It’s almost two weeks into 2013 and it sure is starting to look like the old year. Many of us made a resolution to save more money in 2013, but do we have a plan to do it? To help you start the new year right, here are some ways to save more in 2013.
13 ways to save more money
1) I’ll start off with the most difficult one: Keep track of all your expenses. You will be surprised at how much you spent on stuff that didn’t add much your life. Once you see how much money is wasted on those things, you’ll be more reluctant to spend.
2) Increase your retirement account contribution. The IRS raised the maximum contribution limit on both the 401(k) and IRA in 2013 by $500. Mrs. RB40 just raised her contribution so she’ll max out this year. If you contributed the maximum last year like she did, then it will be relatively painless to raise it $500. If you’re not there yet, it is a good idea to increase your contribution so you’ll be able to max out eventually.
3) Open an online saving account to maximize the interest on your emergency fund. Aren’t you tired of earning 0.10% with your local saving account? Open an online saving account at CIT or Ally bank to earn 0.90% or more with your new account.
|Institution||APY||Minimum Deposit||Misc||1 year of interest on $50,000|
|0.90%||$100||1.0% APY with a balance of $25,000 or more.||$452.03|
4) Reinvest your dividend. The stock market did very well in 2012 and most investors should have made some money though dividends as well. Reinvest the dividend into more stocks and you will generate even more dividends in 2013.
5) Reduce your internet service and cable bill. Call your internet service company to see if you can get a discount. The worse they can do is tell you no. Usually, they will give you some kind of discount for 6 months with no hassle. Consider getting rid of cable while you are at it. You can watch shows on the internet or borrow them from the library for no cost.
6) Cut your insurance bill. Call a couple of insurance companies to see if you can cut your auto insurance bill. If you don’t drive much, consider increasing your deductible to $1,000. I only drive once or twice a week now and I was able to save a little money by raising the deductible.
7) Join the debt movement to get rid of some high interest debt. Those high interest debts are the enemy of saving. Paying them off will enable you to save more in the future. If you have any consumer debt, I would put this at the top of your list.
8) Take my 2013 No Spend Challenge and don’t buy any clothing for a year. This is probably pretty easy for most guys, but I’m sure it’s really difficult for women. Take a look at your closet, I’m sure most of us have well over 100 articles of clothing in that little space. Why can’t you go a year without buying new cloth?
9) Skip the coffee shop. Did you know the average American consumer spends over $1,000 a year on coffee? That’s a ridiculous amount of money to spend on coffee. You can get a French press and brew your own coffee almost anywhere and save a ton of money every year.
10) Cook at home to save money. I like going out to eat as much as the next person, but we try to limit eating out only once a week at the most. Eating out every day is terrible for your health and you’ll spend a lot of money to boot.
11) Plant a garden. Organic food costs a lot more than regular so we only buy a few selections like apples and cherries. However, there is a cheaper way to eat more organic fruits and vegetables – grow your own. We don’t mind a few holes here and there and it is good exercise to work in the garden.
12) Buy generic food and drugs. Check with your doctor if you can switch to a generic drug instead of brand name. There is no point paying more for the same thing. Also try different generic foods and see which ones can replace brand names. If you can’t tell the difference, switch to generic.
13) Buy some electricity saving devices. It will cost a little bit up front, but you’ll save money in the long run. Using less electricity is good for the environment as well.
Bonus to avoid unlucky 13
14) Quit your job. I’m telling you from experience that I saved a ton of money after I quit my full time job. You’ll be amazed what you can cut out when you don’t have a paycheck coming in. Well, make sure you have some savings and can survive for 6-12 months before you tell your boss off….
Well, I hope you enjoyed reading these tips. We all would like to save more money in 2013 and increase our net worth a bit. If you do a few of these things, they will get you into a frugal mindset and I’m sure you’ll be able to save more money this year. Do you have any good tips? Please share them in the comment.