Here are eleven excellent money saving tips for your household.
Before we get into the money saving tips, let’s discuss why cost cutting is more important than ever. In the year 2022 in the United States official rate of inflation peaked out at almost 9%. If you feel like it’s hit you and/or your family much harder, you’re probably not imagining it. Around both 1981 and 1991, the US government made major revisions to the way the “measure” inflation, which drastically reduced the official inflation numbers. For example in 2022, the inflation rate as measured by the 1980 standard was about 17%. If you were earning $60,000 in 2021, at 17% inflation, you should get a 2022 raise to $70,200 just to have the same purchasing power. If you’re with the majority, you probably didn’t get that big of a raise, which means you have less purchasing power. So you might have to make up for the difference yourself. You could cut the amount you put into savings, but wouldn’t it be better to cut some costs instead?
Without further ado, here are eleven money saving tips:
- Reduce energy consumption: One of the easiest and most effective money saving tactics is to reduce energy consumption. This can be done by using energy-efficient appliances, sealing drafts and gaps in doors and windows, and using low-energy light bulbs. Some utility companies also offer free home energy audits, which can help you identify areas where you can save energy and money. The potential monthly savings from reducing energy consumption will depend on the specific actions you take and the amount of energy you use. According to the U.S. Department of Energy, sealing drafts and gaps in doors and windows can save a typical household up to 20% on energy bills, while using energy-efficient appliances can save up to 50% on energy costs. Depending on the size of your home and your current energy consumption, you could potentially save hundreds of dollars per year by reducing energy consumption.
- Save money every month for emergencies. This is the primary difference between financially successful people and those still struggling. Without an emergency fund, even a minor emergency can have people turning to revolving credit on credit cards, payday loans or car title loans, paying enormous interest payments that the savers don’t have to pay. Try to save up enough to pay bills for at least 6 months. Avoid spending on vacations or most pleasures until you achieve this necessary financial goal. Saving money leads to more money saving!
- Shop around for the best deals to save money: Whether you’re buying groceries, household items, or insurance, it pays to shop around and compare prices. Look for sales and discounts, use coupons and cashback apps, and consider purchasing in bulk to save money.
- Compare prices: You can save money by taking the time to compare prices from different retailers, both online and in-store, to ensure you are getting the best deal. Don’t be afraid to negotiate prices or ask for discounts, especially if you are making a large purchase.
- Use coupons and promo codes: Look for coupons and promo codes that can help you save money on your purchases. You can find these online or in newspapers and magazines, and you can also sign up for newsletters and email alerts from your favorite retailers to stay informed about special offers.
- Shop during sales: Expert money saving people keep an eye out for sales and clearance events, which can offer significant discounts on a wide range of items. These events are typically held at regular intervals throughout the year, so it pays to be patient and wait for a good deal.
- Buy in bulk: If you use a lot of a particular product, consider buying in bulk to save money. This can be especially effective for items like toiletries and household supplies that have a long shelf life. Just be sure to consider the storage space and expiration dates before making a large purchase.
- Cut down on unnecessary expenses: Save money by taking a look at your budget and identify expenses that you can eliminate or reduce. This might include subscription services, expensive cable packages, or dining out frequently.
- Cable or satellite TV: Many people are able to cut their cable or satellite TV bills by switching to streaming services, which can offer a similar range of programming at a lower cost.
- Landline phone: Many people are able to eliminate their landline phone bills by relying solely on their cellphones for phone calls.
- Gym memberships: If you have a gym membership but don’t use it frequently, you may be able to save money by canceling your membership and finding other ways to exercise, such as going for walks or runs outside or using online fitness resources.
- Subscription services: If you have subscriptions to services like magazines, music streaming services, or streaming video services that you don’t use frequently, you may be able to save money by canceling these subscriptions.
- Dining out: Eating out at restaurants can be a significant expense, especially if you do it frequently. By cooking at home more often and packing your own lunches, you may be able to save money on dining out expenses.
- Negotiate your bills for optimal money saving: If you’ve been a good customer, your service providers may be willing to negotiate a lower rate for you. Don’t be afraid to ask for a discount or to shop around for a better deal. Here are five things you might consider saying when asking for a discount or reduction in a bill:
- “I’ve been a loyal customer for a long time. Is there anything you can do to help me save on my bill?” This approach acknowledges the value of your business and asks the company to consider your long-term relationship when determining whether to offer a discount.
- “I’ve recently experienced some financial hardship and could really use a break on my bill right now. Is there any way you can help me out?” This approach explains your current situation and asks for help in a direct but respectful way.
- “I’ve noticed that your competitors are offering similar services at a lower price. Can you match or beat their rates?” This approach points out the competitive landscape and gives the company an incentive to offer you a better deal in order to win your business.
- “I’m considering switching to a different service provider. Is there anything you can do to keep me as a customer?” This approach creates a sense of urgency and suggests that you are open to exploring other options if the company is unable to offer a competitive rate.
- “I’m not sure if you have any flexibility on your rates, but I wanted to see if there was anything you could do to help me save on my bill.” This approach is a bit more general and leaves the door open for the company to offer a discount or other solution if they are able to do so.
