Are you ready for a more frugal life?
Frugality is the quality of being frugal, saving, saving, prudent or economical in the consumption of consumable resources, such as food, time or money, and avoiding waste, luxury or extravagance.
With more and more tight money, it is a challenge to enjoy the good things in life.
Studies show that almost 40 percent of Americans cannot afford to take a vacation this year. Further research shows that almost 70 percent of millennials live from one salary to another.
Everyone deserves to get away from the pressures of their work at some time during the year or afford some of the other luxuries of life.
Fortunately, with a little financial magic, it is possible. We have put together this list of proven ways to help you save money throughout the year.
Read: Millennials and money: the struggle of personal finance is real
Save money on daily expenses
Do you know where your money is going? If you don't count every penny you spend each day, how do you expect to save for a vacation?
Sit down and make a budget, and be sure to stay within your spending limits every day. Use these tips to help you reduce your daily expenses and build your vacation fund.
Make use of applications that offer cash reimbursement
Most likely, you will use a credit card to pay most of your daily expenses. Do you have a rewards program attached to your account? Many credit card companies offer a cash back incentive to their customers. You earn between 1 and 5 percent on the total value of the sale, which the lender applies to your credit card statement at the end of the billing cycle.
A reimbursement card is an excellent way to save money on your daily expenses throughout the year. If your average credit card statement is $ 1,500 per month, that is $ 18,000 spent with this service per year. With a money back card, you could save between $ 180 and $ 900 per year.
When shopping online, be sure to use a money back application. Applications like Ibotta and Receipt Hog are excellent tools that can save you money and get more reimbursements on your daily expenses. Some applications also pay you for homework while shopping. You can scan barcodes and check stock levels to earn money back points or money deposited directly into your PayPal account.
Read: Paribus Review: application to take advantage of savings and reimbursement policies of online retailers
Verify your energy consumption
You finish washing your hands in the bathroom and then come down to dinner. However, did you turn off the bathroom light? Waste of electricity every day can add hundreds of dollars to your electricity costs for a year. Every time you leave a room, turn off the light.
The same goes for the use of other electrical appliances and devices in your home. Did you know that your cell phone charger still consumes electricity, even if your phones do not charge? Remove the plug from the wall and only use it when changing your phone.
Do you fall asleep in front of the TV? Set a sleep timer to prevent it from sounding overnight. Electricity is one of the most important household expenses, and doing everything possible to reduce your consumption will help you reach your savings goals faster.
Install energy efficient lighting systems throughout your home. Incandescent old-style light bulbs that work with filaments are more than 12 times more expensive to operate than LED lighting systems.
Cut gourmet coffee
How many cups of Starbucks do you have on the way to the office and throughout the day? Most likely, you need that second or third cup, and you're wasting money on your caffeine addiction.
A daily coffee from a gourmet cafeteria can end up costing you more than $ 100 every month, that's $ 1,200 every year! This savings can only help you pay for your vacation. Instead of going to Starbucks in the morning, make your coffee at home before going to work. Pour it into a travel mug and enjoy your coffee.
Read: The complete guide to live below your means
Share trips with colleagues or friends
Car and gas payments are two other areas of your budget where you can reduce and save on your daily expenses. Sure, we all need a car to get around, but do you need to take it to work every day?
Look through Craigslist and your local newspaper classifieds for an opportunity to share the trip.
By partnering with your friend or neighbor on the way to the office, you will save hundreds of dollars on gas throughout the year. Driving your car less also means that there is less wear on the vehicle, which also reduces your service costs.
Avoid fast food Drive-Thru
Similar to your coffee problem, stop eating fast food at lunchtime too. Studies show that more than 68 percent of Americans eat from a self-service window at least once a week, and lunch is the most popular meal of the day for a fast-food binge. We understand; You need to eat in a hurry, but have you ever considered packing a lunch?
Eating in a car can only cost you $ 10 per day, but that's $ 50 per week, or $ 2,500 per year! Packing your lunch will allow you to save significantly on your daily budget, and it is also healthier for you.
Read: The minimalist lifestyle: complete guide
Mix bottled water
Drinking bottled water is expensive and dirties the environment with plastic garbage. Why pay for something that comes out of your tap at home? Of course, public water systems are not as safe as a few decades ago, and there are reports of tap water contamination throughout the United States.
However, you can mitigate this risk by buying a water filter for your tap. A reverse osmosis filter can cost you a few hundred dollars for the initial setup. However, after a few months of avoiding buying bottled water, the system practically pays for itself.
