If you want to improve your financial situation, one of the simplest things you can do is to find ways to spend less money. This is easier said than done, of course — life is expensive, and finding places to cut costs is never as easy as the experts say it is.
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That said, there are ways to keep more of your money without having to make any major lifestyle changes. Just as important as curbing your spending, though, is what you do with the money you save.
To make the most of your savings, it may benefit you to find a high-yield savings account to deposit it in. That way, it will earn interest and give you more funds to work with down the line.
Ready to start saving and earning interest? Open a high-yield savings account today.
4 ways to spend less money this year
You don’t have to make drastic changes to spend less money this year. You can simply find places to make some cuts, which could result in big savings over the year.
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Spend less on food and drink
Reducing the amount you spend on food and drink — especially coffee — at restaurants and cafes is one of the easiest ways to cut your spending. No one is saying you can’t occasionally enjoy your favorite latte in the morning or a meal out with friends, but trimming this cost by even a small amount could make a big difference.
For example, you can make coffee at home or your office, and learn to cook rather than order food on a delivery app. If you limit the number of times per week that you eat out or buy coffee, your savings throughout the year could be significant.
Borrow rather than buy entertainment
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Entertainment is important — what’s life without a good book or movie to unwind with at the end of the day? But entertainment is also expensive, and the costs can add up, especially if you are a movie buff or a bookworm.
Luckily, you can cut some of these costs by using resources like the public library. Not only can you borrow books, but most libraries have DVDs available, including popular Hollywood releases. If you have an e-reader, you may even be able to borrow ebooks.
Look at transportation costs
If your family has two cars, it might be worth considering whether you could get by with one. This could be an especially good idea if one of the adults in your family works from home or can use public transportation reliably. Eliminating one car payment could save you thousands of dollars in a year, and that’s before you factor in fuel and maintenance costs.
Consider your living expenses
Housing is often the single biggest expense a person or family pays, and for good reason – you need a safe, comfortable place to lay your head at night. If housing costs take up too much of your budget, though, it could be time to consider a change.
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For renters, this might mean moving to a less expensive city or neighborhood. If you own your home, you might consider downsizing, especially if you no longer have kids at home.
How to make the most of your savings
Once you’ve decided how you’re going to spend less money this year, it’s important to find a good way to store that money and make it work for you. One smart option to consider is a high-yield savings account. High-yield savings accounts are safe and secure, and right now, interest rates are on the high side. That may change soon, but putting some money into a high-yield savings account now (or in the near future) will let you take advantage of the high yield for at least some time.
The bottom line
Saving money is hard, but you don’t have to completely overhaul your budget to do so. A few cuts to your spending could net you big savings. And, once you make those changes, be sure you put your money someplace it will work for you — like a high-yield savings account.
