THE ANGEL, June 10, 2021 / PRNewswire / – Every dollar saved is money someone can use toward a financial goal – whether it’s building a nest egg, saving for kids’ college, or buying a home. Anyone could use a few more tips to tuck away a few more dollars, so here are five tips on how to do that how to save money in 2021.
1. Track expenses
Tracking expenses is a similar tactic to creating a budget, but it can be easier to learn and get started. Users can use a simple spreadsheet to record expenses or keep track of them in budgeting apps by linking their banking information.
These tools can make it easy to monitor every penny spent for a couple of weeks or even months. From there, people could easily discover lower expenses. For example, they might see themselves eating at work four days a week. If you reduce that by making lunch at home, you can easily make savings.
2. Check subscription services
Subscription services are growing in popularity. Consumers can subscribe to anything from streaming sites to monthly skin care boxes and more.
The problem is, people sometimes lose track of all of their subscription services. They may not use them that often or they may stop using them, but they still pay for these services every month.
In this case, people should go through their bank statements, make a list of all the subscription services they are paying for, and think carefully about how much they use or need each service. Chances are many will be able to cut a subscription or two (or at least downgrade their plan) and save a good chunk of the change each month.
3. Refinance Debt
High interest borrowers must pay can add up. Fortunately, borrowers can often refinance their debts at a lower interest rate and save every month.
Many borrowers use personal loans for this. Some also rely on credit transfer credit cards, which enable the borrower to transfer credit to the card and pay out interest-free over a defined period of time (e.g. 12 months).
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Regardless, borrowers should ensure that the new debt has a lower interest rate than the weighted average interest rate on their old debt. Homeowners can also refinance their homes at a lower interest rate and potentially save hundreds of monthly payments.
4. Benefit from cashback
Thanks to cashback rewards, credit cards, and websites, people rarely have to pay full price for much of their purchases these days. With cashback reward cards, cardholders can collect points for their daily card spending, then redeem these points or convert them into cash or a bank statement credit each month.
Rewards sites and apps work similarly. Consumers visit their favorite stores via the link on the rewards page, make purchases and collect points that can be redeemed for money. Buyers who combine these methods can earn a significant amount of cashback without changing their buying habits.
5. Achieve a higher interest rate on savings
Traditional savings accounts pay interest, but not a lot. Thanks to high-yield savings accounts, consumers can make more from their savings.
These accounts are great for emergency funds. Consumers working to top up their emergency funds fully can get there a little faster with high-yield savings accounts. Then they can use the additional interest they earn from their fully equipped fund for other savings and investment goals.
Save more money this year
Saving money doesn’t have to be complicated. What matters is that people monitor their personal finances and be consistent. Applying the tips above may be small changes, but they add up to significant savings over months and years – and will help anyone who follows them create more wealth and increase their financial security.
Note: The information in this article is provided for informational purposes only. Ask your financial advisor about your financial situation.
SOURCE Advance America