It's not always easy to get out of debt. Sure, there are tons of financial experts that will tell you that all you need to do is spend less than what you earn and save the rest. But it's not always as easy as it sounds - especially if your income is low. That doesn't mean it can't be done though! There are many ways we got out of debt on a low income - some might even surprise you! Here are our top tips for saving money now!
Cut them grocery costs.
You hear this one all of the time but that is likely because it is one of the biggest budget busters out there. It is a variable expense typically, meaning the costs can change month-to-month. This can be a good thing, though, because it means you have control over what is spent where when feeding your family. From dining out to meals made each day.
Did you know the average American family with two kids under 5 spend around $928 a month on food? Save money on groceries by trying the following different strategies:
plan your meals for the week and buy for the day or week based on what's on sale in weekly ads.
give online shopping and (free) pickup. Not only will you know how much you'll spend as you place items in your cart, but you'll also avoid anything you would normally grab unnecessarily.
get out that cash envelope and make sure you don't have a card with you when you shop. You'll be much more inclined to stick to your cash budget when you are checking out with a specific amount of cash to cover your purchases. An extra tip? Set aside your spare change each day or week from that cash!
Cancel automatic subscriptions.
If you can, look at all of the subscriptions that automatically renew and ask yourself how often you actually use them or need to be billed for these services each month. For us, it was the gym membership and the Amazon prime. I wasn't committed to the gym and I wasn't shopping online often enough to justify a monthly Prime fee.
Beyond this more obvious subscription-ending tip is also one that is more psychologically helpful - if you ask me! I unsubscribed from all the Etsy emails tempting me with the amazing new products for sale and the digital content strategists and coaches always sending me their well-written copy, promoting their next course or printable. All those one-time $27 purchases add up! So, I highly recommend unsubscribing from those daily emails constantly coming in your inbox and disrupting your devotion to debt freedom!
Go generic!
There's no shame in buying generic over brand name. In fact, most generic brands are actually the same product that are made in the same facility as their brand name counterparts. The only difference is typically packaging and price!
Say Tootles to the Tube!
Nowadays, there are tons of streaming apps that are replacing the very costly cable services that still exist. Even with DVRs recording multiple shows at once, there is only so much time in the day to watch what you want. Why not just opt for an affordable app that allows you to stream what you want, when you want it. Avoid the cable costs and save an average of $2600 a year!
Spark a conversation with your electric company.
It is possible to save with your energy and electric bills. Call your service providers and ask them about any specific programs or peak hour plans they have that could help you save based on the usage unique to your home! Also, opt for some of these awesome ideas from Dave Ramsey at Ramsey Solutions:
Take shorter showers
fix them leaky pipes
wash clothes in cold water
swap lightbulbs out for LED bulbs
Ensure you check your Insurance
There are several different types of insurance coverage to choose from - home, life, car and umbrella for starters! Maybe there is a better policy out there that will save you money or get you more bang for your buck in terms of what it covers. Even if the increase seems minuscule (a few dollars/month), multiply this by 12 months and you'll see how much money it adds up to over a year.
Look into insurance providers in your area that have a good reputation for service, affordability and an easy claim process if needed! Do not be afraid to shop around and to tell agents you'll get back to them after comparing rates!
Make your coffee and lunches at home!
This one might not sound as exciting but you can get all kinds of creative. Lunch and coffee at home does not have to be boring or basic. Mix and match what you want and make your lunch enjoyable! You'll save an average of $294 a month if you're like the average household that spends $3526 a year on food outside the home!
Plus, with amazing coffee already made at home, you're getting a hot cup of joe before you even take on the commute, plus skipping all the drive-thru drama and time wasted!
WIN-WIN-WIN
Ask about in-cash discounts
We tried this one out a few times during our debtfree journey! While we aren't big shoppers to begin with, when it did come time to buy, you can bet we still tried to score a deal within reason. American Furniture didn't budge but surprisingly, the first few appliance places we went to would have, if we ended up getting their products. We opted for American Furniture since it saved us so much more in the overall total, but it is definitely worth asking if you can pay less with cash up front.
Ooooh, another area this worked was at one of those Kiosks at the mall when my husband, Ryan, needed to get a new shatterproof glass cover for his phone. They had just charged another guy $30 but when we walked up and said I've got 15 cash, they took it. It is always worth asking!
Another tip here too is that, just because you have more funds available doesn't mean you have to own up to that. Do it with integrity for sure, but set a price you're willing to pay and then, from there, negotiate. We did this recently with mold removal from a company after we moved in. While we have 3-6 months of savings, we agreed not to spend more than $3400 on mold removal.
When the price came to $3700, we stated that we only had $3400 available and that we would NOT be financing it. Sure enough, they came up with *all the discounts* right then and there to magically add to our quote, getting us to $3400. A first-time customer discount, a labor discount and a military discount. Just like that. Within seconds of hearing that we would get additional quotes for the same service from local providers if they couldn't do it for $3400.
Obviously, pray about it too. You don't want to stiff anyone. Especially small business. But, be reasonable and set a price you're willing to spend. Then ask if that can be honored given an up-front cash payment.
Call your cell phone service provider.
Consider cutting costs on your cell phone bills. This one is a biggie for sure. We cut our phone bill from $120 a month to just under $60/month by calling the provider and asking for an upgrade on our plan! Ask about discounts and make sure you understand all the charges you're being billed for each month.
Another tip here is to check with your service provider and see what the best package deal is for you! This will be different depending on who you use, but we found that some providers offer better deals than others based solely on where they are in town.
Do a no-spend week or month!
This can be super fun and you can even track your no-spend days on an engaging and celebratory social media post or fill-in chart. They have them for free online as well as on Canva's free platform. Just look up goal tracker templates and customize for your unique no-spend objectives!
Barter or borrow
Before blowing funds on a one-time or infrequently used product for lawn care or a craft, consider borrowing from your neighbors. You can oftentimes ask on Facebook Pages dedicated to neighborhoods in your area. Look for groups like "Buy Nothing Neighborhood Name" and see what populates!
Use Cash back apps and coupons!
Turn the money you're already spending on them groceries into cash back! Check out Honey (a browser extension) that shops online deals for you and places them in your cart on your behalf. Rakuten is always a good deal and sometimes they offer up to $40.00 cash back when you refer folks during the holiday season! You can join here and start RAK'in up the savings!
If you're looking for an easy way to make more money, first FIND and SAVE the money you are already making! Cut costs where you can and repurpose those funds to achieve debt freedom! There are many ways that we were able to do this by negotiating prices and getting discounts on products or services. Still have questions? Ask away!
