What would an extra $1,000 do for you? Whether you need to pay off a handful of bills, reduce debt payments or pay for a vacation, most people would agree that extra cash is helpful. Here are some great ideas to save money.
Not all of these suggestions will work for you. Read through and check out the items that will help you the most.
If you need a little extra cash this year, here are a few ideas to save money that can save at least $1,000 this year.
Top 9 Easy Ideas to Save Money
Low Income Benefits
If you are a low income earner really finding it difficult to get by…then get help! Did you know that there are numerous government benefits and non-profit programs to help with paying and subsidizing bills? These savings can really help inject a bit of life into the family budget.
Switch Life Insurance Plans
Get rid of your whole life insurance policy and opt for a cheaper term life insurance policy. This can easily save you more than $100 a month, depending on how many people you have covered. Use the extra savings to invest in a money market fund and get much better rates than you will for a whole-life investment policy.
Check the Auto Insurance
When is the last time you shopped around for auto insurance? If it has been more than three years, take a few minutes to get a few free quotes.
Switching to a lower car insurance plan, changing companies or increasing your deductible can easily net you an extra $50 to $100 per month.
If you do the math, simply switching your life insurance and saving on your car insurance could save you $2400 in a year!
Switch Banks
If you are paying to have your account at a bank, consider switching to a credit union or another bank. Some banks offer better interest rates and other perks that could pay off over time.
Refinance Your Home Loan
If you are confident that you owe less than you home is worth, you may be able to get better interest rates on your home loan. Talk to your lender to see if you qualify for a lower interest rate.
This can be particularly beneficial to homeowners who had bad credit when they got the loan. Even a reduction of 1% (on a $200,000 loan) will save you around $100 per month and $40,000 over the life of the loan.
Go on a Spending Fast
Make a goal to only pay for essential items (food, rent, utilities etc.) for the next three months and see how much you can save.
Repair Old Clothing
Sew holes, replace buttons and patch tears in your clothing to make it last longer. You can easily change up some items if the damage is too severe to repair. For example, cut off a bear of kid’s pants into shorts. Hem the bottoms to make them look new.
Negotiate Interest Rates on Credit Cards
If you have a good payment history on your credit cards, you may be able to save cash by asking to have your interest rate lowered. You will have better luck if you have been making payments on time and you keep your balance low.
Quit a Bad Habit
Stop smoking, drinking soda or buying fancy coffee and save an easy hundred dollars a month or more. Your vices cost you a lot of money. Cutting out a vice is one of the easiest ideas to save money.
Pay with Cash and Save Your Change
Paying with cash cuts spending. Instead of tossing that loose change aside, put it in a jar or bowl and cash it in when the jar gets full. Loose change adds up fast.
What do you do to save money? What ideas to save money are you going to use to save $1,000 in the next 12 months?