When it comes to your spending habits, small purchases can add up fast. You may not even realize how much you’re spending until you evaluate your expenses and discover that those daily meals out cost more than your monthly rent.
Of course, this works both ways. When you set a small amount aside each month for savings or retirement, you may be surprised at just how big of a nest egg you can grow with so little effort.
It’s all about habits.
Developing the right habits can help you live a financially stable life, and if you learn good money habits early on, you can have peace of mind for the future.
If you’re trying to save money, check out the money-saving life hacks below.
1. Switch to a clothesline.
Saving money on electricity will help your bottom line. Speaking of lines, getting a clothesline set up outside and inside is the first step toward reducing your dependence on the biggest energy hog in your house – your electric dryer.
Let’s look at the numbers: An electric dryer uses about 4 kWh per load. At a usage rate of 20¢ per kWh and doing five loads per week, you’ll save about $208 annually by hanging your clothes outside to dry instead of using the dryer.
2. Cut the cord.
Calculating savings is a little tricky when it comes to cutting the cable cord. Many times, cable and Internet are bundled, so if you nix cable, you’ll need to find another Internet provider.
But let’s say you have only cable service at around $108 per month. If you stop your cable service and instead use a streaming service(s) for $20 per month, you could save up to $1,056 every year.
3. Drink tap water.
Staying hydrated is one of the best health hacks ever. But it can also suck your bank account dry! If you purchase two bottled drinks every day, averaging $1.23 per drink, you’ll spend almost $900 a year! Switch to tap water to save $898 annually.
4. Keep your tires properly inflated.
Driving with under-inflated tires can reduce fuel efficiency by 4%. Assuming your family has two cars, each getting 20 MPG and driven 15,000 per year, and gas at $3.47 per gallon, you could save nearly $217 each year by ensuring your tire pressure is consistently where it should be.
5. Brew coffee at home.
This “make it v. buy it” money-saving tip is on almost every list of ways to save cash. And for good reason. Coffee’s a must-have part of virtually everyone’s daily routine, and after looking at the costs of one versus the other scenario, the savings can be pretty dramatic.
For our purposes, we’ll say it costs 10¢ per cup to brew at home and $4 for a cup of coffee you buy. In one week, you’d spend about 50¢ for your brew-at-home cup of joe, while that same morning-starter would run you $20. Annual savings: $1,014.
Calculate costs based on your preferences.
And the Grand Total Is…
Applying these five habits to your lifestyle could potentially save you $3,393 each year. The money saved can help you pay current bills, go toward retirement, or a combination.
Best of all, many of these life hacks aren’t difficult. They just require small tweaks to your lifestyle. Instead of buying coffee at a shop, make it at home. Instead of paying for cable, use a cheaper entertainment service. You still get your coffee and TV shows, but just in a different and more cost-effective way.
Looking for more money-saving tips? Check out this post on easy ways to save money without really trying. We also have resources to help you understand budgeting, how credit works, learn to protect your identity, and more. Visit psecu.com/learn.
