Spend less to save more is an obvious financial tip that most Americans know. It can be a lot harder to put into practice, especially if you aren’t sure how you can go about shaving off expenses from your budget. Tried and tested financial tips are well and good, but for those working with tight budgets, the expected isn’t good enough.
If you’ve tried to think of ways to do that very thing, you’ve come to the right place. Here are some unusual financial hacks that can help you save money.
Put a Tax on Coffee & Fast Food
Financial writer and TV personality Gail Vaz-Oxlade suggests dropping a dollar into a collection jar every time you swing by the McDonalds drive-thru or stop in at Starbucks for a caffeinated pick-me-up. She calls it the Fast Food Tax, reasoning you can pay the dollar tariffif you can afford these treats regularly.
Don’t let the word tax scare you off. The levy you put on your fast food treats isn’t going to a faceless government stooge but into your very own pocket.It’s a relatively harmless way to set aside a bit of cash each week. Use it to buy the upcoming iPhone 8 you’ve been reading about or invest it into a savings account like a responsible adult. Depending on your habit, you can collect quite a bit of cash in no time at all.
Move Back in with Your Parents
As the number of articles disparaging Millennials who live with mom and dad rise, public consensus suggests moving back in with your parents is a sign of failure. In reality, it can be a great way to save a lot of money. Living on your own is expensive, even if you do share a space with a roommate. Combined with the rising cost of living and the weight of student debt, the cost of living on your own could lead to your financial ruin.
If your parents are in the position to support you well into your 20s, 30s, or 40s, the financial gains of this arrangement overshadow any shame you feel for moving back home. Don’t let your pride rule your head. Look at your finances and speak with your parents. It may just be a practical way to live while you build up savings.
Automate Your Finances
When life is hectic, and you feel pulled in all directions, it’s easy to forget about a bill here and there. Unfortunately, absent-mindedness comes with its consequences. Whenever you miss an important payment, you get hit with a fine and added interest. If you do it enough times, it can affect your credit score negatively.
Besides being a convenient way to keep track of your finances, online banking can help you avoid late fees. All you have to do is set up pre-authorized payments for rent, utilities, and loan payments, and you’ll never miss a due date again. You can even automate contributions to savings and other investments to help make saving easier.
It has only one drawback, which is easy enough to fix. When payments are automated, it’s easier to lose track of your spending. If you’re on a tight budget, something as important as an unexpected auto repair can use up the cash you had previously devoted to an automated payment. When the pre-authorized debit is denied, you can get hit with an insufficient funds penalty on top of a late fine.
Rather than cover this unexpected repair with the money you need to pay regular bills on time, make a point of budgeting your money so you can contribute to an emergency savings fund intended to help inthese situations. Don’t worry if it’s hard to get your savings off the ground. Starting them from scratch will take some trial and error. You may need to borrow money until you’ve built a sizeable nest egg that can cover an unexpected auto repair. A short-term loan can sub in for savings during your time of need until you’ve managed to set aside enough cash to pay for these on your own.
Don’t Be a Wine Snob
Some people believe the more expensive an item is the better quality it must be. No industry is more shackled by this way of thinking than the wine industry, as connoisseurs drop hundreds of dollars on single bottles of wine.
Cheap, unassuming wines have the ability to delight the pallet just like their expensive counterparts but for a fraction of the cost. A supermarket in the UK sells a brand of sparkling wine that just ranked as one of the best in the world at the 2017 International Wines and Spirits Competition. For just over $10 (or £8), you can sip on something that earned the same recognition as Veuve Clicquot, a luxury French Champagne with centuries of experience.
And if you can’t manage to drink all that bottle before it goes off, don’t pour it out. While it may not be worth pairing with cheese or chocolate, it will work well as a cooking wine. You can even use this spent wine as a replacement for vinegar, as long as you’re willing to invest some time into its creation.
Drink More Water
Studies show three-quarters of Americans suffer from chronic dehydration. Severe dehydration can lead to a variety of expensive medical problems, including fatigue, headaches, poor blood pressure, and kidney stones. By keeping up with your 8 glasses of water a day, you can avoid the physical effects of dehydration and prevent an expensive trip to the doctor.
But that’s not all. Chronic dehydration often triggers a false sense of hunger, so many people pick up their forks instead of their glasses. Someone has to pay for that extra food you’re adding into your diet. Rather than eating an inflated grocery bill, try sipping on some water steadily throughout the day and drink one cup before every meal. When you keep yourself hydrated, you can avoid mistaking hunger for thirst and keep your grocery bill low.
They may be unusual, but there’s no denying how well these hacks work to keep your money in your pocket. If the typical saving techniques haven’t helped, it’s time you test these unique strategies. You might be surprised by just how well they work.
