7 tips on saving money

 

You all want to save money but you don't now how. You've tried many saving money advices but it seems that non of them helps you. Here are 7 simple tips that you can follow in order to save money.

1. PAY OFF CREDIT CARD DEBT: Credit card debt has one of the highest rates of interest you can pay. Don't just pay the minimum monthly charge, but try to pay your credit card in full.

2. PAY AHEAD ON YOUR MORTGAGE: By paying an extra $100 a month toward the principal on a $150,000, 30-year mortgage with a fixed interest rate of 6.5 percent, you’ll save more than $51,000 in interest and be able to retire your mortgage nearly seven years early. An extra monthly payment of even $20 or $25 can make a surprising difference.

3. AVOID COMPULSIVE PURCHASES: Don't buy things you really don't need. When shopping, only purchase what you planned on buying. If you find something else you want, hold off on the purchase until the next time. That way, you can have some time to think if the item is really something you need. Also, you can then check if it is within your budget.

4. EATING ON THE CHEAP: Eating out can be costly and for many busy professionals it is almost a necessity. Did you know that spending only $5 a day on lunch while at work can cost nearly $700 per year? If your spouse spends the same amount on lunch you are spending almost $1,400 per year just on lunch!

Try to cut back on buying lunch out by bringing a lunch just two days a week to start. Even this can save a few hundred dollars a year. Not only does it save money but generally a sack lunch from home will be better for you compared to what you normally eat when going out.

5. SHOPPING AT THE END OF SEASON SALES: Every year at end of February and July, clothing and other articles are sold at a lower price. This is to get rid of old season's goods to make room for new season's articles.

Computer equipment is usually cheaper from Labour Day (the first Monday in September) through to New Year. You can most frequently bargain for a good deal on a car towards the end of the month, because salesmen and dealerships are tracked monthly and sometimes get anxious when their total sales count is low. Linen is cheapest during White Sales on major holidays, especially in the spring. Clothing is least expensive for everyone shortly before school starts in autumn.

6. TRIM YOUR SUBSCRIPTIONS: Do you subscribe to magazines that you rarely have time to read? Maybe you subscribe to one of the DVD mail rental services but only watch one or two movies a month.
How about that gym membership you purchased as part of a New Year’s resolution that you don’t use?

These subscriptions can slowly drain hundreds of dollars every year. Individually they don’t seem very costly, but over time many of these underused subscriptions are costing a lot of money. Evaluate what you really use and don’t use and get rid of the wasteful subscriptions.

And try not to use the premium cable and the satellite subscription. By doing that you will save anywhere from $600 to over $1,000 per year, or more.

7. START SAVING ENERGY AT HOME: Don't leave your television on standby. Turn it off from the mains, as leaving it on standby actually uses up quite a bit of juice; Use energy-saving lightbulbs - they're planet friendly too; Switch radiators off in the summer; Switch lights off in rooms you're not using; Turn the thermostats down 5°C and avoid using electric blankets as they are real energy guzzlers; In the summer, open the windows, turn off the fans and airconditioners until you absolutely must go to sleep.

Following these 7 simple saving tips you will make major savings in your account.