You're probably sick of hearing about how important it is for you to start saving more money right away, whether it's from your parents, friends, or personal financial professionals. Instead, you truly need some useful advice on how to really begin increasing your savings right away. After all, you can only go so far by forgoing your daily $5 Starbucks coffee. Fortunately, there are lots of simple ways to cut costs.
1. Start a high-yield savings account.
Why work so hard to save money if you're just going to deposit it in an account that pays almost no interest? Your previous savings efforts will have a greater impact if you open a high-yield savings account.
Find a high-yield savings account with a reasonable annual percentage rate and a quick setup. As an illustration, Milli Bank offers a 5.00% APY and makes it simple to open an account and send money in. The APY is up to date as of June 13, 2023, but it is always subject to change.
A mobile bank with FDIC insurance, Milli provides savers with more than simply a competitive interest rate. In reality, the Milli app was created to enable you to increase your daily financial savings. You may use the app to keep track of your spending in real-time, divide your money into "Jars" for particular savings objectives, and more.
You'll discover how the Milli app can assist you in completing some of the other tasks on this to-do list for saving money. (Well, not number two. Your lunch won't be packed for you by Milli.)
2. Bring a Lunch Every Other Day or More Often
While some of your coworkers may be leaving for lunch, you probably don't want to eat your sandwich in the break room. A simple method to save $5 to $15 for every meal — easily $100 over the course of a month — is to limit eating out for lunch to every other workday.
3. Monitor Your Purchases and Create Spending Objectives
Create a challenge for yourself with monthly spending caps. This is applicable to numerous categories. Consider setting your sights, for instance, on the cost of eating out. Or perhaps your goal will be to spend less at a specific store.
However, how can you monitor this? The Milli app can make your life simpler in this situation. You can track your spending in real time with Milli rather of spending hours looking over bank statements to see what you spent where. By categorizing your expenditure targets, you can readily monitor your progress as the month goes on.
4. Round off every purchase and keep the change
A set-it-and-forget-it approach is a terrific way to save money. Another area where Milli simplifies things is here. Simply instruct Milli to round up amounts each time you make a purchase. Your savings account will then get the extra change. You might be shocked by the long-term impact that one straightforward action can have.
5. Maintain Your Own Home
Many people may not have the luxury of hiring home help, but many others spend at least $100 per month on a house cleaner. One time, try cleaning up after yourself; you'll save a lot of money and come to appreciate everything your maid does for you.
6. Purchase your airline tickets a month beforehand
It's simple to pay an extra $100 or more by making last-minute travel arrangements. According to a Skyscanner survey, you can purchase the cheapest airfare for domestic travel 30 days in advance and for international travel four months in advance. So make travel plans in advance if you know you'll be going soon to maximize your airfare savings.
7. Transfer the balance on your credit card
The money you could use for savings will be devoured by high credit card interest. Find a credit card provider that offers a promotional 0% APR balance transfer, then transfer your current debt to the new card. The caveat is that you must pay off your debt throughout the trial period in order to avoid starting over.
8. Before going to the grocery store, make a list.
Avoid going to the store without enough food or supplies and stumbling down every aisle in quest of what you "need." It's amazing how making a list of what you need to buy before going grocery shopping each week will keep you from returning home with an additional bag of potato chips, soda, and frozen pizzas.
9. Refrain from Using Private Mortgage Insurance
You might have enough equity now to get rid of your pricey private mortgage insurance if you bought your home with less than a 20% down payment. If you do, you should probably.
10. Make use of a health savings account.
Consider opening a health savings account if your monthly expenses for medical care are eating up all of your money. Similar to a 401(k), you are able to contribute to these accounts and set aside pretax funds to pay for out-of-pocket medical expenses. To see if you are eligible, see the restrictions.
