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1. Sell Unnecessary Items
Look around your home, garage, and yard to identify what you can sell. You may consider hosting a good old-fashioned yard sale. Another option is to use an app, such as Decluttr and ItsWorthMore that are designed for people needing to purge and get paid, or post the items on Facebook Marketplace or Nexdoor.
2. Cancel Recurring Subscriptions
If you signed up for companies with recurring subscriptions, you may be paying for services you no longer need or value. To find out, you can review your credit card or banking statements. Or to make the canceling process easy, consider a money-saving app like Rocket Money. The free version is easy to set up, will identify all of your subscriptions, and give you the opportunity to instantly cancel.
3. Open a Savings Account and Set Up Automatic Transfers
What you don’t see you won’t miss or spend. If you don’t already have a savings account, open one. Once done, link your checking account to it to have a fixed sum sent over on a specific day of the month. To avoid overdrafts, choose a day soon after one of your pay periods.
4. Save With Every Debit Card Transaction
Many financial institutions offer a service where every debit card transaction is rounded up to the nearest dollar, and the difference is deposited into your savings account. For example, Bank of America has the Keep the Change® program.
Other financial institutions that offer a round-up feature include:
- Ally Bank
- Chime
- Acorns
If your bank or financial institution doesn’t offer a round-up feature, you can use an app like Qapital. As soon as it’s set up, savings will be accelerated. Just spend as normal. The more you use your debit card on the things you buy, the faster your savings will grow without any effort.
5. Open a New Type Of Savings Account
Depending on your savings goals, you may want to open more than one account. You can use several types of savings accounts for short- and long-term goals, and some currently earn high savings rates. Some of your best options include:
- Certificates of deposit (CDs)
- Money market accounts
- Specialty savings accounts
6. Request an Interest Rate Reduction
If you are holding onto credit card debt, check your interest rate and determine how much the balance costs you monthly. You may be shocked.
A $3,500 balance with a 25% APR results in a $72.92 fee. If you convince your credit card issuer to lower the APR, you can save a lot of money. Dropping the APR to 15% on the same debt takes the down to $43.75. And a lower rate will ensure that more of your payment will go to the principal, helping you get out of debt faster and for less money.
Call the creditor and ask for a rate reduction. They may agree, especially if you’re a long-time customer who has kept the account in good standing.
7. Eliminate Credit Card Interest With a 0% APR Balance Transfer Card
Another way to save a lot of money on credit card finance fees is to move credit card debt to a balance transfer credit card with an introductory 0% APR. Many cards offer interest-free promotional periods ranging from 12 to 21 months. All it will cost you is an initial fee, typically 3% to 5% of the transfer, added to the debt.
For example, if you have a $5,000 credit card balance and the APR is 25%, it will cost you $873 to get out of debt in 15 months. But if you transfer the debt to a new card with a 0% APR deal for 15 months, and a 3% transfer fee ($150) you will save $723 in interest.
For more information, check out our guide on when to use a balance transfer credit card.
8. Pause Non-Essential Spending
Sometimes the cash you require can be made up by budgeting. Over the short term, trimming costs to the very basics can free up more money than you may think. Review your monthly spending and start slashing, holding off on as many non-essential costs as possible. Some areas to focus on are:
- Dining and drinking out. Restaurant meals, even fast food, can be wildly expensive compared to meals you prepare at home.
- Hair and nails. If you’re accustomed to going to the salon, start to DIY it.
- Entertainment. Movies at the cinema, sporting events, and concerts are great but pricey.
Keep a tally of the money you save and add it to a savings account. And remember, you can always return to spending as normal when you’re financially sound.
9. Open a High-Yield Savings Account
Not all savings accounts are created equally. When saving money, look for a financial institution with the highest annual percentage yield (APY), so your deposit earns the most interest. Here are just a few of the best high-yield savings accounts to explore:
- CIT Bank: Up to 5.05%
- Synchrony Bank: Up to 4.75%
- Discover: 4.35%
- SoFi – 4.60%
10. Earn a Credit Card Sign-Up Bonus
If you’re ready for a new credit card, look for one that fits your needs and comes with a sign-up bonus. If you make necessary purchases and meet the minimum spend requirement, you’ll earn the bonus. Just be sure to pay your balance in full each month before interest is applied or the value of the bonus will decline.
