LOS ANGELES, June 10, 2021 /PRNewswire/ -- Every dollar saved
is money that someone can put toward a financial goal — whether
that's building a retirement nest egg, saving for kids' college, or
buying a home. Everyone could use some more tips on stashing away a
few more dollars, so here are five tips on how to save
money in 2021.
1. Track Spending
Tracking spending is a similar tactic to creating a budget but
can be easier to learn and start doing. People can use a simple
spreadsheet to record expenses or track them in budgeting apps by
linking their bank information.
These tools can make it easy to monitor every penny spent for a
couple of weeks or even months. From there, people might discover
easy expenses to cut. For example, they might see they're going out
to lunch four days a week at work. Scaling that back by making
lunch at home creates some easy savings.
2. Audit Subscription Services
Subscription services have exploded in popularity. Consumers can
subscribe to anything from streaming sites to monthly skincare
boxes and more.
The problem is that people sometimes lose track of all their
subscription services. They may not use them as much or stop using
them altogether, yet they're still paying for those services every
month.
In this case, people should run through their bank statements,
make a list of every subscription service they're paying for, and
think hard about how much they use or need each service. Chances
are, many will be able to cut one or two subscriptions (or at least
downgrade their plan) and save a good chunk of change every
month.
3. Refinance Debt
High interest rates that borrowers have to pay can add up.
Fortunately, borrowers can often refinance their debts to a lower
rate and save every month.
Many borrowers use personal loans to do this. Some also rely on
balance transfer credit cards, which let the borrower move balances
onto the card and pay them off interest-free over a defined period
(such as 12 months).
Regardless, borrowers should make sure the new debt has a lower
interest rate than the weighted average interest rate of their old
debts. Homeowners can also refinance their homes to a lower
interest rate and potentially save hundreds on monthly
payments.
4. Take Advantage of Cashback
People rarely have to pay full price nowadays for much of their
shopping, thanks to cashback rewards credit cards and websites.
Cashback rewards cards allow cardholders to accumulate points for
their everyday spending on cards, then spend those points or
convert them into cash or a statement credit every month.
Rewards sites and apps work similarly. Consumers visit their
favorite stores through the rewards site's link, make purchases,
and earn points redeemable for money. Shoppers who combine these
methods can earn a substantial amount of cashback without altering
their spending habits.
5. Score a Higher Interest Rate on Savings
Traditional savings accounts pay interest, but not much. Thanks
to high-yield savings accounts, consumers can earn more on their
savings.
These accounts are excellent for emergency funds. Consumers
working toward fully stocking their emergency funds can use
high-yield savings accounts to get there a bit faster. Then, they
can use the extra interest earned on their fully-stocked fund to
put toward other savings and investing goals.
Save More Money This Year
Saving money doesn't have to be complicated. It comes down to
people monitoring personal finances and being consistent. Applying
the tips above might be small changes, but they add up to
substantial savings over months and years — helping anyone who
follows them to create more wealth and strengthen their financial
security.
Notice: Information provided in this article is for
information purposes only. Consult your financial advisor about
your financial circumstances.
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SOURCE Advance America