3 Ways to Make Big Savings That Matter

Sat, Apr 14, 2012

Budgeting, Financial Advice

When it comes to saving money, we sometimes think too small. Instead of focusing on big savings that could vastly reduce our spending, we cut out our Saturday morning Starbucks and politely refuse friends when we get invited to dinner.

The probably will cutting out the little things is that it makes you miserable and doesn’t actually save you that much money. It can actually cost you money because once you get so depressed by your lack of anything enjoyable, you will inevitably fall off the wagon and go on a spending spree.

Instead of living like this, you might consider focusing on big savings that make a huge dent in your spending and frees up more money to do what you want and invest some as well.

Here are three of the bigger savings you can make:

  1. Remortgaging. It sounds scary and daunting but remortgaging your home can save you a considerable amount of money. It is said that on a modest mortgage of $100,000, if you cut the interest rate by just 1% you could save £1000. Now, there will be fees involved with a remortgage, but the average mortgage is a lot more than $100,000 and the saving is often more than 1% too so it is definitely worth reviewing your options to see whether a better deal is available.
  2. Credit card balance transfer. If you have a balance on a high interest credit card of 13-20% then now is the time to transfer the balance. Introductory rates of 0% mean that you could feasibly save up to $500 a year in interest fees. You’ll also pay the balance off quicker which then leaves you with money to invest elsewhere.
  3. Gym membership. How many people have a gym membership and don’t use it? This can cost up to $100 a month for some of the big gyms. You could cancel this completely, workout from home and save up to $1200 a year, or if you do use the gym, look for cheaper alternatives in your area. Increased competition has driven the price down for start-up gyms and you could save 50% or more by switching. That’s still up to $600 a year!
  4. Gas and electric (bonus). If you don’t have gym membership, another saving you can make is to switch your gas and electric supplier. Seek out the best rates and look for the cheapest tariffs you can find. Often, new customers get better deals so use this to your advantage when you switch.

By focusing on these big savings you could save up to $3000 a year. Do you think cutting out on the odd Starbucks will save you $250 a month?

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