It is important to approach the conversation in a respectful and professional manner, and to be prepared to negotiate if necessary. You may also want to consider offering to pay your bill upfront or agreeing to a longer contract in exchange for a discounted rate. It is also a good idea to do some research beforehand to determine what kind of discounts or promotions the company is currently offering, as this can give you a better sense of what to expect and how to negotiate.
- Money saving using cashback apps and credit card rewards: There are many cashback apps and credit cards that offer rewards for purchases made at certain stores or for using certain payment methods. By using these apps and cards, you can save money on your purchases. Many retailers and credit card companies offer cashback or rewards programs that allow you to earn points or cash back on your purchases. By taking advantage of these programs, you can save money on your purchases over time. There are many blogs you can consult for finding a cashback app that fits your needs. Here are a few: https://www.nerdwallet.com/article/finance/cash-back-apps https://dollarsprout.com/best-cash-back-apps/ https://moneypantry.com/best-cashback-apps/
- Plant a garden: Growing your own fruits and vegetables can be a fun and cost-effective way to save money on groceries. You’ll need to invest some time and effort upfront, but the payoff can be significant in terms of both cost savings and the satisfaction of growing your own food. There are many resources available for starting a garden. A few of them are: https://commonsensehome.com/start-a-garden/ https://www.thespruce.com/how-to-start-a-garden-from-scratch-2132778 https://www.wikihow.com/Start-a-Garden
- Use a budgeting app: Budgeting apps can help you track your spending and identify areas where you can save money. Some popular budgeting apps include Mint, You Need a Budget, and Personal Capital. A household budget is a plan that outlines how you will allocate your income towards expenses and savings. Without a budget, spending tends to add up much faster than you might think. Without a budget, you will always be surprised by how much you spend. Making and following a budget can help you to:
- Get a better understanding of your financial situation: A budget allows you to track your income and expenses, which can help you to see where your money is going and identify areas where you may be overspending.
- Control your spending: By setting limits on your spending and sticking to your budget, you can avoid overspending and reduce the risk of falling into debt.
- Save money: A budget can help you to prioritize your spending and identify areas where you can cut back, freeing up money to be used for saving or investing.
- Achieve financial goals: A budget can help you to set financial goals and track your progress towards achieving them. This can be especially useful if you are trying to save for a big purchase, pay off debt, or build up your savings.
Overall, a household budget can help you to take control of your finances, spend wisely, and achieve your financial goals.
- Make your own cleaning and personal care products: Many household and personal care products can be made at home for a fraction of the cost of store-bought versions. This can save you money and reduce your use of single-use plastic. The potential monthly savings from making your own cleaning and personal care products will depend on the specific products you make and the cost of store-bought versions. For example, if you make your own laundry detergent, which costs approximately $0.15 per load to make, and you currently spend $0.50 per load on store-bought detergent, you could potentially save $0.35 per load or around $8.50 per month if you do laundry once per week.
- Laundry detergent: You can make your own laundry detergent using a few simple ingredients, such as borax, washing soda, and grated bar soap. To make a batch of laundry detergent, mix together 1 cup of borax, 1 cup of washing soda, and 1 bar of grated soap in a large bowl. Transfer the mixture to an airtight container and use about 1 tablespoon per load of laundry.
- All-purpose cleaner: You can make your own all-purpose cleaner using a mixture of water, vinegar, and essential oils. To make a batch of all-purpose cleaner, mix together 1 cup of water, 1 cup of vinegar, and 10-15 drops of your preferred essential oil (such as lemon or tea tree) in a spray bottle. Shake well before use and spray on surfaces as needed.
- Hand soap: You can make your own hand soap using a combination of liquid castile soap, water, and essential oils. To make a batch of hand soap, mix together 1 cup of liquid castile soap, 1 cup of water, and 10-15 drops of your preferred essential oil in a liquid soap dispenser. Shake well before use and dispense a small amount onto your hands as needed.
- Toothpaste: You can make your own toothpaste using a combination of baking soda, coconut oil, and a few drops of your preferred essential oil (such as peppermint or spearmint). To make a batch of toothpaste, mix together 1 tablespoon of baking soda, 1 tablespoon of coconut oil, and a few drops of essential oil in a small bowl. Transfer the mixture to a small container and use as you would regular toothpaste.
- Lip balm: You can make your own lip balm using a combination of beeswax, coconut oil, and a few drops of your preferred essential oil (such as peppermint or vanilla). Adding Shea butter is also great. To make a batch of lip balm, melt together 1 tablespoon of beeswax, 1 tablespoon of coconut oil, and a few drops of essential oil in a double boiler or microwave-safe bowl. Pour the mixture into small lip balm containers or tins and let it cool before use.
- Repair items instead of replacing them: Whenever possible, try to repair items rather than replacing them. This can save money and help reduce waste. Don’t know how to repair things? YouTube is an excellent how-to resource. There is a video for how-to-repair just about anything.
- Shop secondhand: Buying secondhand items can be a great money saving tactic and reduce waste. You can find gently used clothes, furniture, and other household items at thrift stores, garage sales, and online marketplaces like eBay and Facebook Marketplace and Craigslist.