How to Save $5,000 in One Year

 

What could you do with $5,000?  Could you take a seven-night cruise, visit New York City or spend a week at Disney World? Could you take a chunk out of your credit card debt or pay off your car? But how do you get $5,000 at one time?  You make small changes.  Try a few of these hints and put yourself in a position to have an extra five grand this time next year.

Unplug stuff that you’re not using such as TVs, microwaves, cell phone charges, etc.  These items use electricity if they’re plugged in even if they are not on.  Depending on the size of your household, this tip should save you $15 a month on your electric bill or about $180.00 a year.

 

Drive the speed limit and keep your tires properly inflated. This tip will save you about $10.00 a month on gas or $120.00 a year.

 

 

Shop for groceries three times a month instead of four. On the fourth week, decide that you will manage on whatever is in the house.  Trust me, you won’t starve.  Depending on the size of your family and your tastes, this will save you at least $100.00 a month or $1,200 a year.

 

Cancel satellite TV or cable TV. There are dozens of shows that you can watch for free online, and you can check out DVDs for free from the library.  My public library even has a free movie streaming service.  You can also invest in an antennae and receive local channels for free.  This tip should save you between $50 and $150.00 a month or up to $1,800 a year.

 

Get rid of your landline. Does anyone call you at home? If there are at least two cell phones in your home, you can manage without a landline.  My landline bill is $46.00 a month, which costs me over $500 a year.  My excuse for keeping the landline is that I send or receive one or two faxes a month.  I need to take my own advice.

 

Buy clothes once every six months. Buy winter clothes in February when they are on sale, and buy summer clothes in August when they are on sale.  You have one body, and you really only NEED a few outfits. If you limit your clothing shopping to twice a year, you should save between $500 and $1,000 a year.

 

Limit meals out to once a week. If you currently eat out three times a week and spend $15.00 each time, reducing your meals out to once a week will save you $120.00 a month or $1,440.00 a year.  Just imagine all that money that literally goes down the drain.

 

 

Quit using credit cards. When you use plastic, you spend more.  Why do you think the stores and banks offer you so many incentives to use credit?  They know you spend more.  I have a credit card that matches my spending dollar for dollar with reward miles.  I contemplated charging all household expenses and then paying the card off every month.  But I know me!  I would end up spending more just to get the extra miles.  If you must have your flier miles, consider the SunTrust-Delta rewards debit card.  I had this card for about a year and spent enough to travel to Denver for free.  However, I had to make the effort every month to make all major purchases, including my mortgage on this card.  Eventually, I decided it wasn’t worth the hassle.  Eliminating the use of credit cards will save you at least $1,000 a year between your spending less and not having to pay interest or late fees.

 

Shop with cash. Just try it for a week.  When you have to peel off those greenbacks instead of swiping a card, you spend less.  It’s easy to overspend with a debit card.  You know about how much you have in the bank.  You can splurge on the shoes and decide you’ll pay the electricity bill late.  You should save well over $1,000 a year if you shop with cash.

 

Every idea is not for everyone.  However, if you try a few of these suggestions, you should be able to save thousands of dollars a year and perhaps pay for a dream vacation, return to college or payoff a bill.