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55 Practical Ways To Save Money Efficiently

55 Practical Ways To Save Money Efficiently

There are many ways to save money and as you start discovering more ways to save money, you will find that it becomes easier as the days pass. If you are efficient and wise with your money, you can probably save thousands each year.

Saving money does not have to be hard. I was able to save my money and pay off around $40,000 in student loan debt. You can save money to lower your budget, pay off debt, and increase your savings too.  Here are a few practical ways to save money efficiently.

Ways to Save Money on Food

1. Buy groceries in bulk. You may be able to save per item this way.

2. Bulk cook your meals. This can save you money because you are less likely to waste ingredients.

3. Make your food at home.

4. Know which grocery stores have the cheaper items.

5. If you eat out, bring a coupon.

6. Create a menu plan before you go grocery shopping.

Ways to Save Money on Insurance

7. Ask if you can qualify for any further discounts.

8. Shop around for the best insurance rates.

9. If you are confident that you can save money, raise your deductibles. You can raise it from $500 to $1,000 and save some money. I’ve seen some people have $0 deductibles who are wasting a lot of money.

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Ways to Save Money on Transportation

10. Know when to buy airfare. Certain days are cheaper, and flying on certain days are cheaper.

11. Do you really need all of that car insurance coverage? When you have car insurance, there are usually a lot of extras in there, such as towing, rentals and so on.

12. Determine how many cars you really need. Cutting out one car can lower your transportation expenses significantly.

13. Know where to buy gas. Near my house there is a gas station that is almost always 20 cents cheaper than everywhere else. It’s not a large savings, but I don’t even have to go out of my way to go to this gas station, so I might as well go there.

14. Get your tires rotated. Tire rotations are cheap and can really extend the life of your tires.

15. Get an oil change. You might not need one every 3,000 miles though.

16. Clean out your car. Extra weight can mean worse gas mileage.

17. Buy a better air filter. Some air filters have a lifetime warranty and can also improve your gas mileage.

18. Know when to buy a car. There are good and bad times to buy.

19. Use public transportation to save even more money.

20. Ride your bike. If you already have the bike, then everything else after this is nearly free (except for bike maintenance of course).

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Ways to Save Money on Personal Items

21. Ask for generic drugs.

22. Buy store brand. When it comes to medications, store brand is almost always identical to name brand.

23. Buy clothing when it is on sale. Clothes almost always go on sale.

24. Buy second hand. There are many second hand stores that carry the latest styles.

25. Take care of the clothing that you buy. Washing something incorrectly can cost you money because you may have to buy the same item again.

Ways to Save Money on Your Home

26. Keep your furnace in good condition. Have someone check it if you do not know how.

27. Buy efficient windows if yours are no longer efficient. If you have old windows, then you may just be throwing money away because cold air is just flowing right inside.

28. Buy the house that you need. Do you really need 8 bedrooms when there are only the two of you?

29. Shop around for the best interest rate.  1% difference in an interest rate can be a big difference for your monthly mortgage payment.

30. Before you buy, know what the property taxes will be like. There were many homes that we were thinking about buying until we saw how much there property taxes were. A similar house at the same price would only have taxes of around $3,000 per year, but some houses that we found at the same exact price had taxes of nearly $7,000 or $8,000 each year.

Miscellaneous Ways to Save Money

31. Keep track of what you spend. If you are not good with your budget and always spend more than you make, then you need to closely keep track of what you are spending.

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32. Start a budget. Make it realistic and know exactly what you are spending in each category. You will probably be surprised.

33. Little amounts add up. If saving an amount such as $200 per month seems too high for you, aim for something such as $50 per week. A different mindset can help a lot.

34. Don’t spend money on interest. Remember to pay your bills.

35. Avoid ATM fees. Look online to see where you can use an ATM for free.

36. Check to see if you are allowed any discounts. If you belong to any organizations, then you may be able to get a discount on certain items. We receive a 20% discount on our AT&T bill, which is nice and it only took 5 minutes to do, and that was over 5 years ago.

37. Save your coins. Throw all of your coins into a jar and empty it out after it is full.

38. Before you buy something, think about how long you have to work in order to actually buy it. Is that $100 dress worth hours of your time?

