Interest rates skyrocketed in 2023, and even as rates soften they may continue to be unpredictable. So, how do you manage your finances during such periods? Here are some helpful money-saving tips to consider.
Review and Reduce
Regularly review your monthly expenses. Are there any subscriptions or services you’re no longer using? Is there an unused gym membership or magazine subscription that can be cancelled? By trimming the fat from your budget, you’ll have more to put towards savings.
Build an Emergency Fund
When you have money set aside, you won’t have to dip into your line of credit or carry a credit card balance when something urgent comes up. Putting just a few dollars a week into a fund can add up over the year — and give you peace of mind.
Energy Efficiency Upgrades
Investing in energy-efficient appliances, windows, and even home insulation can lead to significant savings on utility bills over time. Additionally, some energy-efficient upgrades come with tax credits and other incentives.
Buy in Bulk
Watch out for sales on goods you purchase regularly, like breakfast cereal. If the discount is substantial, stock up. Over the year, this strategy can save hundreds on your grocery bill. Just be sure to pay attention to expiration dates!
Avoid Interest Charges
As much as possible, reduce or eliminate anything that charges interest. For example, pay credit cards by the due dates. (Note: credit card interest on cash advances often begins immediately.)
As you can see, making smart money decisions can help you ride out the current wave of interest rate uncertainty. What are your money saving strategies?