If you really want to save cash then there are some great ways to do it. Here are top tips – 5 Things To Avoid When Saving Cash
1. Saving Cash Is Difficult With High Interest Credit
More than 191 million Americans have credit cards, and most of us will pay interest on top of what we borrow. A credit card is a line of credit meaning that we’re borrowing money from our credit card company, which apply interest. Interest is the cost of borrowing, and the average rate on a US credit card is 16.13%. Credit cards with high credit limits make it oh so easy to spend, spend, spend!
When trying to cut costs, you should consider a no-to-low interest credit card. Many card companies offer an interest-free trial period with them, such as the Citi Simplicity Card which offers 0% interest on credit for up to 21 months, and the Amex EveryDay Credit Card which offers the same but for up to 15 months. The lower the interest, the less your borrowing costs, and the more you can save!
So keep reading about the 5 Things to Avoid When Saving Cash!
2. Costly Subscription Services Make It Harder To Save Cash
Because subscription services usually charge you through an automatic direct debit, it’s easy to sit back and enjoy their services while ignoring the cost of them. It makes it harder to save cash when you’ve set up auto-withdrawals you don’t even have to think about each month.
If you’re trying to save, you should consider which of your subscriptions are worth what you’re paying for them. The average gym member in the US pays a monthly membership cost of $37.71, so if you’re using it once a month – run around the block instead! Your Netflix membership? That’s costing you at least $9.99 a month, meaning almost $120 each year. If you’re not using it, you could invest that money instead.
Avoid Sales And Retail Therapy When Saving Cash
Many consumers say they want to save cash but last Christmas, 33% of Americans anticipated encountering debt. That’s because our natural instinct is to make the most of the sale, but that often means we spend money we didn’t plan to or need to, spend. Make sure, if you’re trying to save, that you are buying out of necessity – not out of impulse.
Along the same lines, wandering around stores can result in unexpected purchases. Retail therapy is fun, but expensive In 2019, the American public spent a cumulative $17.78 billion on impulse purchases. Try to avoid adding to this figure, and instead wander round places that won’t encourage you to needlessly spend!
4. Expensive Food And Drink Eat Up Your Cash
You would have heard this one before, but it still rings true. For example, if you typically buy lunch instead of making it, you could be spending way more than you need to. If buying lunch every day costs you $7, but preparing food at home and bringing it only costs $2, then over a year, you would be saving $1,250, which you could save or spend elsewhere.
You should also shop carefully. In the US, 75% of household food waste is still edible. This, alongside wasted food and nutrition, also represents lost money. To avoid this, don’t overbuy, and purchase goods with long expiry dates.
And finally, alcohol is pricey! If you spend $30 on alcohol each week, that’s $1,560 each year. It’s great to treat yourself, but be conscious of how much you spend on alcohol – for your health and your wallet!
5. Expensive Travel Will Blow Throw Your Cash Savings
Travel is far from cheap. With gas prices surging, driving is increasingly expensive. Public transport is expensive too, with a monthly Metro pass in New York costing $121. That is why we recommend that if you can walk, cycle, run, or carpool – do! It’s better for the environment, it’s good for your health, and it’s great for your savings account.
International or cross-country travel isn’t cheap either. If you’re planning on moving around, book in advance if you can, or check out a last-minute travel website to try and secure a better price.