Affordability and the cost of living are among most people’s top financial concerns. However, slashing everyday expenses and putting extra cash in your pocket may be more doable than you think. One way to start is by examining your bank account features and considering no-fee bank accounts. Spending $5 to $15 a month to maintain your account may not seem like much, but over a year, that’s $60 to $180—enough to cover an unexpected expense or one or two fillups at the gas station.
Reducing Debt
Another area to focus on is reducing debt. Credit card interest rates are currently around 21%, and the average cardholder is carrying a total balance of just over $6,500. That means the average cardholder is paying over $113 per month—or over $1,350 per year—in interest alone. Switching to a card with a low or 0% balance transfer offer can help you pay off debt faster, because more of your monthly payment will go towards slashing down the principal you owe.
Additionally, adjusting factors like the loan term and payment frequency can help manage debt like auto loans, personal loans, and mortgages. Stretching out your loan term will lower your payments and free up room in your budget. However, you’ll pay more in the long run. One trick for paying off debt faster is to switch from monthly to biweekly payments.
Saving for Tomorrow
Saving for tomorrow may not feel right when you’re struggling to make ends meet today. Fortunately, there are ways to put aside a little here and there without significantly impacting your budget. Some banks offer a “round-up” feature that rounds your purchases to the nearest dollar and deposits the difference into your savings. Micro-investing apps do the same thing, but deposit the difference into an investment account instead for potentially greater returns.
Reviewing your subscriptions, such as video streaming services, can also help you save money. The average American household spends $69 per month on video streaming services, which is $828 per year. Taking an hour to review your subscriptions could save you hundreds of dollars annually.
Lastly, avoiding food waste can also help cut costs. Planning your meals and buying only what’s on your shopping list can help reduce food waste. Cook smaller portions, combine leftovers to create new meals, and freeze anything you can’t consume within a few days.
Original reporting: KTVZ (Central Oregon) — read the source article.
