10 Places To Save Your Extra Money Each Month
If you’re getting a tax refund, windfall or bonus at work, the first thing you should do is put that extra money toward paying off debt or building an emergency fund. Then, put it to work in an interest-bearing savings account.
Another great way to save is by using the envelope budget system. This involves taking out cash at the beginning of each month and placing it in envelopes for various spending categories.
1. Shop at Discount Grocery Stores
With food prices skyrocketing, shoppers are looking for any way to save. While some look to warehouse clubs or dollar stores, others seek out discount grocers.
For example, BB’s Salvage grocery store in Lancaster County requires shoppers to bring their own carts which reduces staff costs and keeps prices low. Another option is United Grocery Outlet, which offers deep discounts on products that are overstocks or limited-time editions.
2. Shop Around for Insurance
You may have heard this tip before, but shopping around for insurance can save you a significant amount of money each month. Take the time to check out rates for different companies before renewing your current policy.
It’s important to cut your budget wherever possible, even if it means canceling your streaming service subscriptions or using a cash-back app. Make sure to keep track of all your expenses with a spending journal or other expense tracking tool.
3. Switch Your Phone Plan
Until recently, phone plans often required two-year contracts to get decent rates. That’s changing, though, and it’s easier than ever to switch to a different carrier.
Before making a move, check that your device will work on the new network. Also consider a pay-as-you-go plan or bundling home internet with your mobile plan. That can save you money on both services.
4. Shop Around for the Best Deals
It takes a bit of time, but shopping around for the best deals can save you a ton. Generic brands of medicine, staple food items, cleaning products and paper goods cost less than their name-brand friends.
Likewise, there are usually better times to buy items like mattresses and washers and dryers. Many retailers offer discounts during major shopping holidays and seasonal sales.
5. Make a Grocery List
When you create a list, it helps you stay focused and avoid impulse buys. You can also take advantage of grocery store loyalty programs, buy in-season foods, and compare prices.
You can even use online ordering to save time and money. Try to stock up on staples like grains, seasonings and spices, oils, canned and frozen foods, and baking essentials. This way, you can skip the impulse buys at checkout!
6. Couponing
Using coupons can save you extra money on groceries and other purchases Visit extracasheachmonth.com. But be careful not to go overboard and stockpile items you won’t use. Also, make sure you shop when produce is in season to avoid waste.
You can find coupons online through a variety of websites and apps. One popular option is a coupon database that aggregates all kinds of discounts into one place.
7. Eat Out Less
Even small expenses add up, so reducing your restaurant spending can help you save money. Avoiding recurring costs like a daily latte can save you $40 a month.
If you must dine out, sign up for restaurants’ e-newsletters to receive coupons or freebies. You can also try the “purchase waiting period” rule: wait 24 hours before buying anything that’s not essential.
8. Make a Spending Journal
Keeping a spending journal is an eye-opening experience that helps you pinpoint areas where you can cut back. It also provides a clear picture of how much money you’re losing to things like impulse purchases and dining out.
Discretionary expenses include items like going to the movies, buying a new pair of shoes, or grabbing that daily latte. You can use a spending journal to track everything that goes out, including bills.
9. Get a High-Yield Savings Account
A high-yield savings account offers a higher interest rate than a traditional bank account. This allows your cash cache to grow more quickly.
Be sure to compare the APYs of different accounts before you open one. You may also want to look into how frequently the bank compounds interest. This can make a big difference in your returns. Also, consider whether the bank has physical branches or a large ATM network.
10. Put Your Money to Work
One of the best ways to make your money work for you is to invest it. This can include paying down debt, saving for retirement or investing in your own business.
It can also mean taking advantage of rewards programs like cash back or credit card perks. However, it’s important to avoid adding more debt by using your rewards to pay off debt instead of buying more stuff.