39. If you are a bad credit card spender, then leave your credit card at home and only carry cash.

40. Round up. Each time you spend an amount such as $1.33, round up to $2.00 and save the rest.

41. Before you buy something, put it down and think about it while you are shopping for other things on your list. If you still want to go back to it, then maybe you should buy it.

Ways to Save Money when Having Fun

42. Find a coupon before you go out. There are entertainment books available in most cities with many coupons.

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43. Look for free festivals in your area. In many cities and towns, there are plenty of them.

44. Go for a bike ride.

45. Camp out instead of staying at a hotel.

46. Use Netflix instead of cable.

47. Visit the library. You can borrow books and even the latest movies at some libraries.

48. Look for free tickets. For many events, you can find free tickets being handed out.

49. Do a secret Santa this year instead of exchanging gifts with everyone. Buying just one present instead of 10 can easily save you money.

50. Have dinner at a friends instead of going out to eat.

51. If you go out, drink during happy hour.

52. Watch amateur sporting events instead of professional ones.

53. Watch a movie early in the day instead of at night.

54. Have a babysitting group if you had children.

55. Buy season passes. Yes, the upfront cost may be high, but you may be able to save a lot of money as well.

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Last Updated on March 4, 2019

How to Use Credit Cards While Staying Out of Debt

How to Use Credit Cards While Staying Out of Debt

Many people will suggest that the best thing to do with your credit cards during these tough economic times is to cut them up with a pair of scissors. Indeed, if you are already in huge debt, you probably should stop using them and begin a payback strategy immediately. However, if you are not currently in trouble with your credit cards, there are wise ways to use them.

I happen to really love my credit cards so I will share with you my approach to how I use mine without getting into deep financial trouble.

Ever since about 1983 when I got my first Visa card, I continue to charge as many of my purchases as possible on credit. Everything from gas, groceries and monthly payments for services like my cable and home security monitoring are charged on credit. Despite my heavy usage, I have maintained the joy of never paying any interest fees at all on any of my credit cards.

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Here are some tips on how best to use your credit cards without falling into the trap of paying those nasty double-digit interest fees.

Do Not Treat Credit Cards as Your Funding Sources

Too many people treat their credit cards as funding sources for major purchases. Do not do this if you want to stay out of trouble. I use my credit cards as convenient financial instruments so I do not have to carry around much cash. In fact, I hate carrying cash, especially coins. When you buy things on credit, the purchases are clean and you will not get annoying coins back as change.

I do not rely on my Visa, MasterCard or American Express to fund any of my purchases, large or small. This brings me to my golden rule when it comes to whether I will pull out any of my credit cards either at a retail or online store.

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I never purchase anything with my credit cards if I do not have the actual cash on hand in my bank account.

If I really cannot pay for the item or service with cash that I already have at the bank, then I simply will not make the purchase. Remember, my credit cards are not used as funding sources. They are just convenient alternatives to actual cash in my pocket.

Make Sure to Always Pay Off Balances in Full Each Month

The next very important part of my overall strategy is to make absolutely sure that I pay the balances in full each and every month no matter how large they are. This should never be a problem if the cash has been budgeted for my purchases and secured in the bank. I have always paid my full balances each month ever since my very first credit card and this is why I never pay interest charges.

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Using Credit Cards with Rewards

Most of my credit cards are of the “no annual fees” type, including one MasterCard on a separate account I keep at home as a spare in case I lose my wallet or incur any fraudulent charges. However, I do use a main Visa card which does have an annual fee because all purchases on that card reward me with airline frequent flyer points. For me, the annual fee is worth it since I do travel and I get enough points to redeem many free flights.

You have to decide for yourself if you will charge enough purchases on credit each year without paying interest charges to warrant a credit card that rewards you with airline points (or other rewards). In my case, the answer is “yes” but that might not be the case for you.

I occasionally use a MasterCard or American Express card on small purchases just to keep those accounts active. Also, I have been to the odd retailer that accepted only a certain type of credit card, so I find that having one from each major company is quite handy. Aside from my main Visa card which earns the airline points, the rest of my cards are of the “no annual fees” variety.

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So this is how I use my credit cards without getting into any financial trouble with them. This strategy is recommended only if you are not in debt, of course. In fact, it is worth keeping in mind once you’re out of debt so that you can keep your credit cards active and treat them responsibly.

What are your credit card usage strategies? Let me know in the comments — I’d love to hear what methods you use.

Featured photo credit: Artem Bali via unsplash.com

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