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Small financial changes can really go a long way when it comes to saving money, paying off debt and keeping more money in your pockets. I used to be the type of person that would think to myself “it’s only $20, that’s not going to make a difference”. Maybe you are thinking the same thing right now.
It’s not so much that it is only $20, it’s more of the attitude that I had with money that was holding me back. Yes, $20 is not a whole lot of money. But when you add up all those times that you might have said that to yourself; that is when you will see that it adds up to a whole lot of wasted money.
It wasn’t until I finally wrapped that around my head, that I truly started to make headway paying off my debt. Even now that I don’t have any debt, I still think twice or three or four times about wastefully spending $20.
Saving Money ~ Small Financial Changes That Go a Long Way
Every Dollar Counts
Every dollar really does count! All the little changes that you make that will save a few bucks here, and some more there, really do make an impact on your financial situation.
Just think about it, saving $20 per week will put an extra $85 per month and $1020 per year in your pockets. Look for 5 ways to save $20 per week and you’ll save $5100 per year. So when you say “it’s just $20”; think about how that could add up to $5000 or more per year!!
It’s about adapting to a frugal way of life. Every small financial change will add up, you’ll see!! The best part about this is that small changes are not that difficult to accomplish.
Get Your Family on Board
So once you have decided to make small financial changes, you need to get your family on board. First of all talk, to your partner, let them know that you are wanting to make some small changes to improve your family’s financial situation.
You really need to get your partner on board, if both of you are not on the same page, then you’ll probably end up going back to your old ways. It shouldn’t be very difficult to convince them, who doesn’t want a better financial future. Plus you are not asking for them to give up everything or turn your entire life upside down.
Read How to Talk To Your Partner About Money if you need help in this area.
If your children are old enough, then you should explain to them what you are trying to accomplish and what you need them to get on board too. You can even turn this into a fun game for them. Children love challenges especially if they can one-up their brothers or sisters.
Go Over Your Budget
The first thing you should do is go over your budget and look for any wasteful spending that you might have. Look for things that you are paying for and don’t even use or need. The first thing that comes to mind is subscriptions and memberships.
Subscriptions and Memberships
Maybe you don’t bother canceling these services because “it’s only $15 a month and I don’t have the time to deal with pushy salespeople trying to get me to reconsider canceling this service”. Yeah, I’ve done the same thing too.
Well, that service is taking $180 of your hard-earned money per year. Just call them up (because, from experience, most services make it super hard to cancel), tell them you want to discontinue the service.
If they start trying to convince you to stay, just cut them off (nicely) and tell them that there is nothing they can say to change your mind. This should make those calls a bit quicker.
Cutting back on certain items every month is another way to save money without feeling like you are depriving yourself (ie. small financial changes). So, the next thing I would look at are things that you can cut back on to save money.
Take for instance your cable bill. Do you really need to be paying extra every month for 2 or 3 movie packages while paying for Netflix at the same time? Wow!! Who has time to watch that much TV to begin with!!
Cut back on some of these services could easily save you money every month. Why not get rid of the movie packages and just stick to NetFlix. Or even better, use Amazon Prime to watch movies. I mean, you are probably already a Prime member anyway, so taking this route won’t cost you a dime.
What about your cell phone plan, can you cut back on the amount of data you are paying for? These days there are wifi hotspots just about everywhere. And it’s free, why not take advantage of that to save money.
Renegotiate Your Expenses
Now that you have cut out items from your budget that you don’t use, and have cut back on other services. The next thing you need to do is to see if there are ways you can save on things that you need.
One easy way to do this is by looking at your insurance policies. Of course, you can’t get rid of insurance and it’s not a good idea to cut back on it either. But you can still save by shopping around for a better rate or look into bundling all your insurance together to see if it’ll save you more money.
What about your credit card debt? Of course, you need to pay it, but can you save money by renegotiating your interest rates? How about looking into transferring your balance to a card that offers zero percent financing on balance transfers.
If your credit has improved since you took out bank loans, then you can even check with your lender to see if you can get your interest rate reduced.
Find other Make Small Financial Changes
Now that you have gone through everything that can be cut, scaled back and renegotiated; There are still a few other small financial changes you can make to save more money. One item that people don’t always look to is saving money on groceries.
What are you supposed to do, eat half as much as you do now to save money on groceries? Of course not!! What most people don’t realize is that your grocery budget is one of the most flexible “needs” in your budget.
Check out I Slashed My Grocery Budget In Half for more tips to help you save money on groceries.
Another area that you can cut spending on is your energy consumption. Small changes that you make can really save you a bunch of money on your energy bills. You can install a programmable thermostat, use a power strip to prevent unnecessary power usage.
You can read 13 Ways to Reduce Energy Consumption for more tips.
Helpful articles that will help reduce your spending
Making small financial changes can really go a long way to paying off debt or simply improving your finances. As you can see, you don’t necessarily have to give up everything you love to save money. It’s about making smart decisions about how you spend your money.
Please leave a comment to share more ways that you can cut unnecessary spending. We’d love to hear them!!