When economic times get hard, it helps to tighten your own belt. If you can do something to increase your revenue, do it! But sometimes, a penny saved is a penny earned.
Amid rising interest rates and inflation, you may need to be more resourceful when looking for full value.
Here are a few cost-saving tips to help get you started.
1. Leverage Your Home’s Equity
A home is more than just a place to make cherished family memories — it’s a major financial asset! Connecting with a mortgage broker and applying for a home equity loan is easy, and they’ll get lower rates than you could otherwise obtain yourself.
If you opt for a home equity loan, an independent assessor will determine your home’s current market value. The amount you’ve paid on your mortgage to date will be subtracted from that number, and the resulting sum is your home’s equity.
Speak to a mortgage broker about structuring the loan to meet your financial and lifestyle goals. They will also advise about other excellent borrowing alternatives, such as a home equity line of credit or a second mortgage. These three options are all excellent, but some may suit you better than others.
2. Change Grocery Stores
Saving money on recurring purchases is an excellent way to reduce spending. Groceries are obviously a necessary item, and the prices are generally rising. But some stores are jacking up their prices more than others, even outstripping inflation.
If you can buy the same item for less at one store than at another, it could be worth changing. However, if you must drive or commute a long distance to save a couple of nickels, it may be more trouble than it’s worth.
Consider your options and act quickly — shaving anything off your food budget makes a huge difference.
3. Drive Less
Driving vehicles involves major expenses such as fuel, insurance, parking, and, of course, the car itself. If you can walk somewhere instead of drive, you’ll save wear-and-tear on the vehicle and skip any direct driving-related expenses.
Cars are excellent for long-distance hauls or transporting cargo, but not every trip requires a vehicle. You may also be surprised by all the trickle-down benefits you receive. For example, walking somewhere for an hour instead of a 20-minute drive lessens the need to go to the gym.
You’ll probably enjoy active forms of transportation more than being stuck in gridlock, a major problem afflicting North American cities.
4. Sell What You Don’t Need
Sometimes parlaying possessions you don’t need anymore results in a good yield. Are there things you don’t use that are in high demand?
Don’t sell something online that you’ll need or want later or if it could rise in value. But you may have odd collectibles, clothes, or something else. Consider your stock. If you don’t want to sell it, you can always donate it to good causes.
The best fiscal policy for the country is something politicians can decide. When it comes to your personal finances, it’s essential to know all your options and control all you can.