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Figure Out How to Save Money

Figure Out How to Save Money Figuring out How to Save Money

No matter what financial situation a person is in, it is always a good idea to try to save money. However, it is often difficult to figure out how to save money. Whether it is saving money for a retirement fund, or just trying to keep a few extra dollars, having extra money and being a careful spender is important in order to obtain financial success. 

Here are some helpful tips to help you figure out how to save money.

How to Save Money on Transportation

• New cars

o Choose a model that has a low purchase price and a low depreciation, insurance, gas, maintenance, and financing cost. New car guides can often provide this information.

o After choosing a model, go comparison shopping with several dealers both over the phone and online.

• Used cars

o Use a car guide, such as a “bluebook” to help compare the average retail price of the car with what the seller is asking.

o Have a mechanic check the car to find any potentially expensive problems.

• Car leases

o When leasing a car, consider the price, trade-in allowance, monthly payments, down payments, and any other fees that will be involved.

• Airline fares

o Look at internet travel sites and airline sites online to find special deals.

o Compare major carriers and low-cost carriers.

How to Save Money on Insurance

• Car Insurance

o Make sure a new policy is already in effect before cancelling an old one.

o Purchase insurance from a licensed, low price insurance. Call at least four of these agencies to find the best deal.

• Life Insurance

o Buy a term life insurance policy for just the protection without investments and savings services.

o When buying a universal life, whole life, or other case value policy, anticipate holding the plan for at least 15 years. Cancelling these plans early on can double the life insurance cost

• Homeowner/Renter Insurance

How to Save Money on Banking/Credit

• Debit Cards and Checking Accounts

o Use a free checking account that does not have a minimum balance requirement.

o Some banks provide lower checking costs through either direct depot or ATM use only.

• Credit Cards

o Send payments 7-10 days in advance to avoid late fees and increases in interest rates.

o If the entire bill cannot be paid off, switch the balance to a credit card with a lower APR.

• Savings Product

o Use a bank that is insured by the Federal government.

o Compare fees and rates of different banks and financial institutions.

o Consider U.S. Savings Bonds or Certificates of Deposit to earn the highest return.

How to Save Money on Housing Needs

• Buying a Home

o Try negotiating a lower sale price through a buyer broker working for you and not the seller.

o Have a home inspected before purchasing it.

• Renting a Home

o Find buildings and inquire about the availability.

o Do not sign a lease until you are sure you can be responsible for the monthly payments as agreed upon.

• Home Improvement

o Look at established licensed contracted who give fixed-price bids for jobs.

o Do not sign contracts that require a full payment before finishing the work.

How to Save Money at the Store

• Food

o Shop at lower-priced food stores. Smaller convenience store are more likely to have higher prices.

o Compare the unit price of similar products and choose those with the lower one.

o Take advantages of sale items.

o Buy basic ingredients instead of pre-packaged or ready-made food items.

• Prescriptions

o Use generic equivalents of drugs when possible.

o Call a pharmacy in advance to ask for a price of a medicine.

• Clothing stores

o Check online for any coupons or promotions the store may have.

How to Save Money for Retirement

• Keep putting away money regularly and stick to a plan.

• Understand your retirement needs.

• Put money towards an employer’s retirement savings plan

• Do not touch retirement savings.

• Learn about an employer’s pension plan.

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