Practical Ways to Save Money Amid Rising Costs

By: Dion Williams, President & CEO, Piedmont Advantage Credit Union

In today's economic climate, many of us are feeling the pinch at the grocery store and gas pump. With inflation affecting various aspects of life, finding ways to save money has become more crucial than ever. Here are eight practical steps that I personally use to help me accumulate savings. I hope you’ll find one or more or even all equally as helpful.

1. Pay Yourself First

One of the most effective ways to build financial security is by paying yourself first. Here’s how:

• Basic Savings Account. At PACU, we have a Personal Select Savings Account, which you can rename to give your savings a purpose, like “My Dream Car Fund” or “Anniversary Soiree Fund.” This account name is in big bold letters every time you go online to bill your bills or manage your accounts. It’s even listed on our statements. My point is if you’re savings account doesn’t have a purpose, if you’re like me, you’ll spend it on who knows what. So, every time I go online to pay bills, I always find a way to put a few dollars into this account each month.
• Retirement Savings. If your employer offers a match on retirement contributions, such as a 401(k) plan, aim to contribute enough to receive the full match. This is essentially free money that can significantly grow over time.
• Emergency Fund. Create an emergency fund to cover unexpected expenses, like home repairs or medical bills. Even a modest fund of $1,000 can provide crucial support during financial surprises, reducing the need to borrow.

2. Monitor Your Subscriptions

• Automation can simplify bill payments, but it’s important to keep track of recurring charges. For example, you may find that a magazine subscription auto-renews annually without your consent, costing you money for a service you no longer use. Regularly reviewing and canceling unnecessary subscriptions can prevent such unintended expenses.

3. Balanced Payment Plans

• In regions with fluctuating seasonal energy costs, such as North Carolina, balanced payment plans for utilities can be beneficial. These plans allow you to spread out payments evenly over the year, helping to manage your cash flow and avoid spikes in your energy bills.

4. Savings through Bundling

Bundling services can lead to substantial savings. Consider the following:

• Insurance Bundles. Combine home and auto insurance to qualify for discounts. Additionally, inquire about other discounts, such as for security systems or higher deductibles.
• Cable and Internet. Bundling these services can be cost-effective, but be aware of the terms after promotional periods end. Evaluate whether c switching to streaming services will offer more savings.

5. Fuel Efficiency

With rising gas prices, here are ways to manage your fuel costs:

• Warehouse Club Memberships. These often provide lower prices at the pump. Evaluate the membership cost against the savings on gas and other purchases.
• Rewards Programs. Use apps and loyalty programs at gas stations to get discounts or cashback based on your fuel purchases.
• Research free mobile apps that save you money on gas and other purpose, like GetUpSide, which allows you to save up to $0.25 per gallon of gas. There are many other apps like this one you may want to consider, especially if you have a long commute to and from work.

6. Reduce Food Expenses

Food costs have increased significantly, but you can take steps to lower your grocery bill:

• Grow a Garden. Producing your own fruits, vegetables and herbs can reduce grocery expenses and provide fresh, homegrown food. Plus, I’ve found it can be a fun family activity.
• Cook at Home. Eating out frequently can quickly drain your budget. Preparing meals at home and packing lunches for work can result in substantial savings.

7. Mind Your Checkout Habits

• Modern checkout systems often prompt for donations or tips. While it’s important to support charities and service workers, be mindful of these additional costs. Small amounts can add up over time, impacting your budget.

8. Optimize Your Paycheck

Make the most of your paycheck by considering these tips:

• Adjust Tax Withholdings. If you’re living paycheck to paycheck, adjust your withholdings to increase your take-home pay rather than waiting for a large tax refund.
• Flexible Spending Accounts (FSAs). Use FSAs to set aside pre-tax money for medical expenses or childcare, reducing your taxable income and saving on out-of-pocket costs.

I have found saving money involves a combination of action steps rather than a single approach. From managing subscriptions to optimizing your paycheck, these actions can collectively make an impact on your financial health as it has done for me and my family.

Please let me know if you found this article helpful. Feedback welcome and appreciated.