Seven ways to save $1,000

[Nov 4, 2011.]

 

When you are living from paycheck to paycheck and feel as if you are barely making ends meet, it can be difficult to accumulate savings. The best step to take is to set up an automatic transfer from your checking account into a savings account so that you save $25 or $50 to $100 or more from each paycheck. Once this becomes routine, you can gradually increase the transfer amount to equal ten percent of your income. In order to save this money, you will need to find a few ways to reduce your spending each month.

Here are a few suggestions for saving as much as $1,000 in one year:

1. Cancel your landline. Switch to using only a cell phone and you can save $25 or more each month.


2. Reduce your cable bill. Check your cable bill to see how much you can save each month by eliminating premium channels and consider getting rid of cable entirely and using free sites. You may be able to save $40 or more each month. Bundling your phone and Internet and cable with one company can also reduce your bills.


3. Learn to cook. One of the fastest ways to spend money is on dining out with even fast food meals adding up to $100 or more per month for many people. If you eat at home and bring your lunch to work you can reduce your spending on food.


4. Switch your insurance policy. Compare premiums on your auto, home and life insurance to see if you can cut your costs by switching companies, bundling your coverage with one company or raising your deductible. Just make sure you have a way to pay that deductible if you need to. You may also be able to lower your health insurance costs by raising your deductible. See if the reduction in premium is enough to offset the out-of-pocket payment you'll need to make.


5. Grocery shop with coupons. Check the ads at your local store and clip coupons and consider stocking up on items when they are on sale. Compare your local prices with shopping online at Amazon.com, which allows you to save an extra 15 percent if you set up a recurring order for the basics.


6. Use your library. If you love to read, the library is an obvious place to save on books. But most libraries also have movies and music available for free and free lectures and programs that can be fun for your kids and educational for you.


7. Cut your commuting costs. If you rely on public transportation, look into monthly passes or employer contributions that can reduce your costs. Drivers can try to share a ride with coworkers or neighbors to cut back on gas expenses.

These suggestions are just a starting point. Evaluate your spending pattern to see if you can find places to cut back without cramping your lifestyle.

 

About Author:

Michele Lerner is a freelance writer with twenty years of experience writing articles and web content for newspapers and magazines on topics related to real estate, personal finance, and business.