How to Maximize Your Savings In 2012

by Andy Hough on January 10, 2012 · 0 comments

The following is a guest post.

Maximizing your savings potential is all about freeing up cash in other areas of your life in order to siphon the extra funds into those savings accounts. This isn’t always easy, however and those New Year’s resolutions to save quickly end up falling by the wayside.

Cutting back is actually easier than you may think. The first thing to do is get an accurate estimate of how much you spend each month. Studies show that people tend to underestimate their monthly expenditure, which is why taking note of every penny for thirty days is so important.

Once you can see where your money is going, it will be much easier to determine where cuts can be made. A good example is your phone service.

Superfluous Stuff

In this day and age, it’s not necessary to have multiple phone lines. While having a bundle from the phone company that includes home, fax and home-office lines may have been popular in the 1990s, it’s just a moot point now.
Many people prefer keeping their land lines and cell phones separate and that’s okay, but if you find yourself using your cell phone at home, it may be time to hang up that land line. Cutting out extra phone lines you don’t need and switching solely to the family’s cell phone plan can completely cut out the phone company, which is one less bill every month.

Another area in which people tend to overspend is insurance. Find out what types of insurance are required in your state and see where you can trim coverage. You may even be able to switch insurance companies for a better rate. Just because you’ve been with the same agent your parents had doesn’t mean that you can’t shop around.

Cut Out Addictions

Maybe, it’s already part of your New Year’s resolutions, but curbing an addiction is a great way to save money.
Let’s put it this way. If you already spend $1.50 every day on sodas from the vending machine, switching to water every day for a year will put $550 in those savings accounts by next New Year’s Eve.

Morning commuters that shell out a few bucks for coffee shop espressos can save even more by making a cup of Joe at home, or skipping out on the hot beverages altogether. Guzzling free (or at least cheap) water instead of beverages laden with caffeine and sugar will even make you healthier, which could cut out certain medical expenses.

Find your own personal ways to save and make regular deposits in those savings accounts. If you don’t have an account, compare them carefully and go with one that offers a decent interest rate. That’s more money in your pocket by this time next year.

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