One of the most fundamental concepts of generating wealth is knowing how to save money. When you master the art of stretching your earnings further, you have more resources to invest and save towards a more secure future. While shopping around for the best price, using coupons, and other common savings tactics are ideal, other strategies go overlooked, costing you hundreds of dollars each year. Continue reading to learn more.
Skip ATM Fees
When you need access to cash, the ATM is the fastest way to retrieve it. It saves you from standing in long lines at the bank and allows you to get money 24/7. Be that as it may, you incur a fee when you use ATMs outside of your bank’s network. The fee might only be $2-5, but when you calculate that over the number of times you use the ATM in a month, it adds up. Not to mention, most banks charge an additional fee for using out-of-network ATMs. You can save several dollars every year by merely using no-fee ATMs or making purchases using the debit card linked to your bank account.
Overdraft Protection
Even the most financially organized person can overlook a bank transaction. You forget that your cell phone bill is on automatic withdrawal. The funds aren’t available in your checking account. The payment gets returned, and you’re left with a $25-$35 fee to cover. While setting reminders can reduce the chances of overdraft fees, there’s another solution – overdraft protection. This is an “insurance” policy offered by banks where transactions totaling more than your available balance are honored or paid using a linked savings account, saving you hundreds in fees each month.
Rebates
Using coupons or taking advantage of sales when making a purchase are common ways to save money, but they’re not the only solutions. Most people tend to overlook rebate opportunities. Though not applied at the time of purchase, rebates can quickly add up. If you frequently shop online, applying for an Amazon rebate could save you hundreds of dollars on everyday purchases. Believe it or not, there are several cashback and rebate programs you can sign up for to save on everything from groceries to apparel.
Buy Generic
As a consumer, you’ll always pay for the brand’s name and reputation, from your medications to your clothes. For example, a pair of athletic shoes from Payless shoe store will cost you less than a pair you purchase from Nike. Since Nike is the more popular brand, it will always be more expensive than a generic brand from your local retailer. However, if you dig deeper, you’ll learn that these shoes are made in the same factories using the same materials, ultimately providing you with the same quality. So, it’s safe to say that you would save yourself hundreds if not thousands of dollars by being open-minded about generic or lesser-known brands.
Timeliness
When it comes to wasting money, timeliness is a huge factor. When you don’t pay your bills in a timely manner, you incur late fees, penalties, and sometimes added interest. Depending on how frequently you practice this behavior, you could be watching hundreds of thousands of dollars go down the drain. You can remedy this problem by ensuring that you pay your bills on time. Set up automatic payment plans or set reminders to ensure that you have the available funds to cover the bill. If you’re having difficulty keeping up with the due dates, talking with service providers about making adjustments is recommended.
As the saying goes, “A penny saved is a penny earned.” On the surface, these habits may not seem like much. Incurring a $2 ATM or $35 overdraft fee, spending more on a popular brand, or missing the deadline for a utility or credit card bill seems minuscule, but if you were to add it up over the course of a month or year, chances are you’d be surprised. Keep more of your money in your pocket by developing better financial habits and taking advantage of the resources available to help you save more each day.
