aren’t the only places to buy home items, just like Best Buy isn’t the only place to buy electronics. Know your local and online options. We almost all know to look online before deciding on a purchase, but you may also be surprised at your local options. Overstock, wholesale and liquidation stores are a few of the places you should check out. Sure they’re hit or miss, but when you find some deals that save you hundreds or thousands it will all be worth it. We were able to buy ceramic tile for less than half the price we previously found, just by walking into a wholesale store that we passed by every day.

17. Keep up with maintenance

Maintaining your home and your vehicle can save you thousands down the road. Regular oil changes, replacing air filters and checking tire pressure will all lead to savings in the future. Likewise, replacing your home filters, being aware of issues and quickly making needed repairs will save you some serious cash. Be mindful and pay attention to general maintenance. Staying on top of maintenance will stop other problems before they happen.

18. Reduce your interest rate

If you have credit card debt, you know interest can be a killer. Call your credit card company and ask for a lower rate. You don’t need some amazing reason to convince them. Many companies will simply lower it because you asked. It’s easier than you may think to negotiate with credit card companies. Often times, they are just happy you’re paying instead of filing for bankruptcy.

19. Give up the expensive habits

If you’re trying to save money, your habits may be working against you. For example, the cost of cigarettes and alcohol can be insane. If you don’t want to completely cut it out, try cutting back. Smoking one less pack of cigarettes each week can save you as much as $40/month depending on the state you live in. When you count the costs of your habits, it may open your eyes to another benefit of quitting.

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20. Get paid to spend

Maximize your credit card rewards by using the right card for your purchase. Some cards offer 5% cash back on gas, while others offer 6% cash back on groceries. Credit card rewards are a great way to earn while you spend, which in return, saves you money. It’s like putting a certain percentage of every purchase into a savings account.

That was quick! Now you’ve got 20 ways to save money so start saving today. Some of these require you to take action, while others mean you’ve got to stop doing something. Whether you’re adding or subtracting something from your life, stay mindful of your spending. You should always know where your money is going, since you should be the one telling it where to go. Stick to your budget, follow these tips and save some money!

Featured photo credit: Cutting Your Spending / Tax Credits via flickr.com

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Kalen Bruce

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Last Updated on July 10, 2020

The Definitive Guide to Get out of Debt Fast (and Forever)

The Definitive Guide to Get out of Debt Fast (and Forever)

Debt can feel crushing, like a weight that is always weighing you down. Looking at those numbers, it can feel as if you’ll never get out from under it. However, if you really want to learn how to get out of debt, it is possible with a great deal of focus and self-control.

Getting out of debt isn’t impossible. Like any big goal, all that it takes is an action plan to identify where you are and creating a plan to zero out your debt.

Identifying All of Your Debts

The first part of paying off your debt is getting a complete picture of what you owe. When you have everything written out in front of you, it makes it much easier to create an action plan. Depending on how much you owe, it might also help you realize it’s not as bad you might have originally thought.

Here’s how you can get started identifying your debts:

1. Own Your Debt

Before you start identifying all of your debts, take a moment to process that you have debt but want to get out of it.

Forgive yourself for any past mistakes, missed payments, or overspending. It might be painful to accept how much debt you have at first, but you must own it.

2. Make a Debt Tracker

It’s astonishing how few people ever created a tracker to understand their total debts. Most likely, it comes from not wanting to accept the guilt of having debt, but, if avoided, it can make it nearly impossible to get out of debt.

Open up a new Google or Microsoft Excel sheet and list out all of your debts. Start with the name of the creditor, interest rates, total balance, loan term length (if any), and the minimum amount due each payment. This will include student loans, credit cards, and any other type of debt owed.

3. Get Your Debt Number

Once you’ve made your debt tracker and taken the other steps, identify your total payoff number. This is crucial, as you will have a starting point and a clear goal that you are trying to achieve.

Prioritizing Your Debts

All debt is not created equal. It’s imperative to understand that there are different types of debt.

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1. Understand Bad and Good Debts

Bad debts are usually paying for things you want instead of always need. While there might be some emergencies that max out your credit cards, often times it’s excessive spending[1].

There are three main types of bad debt:

  • Credit Card Debt: The average American household owes over $16,000 in credit card debt!
  • Auto Loan Debt: According to CNBC , the average auto loan in the US is $30,032!
  • Consumer Loan Debt: Consumer loan debt isn’t as common as credit card and auto loan debt, but it’s still considered bad as interest rates are usually between 10-28%.

Good debt is identified as investments in your future. Here are three common types of good debt:

  • Student Loan Debt
  • Mortgage Loan
  • Business Loans

2. Decide Which Debt to Pay off First

Once you know each type of debt and their interest rates, you can begin to pay off debt quickly.

Focus on paying off bad debt first, regardless of if it is a credit card or auto loan. Start by paying off the loan with the highest interest rate first.

If you have several credit cards with different interest rates, you want to focus on the one with a higher APR. You will actually save more money by eliminating the card with the highest interest rate.

3. Don’t Pay the Minimum Amount

Paying the minimum amount digs you into a hole as interest rates will offset your payment. Even a small amount more than the minimum can help you pay off debt much faster.

Removing Obstacles to Pay off Debt Quickly

Creating a debt tracker and prioritizing a plan is simple, but avoiding temptation can be difficult.

