Facing Financial Hardship? 14 Ways To Save Money - Forbes

Facing Financial Hardship? 14 Ways To Save Money · Start Using a Budget · Use a Budgeting App · Shop Around for Auto Insurance and Homeowners ... SelectRegion UnitedStates UnitedKingdom Germany India Youmightbeusinganunsupportedoroutdatedbrowser.TogetthebestpossibleexperiencepleaseusethelatestversionofChrome,Firefox,Safari,orMicrosoftEdgetoviewthiswebsite. advisor PersonalFinance AdvertiserDisclosure FacingFinancialHardship?14WaysToSaveMoney HollyJohnsonContributorUpdated:Apr17,2020,4:38pm EditorialNote:WeearnacommissionfrompartnerlinksonForbesAdvisor.Commissionsdonotaffectoureditors'opinionsorevaluations. Getty GettingbyinAmericaisn’tcheap,butlifestylefactorsandpersonalchoicescanleadtoanexponentialincreaseintheamountofmoneypeoplereallyneedtothrive. Accordingtoa2019analysisofconsumerexpendituresconductedbytheU.S.BureauofLaborStatistics,averageannualspendingperhouseholdworkedoutto$61,224atlastcount,with$7,923goingtofood,$20,091goingtowardhousing,and$9,761goingtotransportation. Butthenthere’sthecostofchildcare,clothingandentertainment,andlet’snotforgetthecostinvolvedinservicingourvariousdebts.Afterall,averagestudentloandebt wasrecentlypeggedat$32,731pergraduate,whichmakestheaveragestudentloanpayment3.Heck,theaverageAmericanevenhad$2,824increditcarddebtinthefinalquarterof2019,whichmeansevenmorepaymentstomake.Mustwegoon? Thepointis,theaverageAmericanhasatonofbillstopayand,intimesoffinancialhardship,thosebillshavethepotentialtoturnintoamajorproblem.Wheneverthereisupheavalinthelargereconomy,it’ssmarttolookathouseholdexpensestoseewhatcanstayandwhatcango. Hereare14waystocutexpensesandsavemoneyinchallengingfinancialtimes. StartUsingaBudget Thinkofyourmonthlybudgetasaspendingplanforwhatyoureallywantinlife.Withthatmindset,youcanbeginusingabudget asameanstoreducespendinginareasyoudon’tcareabout,whilesettinglimitsinotherareasofyourlifewherespendingisnecessary. Themainreasonbudgetingissohelpfulwhenitcomestocuttingexpensesisthesimplefactthatbudgetsrequireyoutotrackspendingandsetreasonableexpectationsforhowmuchyou’llspendindiscretionarycategorieslikefoodandentertainment.Onceyoustartusingabudget,youmayquicklyfindthatyou’respendingmorethanyouplannedonfoodandfun,andthatreducingyourspending(evenslightly)canhelpyousaveconsiderablesumsofmoneywithoutreducingyourqualityoflife. Yourbudgetdoesn’thavetobecomplicated.Allyoureallyneedtodoiswriteoutyourbills,bankstatementsandpaycheckamountsandthenfigureouthowmuchyou’vebeenspendingeachmonthcomparedtohowmuchmoneyyoubringin.Fromthere,createabudgetthatincludespredictablespendingonbillslikeyourrentormortgageandcarpayment,aswellasestimatesforspendinginfluctuatingcategories.You’llhopefullyfindabigdifferenceinhowmuchyoucouldbespendingwhencomparedtohowmuchyouearn,inwhichcaseyoucanstartfunnelingmoremoneyintosavingsrightaway. UseaBudgetingApp Ifyouwantsomehelpgettingstartedwithabudget,don’tforgettocheckforthird-partyappsthatcanhelpyougetahandleonyourfinancesandreduceyourspendinginahurry.SomepeopleswearbyMint.com,abudgetingappthathelpsyouseewhereallyourmoneyisgoingeachmonth.OthersloveYNAB.com(YouNeedaBudget),whichhelpsuserscraftazero-sumbudgetthatgiveseverydollartheyearn“ajob.” Othertopbudgetingapps tocheckout(someofwhicharefree)includePersonalCapital,ClarityMoneyandQubeMoney.QubeMoney offersusersadigitalversionofthecashenvelopebudgetingsystem,alongwithfunctionalitythatletspeopleshareexpensesandworkinconjunctionwithothersintheirplan. ShopAroundforAutoInsuranceandHomeownersInsurance