Posted By RichC on April 22, 2017
My favorite news network shared 20 excellent tips for saving money (by Daniel Kline, who writes for the Motley Fool). I highlight a favorite below.
Saving money takes discipline
It means forgoing things you want and making tough choices, which can be tough in our consumption-focused society. However, saving money can make it easier to get what you really want, whether it’s buying your dream house, starting a business, or retiring early. Whatever it may be, having cash in the bank (or invested wisely) brings you closer to that goal.
To that end, below is a list of 20 ways to boost your savings in a big way. Some are tougher to achieve than others, and you’ll need to weigh the necessary sacrifice against the return. For example, if your morning latte brings you joy (or keeps you sane), then it may be worth the $5 it costs.The same is true of anything on this list.
1. Pay off your credit card debt
For every $1,000 you have in credit card debt at an annual percentage rate (APR) of 15%, you pay $12.50 per month. If you carry $7,000 in credit card debt over the course of the year, you will spend $1,050 on interest payments. That’s money being burned. It does not lower your debt; it’s simply the cost of borrowing on a credit card. If you pay a higher APR, the picture gets even worse, and the value of paying off the debt becomes even higher.
2. Trade your latte for coffee
While making coffee at home by the pot saves the most money, it also involves a bit of hassle, and perhaps you enjoy the experience of visiting a coffee house as much as the coffee itself. But if you substitute a $5 latte for a $2 cup of coffee five days a week, you’ll save $780 a year. If you’re a seven-day-a week coffee buyer, you will save $1,092.
3. Keep your car longer
Most car payments are over $100 a month, so not having to make that payment would save you at least $1,200 a year. In general, people take a car loan over three, four, five, or maybe even six years. In many cases, when the loan has been paid off, the car remains in good condition. If that’s the case, even if you want a new car, it’s sensible not to get one. The challenge is holding on to your car as long as it’s in good shape but selling it before it begins to need expensive repairs.A trusted mechanic can help you make this decision.
4. Put $3 a day in the bank
It may sound silly, but if you save $3 a day, 365 days a year, you will end up with $1,095 in the bank. Most people won’t actually set three physical dollars aside each day, but breaking down a larger goal into small pieces can make it more manageable. In this case, saving $1,000 may seem a bit daunting, but most people can picture putting $3 aside each day.