How are your finances doing? Not so hot? As the New Year begins, it’s a great time to consider adopting some financial habits that can help you in 2014. Take a look at these money habits and see if you can make them a part of your life.
Habit #1 - Become smarter about your food consumption
Being smarter about your food consumption can save you hundreds or even thousands of dollars every year.
- Start creating and using meal plans. Emeals.com offers a variety of penny-wise and health conscious options for your budget and waistline. Pre-planning your meals keeps food costs down considerably.
- Keep eating out to a minimum. Take your lunch to work. Cook some meals on the weekends for the week ahead, so you don’t find yourself without a lunch at the last-second.
- Choose lower cost ingredients. Eat more veggies and lower cost meats. Or shop the sales – when a few items are on sale, try building a meal around them.
- BYOB at home or at a restaurant. The cost of a single glass of wine at a restaurant or bar is generally the cost of the same bottle at a liquor store! Wine, beer, & liquor can be marked up as much as 400% or more. Cut back on your alcohol intake at bars and restaurants.
Habit #2 - Become a smarter shopper
Be especially careful with your money when you’re browsing in a store or shopping online. If you don't, you might pay more than you should.
- Do your shopping once a week. When you stop at the store for a few things every night, you’ll generally spend much more per week.
- Stock up during sales. When you use an item regularly, buy a few extra when the price is low or take advantage of bulk-rate discounts.
- Create and use a list when you go shopping. This prevents impulse shopping.
- Always compare prices. Consider off-brands or used goods when possible. ShopSavvy.com offers a great app for price comparing in local stores and online for finding the best price.
Habit #3 - Cut energy costs
Another area to consider when looking for saving money tips is energy costs. By thinking ahead, you can actually lower your energy costs by 20 to 30 percent without a great deal of sacrifice.
- Combine your car trips. Keep single-purpose car trips to a minimum.
- Turn the thermostat back. Cutting back even a couple of degrees will save on your heating and cooling bills.
- Turn off your lights and electronics. If you are not using them, shut them down. You might even want to consider unplugging certain electronics that are easy to unplug & re-plug (laptops, iPods, coffee makers), as they use energy even when they’re turned off.
Habit #4 - Look for free or lower cost alternatives for recurring expenses
The mindset cultivated in Habit #2 applies to the rest of your financial life as well. Always look for lower cost alternatives before paying for a particular service or product.
- Don't let subscriptions automatically renew without reviewing. This includes cell phone plans, insurance, and magazine subscriptions. Call the service provider and see if there’s a better deal available before you renew.
- Consider your entertainment habits. Can you drop your cable company for a service like Hulu or Netflix?
Habit #5 - Put money away for expected and unexpected expenses
Have you ever had to charge your car insurance to a credit card? It’s better to put aside money so that you can pay for both expected and unexpected expenses with cash rather than incur high credit card fees to cover the same expenses. This is an important money saving tip. High credit card fees will prevent you from having anything to save.
- Put money aside each pay period. Have your bank or employer do this automatically if possible.
- Take a portion of “found” money and put it aside. If you get a tax refund or an inheritance, tuck it away in a savings account.
- When you save money on a purchase, put the difference aside. If you saved $100 on your car insurance, put that money into savings.
If you manage to adopt these habits in 2014, you should be in better financial shape when 2015 arrives. Are there any other habits, financial or otherwise, you can adopt in 2014 to make your future brighter?