11. Start a Side Hustle
Taking on a side gig in addition to your regular job can help you earn additional money to set aside for savings. It could be driving for Uber or Lyft or doing deliveries for DoorDash and GrubHub. For gig assignments, you can also check out freelance connection companies such as Fiverr and Upwork.
12. Boost Your Credit Card Rewards
Using your rewards credit card for most of your spending and paying your balance in full each month can help you cut down on expenses. earn money for savings by using it for almost everything. To increase your rewards:
- Make sure you’re using a cash back or travel rewards card that fits your spending habits.
- Pay charges in real time to guarantee you won’t get into expensive debt.
- Charge a group’s expenses. Whether you’re out to dinner or arranging a night at a baseball game, put everybody’s charges on your card and have them reimburse you right away with an app like Venmo or Zelle.
- Add authorized users. You will earn more rewards when trusted family members or a friend charges on your account and reimburses you.
13. Reduce Cable and Internet Costs
Remember when you first signed up for your cable and internet plan? It may have been well-priced at the time, but now there may be a lower price for the same, or even better, service.
Review cable and internet providers in your area to find the best deals. You cal also call your current provider and explain that you want to reduce your bill. It can take a little negotiating to get the best price, but it will be worth the effort in the end.
14. Shop With Browser Extensions to Get the Lowest Prices
There is no reason to pay more than you have to. An easy way to ensure savings is to shop with a browser that identifies the lowest prices. Just a few to consider are:
- Honey. Honey gives real-time price discounts and will send you an alert when the price on something you want drops.
- Rakuten. This extension will ping you when it identifies cash-back savings opportunities and finds valuable coupon codes for online and in-store shopping.
- CouponCabin Sidekick. You’ll get instant coupons, promo codes, cash back rewards and alerts for promotions on things you want to buy.
15. Let AI Do the Budgeting and Saving for You
Artificial intelligence (AI) advancements can also help you save money quickly. With open AI systems like ChatGPT and Bard, ask and you will receive.
For example, they can help you create or refine a budget, get ideas for gifts that are under the maximum you want to spend, obtain low cost recipe ideas or develop a workout routine that you can do at home for free.
Be Committed, Take Action
When you need money, it pays to explore all alternatives and select the best fit for you. You may be unable to trim costs because your budget is already down to the bone and you don’t have much to sell, but working more might be possible. Negotiating with companies to give you a financial break can also be helpful. The point is to identify what you can do and then do it.
Frequently Asked Questions
Do I Have to Pay Taxes On All Forms of Income?
According to the IRS, an amount included in your income is generally taxable unless it is specifically exempted by law. Therefore the money you earn that is not taxed at that time will usually result in having to pay income tax later. Prepare accordingly.
Where Should I Keep Emergency Savings?
If you will be using the money right away, keeping the funds in your checking account is fine. But depositing cash into a savings account at a bank or credit union for bills and purchases you need in the short term is the safest place. And you can access the money without being charged penalties for early withdrawals like you would with CDs.
How Much Should I Keep On Hand for Emergencies?
A general rule of thumb is to have three to six months’ worth of essential expenses set aside in a savings account. But the more people who depend on you for their care, the more you should have in savings. This way, when a surprise cost hits or you unexpectedly lose your job, you will be able to manage your required expenses without unnecessary stress.
As an expert and enthusiast, I have access to a wide range of information and can provide insights on various topics. While I don't have personal experiences or opinions, I can provide factual information based on reliable sources. Here is some information related to the concepts mentioned in this article:
Sell Unnecessary Items
Selling unnecessary items can be a great way to declutter your home and earn some extra money. You can consider hosting a yard sale or using online platforms such as Decluttr, ItsWorthMore, Facebook Marketplace, or Nextdoor to sell your items [[1]].
Cancel Recurring Subscriptions
Reviewing your credit card or banking statements can help you identify recurring subscriptions that you no longer need or value. Canceling these subscriptions can save you money. Additionally, there are money-saving apps like Rocket Money that can help you identify and cancel subscriptions easily [[2]].
Open a Savings Account and Set Up Automatic Transfers
Opening a savings account and setting up automatic transfers from your checking account can help you save money consistently. By choosing a specific day of the month, preferably soon after your pay period, you can ensure that a fixed sum is transferred to your savings account regularly [[3]].
