There are dozens of ways to save money.
- Debt consolidation can save you thousands of dollars in interest.
- Simple projects around the house also save money.
- Bank charges should be a thing of the past.
Here’s the thing: Most of us face similar financial issues. We all face rising interest rates and the impact of inflation at the grocery store. As someone who went through this when Jimmy Carter was president, I can’t say I’m freaking out (mostly because I know it won’t last), but I still feel the pinch.
I know saving $1,200 in 2023 sounds like small potatoes, but it’s a place to start. I believe that once you see how easy it is to save $100 a month, you will find other creative ways to save more.
I’d love to say saving is fun, but that’s not quite the right word. Perhaps a better word is “satisfactory”. There’s something satisfying about defying current economic conditions by putting money aside rather than letting it slowly seep out of your bank account.
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1. Consolidate debt
Debt consolidation can be the smartest financial decision you make or the biggest mistake – it’s up to you.
Here’s how it works:
- You collect your high-interest bills. This includes credit cards, personal loans, payday loans or any debt you have around your neck like 40 of MT’s gold chains
- Make a list of each debt, including the balance.
- Shop around to find the best debt consolidation loan. Loans will announce their interest rate. You don’t care about that. What you want to know is the annual percentage rate (APR). It’s the real the cost of the loan, including interest and fees. The APR should be lower than the rate you are paying on your existing debt.
- Once you’ve found a loan that’s right for you, apply. It’s important to remember that the higher your credit score, the lower the APR you’ll end up paying.
- Choose the shortest repayment term you can afford. The shorter the term, the less interest you will pay. Plus, it’s good to know that your debt will be fully paid off within a certain number of months.
- Some lenders will send the loan proceeds directly to your current creditors. If your lender doesn’t, wait for the funds to arrive in your bank account and pay off the existing debt.
Now here is the most important part: Do not take on any new debt. Seriously. Focus only on repaying the consolidation loan.
Let’s say you have $15,000 in credit card debt at 18%. If you’re paying $450 a month, it’ll take just under four years to pay off and you’ll be paying nearly $6,000 in interest.
If you consolidate that debt at 10% for four years, your monthly payment will drop by $77 and you’ll pay just over $2,900 in total interest.
Monthly savings: $77
Annual savings: $924
2. Seal it
The Environmental Protection Agency (EPA) estimates that homeowners can save 15% on heating and cooling costs by doing two things:
- Seal air leaks around their homes, and
- Adding insulation in attics and floors above basements and crawl spaces
If your current heating and cooling costs are around $150 per month, that’s a savings of $22.
Monthly savings: $22
Annual savings: $264
3. Change bank
If your current bank is charging fees, not only is it failing to keep up, but it’s asking you to spend money unnecessarily. Let’s say you’re still paying a service fee of $15 per month. Switching to a new bank or credit union without these fees gives you money you can keep.
Monthly savings: $15
Annual savings: $180
4. Unburden yourself
My big plans this weekend are to walk through a back room in our basement and throw out everything I don’t absolutely need. Having just moved, I really believed that I had already reduced, but unfortunately there is still a lot to do.
Swedes (some of the happiest people on the planet, according to the World Happiness Report 2022) regularly practice döstädning. This translates to “death cleansing”. As dark as that sounds, it’s actually a liberating act.
It’s about going through closets, drawers, garages, basements, and storage units to ditch everything you don’t need or use. It’s not a modern notion “suggested by a best-selling author”, but rather something that Swedes have been doing forever.
Many older Swedes practice döstädning so that there isn’t a pile of junk for their children when they die, but younger Swedes also embrace it. They say it makes them calmer and more organized.
How could the radical organization help you? Once you throw away anything that’s broken or no longer working, you’ll end up with a pile of things someone else would love to own. Sell this stuff. Earn enough extra cash to boost your savings account or pay off existing debt faster.
If you were to adopt just the first three tips above, you would already be $1,368 more in 2023. The truth is, however, there are dozens of ways to save money without changing your style. of life. It’s about figuring out which ones work for you.
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