Did you make a New Year’s resolution to save more money in 2019? Even if your budget is tight, there are several ways in which you can build a better financial plan for your future by saving money.
You never know when an unexpected expense will arise, requiring you to come up with quick cash. Perhaps you want to retire at a certain age and need to save enough money ahead of time for it.
Whatever the case may be, you can follow these 10 money-saving tips to help secure your financial future.
1. Research Fuel Stations
The cost of fuel is regularly increasing. But some petrol stations are priced cheaper than others. You will be able to save money if you can fill up your car’s tank at the cheapest service station near you.
Become a frequent visitor at the MotorMouth, a site that lets you locate the station near you with the best petrol prices.
2. Eliminate Debt
You need to eliminate as much debt as you can. If you have credit card payments or auto loan payments, you are without a doubt paying a lot of interest on them.
This interest just takes more money out of your pocket. Credit cards are the worst because they typically have interest rates of 20 percent or higher.
Someone with a $3,500 credit card balance could end up paying more than $25,000 in interest if they only make minimum monthly payments on it. Therefore, try to pay off the balance of your debts early and save more money in the long run.
3. Open a High-Interest Savings Account
Open a high-interest savings account and transfer all your savings into it. You might be able to find accounts that offer annual percentage rates as high as 2 percent.
Continue to add as much money to this account as you can over time. That way, you will earn interest on the money in your bank account, known as passive income.
As you see the balance growing as it gains interest, you’ll stay motivated to save as much as you can. It is a great way to save and make money at the same time.
4. Plan Your Family
You may be thinking about starting a family sometime soon. If so, don’t just have kids without some type of financial plan for their future.
It costs more than $1 million for the average family to raise their children from birth to adulthood. You need to think about putting more money aside and possibly getting a higher paying job or even a second job.
Those unprepared or unable to provide financially for their children might want to consider limiting the size of their families.
5. Purchase Groceries in Bulk
You will almost always save money if you purchase your groceries in bulk quantities, particularly nonperishable foods or groceries you can freeze.
Buying in bulk might require a larger upfront investment, but that food will last much longer, saving money overall. You can even research ways to freeze or can meats, fruits and vegetables to save on your produce and butcher bills.
6. Use Solar Energy
Think about installing solar panels on your home to provide your own renewable energy. After the initial expense of the panel installation, you will reduce or even eliminate your monthly energy bill.
If you plan to stay in your home for several years, you will save a great deal on your monthly utility bills with this investment.
7. Debt Consolidation
If you don’t have the money to eliminate all of your debt right away, then think about getting a debt consolidation loan instead. This loan will reduce your interest rate and allow you to pay off your debt faster.
8. Get Roommates or Tenants
If you are struggling to pay your monthly expenses and save money, then consider taking a roommate or tenant into your home. They will pay you rent every month, and the funds can be applied toward your expenses, while helping you save money, too.
9. Invest in a Superannuation Plan
Australia is known for its high tax rate. But if you invest in a superannuation plan, you are taxed only up to 15 percent on that money instead of the potential 46.5 percent you otherwise could be paying.
Superannuation is a great way to save for retirement and pay fewer taxes in the process.
10. Invest in Real Estate
Real estate is a powerful investment because it rarely loses value in the long term. Just find the right location and purchase property that has the potential to thrive in the future.
If you buy a home or apartment building, you could rent out the spaces and earn a passive income even as you hold onto your property and it’s future value.