Services and products continue to rise in cost, and inflation has reached all-time high levels. It’s prudent, moving into 2022, to look for ways to cut costs to help offset these increases on household items, food, utilities, gas, etc.
A penny saved is a penny earned, and every cent counts, allowing you to not only acquire the things you want, but the things you and your family may desperately need. Here are some tips to help you cut costs in the New Year
Go Generic.
Buying generic is a great way to cut costs and create a healthier grocery budget. While some people are averse to buying generic products (perhaps because in some ways it makes them feel like they are generic), the difference in generic and brand name products is virtually nothing, and you can save up to 25% of the cost. Those margins add up and let you buy items you otherwise wouldn’t be able to afford.
Review Insurance.
For many people, insurance exists in the background. It’s there; you don’t have to think about it until you actually need it. Unfortunately, this passive mentality can lead to you paying more for insurance and your policy being out of date and not representing what you truly need. Research cheap car insurance rates to discover how much you can save, while increasing your policy parameters to give you the added benefit of peace of mind.
Reduce, Reuse, Recycle.
There are many ways you can reduce your spending if you are open to out-of-the-box, creative thinking. Take inventory of your freezer, refrigerator and pantry.
What are the items that can be used together to make meals? Do you really need to buy as much at the grocery store as you think? Also, think about making old things new – refurbishing an old chair instead of buying a new one or mending clothes instead of throwing them away.
Cut Back on Subscriptions.
People tend to accumulate subscriptions much like they accumulate “stuff.” There are likely one or two subscriptions shaving a buck or two (or much more) off of your checking account each month that you may have completely forgotten about.
Things like gym memberships, premium cable channels, clubs, phone apps, etc. will happily take your money whether you are getting use out of them or not. Consider using Trim or Truebill to help you consolidate.
Conserve Fuel Costs.
Gas prices are higher than they have been in almost a decade. While moving to a hybrid vehicle may feel like a great solution, it will still take time to recoup losses and they can be a bit pricey.
Making sure your car tires are properly inflated and not driving erratically will help you get the most out of your fuel. No quick stops or starts, but rather driving steadily and sticking to the speed limit will help you conserve fuel costs.
Buy in Bulk.
Generally, the more you buy of something, the lower the per unit cost. Consider items that you know you will need – paper towels, toilet paper, toothpaste, batteries, etc.
If it’s something that your family uses all of the time and consistently, buying bulk can save you up to 25% more than buying a little here and there. Get into the practice of eyeing the per-unit price to determine which brands are less expensive in bulk.
Make Your Money Work For You.
There are times when using cash is the smartest route for you to take. You’re not adding to a credit card balance, and you’re more able to follow your budget. There are other opportunities when credit cards make sense to use – especially when they offer cash back for purchases in various categories.
Reward cards allow consumers to get cash back for items purchased at grocery stores, restaurants, gas, etc. Just be sure to pay the balance at the end of the month or that 5% back will go straight to your interest paid.
Let Competition Work in Your Favor.
Competition in big business is a good thing for the consumer. So, don’t hesitate to call your cable, internet or phone company to negotiate a lower rate than the one you currently have. Give them the opportunity to meet or beat the local competitor and if you don’t get the answer you’re looking for, ask to speak to a supervisor. Be polite and calm always, but also know that these types of negotiations are commonplace.
As the New Year draws closer, there is always hope that it will surpass the previous year. Approaching January with clarity and insight into how you can better manage your money and cut costs is a great step toward achieving greater financial independence in 2022.