The average American have at least 2 credit cards in their wallets rather than cash. Some opt to use credit cards to earns points and get flexible rewards. Some would like to have an option to buy what they want and pay at a later time. Doing this may be convenient for a lot of people, but if you do not know how to manage your finances, you may end up in debt.
The total US credit card debt is around $793.1 billion. According to Federal Reserve, there are 56% of consumers who have carried an unpaid balance in the past 12 months and 26% even said that their debt has gotten higher in the past 12 months.
To avoid debt, one should learn to lessen unnecessary expenses. One should learn to save money money as well. So here are some thrifty ways to help you save money and not get buried in all those credit card debts and loans.
Spend your money on things listed on your budget only. This would include necessary expenses like bills, groceries and health care. All expenses other than that should be minimized and be cut down from your budget.
2. Save your change
Small things come in big packages. Save your pennies everyday on a jar and never touch it until the year ends. You will see how much your coins have spared you cash to save on the bank.
3. Don’t pay what you can avoid
Some people may not know this or others are just too shy to ask, but if your credit card or bank accounts have annual fees or monthly fees, you can call in to ask for that to be waived. It will depend still on your payment history with them but if you’re confident that you are a valued customer, there’s really no harm to call and ask.
4. Save on interest
If you are one of the many that pay the minimum payment due on your credit card, then your credit card company is earning a lot from you. If possible, pay your statement ending balance each month instead of the minimum. As long as you do not have cash advances made, you will not be charged interest for that month.
5. Don’t compare
Sometimes comparing yourself with your next door neighbor can also make you spend on wants rather than needs. If you’re the type that always peeks at the window to check what new gadget or appliance they purchased and ends up buying the same thing, then you better stop doing that. Envy never leads to anything good.
6. Learn to cook
Eating out all the time is very costly. Not only it is fattening, it can also drain your budget. Try to cook most nights and limit dining out. And remember, take out or delivery is not considered eating at home.
7. Bundle up
If you are using different service providers for your cable and other electronic services, try to call them and ask what bundle packages they offer. This will definitely save you a lot.
8. Walk and exercise
If you are just going to a nearby place, opt to walk instead of driving there. Not only are you saving money on gas, you are also making yourself healthy by doing a bit of cardio.
9. Quit smoking
Most if not all people have the habit of smoking. Instead of spending your money on a couple of sticks a day, why not put it in the bank and save it instead. You also do not have to worry of your health anymore.
When you go shopping, you do not have to buy branded items all the time. Better go to the Sale Section of a store and buy the stuffs you like. This will make you more fulfilled and happy.
These are just some ideas that you can do to save money day by day. In today’s world, where shopping and spending is a temptation, always try your best to discipline yourself.