5 Little Cuts for Big Savings

5 Little Cuts for Big Savings

Saving Just a Little
Saving without making drastic cuts to your household budget sounds too good to be true, but it is possible with the right approach.
If your goal is to funnel a small percentage of your income into your savings, you probably don't need to rethink everything. Instead, you can hit your savings target by adjusting your lifestyle.
So what's the catch? You have to know where to look. And once you find places to save money, you need to put that money into a savings account.
Rethink Your Cable
While cable TV rates vary by region, most subscribers have something in common, says Julie Murphy Casserly, president of JMC Wealth Management in Chicago.
"They're probably overspending based on what they actually use," Casserly says.
According to Casserly, the solution isn't to make drastic cuts on home entertainment but rather to set up a system where you pay only for the programming you watch. On the one hand, that means making your plan as basic as you can. But it also means doing something a little counterintuitive to anyone watching their budget. Use pay-per-view and on-demand offerings in lieu of expensive movie channel subscriptions, Casserly says.
"I advise this with all my clients, and on average, they save between $40 and $100 a month because they only pay for what they watch," she says.
Monitor Online Deal Sites
You can save money by shopping online. But you have to approach it with the right mindset.
Casserly advises subscribing to a few popular deal websites such as Groupon or LivingSocial. The sites offer deep discounts on local services and products, essentially allowing customers to buy store credits at up to half off that are redeemed later. But don't be lured to buy something you don't need.
"Buy only what you would have bought anyway," Casserly says.
For example, if you see your favorite local restaurant offering a deal, it pays to grab it because you'll be able to discount the bill on your next visit.
Buy Bulk Gift Cards and Tickets
You can also save money on gift cards if you're able to buy them at a bulk discount, Casserly says.
"I buy gift cards for my favorite chains at Costco and get 20 percent off on a $100 card," she says.
The key is discipline, Casserly says. If you pounce on every deal that's offered, you'll actually increase your monthly spending.


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