Today, Americans have more than $3.9 trillion in personal savings, yet 69% of adult Americans have less than $1,000 in a savings account. The average household savings in America are at $17,135, which would suggest that the majority of Americans struggle to save money, whereas the top 1% of American households have about $2.5 million in savings.
However, saving money doesn’t just have to be for the top earners! There are many easy ways to save money around your house without even having to think! Here’s how…
Top Tips to Save Around the House
Saving on your energy bills
Saving on energy is a key way that money can be saved without batting an eyelid. You can save on your energy usage by doing simple things, such as; Turning off the lights in rooms that are not in use, ensuring that you do not leave your tap running when you brush your teeth, turning off your ceiling fan (if you have one) when you are not in the room as it will not help cool other areas of the house.
You could even plant a tree to provide some shade for your house can save you money on air conditioning during those scorching summer days, and you can also even save by not taking baths, rather, showering instead. The average shower uses far less water than a bath (unless you plan on taking a very long shower!)
Clean out your closet
Removing anything, such as clothes or books or old toys, that you rarely or never use can be a great way to save space and save money too. Give these items to family and friends, hold a garage sale, or donate them to charitable organizations (you could get a charity tax deduction for your donation). The re-sale of second hand and vintage clothing is very much on trend, and websites such as eBay make it super easy to earn a quick buck for that shirt you’ve outgrown, or skirt that you no longer enjoy wearing!
Changing your regular habits
Aside from energy, small alterations to your regular habits can really add up and help you save around the house. For instance, you can wash and reuse plastic bags like Ziploc bags and try to utilize reusable alternatives instead.
When shaving, dry your razor blade with a towel after each use. Corrosion caused by moisture is one of the main causes of dull razor blades. Instead of buying special plastic containers, you can use old shoe boxes for storage of various items.
If you use liquid soap, putting a rubber band around the base of the soap pump will cause less soap to be released, but it will still be an adequate amount. This will make the soap last longer.
You could even add a little water to an almost empty detergent bottle to get the last bit out. Also, if you use it, keeping nail polish in the refrigerator prevents it from getting thick, thus making it last longer.
Make your own food and drinks
Although it may seem like your mornings and daytime hours might already be hectic enough, packing a lunch for school or work can save you a lot of money in the long run… and it might be that extra nudge towards maintaining a good diet you’ve been looking for. A good system might mean packing lunches up at night and keeping them in the refrigerator until the morning or even meal prepping over the weekend to have them ready for the work week. Whichever way you look at it, a packed lunch may not be as glamorous as going out for sushi or pizza during your lunch hour everyday, but is probably going to be cheaper and healthier than eating out.
As delicious as those Starbucks iced lattes and warm caramel macchiatos might be, the price point per volume is much much higher than what you’d pay to brew your own coffee before heading out to work. Investing in a thermal to-go mug that’s large enough to carry you through the morning is a much more cost-effective way to consume that daily coffee requirement!
Start saving early
Saving money for a “rainy day” is a common phrase used by US citizens, but the importance of doing so can’t, and shouldn’t, be understated. However, saving at a young age can be difficult. When you’re in your 20s, you’re not thinking about retirement, you’re thinking about a car, a house, and getting married. And, let’s be honest, most money-saving tips are not really fun and pleasurable. However, you shouldn’t be too preoccupied with your current goals while neglecting future ones.
Yes, it’s a load to stick to a money diet while your career is just starting and you’re probably in debt thanks to student loans, but it won’t be any easier at 45. Having to put away $200 each month at 25 years old is much easier than putting away more than $3,000 each month at 45. Try starting to save for the future earlier, especially if your financial situation is stable and you don’t have much debt to cover.
According to CNBC, the top 1% of American households have average savings of over $2.7 million. The situation is drastically different when the focus shifts to the bottom 20% of American families by income. Here, the average savings are only a little over $24,000.
The conclusion is obvious – those that make the most money also manage to save the most money. However, it doesn’t have to be this way. If you follow some simple tips and tricks, some of which as seen above, you could earn some of that money back and invest it in something that will benefit you in the future!
Charlotte is an expert writer with over 10 years of experience in the financial space. Follow her posts for useful advice and interesting facts on key topics such as money, finance and payday loans.