How To Make $405 in 15 Minutes (and Other Quick Savings Strategies) with Andy Pulsfort
One monthly subscription here, a streaming service there, these things accumulate — and quickly! A new year is an excellent time to put your money under a microscope.
Even if you don’t necessarily need to dial in your spending, it never hurts to be more cognizant of where your money goes each month, especially during inflationary periods. We believe money has energy. When you respect your money, your money respects you back.
One way to respect your money is to ensure you’re getting the best deal. If it’s been a minute, it may be worth shopping around to make sure you’re getting the best interest rates for your savings account. Many local banks and brick and mortars haven’t caught up with the high yield savings accounts offered by online competitors. And with just 15 minutes of research, you can make a simple change that results in considerable savings.
Let’s say you have $15,000 sitting in a run-of-the-mill savings account with your local bank. You’re likely earning 0.3% on that account, just $45 per year. But there are a number of reputable, high-yield savings accounts available offering interest rates closer to 3.0%+. (Shop around for rates on NerdWallet or Bankrate.) By making the switch, you’ve instantaneously upped your annual earnings from $45 to $450. Save it and compound it or take yourself out for a couple nice dinners!
Another quick strategy to up your earnings? Review those monthly subscriptions and cut the ones you aren’t using anymore. Particularly during the pandemic, it was easy for many of us to add an HBO Max subscription here and a Peacock subscription there. But did you ever cancel them when the world opened back up?
If you’re not using subscription-based services anymore, cut them! (Pro-tip: January is the best time of year to get out of that gym membership you haven’t used in over a year.)
Let’s say you identify $85 a month of “BS spending” that you decide to cut: a photo editing phone app subscription, a needlepointing-project-of-the-month club (yes, they do exist), and your satellite radio membership you stopped listening to now that you’ve permanently moved to working from home. $85 in monthly savings adds up to $1,020 a year.
Now let’s say you’re 30 years old and you decide to add those savings to your Roth IRA. By retirement, it will have grown to over $10,000. Want to make this a part of your yearly routine? Your annual habit will grow to $135,000 in additional retirement monies.
Small cuts = big gains.
Many who have a financial plan don’t necessarily need to trim back spending, but that doesn’t mean it’s not a worthwhile practice. Instead of wasting your money, honor it.