Many of us would like to upgrade our home. Whether that means moving to a nicer apartment, becoming a first-time homeowner, or adding an extra bedroom above the garage, having extra cash really helps.
But how do you get there? Reducing your expenses and increasing your savings is a lot easier said than done. How can you improve your financial situation without sacrificing too much of your lifestyle?
Some quick money saving tips are in order…
1. Set a Target
It’s difficult to hit a moving target. It’s even harder to hit an invisible one. So start by defining your goal. Do you want to free up $100/month so you can get into a better unit? Save $4,000 to improve your kitchen? Scratch together $417.50 to finally get the furnace fixed correctly?
Whatever the case is, write your goal down. Having vague money saving ambitions is a lot less effective than having a solid number to shoot for. In addition, if you tie your efforts to a worthy goal, you will have extra motivation to keep those dollars in your pocket.
2. Check your Past Spending
Most people only vaguely understand their spending habits. Oh, they know the big expenses, like rent or car payments, but don’t think about the day-to-day details very often.
Don’t fall into this trap! Start by getting your account statements for the last 3 months or so. Write down everything you spent money on, and categorize it (utilities, trips to McDonald’s, purchases from Amazon, your Netflix membership, everything).
Add everything up, and understand where your money is going.
3. Check for the Easy Fixes
Some of the numbers might stick out like a sore thumb. Maybe you didn’t realize you were buying Starbucks 3 days a week. Perhaps your Grand Rapids internet bill jumped up by $20 a couple months ago, and you didn’t notice.
Do a little digging. Is there a cheaper cell phone plan available that offers the same service? Do you constantly watch the same 4 channels on TV, but pay for a package that has 350+? Is your car insurance unusually high?
A little research and some time on the phone can save you a LOT of money. Shop around for good deals, and see where you can save money without sacrificing your lifestyle.
4. Plan your days in advance
A lot of ‘ticky tack’ expenses can be avoided with some planning. Grab a can of coke from your fridge, instead of paying five times as much at a drive through. Pack up your leftovers, and use them for lunch tomorrow. Remember to stop at the cheap gas station, rather than getting stuck with the one that always charges an extra 15 cents a gallon.
This takes about 2 minutes of planning before you go to bed, and can save you hundreds of dollars a year. Well worth it!
5. Look for easy ways to save around the house.
Utility costs are largely unavoidable. However, a few small changes can help your monthly budget. A few of our favorites include:
-Get a Programmable Thermostat – You can buy them for $20 – $30 in Grand Rapids, and save that much in a month or two on your heating bill.
–Turn Down your Water Heater – Many units are automatically set to the highest temperature, which you may never need. Turn it down, and save on heating. Free!
-Buy Water Heater/Pipe Insulation – For about $30, you can drastically reduce the amount of heat needed to keep your showers warm.
–Re-Caulk Windows and Doors – A lot of heating/cooling is lost around windows and doors. Re-seal them for better heat retention.
-Get Alternate Light Bulbs – As your bulbs burn out, replace them with more efficient ones. The price of better bulbs has definitely come down in the last year or so.
These are just a few ideas… there are plenty more.
Overall, if you implement some of these changes, you should find yourself with a bit more money each month (without sacrificing your lifestyle). So go for those goals, and get ready to upgrade your house in Grand Rapids!