Save a significant amount of money: Here's how

Save a significant amount of money: Here's how

Hanging out with friends, eating out and consuming Starbucks coffee can make you a reckless spender. You'll be surprised at how fast these expenses become your need instead of wants.

If you're earning a good amount and able to save money after making daily purchases, then you need not wary about your financial future. But, people who are using their credit cards for making daily purchase should be watchful about their spending.

The million dollar question is, how can you/we draw the fine line between spending and saving money on a daily basis? Most of the people complain that they can't find ways to save money. They just believe every purchase is important and blow their money. Understanding the difference between essential daily expenses and luxurious habits will help you - here are some unique tips to keep full control of extravagance and you'll no longer feel overwhelmed in terms of saving money.

Let's start with transportation: Cars can be money suckers, requiring costly fuel and potentially expensive maintenance. Car loan payments and insurance are also in the queue. So, reducing automobile cost is certainly important to save a significant amount of money from your monthly budget.

1.) Consider public transportation

These tips are for those who have fair access to public transportation. Remember, every time you're able to ignore your SUV, you'll save money. In this time of rising obesity and other overweight diseases, you must consider cycling, walking as much as possible. Use your car for traveling long, attending an event instead of everyday use like reaching the office, supermarket and so on.

2.) Car share Another option is carpool, of course for those who have that opportunity to share the car. If you use your vehicle infrequently, you may be able to utilize companies like Car2Go, Uber, and Enterprise Car Share depending on your locale. Selling the unused car and using these services are necessary can be a good option to save money on costly insurance and other costs.

Next, let's discuss utility bills: All over the country, people spend a lot of money on their utility bills, not realizing that this is one of the most crucial areas where people can save a lot of money as well.

1.) Conserve and save Replace bulbs with CFL or LED. CFL or LED bulbs are more energy efficient and will serve you for a longer time as well. If you use light for 4 hours on an average a day, then the average electricity costs will be $0.12 per kilowatt. However, you have to be conscious about the useless usage of power. Switch off the light when you're leaving the room and unplug electrical devices when you're not using them. You can also replace your old thermostat with a programmable one. This type of thermostat will automatically change the temperature and balance it when you're not in the room or sleeping.

2.) Try BillCutterz BillCutterz negotiates discounts on your monthly bills on your behalf, saving the average customer 30 percent or more on their bills. Best of all, if they don't save you any money, it's completely free.

Saving money on groceries

Eat homemade meals as much as possible and consider restaurants as a monthly treat (or for special occasions).

People love to eat; unfortunately they often waste, too. Luckily, it is possible to stretch your food dollar instead of stretching your waistline and filling the trash can. Consider an inventory before hitting the grocery store, so you don't just don't make a habit of roaming the grocery store twice or thrice a week.

Better yet, sign up for a wholesale club that delivers like Boxed.com, so you can plan your meals and discount shop from the comfort of your couch (SCM readers can get $10 off w/ code 7MP35). Only shop groceries when you need them. Check your refrigerator, kitchen, and make a list every time you go for shopping. Take the challenge of making a whole dinner using leftovers.

Money saving tips for parents

If you have kids, here are some more ways for you to save money around the home.

1.) Shop around on the important stuff

Make sure you are making the most of your money on the things you have to buy most often. Shop around for staples like diapers and baby food. Start off by reading our article on saving money on diapers:

Parenting on a budget: How to save money on diapers

2.) Consider renting toys instead of buying them.

Kids outgrow toys (even expensive toys that were originally irresistible!) incredibly quickly, then before you know it you have a closet full of unused junk that you spent thousands of dollars on. Save some money upfront by renting age appropriate toys then exchanging them for new toys are your kids grow. Learn how to rent toys here.

3.) For some things, the opposite advice is true! Know when to save money by buying things that you would otherwise rent a few times. Save money by buying bounce houses instead of renting.

Now, let's talk about ‘debt’ - the biggest money pit: Reducing debt helps lowering expenses. If you don't know how to do it, read on:

1.) Opting for a balance transfer card

A balance transfer card might be the best way to reduce the higher interest rates on your existing credit card bills. You can take advantage of the introductory period that offers 0% APR up to a certain period to save on the interest rate. Paying down the debt within the introductory period is important to avoid higher interest rate.

2.) Ask your creditor how to reduce your credit card rate. Your creditor may agree depending on how regular you are on your monthly payments.

More useful financial tools

You may benefit from You Need a Budget - YNAB is a highly recommended, drop-dead easy, award-winning budgeting software for prioritizing spending, paying down debt, and setting and achieving financial goals. Use this link to sign up for a 34-day free trial.

Final thoughts

Who doesn’t want to save more money to secure their financial future? However, you need to make some adjustments to your spending habits to make positive changes in your financial life. Though it can be quite tough, but you can be successful with a little determination, effort, and practice in achieving it.

This post is contributed by Patricia Sanders from Debt Consolidation Care Community.

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