Save With Every Debit Card Transaction
Many financial institutions offer a round-up feature where every debit card transaction is rounded up to the nearest dollar, and the difference is deposited into your savings account. This can help you save money effortlessly. Some banks that offer this feature include Bank of America, Ally Bank, Chime, and Acorns. If your bank doesn't offer this feature, you can use apps like Qapital to achieve a similar effect [[4]].
Open a New Type Of Savings Account
Depending on your savings goals, you may want to consider opening different types of savings accounts. Certificates of deposit (CDs), money market accounts, and specialty savings accounts are some options to explore. These accounts can offer different benefits and potentially higher savings rates [[5]].
Request an Interest Rate Reduction
If you have credit card debt, checking your interest rate and requesting a reduction from your credit card issuer can save you money. Lowering the APR can result in lower monthly fees and help you pay off your debt faster. Contacting your creditor and explaining your situation may increase the chances of getting a rate reduction [[6]].
Eliminate Credit Card Interest With a 0% APR Balance Transfer Card
Transferring your credit card debt to a balance transfer credit card with a 0% APR introductory period can help you save on interest fees. Many cards offer interest-free promotional periods, typically ranging from 12 to 21 months. However, there may be an initial fee, usually around 3% to 5% of the transfer amount [[7]].
Pause Non-Essential Spending
Trimming non-essential costs can free up more money in the short term. Review your monthly spending and focus on areas such as dining out, salon expenses, and entertainment. By temporarily reducing these expenses, you can save more money and allocate it to your savings account [[8]].
Open a High-Yield Savings Account
When saving money, it's beneficial to look for a financial institution that offers a high annual percentage yield (APY) on savings accounts. Some banks that provide high-yield savings accounts include CIT Bank, Synchrony Bank, Discover, and SoFi. These accounts can help your deposits earn more interest [[9]].
Earn a Credit Card Sign-Up Bonus
If you're considering getting a new credit card, look for one that offers a sign-up bonus. By meeting the minimum spend requirement and paying your balance in full each month, you can earn the bonus. However, it's important to avoid carrying a balance to prevent interest charges from reducing the value of the bonus [[10]].
Start a Side Hustle
Taking on a side gig in addition to your regular job can help you earn extra money to save. Platforms like Uber, Lyft, DoorDash, GrubHub, Fiverr, and Upwork offer opportunities for additional income. By dedicating time to a side hustle, you can increase your savings [[11]].
Boost Your Credit Card Rewards
Using a rewards credit card for most of your spending and paying your balance in full each month can help you earn rewards and cut down on expenses. Make sure to choose a cash back or travel rewards card that aligns with your spending habits. Charging group expenses and adding authorized users can also help you earn more rewards [[12]].
Reduce Cable and Internet Costs
Reviewing cable and internet providers in your area and negotiating with your current provider can help you find better deals and reduce your monthly bills. Exploring different options and discussing your needs with providers can lead to cost savings [[13]].
Shop With Browser Extensions to Get the Lowest Prices
Browser extensions like Honey, Rakuten, and CouponCabin Sidekick can help you find the lowest prices, provide discounts, and offer cash-back opportunities. These extensions can save you money while shopping online or in-store [[14]].
Let AI Do the Budgeting and Saving for You
Artificial intelligence (AI) advancements have made it possible to use AI systems like ChatGPT and Bard to assist with budgeting, gift ideas, low-cost recipes, and workout routines. These AI systems can provide personalized recommendations and help you save money effectively [[15]].
Do I Have to Pay Taxes On All Forms of Income?
According to the IRS, most income is generally taxable unless it is specifically exempted by law. It's important to prepare for income tax obligations accordingly [[16]].
Where Should I Keep Emergency Savings?
For immediate use, keeping emergency funds in a checking account is fine. However, depositing cash into a savings account at a bank or credit union is a safer option for short-term bills and purchases. Savings accounts allow easy access to the money without penalties for early withdrawals, unlike certificates of deposit (CDs) [[17]].
How Much Should I Keep On Hand for Emergencies?
A general rule of thumb is to have three to six months' worth of essential expenses set aside in a savings account. The amount you should keep may vary depending on the number of people who depend on you and your specific circ*mstances [[17]].
Remember, it's always a good idea to consult with a financial advisor or do further research to make informed decisions based on your individual financial situation.
