Frugalists all over the web will tell you that you can save money by making your own washing up detergent or by bottling your own water, but for most normal people, the effort involved for the tiny savings is just not sustainable.
Instead, you would be much better off by focusing on big savings first and then, if you feel like it, you can save money on the smaller stuff. Focusing on these small savings before you’ve sorted out the bigger issues is a fundamental problem that many people still have today.
Here are 3 of the biggest ways to save money that give you the most bang for your buck.
- Remortgage your home. Assuming you’re not tied into a deal for your mortgage, reducing your rate by as little as 1% can save you thousands of dollars each year. Yes, there are fees involved but even taking them into account you can save a huge amount of money by switching mortgages. If you secure a lower rate for a fixed amount of time as well, then you can save even more regardless of what happens to the mortgage market.
- Balance transfer your credit cards. If you have debt on credit cards and those cards have high interest rates, do a balance transfer to an introductory 0% rate as soon as possible. Many companies now offer interest free for up to 18 months so it is a perfect opportunity to save up to $500 a year while also paying off the balance much quicker.
- Cancel your gym membership. Gym memberships can run $50-100 a month and most people do not use them. Cancelling and working out at home instead would save you $600-1200 a year and would save you a lot of time. If you don’t cancel, look for competitor gyms in your area as many start-up gyms are offering basic gym services (without the sauna, hot tub or pool that many people don’t use) for around $20. Even that would save you $360-840 a year and you would most likely not miss the features of the old gym anyway.
There are other ways to save big as well, from switching your energy provider to a new supplier or finding cheaper car insurance, but these 3 are some of the biggest cash savers you can possibly do.