Thirty four percent of American adults have zero savings. Surprising? Actually it is not considering that half of American families have no savings for retirement at all. Americans continue to rely on debt in their everyday lives. The result is that majority of them go through their lives being unable to repay that debt; with 73 percent of Americans dying with an average debt of $61,554. The year started off with the total credit card debt hitting $1.02 trillion and credit strategists have called for Americans to focus on reducing their credit card debt.
With APR rates at an average 19 percent, savings have taken a hit. If you are one of the many Americans looking to increase your savings, there are many small adjustments you can easily incorporate into your everyday habits. Here are three simple ways to bulk up your savings.
Embrace Homemade
The DIY trend continues to gain popularity amongst consumers and it certainly has its reasons. Adopting a homemade attitude to several parts of your daily lives can save you small amounts in each category. It may seem minimal in isolation but at the end of the month, you can surprised at the total shaved off.
Batch cooking and meal prep is often a popular choice for Americans looking to live a health conscious lifestyle. However another effect of embracing home cooked meals: it can save upto $2,000 a year. Those small daily purchases add up to a sizeable amount. So while that $1.50 daily cup of coffee weekdays may not seem a lot; over the course of a week you are looking at a savings of $7.50.
Homemade meals do not have to be boring or bland either. With many online resources such as recipes, you can easily make delicious healthy lunches and sweet tooth treats.
DIY does not apply to just your meals but can also extend to other areas including homemade gifts and getting crafty with your home and car repairs yourself. Basic maintenance tasks such as oil changing and testing of your tyre pressures can easily be done yourself, saving you a pretty penny annually. By learning the basics of car maintenance, you not only save money but you are also better prepared in event of a breakdown.
Consider The Cash Envelope System
If you are struggling to get out of debt, one of the first things to do is look at your spending and where your money is going. The cash envelope system can help you get your finances in shape and allows you to achieve those savings goals while actually seeing how your cash is spent daily or weekly.
Every month, money is allocated into your various envelopes such as mortgage and groceries. The principle behind it is that you stick to using your allocated cash and when it has finished, you would have to wait until the next replenishment date. The envelope system is a great addition after creating a budget and allows you to identify how to best spend your money. Bonus point; your access to credit cards are limited which avoids your debt increasing further.
Think About It
Fifty four percent of Americans spend over $100 on impulse buys. Afterwards, 52 percent of women and 46 percent of men regretted their purchases. Instant gratification is a common mistake amongst shoppers especially those with credit cards in hand. By taking a few days (up to 30 days) to mull over the purchase, you can find often that you will change your mind about wanting the item. The end result is money saved on another impulse buy.
So get started on increasing your retirement savings and knocking down those credit card debts. With these three simple tricks, it is easier than ever.