Today we live world where being a big spender is a symbol of status and is seen as positive, but saving money and frugality were once considered great virtues. Today, they are cultural oddities. Those who can save money, however, in most instances will have a much easier life than those who are reckless spenders. Saving money can be done in two ways. The first is the traditional idea of saving money that involves stashing funds away in a sock or a bank account. The other way that people can save money is through finding ways to cut spending.
Credit card debt is a major problem for many. The average UK household has about $54,000 in debt. Many of these households will have their debt spread over several different cards, each requiring a monthly minimum payment.
Consolidate Credit Card Debt
Debt management companies exist to help consumers find ways to cut their expenses, and one of the easiest ways that they will recommend to save some money each month is by consolidating this credit card debt. Those who are able to qualify for 0 percent balance transfer offers and consolidation plans can move some of their credit card payments into one monthly payment that will have a minimal finance charge that will be much better than the 10 to 20 percent rate that most credit cards charge. Consolidating cards through debt management is a great way to achieve financial stability for those who can work it out. Companies like Consolidated Credit can help with debt management greatly, as well as credit counseling.
Another great way to save money is by using coupons. These little strips of paper that give a discount on the purchase price of an item were once considered mainly the domain of older ladies who lived through the Great Depression. With the Great Recession, many people lost a substantial amount of income and are now taking advantage of coupons. People who are able to watch for sales and combine the lower sale price with a coupon can get name-brand items for a fraction of the normal retail price. In areas that have stores that offer double coupons, it is sometimes possible to get quality items for free. Buying a Sunday paper will usually cost about £2 and most of these papers will have a coupon insert or two that can lead to big savings. Additionally, there are several internet coupon sites that allow thrifty users to save money as well.
Name brand clothing can cost a very sizable amount of money. Many people that have quite a bit of money are always trying to get the newest fashion. They will then donate older clothes that might not fit as well to a thrift store or put them on sale at a consignment shop. While these stores will sell them for more than they actually paid for them, used clothing items will sell for a fraction of the regular retail price at a consignment shop. Most stores will be fairly thorough in checking the quality of their merchandise so the clothing doesn’t look like it is ten years old.
Buying used clothing can save a substantial amount of money, but it is not the only area in which used items will make financial sense. Another option in the realm of buying used that can save people money is related to transportation. Getting a slightly used car can save thousands on the purchase price. One of the best ways to get a vehicle that still has quite a bit of useful life left is by visiting a dealer and looking for cars that were a part of a fleet or that were previously leased out. These cars will generally have some of the initial manufacturer’s warranty left to fix any bugs or faulty parts. They will also tend to be several thousand dollars cheaper than a new vehicle and the savings will go to the consumer.
Use Cash Only
Many people are able to save money by moving to an all-cash method of payment. The goal in this instance is to avoid making any purchases unless there is cash in the wallet or the cheque book. Avoiding credit card buys will ensure that there is no interest cost associated with purchases. Additionally, buying an item only when cash is available will cut down on impulse spending that can eat up a large chunk of a monthly budget. Those who want a big-ticket item might decide they do not really need it if they have to wait until they have cash to pay for it.
Reckless spending can become a problem for anyone. The recent recession has shown people that the old proverb about money not growing on trees is accurate. Saving money and debt management has taken on a new importance for many people. These quick tips will help those who are struggling with saving money to start cutting expenses. Less money going out will allow for more in the way of savings and a better financial future.