How to Save Money: 12 Daily Tips
Updated November 2, 2019 . AmFam Team
Money can be one of the biggest hurdles when it comes to pursuing your dreams and keeping your budget on track. That’s why we’ve highlighted simple ways to put aside extra cash and stay within your budget, so you can save a little money each day.
Quick Ways to Start Saving Money Each Month
Get to work bulking up your wallet with these money-saving tips that don’t require a lot of changes to your lifestyle — they can reap big rewards:
Cook more meals at home
If you often hit up the local café for your daily latte, that daily jolt of caffeine can be a real shock to your wallet over time. Same goes for lunch! Instead of shelling out cash for a subpar burger and side salad, whip up your own recipe and bring that to work all week. Mark your calendar and splurge once a month on dining out and getting that fancy cup of coffee.
Cut the cord
With the amount of online streaming services out there, cable is quickly turning into a thing of the past. If you find yourself only watching a handful of channels or shows, why pay the full price for cable every month? Instead, choose a cheaper streaming plan that allows you to pick the shows you like.
Be careful with this one, because multiple streaming services can add up to more than your former cable subscription.
Avoid hidden fees
One of the quickest ways to save money is to stop spending money in ways that often get overlooked. Hidden fees and other small charges hiding in the background are a great place to start. Savings can also be achieved by lowering your personal debt. Although that can be a more in-depth process, the payoff can be huge.
Lose the high-interest credit cards
Shop around for a lower or zero-interest rate credit card to save money every month. With all the great deals out there today, you have a lot of options. Take advantage of special offers by other credit providers and bank those extra bucks.
Stay on top of overdraft charges
Overdraft charges and late fees can get costly — but they can be avoided. Set up recurring bill payments and checking account protection to reduce or eliminate those pesky fees.
Refuse ATM fees
Let’s be real — ATM fees are a waste of your money. Try to find an ATM that doesn’t have a fee, or use an ATM that’s in your bank’s network. If you can’t find a nearby free ATM, opt for cash back at stores when you have the option. Some banks charge $3 to $5 for getting cash out of network. Remember to look online for in-network ATMs if you need to withdraw cash.
Sell your used items
Before you toss your old stuff to the curb, try selling some of it to make a little extra money. You can list gently-used clothing, jewelry, collectibles, electronics and antiques on resale sites like craigslist or eBay. Or, if it’s too heavy to ship, you can sell locally with online forums like Facebook Marketplace.
How to Save Money Fast When Shopping
Don’t let a great deal pass you by. Here are some fast and easy ways to save money when you’re shopping online and in stores:
Use coupons
While you don’t have to go to Extreme Couponing levels to save money, check to see if there are coupons or coupon codes out there before you buy. Want to start clipping? Keep your coupons in a labeled envelope, visible where you’ll see it before you start shopping.
Other options for coupons include individual retailers’ apps, like Target’s Circle, or coupon blogs like Hip2Save.
Save With American Family Insurance
At American Family, we offer a variety of discounts — from setting up automatic payments to going paperless. Take advantage of programs like these to keep more money in your wallet. And be sure to connect with your agent today (Opens in a new tab) to find out what discounts you qualify for.
By trying out even a few of these tips you can save money, grow your funds and build a better path to accomplish your goals. Saving money doesn’t need to be complex, you just need to know how to manage your money well. Don’t forget to reward yourself along the way — you deserve it!
This article is for informational purposes only and based on information that is widely available. This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation.
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- Credit and Identity Theft Monitoring
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Credit monitoring and identity theft protection are two different ways to proactively protect yourself if your personal information gets into the wrong hands. Let’s take a look at the differences and why it’s important to implement them both together.
- Saving for a House
There are a few defining moments in our lives. For some, it’s the realization that buying that first home is within reach, both financially and emotionally. It’s a big step, and it’s one that’s built into the American dream. And if you’re left wondering how much money you should save before buying a house, you’re not alone. These costs can add up quickly.
After you’ve made the big decision to start shopping for a home, you might be surprised to find that coming up with the cash down payment is only one of several financial hurdles you’ll need to clear. Exactly how much you should save for a house depends on a number of factors, like the value of the home you’re targeting and the amount of money you intend on pushing into your down payment.
- Pay Off Student Loans or Buy a House?
After college, life moves fast. You get your first big job, move out of your parents’ house and start a whole new life on your own. For most people, this also means paying off student loan debt from your college tuition. Having this debt may make big milestones like buying a house seem far off, but there are ways to make the leap from renter to homeowner even if you have student loans. So can you get a mortgage while also paying off student debt? Or should you wait to pay it off before you buy a house?
Every situation is different, so it’s important to do the right research and choose the best option for you. Luckily, we’ve done some of the breakdown for you to help you decide whether to pay off your student loan entirely or buy a house.
Can Student Loans Affect Buying a House?
Typically, student loan debt doesn’t prevent you from getting a mortgage. The biggest thing to note is that student loan debt does influence your debt-to-income ratio, which is a factor lenders consider before giving you a loan. It can also affect the interest rate you pay on your mortgage.
Buying a house with defaulted student loans
If you’ve defaulted on your student loans, it’ll be more difficult — but not impossible — for you to get a mortgage. Because defaulting negatively affects your credit score, lenders will be less likely to want to give you a loan or will charge a much higher interest rate on a loan.
Getting a home loan with student loan deferment
If you’ve deferred your student loans, this usually won’t affect your chances of getting a mortgage. Just be sure to consider how the future estimated payments will factor your debt-to-income ratio. Some types of mortgages may reject applicants with deferred loans, so do your research on the different types of mortgages before shopping.
Should You Pay Off Student Loans Before Buying a House?
Buying a house is expensive, there’s no doubt about that. It can seem smart to hold off on house shopping while you still have student loan debt, and it can be even more difficult to save for a house if you’ve got a high debt-to-income ratio. But if you have enough income to handle the payments for both, you may want to consider investing in your first home.
Signs You Should Pay Off Student Loans
When considering whether to pay student loans or save for a house, there are a few factors that can help you decide if paying off your student loans should be a priority.
Your debt-to-income ratio is too high
If the amount of money you bring in monthly or yearly is almost the same as the amount of money you pay out in debts — like student and car loans or credit cards — it may be best to pay down your debt before buying a house.
You’ve defaulted on your loans
Defaulting on your loans has a severe negative impact on your credit score, which tells lenders that you’re a bigger risk to take on. Work on improving your credit score before shopping for a mortgage.
You’re struggling to make payments
If you feel like you’re living paycheck to paycheck or struggling to make payments on your loan every month, it’s best to hold off on saving for a house. Need help keeping track of your student loan payments? Try our student loan payment tracker to get organized.
You haven’t saved for a down payment or emergency fund
Before you start picking out which houses you want to tour, you should take a look at your savings. If you don’t have enough for a 5 to 10 percent down payment or enough as an emergency fund for home expenses — like a broken dishwasher or damaged roof — take more time to put money away for your first home.
