Five Easy Ways to Save

It’s not just happenstance that your monthly expenses always seem to equal what salary you’re making even after you get a raise. The marvel can creep up on you and essentially keep you from reaching all sorts of financial goals from saving for retirement, to paying down debt. One way to prevent this from happening is to get the creep under control and have your raises directly put into savings or increase the percentage you contribute to your retirement account.

While you are waiting on that raise, here are a few things you can do right now to cut your monthly expenses.

Make a Budget

The first step toward cutting expenses is to make a budget, so you know exactly where your money is going. Start with major categories, like rent or mortgage, utilities, transportation, meals, clothing, and entertainment. Then break it down even further to search out items that are apt for reducing. Many people, for example, are surprised to learn just how much they pay for pricey lattes and snacks from restaurants and vendors that would cost a fraction of that amount if they were made at home or purchased at a grocery store.

Lower Your Mortgage Payment

The biggest monthly expense for many people is their home mortgage. If you haven’t examined that loan since you bought your home years ago, it’s quite possible that you could save a lot of money – both now and over the life the loan – if you refinance at a lower interest rate. To know whether refinancing makes sense, you’ll need to add what you’ll spend on closing costs into the calculation of your new monthly payment.

Get an Insurance Checkup

If you have a car, you absolutely must have car insurance. But it pays to shop around periodically to make sure you’re getting the best deal. If you have a decent emergency fund on hand in case of an accident, one way to lower your premiums is to increase your deductible. Also be sure to examine your policy for “extras” you may not need. For example, you could be paying for roadside assistance both through your insurance policy and through AAA.

Examine Your Auto-Payments

Putting your regular bills on auto-payment can be a really smart way to protect your credit rating by ensuring you’re never late with a payment. However, if auto-pay causes you to keep paying for items or services you don’t really need or use, it’s no bargain. A few common culprits include unused gym memberships, subscriptions to magazines that aren’t read, and cable or satellite TV plans that include loads of premium channels that are rarely watched.

Cut the Cord

Speaking of, if you’ve already ditched your land line, good for you! Now it’s time to cut the cable cord. Turning to a streaming service for all of your favorite shows over a traditional cable service can add up to thousands over the course of a year. Don’t worry you’ll still be able to stream your favorite team playing. Watch your show and save money at the same time.

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