Saving is important, but it is something many people fail to do. Unfortunately, unless you plan to “pay yourself,” you will never be able to save. View your savings account as if it is another bill. This way you will prioritize saving and make sure you put money away before you spend on other things. You can also look for ways to cut expenses which makes saving much easier.
Cutting Utility Bills
The largest monthly expense behind a mortgage is usually the utility bill. Some things cannot be lowered, such as taxes and other public fees, but consumers can reduce the amount of electricity, water, and gas used each month. Lok for ways to save on electricity and water. You can also ask your energy to perform a free home audit. This helps you determine the best places to cut energy use. In addition to unplugging items when not in use and limiting the use of appliances, you might be able to make some minor home upgrades that lower your energy bills.
Cutting your grocery bill can be challenging at first, but it gets easier. First, make a plan. A lot of people go to the grocery store without a list and they overspend. Impulse buys add up quickly, so arming yourself with a list makes things easier. Take time to plan meals, so you purchase only what you need to prepare certain dishes. This also helps you avoid dining out when you find you have nothing to cook just minutes before dinner. Finally, clip coupons, but be smart about it. Many manufacturers offer coupons to get you to try products you would otherwise go without. Look for coupons for things already on your list and shop on days when stores double or triple coupons. Also try to match store sales with your coupon selection for even greater savings.
Saving on Your Mortgage
Though the housing market might not always be conducive to buying a cheaper house, you might be able to make your current house cheaper. Most homeowners pay at lease double the cost of their home in bank interest over the life of their mortgage. If you are able to lower your interest rate, you can lower the overall price of your home. You can lower your interest rate by refinancing to a lower rate or you can shorten the length of your loan. Remember, shortening your mortgage might increase the payment initially, but it can save you in the long run. If you are trying to save money every month and you are not concerned about the cost of your home in the long-run, consider choosing a longer loan period. This will stretch your payments out further and make the out-of-pocket expense less each month.
If you rent, there are ways to lower your rental payments. Look for a smaller home in a less expensive neighborhood. You might also want to consider a place that does not require rental insurance. Combining rent and utilities can also save you a great deal of money because you are paying a set rate, regardless of your utility bills.
If you are trying to save money every month, you are going to have to do without some of the things you enjoy. Create a budget and stick to it. Eventually you might have the extra funds to spend on luxuries, but make saving your first priority.