Importance of Saving

Awareness of the importance of saving is critical to individual and overall economic security. With the high cost of living and other expenses, many consumers consistently struggle to save. The importance of saving is ever more crucial when it comes to an emergency or in preparation of a major purchase. In addition, saving can also help the debt management process.

To avoid – or minimize debt – learn about the importance of saving.

We want to share with you some everyday budget and money tips to highlight the importance of saving.

Housing and Utilities

If you’re struggling with an unaffordable mortgage or rent payment, moving to a cheaper location or getting a roommate may be better options. Other ways to lower housing costs include:

Refinance your mortgage to get a lower rate, or switch from a 15-year to a 30-year loan
Challenge your property tax assessment
Investigate whether bundled services (phone, cable, internet) could save money, or whether you can live without some of these services
Wash only full loads of dishes or laundry
Turn off lights and electronics when not in use, and turn off heat or AC when no one is home
Install a programmable thermostat to have more control over your heating and cooling costs. Check out other ways to use technology to save energy.

Health Care

With ever-rising health care costs, employers are asking their workers to take on a larger share of the expense. Try these tips to save on health care expenses:

Buy generic/store brand drugs
Order prescriptions via mail on the internet
Look for free or low-cost clinics
Monitor insurance claims to make sure you’re not getting stuck with bills
Take actions towards preventative care. Our National Call Your Doctor Day video outlines helpful tips.

Transportation

Buying used cars and driving them for years is a great way to reduce your lifetime transportation expenses. Short-term ways to reduce costs include:

Raise the deductibles on your auto insurance policy
Strive to get insurance discounts such as good driver, good student, and multiple car accounts
Investigate carpool and public transportation, and see if your employer offers any subsidies
Avoid repair bills by maintaining your vehicle properly with regular oil and filter changes
Plan your errands around your driving route to avoid multiple trips and save on gas

Food

Dining out utilizes nearly half of the average family’s food expenditures, so eating at home is one of the simplest ways to reduce what your spending on food. Other ways to control costs include:

Bring lunches and snacks to work
Check your fridge for items to use before they go bad
Give up unhealthy foods and drinks (soda, candy, etc.)
Use the weekly grocery store circulars to find sale items and shop accordingly
Create a price book so you know when items go on sale and what’s a good deal

Personal Insurance and Retirement

Consumers might be tempted to cut back on their 401K contributions to pay off debt, but avoid this if possible. Most companies with 401K plans offer partial fund matching, so failing to contribute means consumers will miss out on free money. Other places to look for savings include:

Consider refinancing your term life insurance. Rates have dropped in the past decade, so you may qualify for a lower premium
If you have a long-term disability policy, investigate the savings if you opt for a longer waiting period to reduce premiums (as long as you have an emergency fund)
Suspend contributions to annuities and other accounts that don’t offer matching funds or tax breaks

Clothing and Services

Many people update their wardrobe with the latest fashion trends. Others simply refuse to wear the same outfits more than once. Try these tips for limiting clothing and service expenses:

Perform an inventory of your wardrobe and only buy items that work with what you already own
Take steps to save on dry cleaning
Try getting your hair cut at a beauty school instead of a salon for a much lower price
Cancel your health club/gym membership and find ways to workout at home (walk/run outside, purchase some weights, workout with friends)
Buy clothes out of season when stores discount them (winter coats in summer, shorts in fall, etc.)

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.