Everyone knows that saving is important. But it’s not always easy. Most people struggle to save. Nearly two-thirds of Americans don’t have enough to cover an unexpected expense of $400 or more.
If you can’t find extra cash for your emergency fund, check in with this guide. It shares simple actions that pay off in a big way.
Brew your own coffee
A sweet pick me up in the morning can be the only way you get out of bed on time. Unfortunately, your cup of joe could be costing you a lot of money if swing by a café to get it.
The average American spends roughly $1,100 every year on to-go coffee. You may be spending even more if your specialty drink has extra shots and flavors.
Brewing your coffee at home is the more affordable option. A homebrewed cup costs just 16 cents to Starbuck’s $2. At that price, a daily cup of coffee would cost you less than $60 a year, saving you $1,040.
Stop paying bank fees
If you don’t review your financial statements often, this expense may slip past your attention.
Over the course of a year, the average American ends up spending $329 in banking fees. Most of these charges are the price of keeping an account with the country’s biggest banks.
Other fees may include charges for:
- Overdrafts
- Insufficient funds
- Failing to keep a minimum balance
- ATM fees
If you’re tired of paying these charges, it’s time to research no-fee banking alternatives. They’ve eliminated these fees, so you can keep more of your money in your account.
Research loan alternatives
A common misconception is you need a good credit score before you can borrow money.
The average bank branch perpetuates this myth. Most traditional banks reward people with excellent credit by approving them faster for larger loans.
Getting a loan through mainstream banks is a costly option for people with subprime credit. If you have lower credit, banks may take longer to approve your application, and you may get less than you need.
But that doesn’t mean you can’t borrow.
By researching lending alternatives like short term installment loans, you may have a greater chance of getting the cash advance you need regardless of your score. In some cases, installment loans direct lenders will approve you within one business day.
This faster timeline means you won’t have to wait to hear back about your application. You’ll be able to pay off your bill quickly, avoiding late payments and the fees that come with it.
Before you apply for installment loans online, be sure to read this direct lender installment loans resource. It helps you decide if an installment loan is a good idea for your needs.
Cut the cord and cancel subscriptions
It’s easy to underestimate how much you spend on tech and entertainment subscriptions.
The typical cable package costs around $100 a month. And if you’re like most Millennials, you can add $200 to that figure because of subscriptions to things like Netflix, Spotify, the cloud, and Birchbox.
By cutting the cord — and trimming down to just one or two streaming services — you could be saving hundreds of dollars a month. Pare down to just Netflix and Spotify, and you’ll pay roughly $23 a month.
Saving money can be tricky if you don’t know where to start, but it doesn’t have to involve austere cutbacks that leave you miserable. If you’re able to eliminate some of these forgettable expenses, savings will be easier than ever.