What Strategies Are Most Effective For Saving Money?

When COVID broke out last March 2020, I received an email from my employer, informing us that they have suspended all raises, promotions, and bonuses. And then they announced a pay cut and started furloughing without pay. I realized one thing right at that moment, that I did not have almost any cash saved up. I was fully invested in stocks and the market was crashing every day. So, I decided to save up some cash while I had a chance.

Rent, Utilities were not negotiable. So I started with what I could stop. I reviewed my credit card bill and bank account statement for subscriptions and all regular expenses.

I reviewed my car insurance, and made sure I had the cheapest possible, yet comprehensive coverage.

I switched to Lemonade renters insurance which is really cost-effective. You should check out Lemonade too, maybe you will save money on homeowners or renters insurance.

I have internet only plan from Comcast, and I made sure I am spending least possible on my mobile. I have a Visible connection, they offer unlimited everything for only $40 a month. Since I am on party pay, it costs me $25 every month for an unlimited plan.

I stopped spending on apparel, sneakers, etc. Although, I already have everything I needed, so it was possible and easy.

Another strategy was, not to eat out and cook every meal at home, which helped save a lot.

Another thing I did was I canceled all subscriptions but one. For example, I kept my Amazon Prime and canceled Netflix. And I was paying monthly to Amazon, so, I could pause it when I feel like switching to Netflix. Every dollar counts, so try that.

Finally, I tried finding other work to make some extra money, there are lot of work from home opportunities and other options that lets you earn few extra dollars. I will write a post about what I use, for now you can use thepennyhoarder.com.

Do, not put money in stocks, as the market is so volatile that you do not know what your investment value would be tomorrow. So, save money in high yielding saving account and try to earn extra. You should use Varo Money, it offers you 1.2% or in Robinhood which offers 0.3% on your savings.