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Opening an investment account, whether for retirement or other long-term savings goals, is a big first step in securing your financial future. It can be challenging to fund that account. It is important to remember that even small amounts add up, so don’t be discouraged if you cannot save as much as you would like. You may be surprised at how easy it is to find money in your budget once you make it a priority. Everyone has heard the stories of skipping morning lattes to boost savings, but there are real, actionable tips that can free up hundreds of dollars each month.
Look at Refinancing Your Student Loans
The best private student loans are likely to have a lower interest rate than you are currently paying. Lowering the interest rate on your loan not only means you pay less over the life of your loan but that your monthly payment will be lower. Divert this savings directly into your investment account.
Take a Critical Look at Your Food Spending
Many people assume that eating at home automatically saves money over eating out. While this is true if you make smart choices, it is just as easy to spend too much at the grocery store as it is at a restaurant. The single easiest way to lower your grocery bill is to stop wasting food. Everything you throw out is money that you could have spent somewhere else. If you live alone or are part of a couple, make sure the meals you prepare are suited for smaller portions or plan to take the leftovers for lunch during the week. Do not make spontaneous trips to the store, plan for what you are going to eat, and buy what you need, in the proper portion. If something is less expensive in a larger size, check the expiration date. It doesn’t save you money if you don’t use it.
Look at How You Spend Free Time
Do you have a gym membership? If you do, and enjoy it, by all means, keep it. But if you rarely go, or don’t go at all because you can’t bear the process of canceling the auto-pay, get serious and cancel. Do you have multiple streaming services or subscription boxes? Which ones do you genuinely use and enjoy? Allow yourself to keep the ones that add value, and cancel the rest. Is a good deal of your socialization spent in bars? The cost of alcohol adds up quickly. Switch between water and a drink through the night. Your wallet and your body will both thank you.
While you are considering how you spend your recreational time, think of free activities you can add to your life. Low and no-cost activities, such as hiking, bird-watching, or learning a foreign language, can add a great deal of value to your life, lower stress, and help you save money. Regardless of how you choose to cut costs, the key is to take the savings and immediately direct them into your savings account. If you make the changes without reallocating the funds, you will find they are absorbed into your daily budget.