If you are a representative who spends a lot of time on the road, then count how many bottles of water you buy during the week. Most likely, his findings surprise him by how much he spends on water.
Think about shopping before buying
We live in a world where we demand instant gratification. The invention of the Internet and smart devices means that we have access to a world of shopping at our fingertips. If you have an addiction to buy on Amazon, it could cost you hundreds of dollars in useless purchases throughout the year.
Instead of paying, take some time to think about your planned purchase. You need it? Or can you live without him? Sleep in your purchase decision overnight, and you will probably find that you change your mind.
Save money on monthly expenses
After examining your daily expenses, it is time to have a broader view of your monthly budget. Make the necessary cuts in your costs by reviewing this list and see where you can save money for your vacation.
Save part of your income
Studies show that 70 percent of millennials live from paycheck to paycheck, and many of them don't have enough savings to cover a $ 500 medical bill. If this sounds like your financial situation, then you have to work to manage your expenses .
You will have to start saving for your vacation, or you will end up with nothing to show for your work at the end of the year. Save a portion of your weekly salary each month. Open a CD savings account with the bank and commit to saving a fixed amount each week for your vacation.
If you are fighting for money, think of other ways to increase your income. You could drive to Uber, take independent jobs or work as a waiter on weekends. Increasing your income is one of the easiest ways to save for a vacation.
Read: How to save money on low income: Complete guide
Verify your insurance policies
If you have car insurance and have not yet received a policy adjustment on your premiums, call your insurer. Insurance companies offer incentives to customers who remain accident-free for a specific period. If you never had a car accident, you may be eligible for a discount on your monthly premium.
If you do not ask, then you do not receive, and insurance companies will never call you to see if they can reduce your premium. It is up to you to take the initiative and ask them for a discounted rate. If you recently turned 26, you also qualify for a discount on your premiums. Insurers believe that people under 26 have a higher risk of accidents.
Stop eating outside
How many times do you eat out in a month? Most people order a delivery menu about two or three times a week. If this sounds like you, reduce your restaurant expenses and start cooking more at home.
Cooking at home will save you a package throughout the month and be sure to send these savings to your vacation account. By eating less, you can also afford better quality foods at home, improving your health.
Read: How to save for large purchases: complete guide
Cut your cable and subscriptions
Are you still using cable television? Sure, you can save it to watch sporting events, but is it worth the money? Many free streaming sites offer all sporting events at no cost to users, so why bother with the cable? If you are a movie buff, then Netflix or Amazon have a much better selection than any other offered on cable television.
Cutting the cable can save you $ 200 a month, which adds to significant savings during the year. Canceling additional streaming services is also a prudent strategy to save you money on your entertainment needs. Do you need Amazon Prime and Netflix? Choose one or the other and cancel the second subscription.
Avoid premium brands
We all love supporting the brands we buy. However, could you get a better deal with a low-cost brand? It may seem that you are fooling yourself by spending less on premium brands. However, the reality is that the cheapest brands are usually of as good quality as the most expensive products.
The next time you shop at the supermarket, try some lower-cost brands and compare your satisfaction with them compared to what you would normally buy. Most likely, you hardly notice the difference anywhere, except in your bank account.
Read: How to dress well on a tight budget: complete guide
Reduce your cell phone bill
Your cell phone bill is another area where you can save tons of money throughout the year. Studies show that the average cell phone bill in the United States reaches $ 157 per month. To save on your bill, reject the update that will arrive in a few months.
Many operators subsidize telephone costs on their monthly bill. If you refuse to update your device, you could reduce your bill by up to 60 percent! Call your provider and ask if you can migrate to a lower cost package, or compare providers and see which one offers you a better offer. It is quite easy to save $ 30 to $ 40 on your cell phone bill by making some adjustments and reducing your talk time.
Reduce lifestyle expenses
If you like going out for drinks with your friends on weekends, consider inviting them to your home. Going out for dinner and having a drink can cost you $ 200 quite easily. By entertaining more at home, you can avoid high prices in wine bars, beers and spirits.
If you smoke cigarettes, think about the savings you could get if you quit smoking. This strategy alone could save you enough money to pay for a vacation every year. If you have trouble quitting, talk to your doctor about nicotine replacement therapy and smoking cessation programs in your area.
Closing – Budget for expenses
Using the strategies in this article will help you save thousands of dollars in your expenses throughout the year.
Adjust your budget to take into account your new spending habits and remember to deposit your savings. With some financial prudence, you could relax on the beach in no time!