1. Set a Reminder to Track Your Debt

“If you can’t measure it you can’t manage it.” -Peter Drucker

It’s so important to track your debt to ensure that you get it paid off quickly. Similar to working out and measuring your results, you need to track your debt constantly. Start with a weekly reminder, where you sign on and log your updated number. Did you increase, decrease, or stay the same?

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Regularly tracking your student loan balance can be incredibly motivating, as well. You will get a huge confidence boost each time you see your total debt amount decreases.

Set weekly and monthly goals so you can have short term wins and keep the momentum going.

2. Hide Your Credit Cards

If your biggest debt is credit cards, you need to eliminate temptation and remove them from your wallet.

Some people have gone to extreme measures by freezing their credit cards. Why? This would create an ice block around your card, which would require you to chip away at it slowly. This will give you time to think if it’s the best idea to buy that thing you’re about to buy.

3. Automate Everything

Willpower can be a huge downfall to paying off your debt. By automating your bills each month, you will ensure that willpower isn’t involved.

4. Plan Ahead

Getting out of debt will require some sacrifices, but with enough planning, you can make it work.

For example, if you know that you have a friend’s birthday or family dinner coming up, plan ahead for the costs. Whether you need to cut back on spending the week before, pick up a side job, or meet them after dinner, do what is needed.

5. Live Cheaply

The only way to get out of debt is to make some sacrifices on your spending habits. Find ways to save money each month so you can apply that amount to your outstanding debts. Here are some ways to save money each month:

  • Live with roommates
  • Cook dinners and prepare lunches for work instead of eating out
  • Cut cable and choose Netflix or Amazon Prime
  • Take public transit or bike to work

Finding the Lowest Interest Rates

The higher your interest rates, the harder (and longer) it will take you to pay off any debt.

If possible, you want to find ways to lower your interest rates to help get out of debt quickly. Here’s how you can get started:

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1. Maintain a High Credit Score

Your credit score will have a large impact on your ability to refinance your loans and receive a lower interest rate. If you have a low credit score, it’s unlikely you will be able to refinance your loans. Use these credit tips to increase and maintain an excellent score:

  • Never miss a payment
  • Don’t exceed 30% of your credit limit
  • Don’t sign up for more than one card at once
  • Limit hard inquires, like auto-loans and new credit cards
  • Monitor frequently with free credit-tracking software

2. Find Balance Transfer Offers

Start by opening a free account on credit.com. Credit.com offers you the chance to open a free account and see what type of balance transfer offers you can receive. Some of your existing credit cards might already have 0% or lower APR balance transfer offers available.

Contact each of your credit card providers to ask about lowering your rate for a one-time balance transfer offer[2].

If you do take advantage of this option, make sure that you use a balance transfer and not a cash advance. Cash advances have a ton of high interest fees (15-25%, depending on your credit card) and will only compound your debt problem.

How to Get Rid of Debt Forever

Setting up a plan, removing temptations, and getting the lowest interest rates is the first step to get out of debt.

1. Keep Monitoring and Adjusting

Once you have a plan, don’t get comfortable. Track your debt payoff plan and make the necessary adjustments when needed.

Monitor your credit scores with a free site like CreditKarma. The higher your credit score climbs, the more likely you will be to secure a new, lower-interest loan.

2. Earn More Money

There are only so many ways to save money. Instead of clipping another coupon or making sacrifices for your morning coffee, find ways to earn more money!

Think about it…it is much easier to find ways to earn an extra $1,000 per month than find $1,000 to cut from your budget.

Here are some examples of ways to earn more money:

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Talk to Your Boss

Have a conversation with your boss about current salary and/or commission rates. If you’re not satisfied or want a change, don’t be afraid to look around at other positions. Some of them might even have a student loan debt reimbursement plan!

Start a Side Hustle

This could be coaching students on the weekends, driving for Uber, or taking paid online surveys. There are tons of ways to make money outside your 9-5. Now that you have a clear plan to pay off your debts, you’ll be more motivated than ever to figure out creative new ways to earn money.

Build an Online Business

There are so many websites and blogs that earn money from ads, affiliates, and other online products. Find your niche and get started.

3. Celebrate Your Wins

As you progress in your debt payoff journey, don’t forget to celebrate your wins. You need to always reward yourself for the hard work and discipline that is required to get out of debt.

While you shouldn’t celebrate so big that it increases debt, make sure to factor in little rewards to keep you motivated.

4. Set New Financial Goals

Eventually, with a plan and these steps, you can rid yourself of your debt. Once you do, make sure to celebrate your monumental achievement, but don’t stop there.

Now, you can focus on acquiring wealth and increasing your net worth. Set new financial goals so you have a new target to aim toward. Here’s how to set financial goals and actually meet them.

These could be anything now that you are debt free! Think about where you want to travel, buying your first home, or saving for your future retirement. Just like before, make sure that your goals are specific, measurable, and achievable.

Conclusion

Congrats, you can now set a plan in motion to finally pay off your debt quickly (and hopefully forever)!

Remember, if you want to get out of debt quickly, it’s not always easy. Just like any big goal, there will be sacrifices, challenges, and problems to overcome.

More Tips on Getting out of Debt

Featured photo credit: Pepi Stojanovski via unsplash.com

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