Michael Ecke is a mortgage professional - NMLS # 1439805, entrepreneur, businessman, and founder of Prosperment. As a current employee of a Fortune 50 company, Michael is dedicated to ensuring the utmost attention to detail and quality control. Michael provides executive oversight and direction to Prosperment and its sister companies. Michael brings to his position the business foresight and acumen required as Prosperment continues its remarkable growth.
"Estimated Monthly Coffee Savings - $134.28"
Let’s face it, Americans are having a tough time being able to save money every month. Its reported that 69% of U.S. adults have less than $1,000 in the bank. Imagine what would happen if you found extra money every month. Could you finally afford your dream vacation? Could you build an emergency fund? Perhaps you could have a down payment for that home purchase saved up. This article can help you save money on every day and monthly expenses. Plus, it includes automatic tips on setting aside funds for the future.
1. Stop buying coffee at Starbucks & Dunkin and make it at home!
If you’re like myself then there is nothing better than enjoying a cup of coffee in the morning before really starting your day. If you frequent places like Starbucks & Dunkin Donuts this can quickly become an expensive habit. Let’s say you make this trip 7 days a week, you are looking at around $35.00 a week, and about $140.00 a month. You can purchase instant coffee like Folgers Instant Coffee Crystals (Classic Roast) on Amazon for about $5.72. This method will generate about 120 cups of coffee for a fraction of the price. Just add milk, sugar, or your favorite creamer and your back on your cost cutting caffeine buzz!
Estimated Monthly Coffee Savings - $134.28
2. Quit smoking the cigs.
If you’re still a smoker, you must know that your habit is not only expensive, but potentially deadly as well. The average cost of a pack of cigarettes is around $5.51 with the price in some states being much higher. Do the math how many packs do you buy a week? You can quit cold turkey or explore one of the many anti-smoking products on the market. Whichever path you choose, you will be better off financially and physically.
4. Take advantage of your employer’s 401(k) match.
Not every company sponsors a 401(k) plan, of those that do, an estimated 92% match employees contributions to some degree. If your company offers a 401(k) match, contributing enough of your own money might land you hundreds of dollars additional every month to help you save for retirement. Say your company is willing to match up to 5% of your salary, and you earn $75,000.00 a year. If you contribute 5%, your company will match $312.50 every month additional to your contributions. That is an extra $3,750.00 a year to help you save towards your retirement goals. Bottom line: take advantage of any company 401(k) match and max it out.
5. Lower your car payment & insurance.
Refinancing your auto loan to take advantage of lower interest rates could potentially save you money every month and over $1,000 or more during the life of your loan. We recommend checking with your bank or credit union to see if this is a viable option to save money and lower your interest rate. With every car comes auto insurance, we recommend shopping around to see if you can get a lower premium on your coverage. Shopping every 6 months or at least every year can potentially save you hundreds every month. We recommend tryingRoot Insurance, if you get a quote, they will give you $25.00 even if you don’t switch!
6. Refinance your mortgage if you have one.
Refinancing your mortgage can potentially help you lower your interest rate and mortgage payment to help save thousands of dollars every year or even help you pay off your home sooner. You can also consolidate high interest date into a cash out refinance or home equity line of credit to lower monthly obligations and increase cash flow. Since your using your home as collateral the interest rate will be lower than credit cards or personal loans (unsecured loans). Talk with a licensed mortgage professional and see if this is the right move for you.
7. Don’t hate me, but………cut out cable!
Wait, what?!?!? But with services like Netflix, Sling TV, Hulu, and Amazon Prime, you can now watch your favorite TV shows and movies for a fraction of the cost of cable TV. Cable bills will soon grow to an average of about $123.00 a month or $1,476.00 per year, you can save that money for another financial goal.
8. Read a personal finance book.
Listen knowledge is power and the more you know, the more you can save and invest. Click here to view personal finance books on Amazon.
9. Map out your financial goals.
You have to be very specific with your financial goals. For example, saying, “I want to save for a trip to Italy” is not enough. You need to map out how much you need, by when and what you need to save every single month in order to reach the goal. When you know what your targets are, you’re more likely to stay the course and continue saving for them for the long haul.
10. Download a micro savings or micro investing app.
Technology is becoming a key piece on how we save and invest our money. With companies like Acorns, Digits, Stash Invest, and many others, this is becoming the norm for people to save without really noticing. These apps can help you save and/or invest small amounts so you don’t have to worry about manually transferring and investing your money. Start today to achieve your financial goals.
Our goal with this post was to simply help kick start that brain into high gear and help you save more money every month and every year. Please let us know if you have any other saving tips that can benefit our readers. Happy saving!