Focus On What You Can Control
3 Ways To Save More Money

Let’s face it; a lot has happened over the last two years that, in some instances, may have left you feeling completely out of control of your own life. Does the pandemic or market volatility come to mind? With the new year underway, I want to emphasize how important it is to regularly take a step back and focus on what you CAN control so you can feel confident that your life is heading in the direction that delivers the security and assurance you deserve. This sentiment is especially true for your finances.

In this blog post, we’ll explore three simple and repeatable practices you can use to help you save more money. Despite the unwelcomed flurries in the air, it’s technically spring here in Michigan so let’s do some spring cleaning, shall we?

One of the most important and controllable financial decisions you can make is to cut unnecessary expenses. They add up quickly! Thankfully, there are plenty of tips and tools at your disposal to help you weed through your expenses and make some quick cuts.

The first way you can adjust your spending is by monitoring recurring charges. Start by combing through your bank and credit card statements for recurring purchases and subscriptions. Next, be honest with yourself and determine if you really need and use each service. Is it worth paying for, or can you find similar value for free or less expensive elsewhere? I’m willing to bet that you’ll find one (if not more) things that you’re paying for that you didn’t even realize. Free trial periods are the culprit here. Have you ever signed up for a “free 14-day trial” of something and then were surprised by a new monthly or annual charge that’s too late to reverse because you forgot to end your trial? What a pain! One way to avoid this annoyance is by setting up a reminder on your phone or calendar to stop the free trial before it expires. Do it as soon as you sign up to avoid surprises later. Another easy way to manage subscriptions is by using an app like Truebill which acts as a personal concierge to help you track bills, budget, cancel subscriptions, and even negotiate rates on your behalf.

Another thing you should consider doing regularly is getting updated quotes on auto and homeowners insurance. Doing this annually has the potential to free up hundreds of dollars every year that you can put to work for you elsewhere. There are many factors insurance companies consider when quoting you that can help you save. For example, did you know that a simple increase in your credit score over the past year could help you receive a lower rate? When you shop for insurance, it’s best to make sure you’re casting a wide net and evaluating coverage from both large and small companies. The best way to do this is by working with a broker or independent agent who works with multiple insurance companies and can provide an easy way to compare quotes and coverage.

Finally, get better yields on your cash that is just sitting in the bank. If your cash-on-hand is sitting in a traditional savings or checking account that pays 0.01%, you may want to consider moving it into a high-yield savings account like the one Ally Bank offers. Ally Bank is currently paying 0.50% which is 50x the return you will receive on a traditional savings account. If you have an emergency fund of at least three to six months’ worth of expenses, consider investing the rest of the cash or paying down debt.

If you’d like more professional guidance on how to extract savings from your existing spending habits or create a plan to put your savings to work for you, we recommend talking with your financial advisor or giving us a call at 810-593-1624 to start a conversation.

Disclosures: Links are being provided for informational purposes only. Kaydan Wealth Management is not affiliated with Truebill or Ally Bank.

Sources:
https://www.ally.com/bank/view-rates/
https://www.truebill.com/