30 Tips On How To Save $1000 A Year

Money Saving Changes You Could Make

by: Jessica L

What could you do with an extra $1,000 per year? With the economy so tight, most of us are seeking out new and creative ways to save money. Try one or all of these thirty ways to save money.

You could save as much as $1,000 a year without working a second job or giving up that nasty eating habit you have developed over the years. Most readers will not be able to implement every suggestion; however, the list will give you something to think about when deciding where to cut corners and keep more of your hard earned dough.

1) Brown Bag Your Lunch

When you stop to add up how much money you spend when you eat out for lunch every day, you will see that this is an expense you could likely live without. Learn to pack a lunch and stash away the cash you save.

2) Forgo the Fancy Coffee

Though many believe they just simply cannot live without that morning latte, the fact is you can. If you brew your own coffee at home, you will save a considerable amount of money over the course of a year.

3) Eat Out Less

Many people don’t even think twice about stopping along their route for a quick bite of fast food. Unless you consistently choose your meals from the dollar menu, this habit becomes a big expense over time. Prepare your meals at home and learn to do without the fast foods and other restaurants.

4) Increase the Deductible on Your Car Insurance

Most people carry a $500 deductible on their auto insurance. Bump up the deductible to $750 or $1,000 to save a bundle on your premiums. When it comes to car insurance, there're many ways to save like bundling your home insurance along with auto insurance, comparing quotes from different companies or joining some group to get discount.

5) Get a Cheaper Ride

Instead of suffering through $500 or more for car payments each month, get rid of the flashy ride and buy a cheaper vehicle. Pocket the savings which will be even more if you can pay cash for a car and buy it outright instead of making any payments.

6) Sell the Second Ride

There are some families that absolutely need a second vehicle. However, if yours is not one of them, sell the second car. You may be making car payments on the second vehicle, but even if you are not, you are paying for registration, inspections and insurance for the car.

7) Put Your Savings in a High-Interest Account

If your savings is languishing in a low interest account, shop around and find a savings account that will pay you a better rate of interest. Some bank offers savings accounts that will pay a considerably higher interest rate on savings accounts than standard banks.

8) Change to a Tax-Free Savings Account that Offers High Interest Rate

Yes, taking the advantage of tax-free saving accounts will earn you extra income. Check with different banks and choose the one with highest interest rate to open a tax-free saving account.

9) Don’t Carry Life Insurance for Your Children

My paticular reason to have life insurance for myself and my husband is to make sure that if something happens to me or him, our kids will be financially taken care of. So maybe you need to carry life insurance for yourself with your family as beneficiaries. But you do not need to insure your children.

10) Buy Term Life instead of Whole Life Insurance

Whole life insurance policies are considerably more expensive than term life policies. Purchase the term life policy for a specified amount of time and put the difference you would save paying for a whole life policy in your interest-bearing savings account.

11) Get Rid of Insurance that You Don’t Need

Skip the accidental death and mortgage insurance. Instead, purchase a term life insurance policy for the amounts you would need and put the rest in savings.

12) Don’t Purchase Extended Warranties

First of all, the extended warranties usually do not cover all of the issues you assume they will. Second, these warranties are expensive. The only time an extended warranty makes sense is on a repair that will break your budget, such as for HVAC equipment.

13) Sell Your Car

If possible, sell your car and opt for a bike or public transportation. Biking to work has been considered not only the economical way but also a cooler and healthier life style in these years. Cyclists should always keep in mind of some safety tips to share the road with cars especiallly in rush hours.

14) Pay Off Credit Cards

Save yourself a considerable expense on interest payments by paying off your credit cards.

15) Get a Credit Card with a Better Rate

If you must have a credit card, make sure to keep just one that offers you a great rate and if possible, apply for a credit card with the most cash back rate. Watch for those with excellent introductory rates that may be raised after a year or so.

16) Cut Costs on Doing Laundry

Buy powdered and/or store brand laundry detergents. Wash in cold water. Wash only full loads and use the shortest washing cycle.

17) Reduce Your Meat Intake

Eat meatless meals a couple of times per week to save money on your grocery bill.

18) Pay Off Student Loans

Save hundreds, if not thousands, by paying off student loans as soon as you can.

19) Eliminate ATM Fees

Make a small purchase with your debit card and get cash back when you need it. Avoid going to the ATM to withdraw cash.

20) Dump Bank Fees

Either find a no-fee checking account or do away with your checking account all together. An estimated one in twelve people no longer have a checking account of any kind. Though it may sound foreign to you, it is possible to do.

21) Eliminate Cable

Cable TV is expensive. Some companies are more expensive than others. Try Dish Network if you must have premium TV. Dish has a few very inexpensive plans and will cost about 1/3 the price of one of the major cable providers’ services.

22) Re-Evaluate Your Cell Phone and Plan

With all the extra charges for texting, data rates, etc., re-evaluate whether you really need all of the cell phone perks you have. You may want to check into a prepaid plan. Net 10 offers fairly decent smartphones and plans for about $25 per month for 750 minutes per month. They also offer an unlimited plan for $50 per month. No extra data charges or charges for text messaging and you still have Internet access and most of the perks.

23) Do You Really Need a Landline Phone?

If you keep your cell phone, do you really need a landline, too? Most of us do not. The alternative can also be an IP phone which might only cost a third of big company’s regular price.

24) Rent out a Room

If you have extra space in your home, consider renting a room to a roommate.

25) Rediscover the Thrift Store

You can purchase many things you use around the house for a lot cheaper at Goodwill or Salvation Army. Get to know your local thrift store.

26) Get Rid of the Gym Membership

Unless you use your membership often—and most of us do not—lose the gym membership and walk around your neighborhood instead to get your exercise. Plus, if you decide to bike to work, that's a free gym on wheels.

27) Use a Grocery List When You Shop

Always take a list to the grocery store and never deviate from the list. You just may discover that a considerable amount of your grocery bill is from impulse buying.

28) Sell Some Stuff

You might have a load of CDs and DVDs, or a bunch of video games that you don’t use anymore. You can run a garage sale on a shinny weekend. But selling them on kijiji or eBay will get you better price.

29) Buy Clothing and Shoes Out of Season

When you buy summer clothes in the fall or winter clothes in the spring, you will get great prices and save a bundle on your wardrobe.

30) Buy Vegetables and Fruit in Season

When veggies and fruit are in season, the price is greatly reduced. Though the grocery store may sell out-of-season fruits and veggies, but the cost is usually much higher than when they are in season.

A mom of two, also an Examiner.com author about personal finance, real estate and investment. Life has never been this happy with two lovely kids.