One of the biggest mistakes most people make is to go through life without setting a budget. If you are like so many of us, you probably get to the end of the month with several bills outstanding and not enough money left to make those payments. That’s probably because you haven’t created a working budget or the budget you are following is outdated. If you don’t know how to set a budget, there are several free templates online you can find with a quick Google search. Once you’ve set your budget and you know what you are working with, here are some tips to help you save big in each of those categories you have listed.
1. Actively Seek Discounts
The first thing you can do to help you save a ton of money each year is to learn how to find discounts as they come available. One thing you can do right now is to find review sites that list discounts and coupon codes in many different categories. Whether you are looking for discounts on clothing or car parts, they are out there if you know how to find them. The best suggestion you can follow is to find a site that updates available discounts regularly so that you will usually find one that will help you save a huge amount of money for products and services you use regularly.
2. Learn to Separate the Wants from the Needs
While you already know the folly of impulse buying, many times we don’t recognize it as such. It’s something we want and when we see it listed at a discounted price, we buy it. We don’t need it, but we do want it and have it for some time. If you are having trouble paying all your bills from month to month, this is one of the main reasons why. For now, until you have respectable savings, learn to separate the wants from the needs. Even when you do have decent savings, remember this rule of thumb. If you don’t need it, don’t buy it! With that said, once in a while you do need to treat yourself but not every week or every time you see something on sale.
3. Pay Down Credit Accounts
The next way to save big is to pay down those credit accounts intelligently. It is suggested that you pay down the smallest accounts first while making only minimum payments on the larger accounts. Once you have paid off the smaller accounts in full, cut up those cards! Now you can use the money you were paying toward them to pay down those with higher balances. At this point, don’t take interest into account. Simply get those smaller accounts out of the way FOREVER. You will be surprised at just how quickly you can get your credit accounts under control if you use the Ramsey method.
4. Choose Online Memberships Wisely
If you do a lot of your shopping online, you may be paying for membership at sites you rarely use. One thing that you can do right now is to go through all those memberships you subscribe to and cancel those you don’t use often enough to warrant paying for. Some of the memberships that offer free shipping like Amazon are worth paying for many times but if you don’t use it often or stream movies instead of paying cable, then perhaps it’s time to let even that membership lapse.
The point is to reevaluate and edit your budget regularly so that you are taking care of bills as they come due while perhaps having a little money left over for your emergency fund. You will not always have the same bills to pay, like those credit accounts you close, so remember to edit your budget as bills are paid in full. Stick to your budget and find discounts whenever possible and watch how easy it is to keep things paid on time.
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