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3 ways to scale down your life in 2022

ViDI Studio / Shutterstock.com Scaling down - what exactly does it mean? Smaller house, fewer bills, less good? Yes, yes and yes. Many think of dow

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Scaling down – what exactly does it mean? Smaller house, fewer bills, less good? Yes, yes and yes.

Many think of downsizing as moving to a more compact home after the kids have grown up and gone. And it is. But let’s not stop there. Scaling down also makes sense in other ways.

Here are other areas of life where downsizing can result in serious financial savings, not to mention saving your time and stress.

1. Automate your finances

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Reduce your recurring financial tasks – such as paying bills and setting aside savings – by automating them. You will also reduce your stress and save time and money.

For example, you can:

  • Place accounts on automatic payment: Save money by making late fees a distant reminder. Make some effort to set up automatic payments with your bank, credit card company, and service providers. After that, you’re pretty much free to look at regular accounts. Set reminders to check the accounts regularly so that a price increase in your phone bill does not put your account in the red.
  • Cancel services you do not use: Save more money by canceling unwanted subscriptions and memberships. If this sounds like too much work, have a service like Trim or Truebill take care of it.
  • Automate savings deposits: Your employer’s human resources can probably explain whether you can automatically send a percentage of your salary check to a higher interest savings account. Or set up automatic transfers from your checking account to your savings account.
  • Automate retirement contributions: If your employer has a workplace retirement plan, have money automatically diverted from your salary check to your retirement account. If you have an individual retirement account (IRA), set up automatic transfers from your bank account to the IRA.

2. Reduce your home entertainment

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Few recent technological advances offer as cheap fun as power entertainment. And as the number of streaming services and plan options continues to grow, so does the number of ways you can reduce your TV and video options – with little or no sacrifice.

For example, you can:

  • Reduce your cable TV package: Do you really need 200 channels? Would you even miss everyone if you switched to a cheaper package?
  • Cut the cable and stream instead: “Reducing” Traditional Pay TV to Streaming TV allows you to reduce the high cost of cable without abandoning live TV programs. Among the much cheaper alternatives are Hulu and Philo. For details on these options, see “12 streaming TV services that cost $ 20 a month – or less.”
  • Get rid of TV: Just think of all the money and time you would free up.

For more free options, check out our article on free movie streaming.

3. Reduce your transportation

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Reconsidering how you get around can have a powerful impact on your financial life. Car payments and maintenance suck up a huge portion of our budgets.

It costs an average of $ 9,666 a year to own and operate a new car, according to AAA.

What is a “prudent” amount to spend on car payments? The experts at Edmunds.com recommend that you do not spend more than 15% of your monthly home increase on car payments. If you rent, keep monthly payments at 10% or less, add them.

But wait. There is more: Fuel and insurance usually eat up an additional 7% of your home payment.

Ask yourself: Do you almost want to spend a quarter of your home payment on your vehicle?

Instead, you can:

  • Throw away a cart: If your household has more than one vehicle, get rid of one.
  • Stop using cars: Use a bicycle, hiking, public transportation and ride-sharing services.
  • Use your car less often: Use other modes of transportation as often as you can. You will save on gas and wear and tear, and you may qualify for a car insurance discount.
  • Buy used: New vehicles lose about 20% of their value after just 12 months, says Carfax. Over each of the next four years, they roughly lose an additional 15%.
  • Stop renting: Pay off a car and then enjoy years without car payments.

Motor insurance

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If you can not reduce your transport yourself, at least “scale down” to a less expensive car insurance policy. It’s easier than you think. The best ways to quickly put a big dent in your car insurance costs include:

  • Shopping around: Comparison shop annually to get the best deal. This does not have to mean that you have to call on insurers for quotes. Using a service like The Zebra will take all the work out of comparing shopping.
  • Increasing deductions“It’s the simplest and fastest way to save on car insurance,” writes Stacy Johnson, founder of Money Talks News, in “How to Get the Best Possible Deal on Car Insurance.”
  • Reduction of coverage on older cars: For example, you should consider abandoning comprehensive and collision coverage.

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