While all of the little things that we do on a daily basis can add up to great savings, sometimes we just need to find a way to make a big impact on our finances. For example, we may be experiencing a pay cut or loss of income, or facing a large expense, such a new furnace for the home or braces for a child. In these moments, we need a quick one-step action that will yield big savings.
My husband and I are pushing to build up our emergency fund, just as prices for everything seem to be going up and income seems to be going down. We are determined to make this goal, and to do it soon, so we can move on to other goals.
Starting next month, we will be saving close to $100 a month because we are combining our home and our auto insurance. Previously, it made more financial sense to keep them separate, but after having a discussion with both insurance companies who wanted our business, we were able to score the best deal for the same exact coverage that we have. One step. Big impact.
Another one-step action that we are looking at is refinancing our home. Shaving both our monthly payment and the length of our mortgage term means a double win on our road to eliminating our debt. Refinancing a mortgage doesn’t always make sense, but when it does work, you can save quite a bit, and save that money over time.
Another avenue that we are currently exploring in the hopes of making a big impact is dropping certain services. Most people spend hundreds of dollars a month on things that just a couple of decades ago didn’t really exist, or at least didn’t exist in the day-to-day life of most people, such as premium cable television and smart phones. By making the decision to cut those expensive services, a big impact is made immediately in the monthly budget.