These tips will help you save hundreds of dollars in 2023

You can spend a little extra money in 2023. Inflation has pushed the prices of items we use every day to all-time highs in recent months, and everyone is feeling the pain. For this reason, more and more people are looking for ways to save money without giving up their familiar lifestyle during the boom.

When it comes to saving money, there are some do’s and don’ts. To maximize results, it is important to utilize as many resources as possible. So here are some tips to help families put extra money back into the budget this year.

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The most important part of using resources wisely is budgeting. Whether you’re planning how to spend your paycheck or determining how much gas you’ll need to complete every trip.

Tips to save hundreds of dollars this year

This is one area where many people don’t focus enough to maximize their resources. So let’s take a look at some tips for creating the right budget to help you maximize your money this year.

The first step is to figure out your average monthly bill and your income for that period. You need to know your rent/mortgage payments and all other monthly bills related to your home.

Chase has a great article on rent and income, breaking down how to determine if you’re spending too much on housing. The 30% rule is a fairly consistent scale used to measure housing costs and income.

The rules are very simple. Don’t spend more than 30% of your gross income (income before taxes) on rent. A study conducted in 1981 found that families who broke this rule typically went over budget and suffered from housing costs.

If you find that your housing costs are more than 30% of your monthly income, you may want to consider moving to a cheaper home or finding ways to earn extra income to make up for the shortfall. To do. There are many ways you can make money from home in your spare time and add cash to your budget.

While considering your overall budget, be sure to check your food costs. Dining at a restaurant or ordering from a food delivery service is convenient, but it can also be one of your biggest monthly expenses.

You can increase your budget even more by planning your meals on a weekly or monthly basis and intentionally buying all the ingredients to cook at home. $9 more expensive on average. So her family of four, who eats out three nights a week, ends up spending $108 more than a family who eats at home.

Beyond simply eating at home, shopping wisely at the grocery store can also help add money to your budget. Daily necessities such as milk, toilet paper and eggs are often up to 25% cheaper in generic form.

Ramsey Solutions claims that despite being a store brand, many of the products we regularly purchase come from the same factories and use the same ingredients as the big name brands we know so well. I write. There are certainly some things you don’t want to sacrifice. Hidden Valley Ranch Dressing, for example, has never been truly recreated by any other company.

Coupons are also effective. Most coupons are for name brand items, and with the right coupons you can often buy name brands for less than the prevailing price. It’s not as hard as when you had to cut the coupon. Most stores have apps that deliver directly to your phone.

Apps and online coupons can save shoppers big bucks at supermarkets. It only takes minutes to search and use these coupons. I think we can all agree that spending a few minutes each week to pocket a few hundred dollars throughout the year is well worth the effort.

Budgeting and shopping wisely are two very effective ways to make room in your budget. But that’s not the only way to cut spending in 2023.

Auto insurance is an expense that we all pay for, but we hope we never have to cash it out. I didn’t realize it was too much.

Many of us have maintained our car insurance through the same company for years. We are led to believe that our loyalty to the company will save us over time. The fact is that this is not always true. In fact, the exact opposite happens and you end up paying more than you should.

According to Money Geek, more than two-thirds of Americans have never purchased cheap car insurance. This simply means updating the policy, and if the price goes up a bit, consider it inflation.

This is a bad practice for anyone looking to save money. For example, last month I needed to purchase insurance for a used car I purchased. It’s an older vehicle that I intend to keep only liability insurance on.

When I contacted an insurance company that I have used for several years to insure other vehicles, including motorcycles, I was appalled at the rate they offered me. All three companies offered better rates for the same coverage.

I then called my company back and said, “Either you break this offer or transfer all my policies to your competitor.” Not only did they beat the other company’s offer by $10/month (a total of $55/month less than the original quote), they also reduced my motorcycle insurance premium to half the annual premium.

I was able to keep the same coverage with the same insurance company, saving over $700 a year in total. This is also a good tip for renters and homeowner policyholders. Don’t assume your insurance company has your best interests at heart. Buy rates and ask for better offers.

These are just two tips on how to save money in 2023. There are many other ways to increase your earnings. Don’t feel like you have to live a financially stressed life with no prospect of comfort.

You can maximize your value for money by implementing smart spending strategies, cutting costs where necessary, and using your purchasing power as leverage.