You’re the only one responsible for your finances. With that said, if you don’t have anything to show for your money, or if you’re always in the hole, it’s time to get to the bottom of your financial trouble.
It’s possible that you don’t earn enough to cover all your expenses. Or maybe the problem isn’t your salary, but the fact that you spend way above your means.
No matter the issue, understanding how to make your money go further can dramatically improve your cash flow. Here are nine ways to get out the hole.
1. Cancel unused memberships
Monthly membership fees can add up quickly, and it’s easy to justify an expense if you actually use or need a particular service.
But if you have a monthly gym membership that you haven’t used in months, or if you’re paying for other services that you don’t use on a regular basis, such as Netflix or Spotify, canceling these services keeps money in your account.
Separately, you may not pay a lot for each membership, but when you calculate the total monthly cost of all your membership fees, the money you save by canceling these services might pay a bill.
2. Search the Internet before you buy
It might be easier to drive to a local store when you need an item. But if you want to make your money go farther, always search the Internet before you buy anything. Whether it’s electronics, books, clothes or accessories, chances are that you’ll be able to find the product cheaper online, or at least find a coupon code to take a percentage off your total.
3. Share expenses
Everyday life can be expensive, and simple things like renting an apartment or driving to work can take a lot of your extra money. Rather than do everything as an individual and risk going broke, share expenses with a friend and save.
If you’re struggling to pay rent or your mortgage, getting a roommate may provide some wiggle room. And if you drive far to work, carpooling with a coworker who lives nearby can reduce your monthly transportation costs. Likewise, you may be able to save money on entertainment by splitting an entrée with a friend when you go to a restaurant.
4. Limit costly conveniences
Buying your movie tickets online to avoid lines or having food delivered to your house saves time – but you won’t necessarily save money. Between convenience fees and tips, you’ll pay more out-of-pocket. But these aren’t the only conveniences that can hit your pocket hard.
Do you have a housekeeping service? Do you pay someone to wash your car? Does a lawn care service come to your house every week? You are undoubtedly busy, and like most people, you may not have extra time for household chores. But if you’re barely making it financially, or if you’re spending more than you’re saving, dropping some (or all) of these services can be the ticket to a better financial outlook.
5. Develop a spending plan
Whether you call it a budget or a spending plan, having an idea of where your money goes each month is the simplest way to make your cash go further. And honestly, it makes perfect financial sense.
If you don’t know in advance how to allocate your money, there’s a chance that you will overspend in certain areas, which ultimately affects whether you’re able to cover essential expenses.
For example, your income may only allow you to spend $100 a month on recreation, yet you’re currently spending $250 a month. That extra $150 can make a difference at the end of the month, especially if you’re always scrambling to find rent money or cash for other bills.
With a budget, you’re forced to look at what you bring in, and then compare this with your monthly expenses. Only after you put all income and expenses on paper will you truly know how much to allocate for different expenses.
6. Evaluate monthly costs for utilities and other services
There is no rule that says you have to be loyal to a particular company. With that said, if you feel that you’re paying too much for cable, auto insurance, health insurance or a cell phone, shop around and compare rates with other companies. Do your homework now, and you might be able to switch providers once your current contracts expire.
7. Become energy-efficient
Never underestimate the financial benefits of creating a more energy-efficient home. Any effort you make to consume less energy can reduce your electricity bills, and ultimately stretch your dollars.
Buying energy-efficient appliances – which use less water and energy – and replacing incandescent bulbs with LED lights are obvious solutions. But there’s more you can do.
For example, use your microwave or toaster oven to warm leftover food, rather than turning on your conventional oven. Keep your freezer full, as an empty freezer uses more energy. Only run your dishwasher or washing machine when there’s a full load. Air dry your laundry and dishes. Close drapes in the summer to block the heat, therefore reducing how hard the system works. Replace air filters as recommended by the manufacturer, and regularly check your home for air leak.
8. Plan meals in advance
If you go to the grocery store without a clue as to what you’re preparing for the week, you’re likely to throw any and everything into the grocery cart, which unnecessarily increases your grocery bill. Plan out meals before heading to the store. Shop with a list and you’re less likely to buy items that you don’t need.
9. Shop smartly
Beware of buy-one-get-one-free clothing or shoe sales. These may seem like great deals, but it’s only a good deal if you actually need multiple pairs of a particular item.
Shop alone to eliminate any pressure to spend. And the same way you check the Internet for deals, make sure you check thrift stores and secondhand stores before hitting the mall. You might find exactly what you need for less.
Do you have more tricks to help make your money go farther? Let me know in the comments below.
Photo Credit: kati steiner via Compfight cc