How to save 2,000 by December

I believe I heard over 25 million American households are living paycheck to paycheck. This considered, we are one catastrophe, or medical emergency away from bankruptcy.

How can you reach your financial aims on a low income? When it comes to finances, it is essential to not think about the now but the future. Even if you are earning a minimum wage, you can still save small by small. Below are a few tips to save 2000 by December.

Tackle High-Interest Debt First

To begin saving more, you have to tackle your debt head-on. Precisely, high-interest rates from personal loans, or credit cards, because they force you to pay outrageous fees as well as interest charges. When paying off debt, you require an attainable, still challenging plan to pay it off. Begin by prioritizing your debt so you are paying off the ones with high interest first. Then, as you go forward, avoid accumulating any higher interest debt, particularly credit cards.

Cut Down Your Big Expenses

Trying to save money when you have a lower income can be extremely tough. Sometimes it feels impossible to cut down even a dollar or 2 each month. Aside from the typical money-saving ideas, like cooking meals at the house and canceling your cable bill, what more you can do? Rather than trying to cut back your little expenses, concentrate on the large ones so you can make more of an important effect. For many people, homing prices tend to be a big part of their expenses. If you are renting, consider downsizing to a small home or living with roommates. If you own your house, take a look at whether or not refinancing your mortgage for a low rate will be beneficial. You can rent out a room or parking spot for more income.

Take Advantage of Free Money

Take advantage of free money when you can. As a family with a lower income, you can qualify for the earned income tax credit (EITC). As per the IRS website, the EITC can be a large refund on your taxes, helping you keep more of what you earned. Sometimes even as much as some thousand dollars. You need to look into a 401K at work and see if your company matches up to a specific percentage of your contribution. If they do, you need to take advantage of it and begin saving as much as possible. The company match is basically free money that will aid you to save towards retirement.

Keep Your Budget Lean

To save more, you must control your spending. Choose the categories that you want to have, and keep the rest of the budget as lean as possible. You will have to make sacrifices but it isn’t impossible. Learn to spend in moderation. For example; cut back on how frequently you dine out. You can enjoy a good meal at a restaurant, not multiple times a week.

Start a Side Hustle

If you cannot cut prices any more than you have, consider diversifying your income by beginning a side hustle to earn more money. Aside from your full-time job, you can get a job on the side to offer another income source. Several side hustles can be done right from your own house in your spare time. Think about what you are better at doing, what type of hobbies can earn money, or what you enjoy that may be turned into a side job.

Renegotiate Your Long-Term Contracts and Existing Rates

If you are using a similar provider for a while, then it is time to consider renegotiating your rate and contract. This can mean calling up your gym, car insurance provider, cable company, cell phone provider, or any other service you are a longtime client of.

Call Center Providing Customer Service

Before you call, do some research on what specials and promos, if any, your provider is running. Probably, if they are willing to provide an X% discount for a new consumer, they need to be willing to extend that same deal to a longtime and loyal customer like yourself. You need to look at the offerings of competitors. Come armed with this info before picking up the phone.

Take Advantage of Lesser-Known Discounts

If you work for a big organization, or you are a client of a big-name brand in a few ways, you are probably missing out on serious discounts one way or another. Inspect with your HR department and ask for a list of discounts and benefits. Several employers have negotiated decreased rates with cell phone providers, insurance companies, and local businesses as well.

Do Not Make Impulse Purchases

Instead, set aims to save every month for fun for yourself. Or, you can put an item in the shopping cart and then revisit it later. It will aid you to determine if you want to make that purchase.

Never Go Grocery Shopping When You Are Hungry

If you decide to go to the grocery store on an empty stomach, before you know it, you will have spent way too much money on Twinkies and Hot Cheetos.

Reduce the Number of Times You Eat Out in One Month

It is true that the corona pandemic has really helped us out with this one. If you eat out, it can add up fast. You need to plan on ordering take-out or use Uber Eats once a month, not a couple of times a week.

Cut Out the Vices

Smoking, vaping, and binge drinking are terrible for you and costly.

Always Pay Bills on Time

These late fees aren’t cheap; adding more than $30 or so to your bill makes it a lot very hard for you to lower the balance.

If You Have A Credit Card, Pay It Off as Rapidly as Possible

Credit cards are the best way to establish credit, but a bad credit score will follow you everywhere. If you are using more than 50 percent of your credit card limit, you will have a high-interest rate.

Make Plans to Save

Now that you have made a budget, make a savings category within it. Try to save a minimum of 10-15% of your income. Consider the money you place into savings a regular expense, same to groceries, to reinforce. If your costs are so high that you cannot save that much, it may be time to cut back. To do so, recognize nonessentials that you can spend less on, like entertainment and dining out, and find ways to save on your fixed monthly expenses.

Record Your Expenses

The best step to save money is to figure out how much you spend and keep track of all your expenses both business and personal. Keeping a better record of your expenses over time will help you review your spending habits and cut off unnecessary spending that can be eating up on your finances.

Make Savings Automatic

An easy way to save money is by automating the savings. Tech startups are helping people save money easily and smartly. The concept of automatic savings using any of these applications is simple; the application automatically removes a set amount from your account as scheduled and places it in a savings account that you can’t be withdrawn unless a set time has elapsed.

Open A Fixed Deposit Account

By restricting easy access to your money, fixed deposit bank accounts can give you a higher-interest rate than basic savings or transactional accounts you may be used to. Fixed deposit accounts permit bank clients to keep their money in the bank and earn many percent per year on top of the original amount. Even if the procedure of doing a fixed deposit alters from one bank to other banks, opening a fixed deposit account is still very easy.

Select Something to Save for

One of the great ways to save money is to set a goal that you’ll love to achieve with your savings. Begin by thinking of what you can want to save for, maybe you want to save for a new car, a new home, a vacation with family, or even for retirement. Then figure out how much money you will require and how long it can take you to save the required amount and make a commitment to make gradual efforts to attain them.

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