Whilesomebillsare“fixed”becausetheydon’tchangemuchfrommonthtomonth,thisdoesn’tmeanyou’regettingthebestdeal.And,whenitcomestodifferentinsuranceproductslikeautoinsuranceandhomeownersinsurance,youcaneasilysavemoney ifyoushoparoundandcompareinsurancefromotherproviders. Inadditiontoshoppingaround,keepinmindthatchoosingpolicieswithahigherdeductiblewillusuallyleadtolowermonthlypremiums.Youalsocansaveoninsurancebybundlingseveralpolicieswithoneinsurer,orbysigningupforautopayorelectronicstatements.Therearemanyotherautoinsurancediscounts tobeawareof,somakesuretocheckwhichonesyoumaybeeligiblefor. CookMealsatHome Diningoutisafunwaytobreakuptheweek,butweallknowthattoomanytakeoutmealscancauseourbudgetstoballoonrightalongwithourwaistlines.Cookingathomeissignificantlylessexpensiveinalmosteverycase.Notonlydoyougettoavoidpayingtheinflatedpricesrestaurantscharge,butyousavemoneyonthetip,too. Notwantingtocookathomeistotallyunderstandable,butdiningoutisaneasythingtocutifyouneedtocutyourspendingfast.Considerlookingupone-potdishesyoucanmakeinaslowcooker,andtryyourhandateasydishestomakethatonlyrequireafewingredients. Ifyouneedtomakeyourgrocerybudgetstretchasfarasitcango,youalsocantryMyFridgeFood.Thiswebsiteletsyouknowwhatdishesyoucanmakeonceyoulisttheingredientsyouhaveonhand.Recipeswithstepsalsoareincluded. RefinanceYourMortgage Formanypeople,theirhomeistheirmostvaluableasset. Record-lowinterestrateshavemadenowanexcellenttimetoconsiderrefinancingyourmortgage.YoucouldsavemoneybyrefinancingyourmortgagetogetalowerAPR,aswellasalowermonthlypayment.Refinancingisalsoawayforhomeownerstotradeanadjustable-ratemortgageforafixed-ratemortgageortochangethelengthoftheirhomeloan. Ifyouwanttorefinanceyourmortgagebutaren’tsurehowmuchloweryourratecouldgo,considercheckingratesfrommultiplelenders. ConsolidateCreditCardDebt Theaveragecreditcardinterestrateisover16%,whichmeansyoucouldbesavingbigifyouconsolidatedyourcreditcarddebtwitha0%APRcreditcardorapersonalloan.Balancetransfercreditcardsletyouavoidinterestforupto21months,providedyoupayabalancetransferfee(usually3%or5%)upfront.Withthatmuchtimeatzerointerest,youcouldpaydownyourdebtfastermakingthesamepaymentsyoucurrentlydo,andeverycentyoupaidwouldgodirectlytowardtheprincipalofyourdebt. Personalloans alsocanbeadvantageousfordebtconsolidation,sincelenderslikeSoFiofferpersonalloanswithfixedinterestratesaslowas5.99%.Comparepersonalloanratesfrommultiplelenderstomakesureyou’regettingthebestone. SwitchBankAccounts Ifyourbankaccountchargesamonthlymaintenancefeeoranannualfee,makesuretoshoparoundforanewcheckingorsavingsaccount.Thebestcheckingaccounts areofferedtodaywithoutanyfees,includingoptionsfromCapitalOneandDiscoverBank.Whenitcomestothebestsavingsaccounts,alsobesureyou’reearningthehighestavailableinterestrates,which,inmanycases,arefoundonline. SwitchCellPhoneProviders Howmuchareyoupayingforyourcellphonebill?Chancesaregoodyoucouldbepayinglessifyouwerewillingtoswitchproviders. Asanexample,MintMobileoffersexcellentcellphoneplansthatstartatjust$15permonth,whileinnovativeproviderTingchargesyouforonlythedata,textandtalkyouactuallyuseinanygivenmonth.T-Mobileoffersinternationalplansthatincludedataandtextinmorethan200countriesaroundtheworldfor$50permonthperlineorevenlesswithafamilyplan. Eitherway,makesuretocheckwhichprovidersoffergoodcoverageinyourareaandthenshoparounduntilyoufindtheperfectfit. GetRidofCableTelevision