To save money in today’s economic climate, sometimes you have to get creative. In fact, your daily life is likely filled with savings opportunities you just haven’t noticed.
GOBankingRates spoke with two self-described “savings nerds” to find out what they’re doing to put money aside . Here’s a look at their eight nerdiest tips.
Freeze Your Credit Card
“If overspending on credit cards or mounting debt payments are keeping you from saving more, try freezing your card — literally,” advised Mark Henry, founder and CEO at Alloy Wealth Management .
“Put your credit card — or cards — in a plastic baggie or container filled with water, seal it and put it in the freezer.”
This is a simple, yet effective way to keep yourself from spending money.
“The next time you’re tempted to make an impulse purchase or get something you aren’t sure you can afford, you’ll have to think about it for at least as long as it takes the ice to melt, since microwaving would melt your card,” he said.
“You’ll be able to pay off any existing credit card debt faster when you stop spending on it, and once it’s paid off, you can use the money you don’t spend on frivolous purchases to boost your savings.”
“When used properly, credit cards are an effective way to save money,” Henry said. “If you’re getting a credit card for the first time or looking to switch, seek out cards that offer healthy rewards.”
You might be pleasantly surprised by the credit card rewards you can earn while making everyday purchases.
“If you put your budgeted expenses for the month on your credit card instead of debit, you can use cash back or rewards to pay the bill and deposit the extra money into savings,” he said. “The key is to never put more on your credit card than you know you can pay off by the due date.”
Of course, if you find yourself feeling like you have to overspend to earn coveted rewards points, Henry advised seeking out other credit card options.
“If you consistently use a basic rewards credit card without accumulating any debt, look for a credit card that offers rewards specific to things you frequently spend money on, like travel,” he said.
Ask Your Employer About 401(k) Matching for Student Loan Payments
Henry said, if you are one of the millions of people currently paying back student loans, chances are you have to choose between saving more or paying down your debt.
“However, Secure Act 2.0 now allows employees to get contributions to their 401(k) just for making student loan payments.”
If you’re struggling to contribute to your employer-sponsored 401(k), he advised asking your company about this perk.
“This process works similar to regular 401(k) employer-matching contributions, but instead of matching what you contribute to your 401(k), your employer contributes for every loan payment you make.”
Practice Loud Budgeting
“Reaching any goal becomes easier when you have people to support you and speak it out loud, and saving is no different,” Henry said. “‘Loud budgeting'” means sharing your finance goals with your friends, so that they understand if you say no to dinner or a trip.”
In fact, you might even inspire them to do the same.
“Your friends can help hold you accountable, and you can even turn it into a game to see who saves more over a few months,” he recommended. “If your friends pressure you into spending money, they probably aren’t very good friends in the first place.”
Utilize Digital Coupons and Cashback Apps
Nowadays, most credit card companies offer some kind of cash back bonus.
Henry advised, “If you’re making a big, well thought out purchase, putting it on a credit card could earn you points that you can use to help pay the bill.”
This might require a bit of pre-shopping prep work, but your efforts will be rewarded with savings.
“There are several different free browser extensions that will automatically scan for coupons when you’re shopping online,” he said. “This can be especially useful if you regularly order groceries or other essentials online.”
He also emphasized the importance of utilizing only free apps, as you shouldn’t need to spend money to save money.
Put Student Loans on Autopay
“Some federal student loans offer an interest rate deduction for enrolling in autopay,” Henry said. “Even if the deduction seems minimal, interest sometimes makes it feel impossible to ever make progress on debt, so every little bit helps.”
He said to remember that the less interest you pay, the less you’ll pay toward the loan over time, ultimately saving you money.
Save Your Wins
If you’re like many people, when you score a discount, you put the money toward another purchase. However, Andrea Woroch , a consumer money and savings expert, said this is the wrong approach.
“Every time you save money by using a coupon, earning cash back, negotiating a discount or simply scoring a sale for an item you were planning to buy anyway, put those savings to work by transferring them to a savings account,” she said.
Round Up Purchases and Save
When you make a purchase, the total probably doesn’t usually come to a whole-dollar amount, which Woroch said is a savings opportunity.
“Rounding up purchases to the whole dollar and saving or investing the spare change may seem minor, but those cents can add up over time.
She said this is especially true if you save the money, forget about it and let compound interest accumulate.
“Tap into apps like Acorn or Qapital which will round up for you, linking your credit card or debit card to your account,” she said.
Imagine the amount of money you could save by holding your spare change tightly.
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