One of the best ways to secure your financial future is to reduce expenses. Instead of sending money to a lender, a cable company or a cell phone company, you can put that money into a bank or investment account where it will accrue interest. What are some of the best ways to reduce your expenses this year?
Look to Refinance Your Existing Loans
It may be possible to refinance your home or auto loan to lock in a lower interest rate. It may also be possible to use a home equity or personal loan to consolidate your credit card or medical debts at a lower interest rate. Doing so could help you save hundreds of dollars a month, which will make it easier to either create an emergency fund or pay down the principal balance on those debts faster.
Shop Around for New Insurance Policies
You have the right to shop for and buy a new insurance policy whenever it is convenient to do so. This may allow you to find a lower rate on car, home or life insurance policies in your area. In some cases, you may get a discount by bundling all of your policies together. Discounts may also be available for those who get good grades, those who attend traffic school or make improvements to their home or car that make them less vulnerable to damage.
Convert Your Attic or Basement Into an Income Suite
If you have a finished basement or attic, you may want to consider using it as an income suite to help you pay your mortgage. Depending on where you live, it may be possible to charge enough to cover the entire mortgage or more. You may also be able to get your tenant to pay for a portion of the utility bills each month. This may result in a savings of hundreds or thousands of dollars per year while helping you to build equity in the home faster.
Use Coupons When You Shop
Coupons can help you save 10 to 20 percent or more on each purchase that you make at a department or grocery store. Discounts may be available whether you shop at a physical retail location or through an online store. Using sites like 7Coupons.in may make it easier to find deals at almost any retailer that you shop at. In some cases, you may be able to use both manufacturer coupons as well as store coupons to save twice on the same item.
Ask for Discounts When You Pay in Advance
Landlords may lower your monthly rent if you pay for all 12 months in advance. This is because they get the security of knowing that there is no need to worry about wasting time and money tracking down your rent check each month. By agreeing to automatic payments directly from your bank account each month, lenders may be willing to cut your interest rate by .25 percent or more.
There is never a bad time to start saving money. Fortunately, most tactics that you can use to reduce your monthly expenses don’t require wholesale changes to your lifestyle. By making small changes to your shopping habits such as paying for goods with cash instead of credit, it may be possible to start keeping more of your money. This may result in lower stress and greater satisfaction because having financial security gives you more control over your life.