Payingforafancycabletelevisionsubscriptionmayseemsmartwhentimesaregood,butthisisaneasyareatocutwhenyouneedtodramaticallyreduceyourexpenses.ServiceslikeNetflixandHulustartatlessthan$10permontheach,solookatswitchingtostreamingandalsocheckoutstreamingoptionslikeYouTubeTVandSlingTV. You’llneedaninternetconnectioninordertostreamtelevisionintoyourhome,butchancesaregoodyouhaveoneanyway.Intoday’sworld,aninternetconnectionhasbecomemoreofanecessity,whereasacabletelevisionsubscriptionisasplurgeyoucaneasilygiveupifyouhaveto. UseaCashBackCreditCard Usingacashbackcreditcard canhelpyouearn2%backormoreoneverythingyoubuy,andmostcashbackcreditcardschargelowornoannualfee.Whileyoucanusetheserewardstosplurgeforsomethingyouwant,mostcashbackcreditcardsletyouredeemrewardsforstatementcreditsthatcomedirectlyoffyourcreditcardbill. Whileacashbackcreditcardcanhelpyoureduceyourexpensesifyouuseitonlyforpurchasesyouplannedtomakeanyway,youshouldbewareofgettingintocreditcarddebt.Afterall,theaveragecreditcardinterestrateiscurrentlyover16%.Attheendoftheday,youshouldonlyuseacreditcardfortherewardsifyouknowyoucanpayyourbillinfulleverymonth. SwitchtoaHighDeductibleHealthInsurancePlan Ahighdeductiblehealthinsuranceplanisaplanwithadeductibleofatleast$1,400foranindividualoratleast$2,800forafamily,perInternalRevenueService(IRS)guidelines.Also,highdeductiblehealthplans’totalyearlyout-of-pocketcostsforin-networkservicesmustbelimitedto$6,900forindividualsor$13,800forfamiliesin2020. Eitherway,highdeductiblehealthplans,alsoknownasHDHPs,comewithhigherdeductiblesinexchangeforlowermonthlypremiums.TheyalsomakeitpossibletocontributetoaHealthSavingsAccount(HSA) eachyear,whichcanhelpyousaveforqualifiedhealthcareexpenseswhilereducingyourtaxableincome—andthusyourtaxbill—eachyear. CancelUnwantedSubscriptions Areyoupayingforseveralsubscriptionseachmonththatyou’renotreallyusing?Maybeyougetoneofthosecuratedgiftboxesforyourdogoryouhaveafewrazorsmailedtoyourhomeeverysixoreightweeks.Orperhapsyoupayforanonlineworkoutvideomembershipthatyouhardlyeveruse. Inanycase,itmakessensetogothroughyourcreditcardbillsandbankstatementstoseewhichmembershipsyou’repayingforthataren’tnecessarilypayingoff.AservicelikeTrimcandothisforyou,whilealsonegotiatinglowerratesonotherbillsyouhavelikecableorinternetservice. PlanSeveral‘NoSpend’DaysPerWeek It’seasytomakeatonofsmallpurchasesthataddupinabigway,butwhatifyoudecidetogodayswithoutbuyinganything?Planningafew“nospend”dayseachweek,oracoupleofweekseachmonth,caneasilybringnonessentialspendingtoahaltduringthosetimes,whichforcesyoutoworkwithwhatyouhaveanduseupyourresourcesversusgoingouttobuymore. Ifyoureallywanttosavemoneyoverthelonghaul,makesurethattherearetimesoftheyearwhereyoudon’tbuyanything.Overtime,youwillsavemoneythisway. LimitOnlineShopping Onlineshoppingcanbeaproblem,andthat’sespeciallytruewhenyou’restuckathomeandtryingtosavemoney.It’seasytothrowthingsyouwantbutdon’tnecessarilyneedintoanonlinecartandhaveitdeliveredtoyourdoorstep,yetthefinancialimpactofevensmallpurchasescanbedevastatingovertime. So,howcanyoumakesureyouspendlessonline?Tomakethingseasier,youcanstartbyremovinganyappsfromyourphonethatyoutypicallyspendmoneywith,includingappslikeAmazon.Also,removeyourcreditcardinformationfromanywebsitesyoufrequentlyshopwith.Thatway,you’llbeforcedtoenteryourinformationmanually(andreallythinkaboutyourpurchase)eachtimeyouabsolutelyhavetobuysomething. Further,trytowaitatleast24hoursbeforeyoumakeanypurchase.Often,sleepingonapurchasedecisionwillmakeyouforgetaboutitaltogetherorrealizeyouneverreallyneededittobeginwith. BottomLine