Are you looking to save money this year? Now is a good time to review expenses and see what you can cut. Here are five ideas to help you on your way.
1. Drop Overdraft Protection
This service is offered by banks and credit unions. Should you overdraw your account with an ATM or debit card, the bank will loan you the money to cover the transaction. While overdraft protection fees vary by bank, the average is $27 a transaction. If you don’t cover the overdraft fast and keep overdrawing, the fees will add up quickly. This is very profitable for the banks, but not for you.
- Overdraft Protection is a service for which you must “opt-in.” If you have it and you frequently overdraw your account, cancel it. Your transactions will be refused, but you will save significant money.
- You may be able to link your account to a savings account or a credit card. If you overdraw your account, the bank will, often for a smaller fee, transfer money to cover the overdraft.
2. Shop Your Insurance
If you haven’t shopped around for insurance within the past three years, now is a good time to search for a better price. Obtain quotes from at least three to four insurers.
- Savings can often be found when you bundle your policies. This is combining your insurance policies, such as homeowners, auto and umbrella, into a package with one insurance company. How much you save on premiums depends on the state in which you reside, the type of home in which you live, and whether you rent or own your home.
- Once your car is 10 years old or worth less than 10 times your premium, consider reducing your insurance. You can save money by dropping collision coverage and just keeping injury and property damage coverage.
3. Plug Leaks from Your Bank Accounts and Credit Cards
Review your statements for regular payments for services you no longer use.
- Are you still paying for a gym membership yet never visit the gym? Have you signed up for a credit monitoring service or an app that you no longer use? Are you sending a monthly contribution to a charity you no longer choose to support?
- To cancel payments, call the company charging your account.
4. Ditch Cable
With an HD antenna, you can receive signals from the major TV networks.
- Depending on the cost of your cable service, you can recoup the price of the antenna in a few months.
- To expand and customize your viewing options, you can stream live TV over a broadband internet connection from services of your choice.
- Before cutting the cord, read up on how to make the switch, verify you have the correct equipment, and test your internet connection. You can find information and advice by searching the internet for “how to quit cable.”
5. Use Cash
It is much more painful to part with cash than to use a credit card.
- Studies have shown people spend less, sometimes half as much, when they pay with cash.
- Some vendors, such as gas stations, will give you a discount when you pay with cash.
Good luck slashing expenses. If you have another money saving idea, please share a comment.
This blog is published to provide you with general information only, and is not intended to provide specific or comprehensive advice. Money Care, LLC encourages individuals to seek advice from competent professionals when appropriate.