Do you constantly feel like you’re coming up with excuses and different reasons why you can’t save more money? Maybe you’ve got your budget down to a science and you’ve cut out all unnecessary spending, but the bills are still overwhelming and don’t leave much money left for your savings. Evaluating your current bills and figuring out ways to downsize some (or all) aspects of your life can be a good start.
If bills are mounting and you want to save more, consider downsizing some or all of the following:
If you’re currently financing your vehicle—even if the monthly payments are minimal—you may want to consider ditching the auto loan completely. Explore your different options, and consider selling your car or trading it in for a cheaper replacement. Instead of using the money on a down payment for your next vehicle and taking out a new car loan, use that cash to purchase your next car free and clear. Focus on finding a car that’s sensible, dependable, and ideally, doesn’t have too many miles. Don’t pay attention to the make and model, unless you’re just trying to find a car that has a good safety record. Don’t focus on style and what looks good, because if you make this a priority, you may end up paying more for a car than you need to. And depending on your daily commute and the public transportation options available in your city, you may even be able to get away with not having a car at all. If possible, explore the option of walking or riding a bicycle to and from work, which are also great ways to get in some daily exercise.
Whether you rent or own your current home, question if you could live somewhere that’s smaller, or perhaps in a different area. You may love your home and not want to give it up, but are you paying a lot of extra money to live in a big space with rooms you don’t even use? Or are you paying a premium to live in an inexpensive area of town, and you’re somewhat indifferent about the neighborhood? Downgrading your home can potentially save you hundreds of dollars each month on your rent or mortgage, so if you’re open to the idea, find out what else is out there.
Believe it or not, a lot of your monthly bills can be going towards technology usage. Perhaps you pay for the fastest at-home Wi-Fi that’s available, but all you really use the Internet for is to check your email or your social media accounts. Or maybe you have a high monthly cell phone bill and an expensive smartphone to match, but you rarely even use the extra features that you’re paying for. Take a closer look at what monthly services you’re paying for and just how much you really need them. You may be able to completely cancel what you don’t use enough of, or at the very least, downgrade your services.
If you’ve made a habit out of making impulsive and expensive purchases, you may want to put an end to that habit as quickly as possible if you’re looking to save more money. Ask yourself how often you really go shopping and the types of stores you’re shopping at. If you’re living beyond your means, make a commitment to make some serious changes—limit how often you go shopping, and opt for retailers that are easier on the wallet.
Do you need extra cash to take care of mounting bills and expenses? If you’re receiving long-term payments from an annuity or structured settlement, Peachtree Financial Solutions may be able get you your money sooner. Contact Peachtree today to learn more about selling some or all of your future payments for a lump sum of cash.
Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.