Did you know that roughly 78% of American workers are living paycheck-to-paycheck each month? We live in one of the richest countries in the world. How is this possible?
Ultimately, it comes down to poor spending habits. Between buying things we don’t need and an overreliance on borrowing money, most of us live under tremendous financial strain. More importantly, it leaves us vulnerable in the event of an emergency.
But we can help. Keep reading for our top five money-saving tricks to help you gain control of your finances so you’ll have money for a rainy day.
- Rent Out the Spare Room in Your Home
One of the biggest expenses we have is our monthly rent or mortgage payment. However, you can substantially cut costs by bringing in a roommate.
If you live by yourself in a two-bedroom apartment, you could cut your part of the rent in half by sharing your space. If you live in a house and have a spare room, charge someone a few hundred dollars a month to rent it out.
- Downsize Your House
Alternatively, if you don’t want a roommate but still want to save money, you could downsize your living situation.
Moving is no small effort. However, if moving to a more affordable home now saves you thousands of dollars a year, it will be well worth the effort.
Take a look at homes or apartments in less expensive neighborhoods. Find smaller and/or older places to live.
- Stop Dining Out
One of the most important money-saving tricks is to stop eating at restaurants. Yes, restaurant food is convenient and delicious. However, it’s also expensive.
Dining out is one of the most common money habits that get people into trouble. Instead, prepare all of your meals at home, including lunches for work. Additionally, brew your own coffee rather than spending five dollars a cup at commercial coffee shops.
This is especially important if you’re between jobs. If you’re in this situation, check out this article for some amazing tips to save money while you’re out of work
- Cut Out Unnecessary Services, Memberships, and Subscriptions
Having emergency money on hand is important for things like car repairs, veterinary visits, home maintenance, and more. We recommend getting at least $1,000 stashed away in a savings account.
To get you there faster, reduce your unnecessary spending on the things you don’t need or use. These include:
- Gym memberships
- Multiple TV/movie streaming services
- Cable
- Magazine subscriptions
- Mystery/product box subscriptions
- Paid apps on your phone
- Etc.
You might be surprised how much money you spend each month on superfluous things.
- Put Yourself on a Strict Budget
Finally, the ultimate money-saving tricks come down to one step: putting yourself on a budget. Saving money means implementing discipline to control your spending habits.
Take an in-depth look at your cash flow to determine how much money you make each month versus how much you need to spend on necessary expenses. Then, identify what you can cut out to maximize your savings.
Want More Money-Saving Tricks and Other Financial Advice?
We know how difficult it can be to dig yourself out of debt. Just as importantly, we understand that making sacrifices to save money for a rainy day is rarely enjoyable. However, you need to start taking ownership of your financial security today and implement the money-saving tricks listed above.
If you need more help, check out some of our other financial articles before you go for more advice. Our blog was created to help people like you improve their lives in every way possible.