Save in 2015 by Cutting Expenses
One of the most common New Year’s resolutions is to save more money. Eating out less and spending less on entertainment are great ways to save, but choices that can save big bucks in the long run might not be obvious. They can even seem counter-intuitive in the short-term. Here are a few less obvious tips for New Year savings.
Eat healthy. It’s a common myth that healthy eating is more expensive. In fact, eating healthy, when done wisely, can be a highly effective strategy for cutting expenses. For instance, a bag of potato chips costs $2.59, whereas the same amount of money could buy four pounds of potatoes, which actually contain fiber and vitamins.
Get some exercise. This one can come as quite the shocker. Yes, gym memberships can be pricey when you think of them as a unessential addition to your budget. But in fact, research suggests that getting regular exercise can help you cut expenses because people who exercise regularly tend to reduce annual spending on medical costs by 30 percent and prescriptions by 70 percent.
Pay off debts. When you’re in a tight financial situation, low payments seem like a good thing. But a debt of $8,329 — the national average — with 15.99 percent interest, paid at a rate of $167 per month, will take 33 years to pay and cost $15,289 in interest. The same debt, paid at $202.50 per month, will take only five years to pay with total interest charges of $3,821.
Keep a slush fund. As much as we try to maintain a strict budget for New Year savings, those unpredictable charges inevitably arise. To avoid bending your budget out of shape, put aside any unexpected money you receive, no matter how small, into a savings account for surprise charges.
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