How to Save Money Fast During the Cost of Living Crisis
Welcome back to my channel. I wanted to talk about how to save money fast. If you live paycheck to paycheck or have little surplus income, rising inflation and cost of living could be catastrophic.
Cost of living
The cost for 240 gallons of oil was $1,500. That’s a level I’ve never seen in my lifetime, and never expected to see. That's four times last year’s cost. People are going to be struggling just to make ends meet, heat their homes, feed their children, and put gas in their cars.
Long term, I think harsh and awful decisions will have to be made. People are going to be choosing between essentials. So I'm going to give you these 15 tips on how to save money fast and help fight these crazy prices.
1. Cancel subscriptions
Go through your bank account, your PayPal account, and your email, and cancel any subscriptions that you don't really need, or have forgotten about. There may be things that you've never even used. Cancel them right away.
Look at your gym package. Do you use it? If you do, go (and shower there, to save on water). If you have Netflix, Amazon Prime, and Disney, do you need them all? Have you signed up for beauty boxes that you don’t use? Do you have magazines that litter the kitchen table? Cancel anything that is not a necessity and you can live without.
2. Warranties and loans
Did you take out warranties on electronics and devices that you wouldn't even know how to follow up on if anything happened? Cancel them if you can. If some warranties are necessary, can you negotiate better deals or switch providers?
3. Grocery savings
We waste the most ridiculous amount of money on food shopping. It blows my mind every time I think about it. I’ll slip into bad habits, like buying chopped-up fruit and vegetables and pre-made lunches.
The cost of fuel and living is going to have an impact on food. See if you can cut the grocery bill down.
Can you reduce heating costs? We had a repairman recently who went through our home and turned down the thermostat to a level that, he said, should be comfortable to live in without wasting money.
I haven't noticed a difference in how the house feels, even though every thermostat and every room was reduced by at least one degree, and some by a lot more.
Can you reduce the amount of heating that you're using, without impacting the comfort of your home? Or impacting it only slightly? Tough times may mean that we have to wear sweaters or use blankets, but at these prices, it may be necessary.
5. Fuel grants
See whether your local government is offering any fuel or cost of living grants. There is a grant available in the UK for $240. It's something that you can get without using your wages.
6. Reduce car usage
Gas and oil prices are through the roof. Is there anything you can do to reduce transportation costs? Can you carshare, walk, or take public transportation? You would also be cutting down on wear and tear on your car, so you'd save more than just gasoline costs.
7. Review credit cards
Can you find a new 0% interest credit card, or negotiate with your current credit company? Can you spread payments over more months, or reduce payments, without increasing interest? Beware of short-term gains. Watch out for cards with good introductory offers. Look at the small print.
Also, if you have to borrow money, stay away from payday loans because they're so expensive. Can you negotiate low-interest loans? Always read the small print, and make sure you're not paying much more in the long term.
8. Negotiate loans
Can you negotiate a payment holiday on loans and mortgages? Banks gave three to six-month breaks during the lockdowns when people were out of work or furloughed.
9. Review spending
Go through all of your spending, every single penny. Write every single thing down and get harsh with yourself. What necessities can you cut back on? What things aren't necessary? Be really critical when going through the list.
10. Look for better deals on necessities
Look at your water, fuel, and insurance payments. Look for better deals, but be careful to read the small print; you may find some savings.
11. Sell your items
Is there any clutter you can sell? Go through your children's old clothing. My children have clothing that they've outgrown or hardly wear that is almost brand-new.
Can you go through old toys and sell them? Can you go through your own wardrobe and look at the things you no longer love or wear? I'm not talking about selling things that matter to you. Every house has clutter, and if you can get money for yours, that's a win-win.
12. Alternative heating
Do you have an open fire in your house that you can use to heat your home or water and save on heating costs?
13. Cut out luxuries
Cut back on luxuries, takeout, socializing, and things like that. I think hard choices will have to be made during this cost of living crisis. Go through your luxuries and see what you can live without. Try to keep that money in the bank.
14. Get cashback
Can you use cashback apps or loyalty cards? In the UK, I use both TopCashBack and Quidco. Don’t buy things just to use these; that would be counterproductive. But, if there are essentials you're buying anyways, can you use a cashback app? It doesn't cost you any more money.
Same with loyalty cards. If there are loyalty cards at places where you shop, can you sign up and get points for what you're buying anyway? You can then use those points to buy things you need.
15. Shop around
Shop around and make sure you're getting the best deal. Take a second to look to see if there’s a better deal or better terms.
How to save money fast
I hope this was helpful. I hope not to have scared everybody. We have to start trying to save what we can. How do you save money? Let us know in the comments.
This is good advice!
Between keeping savings in the bank and paying out mortgage ahead to reduce loan interest, what would you choose?