Desperatetimesmaycallfordesperatemeasures,butthesemeasuresdon’thavetofeelterrible.Youcanturnthecurrent(andunavoidable)economicuncertaintyintoanopportunitytoassesswhereyourmoneygoes—aswellaswhereitcomesfrom—andhelpensurethatyourspendingpatternsandhabitsmatchyouractualprioritiesforyourselfandyourfamily.Plus,learninghowtoreduceyourspendingnowcanmakeyourlifeeasierifyou’reforcedtoliveonlesslateron. Wasthisarticlehelpful? Shareyourfeedback Sendfeedbacktotheeditorialteam RatethisArticle ★ ★ ★ ★ ★ Pleaseratethearticle Email Pleaseentervalidemailaddress Comments We'dlovetohearfromyou,pleaseenteryourcomments. Invalidemailaddress Submit ThankYouforyourfeedback! Somethingwentwrong.Pleasetryagainlater. 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ByKellyAnneSmithForbesAdvisorStaff 1in4IDTheftVictimsHadThousandsOfDollarsStolenDuringThePandemic.Here’sHowToKeepYourFinancialInfoSafe ByKellyAnneSmithForbesAdvisorStaff WhenWillGasPricesGoDown? ByKellyAnneSmithForbesAdvisorStaff ConsumerConfidenceHitsLowestPointSinceJuly2020 ByLisaRowanForbesAdvisorStaff InformationprovidedonForbesAdvisorisforeducationalpurposesonly.Yourfinancialsituationisuniqueandtheproductsandserviceswereviewmaynotberightforyourcircumstances.Wedonotofferfinancialadvice,advisoryorbrokerageservices,nordowerecommendoradviseindividualsortobuyorsellparticularstocksorsecurities.Performanceinformationmayhavechangedsincethetimeofpublication.Pastperformanceisnotindicativeoffutureresults.ForbesAdvisoradherestostricteditorialintegritystandards.Tothebestofourknowledge,allcontentisaccurateasofthedateposted,thoughofferscontainedhereinmaynolongerbeavailable.Theopinionsexpressedaretheauthor’saloneandhavenotbeenprovided,approved,orotherwiseendorsedbyourpartners. HollyJohnson Contributor HollyD.Johnsonisanaward-winningwriterandpersonalfinanceexpertwhocoversavarietyofinsurancetopicsaswellasgeneralpersonalfinance.InadditiontoherarticlesinForbes,herworkhasalsobeenfeaturedbyBusinessInsider,Bankrate,CNN,andFoxBusiness. Johnson'sareasofexpertiseareinpersonalfinancetoincludelifeinsurance,specialtybusinessinsurance,debtrelief,andcreditcards.SheisthefounderofClubThriftyandco-authorof"ZeroDownYourDebt:ReclaimYourIncomeandBuildaLifeYou’llLove." TheForbesAdvisoreditorialteamisindependentandobjective.Tohelpsupportourreportingwork,andtocontinueourabilitytoprovidethiscontentforfreetoourreaders,wereceivecompensationfromthecompaniesthatadvertiseontheForbesAdvisorsite.Thiscompensationcomesfromtwomainsources.First,weprovidepaidplacementstoadvertiserstopresenttheiroffers.Thecompensationwereceiveforthoseplacementsaffectshowandwhereadvertisers’offersappearonthesite.Thissitedoesnotincludeallcompaniesorproductsavailablewithinthemarket.Second,wealsoincludelinkstoadvertisers’offersinsomeofourarticles;these“affiliatelinks”maygenerateincomeforoursitewhenyouclickonthem.ThecompensationwereceivefromadvertisersdoesnotinfluencetherecommendationsoradviceoureditorialteamprovidesinourarticlesorotherwiseimpactanyoftheeditorialcontentonForbesAdvisor.Whileweworkhardtoprovideaccurateanduptodateinformationthatwethinkyouwillfindrelevant,ForbesAdvisordoesnotandcannotguaranteethatanyinformationprovidediscompleteandmakesnorepresentationsorwarrantiesinconnectionthereto,nortotheaccuracyorapplicabilitythereof.Hereisalistofourpartnerswhoofferproductsthatwehaveaffiliatelinksfor. lorem Areyousureyouwanttorestyourchoices? cancel ok