MONEY

Seven ways you can save some money

Apr 27, 2022, 9:10 AM
save money...
Adobe Stock Photo via CNN.
Originally Published: 27 APR 22 10:02 ET

(CNN) — With inflation pushing the price of just about everything higher, it’s more important than ever to keep track of how you’re spending your money.

Over time, however, even the most budget-conscious consumers may find themselves spending more than they need to on certain expenses.

(KSL NewsRadio’s Dave and Dujanovic tackled this topic recently in the podcast below!)


 

Here’s a look at seven common money traps — and tips on how to cut those costs.

1. Bank fees

Whether you’re paying fees for withdrawing money from an out-of-network ATM or paying monthly service fees for simply having a checking account, small fees can add up to a significant amount of wasted money over time. The average monthly fee for non-interest checking accounts (excluding free checking accounts) last year was just over $5, according to a Bankrate survey, while the fee for interest-bearing checking accounts was more than $16 for those who didn’t meet the requirements to waive the fee.

Cut the waste: Change banks. Nearly half of checking accounts don’t have monthly maintenance fees at all, according to Bankrate. The cost of monthly fees, if you’re unable to avoid them with your current bank, likely outweighs any interest you’re getting paid on that account.

2. Sale items you don’t need

There’s no denying the thrill you get when you purchase an item for less than its typical price. But spending money on something you don’t need just because it’s on sale can quickly lead to overspending.

Cut the waste: The next time you’re tempted to purchase something on sale, wait 24 hours before making the purchase. Often the initial excitement of getting a deal will wear off, and you’ll be able to walk away from the transaction.

3. Subscriptions you don’t use

A Chase study last year found more than 70% of consumers wasted more than $50 per month on recurring payments for things they didn’t need or want. One culprit for this, said Julie Ramhold, a consumer analyst with DealNews, is that people often sign up for free trials and then fail to cancel when the trial period expires.

“These things get put on autopay, and then people don’t even realize that they’re paying for something that they don’t even use,” Ramhold adds. “That’s an easy way to chuck money out the window.”

Cut the waste: Even if you have your credit cards set for autopayment (which is a smart way to avoid late payment fees), carefully look over your statement each month and cancel any charges for items or services you don’t use.

4. Food waste

Up to 40% of food in the United States is never eaten, according to the Natural Resources Defense Council. While the amount of food your family is throwing out may be lower, we’re all guilty of having to toss salad greens that wilted or leftovers brought home after a dinner out.

Cut the cost: Look through your refrigerator before you head out to the supermarket. Then plan your meals (and your shopping list) around the items you already have. That way you’ll not only be sure to use those items before they go bad, but also less likely to purchase new groceries that go to waste.

5. Extended warranties

While extended warranties on your car, appliances, or other electronic devices may offset the cost of future repairs, they’re not always a great deal for consumers, according to Ramhold. Sometimes the cost of the plan will exceed the cost of any potential repairs, or it doesn’t cover the issue that you have, Ramhold said. Plus, many credit cards include extended warranty coverage for some purchases, so you may be paying for coverage you already have.

Cut the waste: Rather than paying for an extended warranty, consider directing your extra cash toward an emergency account that you can use to cover the cost of repairs, should they arise. If you already have a fully funded emergency account, you may be able to skip this expense entirely.

6. Overpaying for insurance

Like most other services, the cost of home and auto insurance typically goes up over time, but if you’ve been with the same provider for several years, you may want to shop around to see if you can find a better price.

“New customers get new-customer deals,” said consumer savings expert Andrea Woroch. “You may be able to find a policy that offers the same or better coverage for less.”

Cut the waste: Check online sites like Zebra.com or Policy Genius to get insurance quotes. If you’re happy with your current coverage and provider, you may be able to use those quotes as ammo in negotiations for a better rate.

Other ways to slash your bill: Bundle home and auto insurance with the same provider or increase your deductible. By doing those two things, Woroch said she was recently able to cut her insurance bill by $1,100 per year.

7. Credit card interest

High-interest debt and fees on credit cards cost American households an average $1,000 per year, according to the Consumer Financial Protection Bureau. While credit cards can be a useful tool, they become an expensive burden that can drag down your finances when you carry a balance.

Cut the waste: If you are carrying debt, focus on paying down your existing balance and put your cards on ice for now.

“If you’re having a problem with credit card debt, it’s probably a good time to put the card away and use the cash method instead, or use a debit card,” Ramhold advised.

The-CNN-Wire
™ & © 2022 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

Today’s Top Stories

Money

second job inflation...
Heather Kelly

Many are getting second (and even a third) job to keep up with inflation

More people are getting a second job, said Bankrate.com, because inflation has them dipping into their discretionary funds.
15 days ago
interest hike...
Becky Bruce

Utah economist explains the reason behind interest rate increase

Robert Spendlove, an economist with Zions Bank, talked to KSL NewsRadio about the three-quarters of a percent interest rate increase.
21 days ago
(Photo Credit: CNN/Shutterstock)...
Curt Gresseth

What is behind rising credit-card debt? Financial expert weighs in.

A national expert explains the sudden rise in credit-card debt in April and what you can do to lower your monthly payments.
21 days ago
budgeting...
Adam Small

Budgeting to keep up with inflation? Here are some tips

A Utah financial adviser gave tips on how to budget, saying now is a crucial time to manage money because of inflation.
23 days ago
Some executives are keeping their employees home in a way to save money and possibly help lower the...
Heather Kelly

Working from home could help bring down gas prices

Some businesses are having employees return to working remotely as a way to have money on gas, and possibly help lower gas prices.
26 days ago
Gas prices climbed to an average of $4.69 per gallon, according to the latest survey by the AAA...
Martha Harris

With rise of gas prices, here are some tips to make fuel last longer

Regular maintenance and proper tire inflation are just a few things to make your fuel last longer as gas prices continue to increase.
27 days ago

Sponsored Articles

Tax Harassment...
Jordan Wilcox

The best strategies for dealing with IRS tax harassment | You have options!

Learn how to deal with IRS tax harassment. This guide will teach you how to stop IRS phone calls and letters, and how to handle an IRS audit.
spend a day at Bear Lake...
Bear Lake Convention and Visitors Bureau

You’ll love spending the day at Bear Lake | How to spend a day at Bear Lake

Bear Lake is a place that needs to be experienced. Spend a day at Bear Lake.
Curb Appeal...
Price's Guaranteed Doors

How to have the best of both worlds for your house | Home security and curb appeal

Protect your home and improve its curb appeal with the latest security solutions like beautiful garage doors and increased security systems.
Prescription opioids can be disposed of during National Prescription Take Back Day...
Know Your Script

Prescription opioid misuse | How to protect your family from the opioid epidemic

Studies have shown that prescription opioid misuse has increased since COVID-19. So what do you need to know about these opioids?
national heart month...
Intermountain Healthcare

National Heart Month: 5 Lifestyle Changes to Make Today to Keep You Heart Healthy

Heart disease is the leading cause of death for both men and women. One person dies every 36 seconds in the United States from cardiovascular disease
Joseph Smith Memorial Building...
Temple Square

The Joseph Smith Memorial Building is an icon of Salt Lake City | Why hosting an event at this beautiful location will make you a hero this year

Here's why hosting an event at the iconic Joseph Smith Memorial Building in downtown Salt Lake City will make you a hero this year.