Everyday Spending

Your day-to-day spending decisions can add up in ways you may not expect. Common behaviors that increase spending may include:

• Convenience Eating – Everyone needs food, but do we need to buy it from restaurants or coffee shops? Buying food from any place other than a supermarket is a convenience that’s priced accordingly. Convenience eating includes coffee, soda, bottled water, candy, meals – the list is potentially endless. Bringing food from home each day can save hundreds of dollars per month. And keep in mind that buying prepared food at the supermarket can be just as expensive as a restaurant.
   
• Spending with Cards – Besides the fact that spending with credit or debit cards could potentially lead to high-interest debt or other fees, spending money with cards is convenient… sometimes too convenient. In fact, studies have shown that people spend less in general when they spend with cash. Try giving yourself a certain amount of cash for daily spending and see if you notice a difference.
   
• Not Comparison Shopping – A must when considering a large purchase, comparison shopping can also yield huge savings when used every day. While buying food in a supermarket is almost always going to be cheaper than buying prepared food in a restaurant, prices can vary substantially between supermarkets and between items at the same supermarket. And don’t forget that the generic versions of food items can be just as good as name brands. The same rule goes for clothes – prices can vary widely on very similar items depending on the store.
   
• “Saving” with a Sale – Sales may offer a deal, but they can also lead to unplanned spending. Think of it this way… even if a sale offers a 50% discount on a $100 purchase, buying something you don’t need doesn’t save anything. You just spent $50!

Financial Services

A bank or credit union should be a place to save money, not lose it. To save money on financial services, consider:

• Account Fees – Spending $10 or $20 per month (or more) on unnecessary checking account fees can cost hundreds per year. AHCU offers checking accounts with no monthly maintenance fees, or minimum balance fees.
   
• Automatic Savings – Setting up an automatic checking to savings transfer each pay period is a great way to build an emergency fund or save for a goal. And setting up this kind of transfer may also result in account fee discounts at some banks and credit unions.
   
• Automatic Bill Payment – Late fees, higher interest rates, and damage to your credit report are just some of the potential consequences of late payments. Minimize the chances of late payments by setting up automatic payments for recurring bills. There’s typically no additional cost and, if you have student loans, you may even qualify for an interest rate reduction.
   
• Avoid Alternative Lending – Check cashing services, “fast” income tax refunds, payday loans, and rent-to-own stores are often a bad deal for consumers. If you’re currently unbanked, look for a checking account that can meet your unique needs.
   

Other Ideas

Auditing your everyday spending and financial service fees can result in savings for many people, but here are a few other ideas to consider:
 

• Cancel Cable TV – Many popular shows and sporting events are available with a streaming subscription or “over the air” using an antenna. In fact, the appearance of many shows may actually be better with a $10 antenna than with cable – seriously! With the average cable TV bill approaching $200 per month, that’s potentially $2,400 per year in savings.
   
• Cancel Recurring Charges – From unused gym memberships to streaming subscriptions, many people can save hundreds of dollars per year by getting rid of unwanted services that are automatically charged each month whether you use them or not.
   
• Trim Entertainment Expenses – Everyone deserves to have fun, but minor changes to entertainment habits can add up. Streaming a movie rather than going to the theater, ordering water rather than another beverage when dining out, and making other changes based on your lifestyle are all worth considering.
   
• Save Windfalls – Gifts, bonuses, or any other unexpected source of cash could either be saved or used to pay down high-interest-rate debt.
   
• Make Gifts – Even if you don’t have a way to make a gift yourself, you could still provide a “gift certificate” for services you could render – babysitting, lawn care, or other chores.
   
• Resist Peer Pressure – It may be tempting to keep up with the spending habits of friends or neighbors, but you need to make decisions that are right for your life. And just because someone spends freely doesn’t mean they can actually afford it.
   
• Personal Care Options – Expensive shampoos or trips to the salon are expenses that can often be reduced by comparison shopping. You probably won’t notice the difference in your style, but you will notice the difference in your checking account balance.
   
• Minimize the Use of Your Car – While not possible for everyone, walking, carpooling or public transportation may be a way to save on fuel, parking, and car maintenance. And if you can reduce your annual mileage to around 5,000 miles per year or less, you may qualify for a discount on your car insurance.
   
• Save Your Change – Give yourself a tip by creating your own change jar at home. Many supermarkets also have automated change counters that can make cashing in your savings easier than ever (for a small fee).
   
• Negotiate! – Cell phone contracts, home internet service, dental procedures if you don’t have dental insurance – more costs can be negotiated than you may expect. It doesn’t hurt to ask.