Top Ten Money Saving Tips From The Diamond Credit Union Team
Our team is excited to share our top ten money-saving tips for you and your home. Whether you’re looking to make a big purchase, save for vacation, or set your future self up for success, these tips will help you become more financially secure.
#1. Shop Around
When you’re making big purchases, you shouldn’t go with the first offer or price you see. From home products, like a new washing machine or TV to a new credit card or car, it’s important to have a wide range of options. These options will not only help you find the best product but also the best price.
Our team recommends comparing prices, reviewing loan requirements, and different financing options before you make a decision. By taking a holistic look at the product or service, you’ll be able to identify key benefits. For example, the product may be more expensive, but it comes with free delivery and setup.
A benefit to shopping around and comparing prices, especially for your home products, is some companies offer a price-matching policy. This means you can bring competitor’s prices to the store, and they’ll match it.
There are also apps, like ShopSavvy, that can help you be transparent about purchases and prices across a variety of stores.
#2. It’s Never Too Early
This money-saving tip can be applied to any and all financial situations. If you’re a parent or mentoring young adults, the idea of saving early and learning about different financial situations can be essential for future success.
You’ll find a lot of different resources online about financial learning, including sources from the FDIC, or the Federal Deposit Insurance Corporation. Their courses provide a practical approach to building confidence in young adults when thinking about their finances.
We have a variety of young adult resources at Diamond, including our Zogo app. Zogo is geared toward teens and young adults with over 300 fun-sized games that teach users about spending, investing, and more.
Beyond financial education resources for young adults, the idea of “it’s never too early” applies to all financial situations. Whether you’re interested in saving for your child’s college education or your retirement fund, our recommendation is always to start early.
Compound interest is a huge benefit for those who start saving early on. By looking at a compound interest calculator, you’ll notice that the length of time is a significant factor in increasing the sum amount.
#3. Everything Should Have A Place
When it comes to creating your budgets, opening up accounts, or planning for your future, we recommend categorizing your expenses and accounts. Without clear sections for what your money is going towards, you risk parts of your budget slipping through the cracks.
Categories such as housing, entertainment, food, and savings should all be outlined in a budget. Take some time to have conversations with whoever you share the budget with to understand what priorities they have and need to be included.
Alongside creating a strong and realistic budget, you can also categorize your money into different savings accounts. At Diamond Credit Union, we have Club Accounts that help make budgeting online easy. They can be opened for a vacation, a new car, or an emergency fund.
#4. Know And Meet Your Deadlines
If you’ve taken out a loan, opened up a credit card account, or are saving money to reach a financial goal, you’re going to have deadlines. Whether these deadlines are set up yourself or from a lender, it’s crucial that you’re able to meet them.
Our team recommends being realistic, especially when taking out loans, or looking to build your credit score. If you open more than you can handle or afford, you’ll negatively impact these numbers.
We suggest opening automatic payments, like Diamond’s Bill Payer, to make the process easier. The catch will be to make sure there’s money in these accounts to make sure the payments can be completed.
#5. Stay On Top Of Your Debt
This money-saving tip goes hand-in-hand with knowing and meeting your deadlines. Especially looking at paying back loans and credit card debt, you’ll want to make sure you are on top of payments so debt doesn’t increase.
It’s also important to know the difference between good and bad debt because there are times when debt works to your advantage. Student loans, for example, are good debt and are known as installment loans. As you continue to pay them off on time and in full, you’ll positively impact your financial situation.
However, bad debt, such as credit card debt, works against you. This is why this tip should be considered along with how to use your credit card responsibly.
#6. Be Realistic About Your Budget & Finances
The only person who is going to be negatively impacted by unrealistic budgets or expectations is you. There will be viable options for all stages of financial health, so it’s important to pick the one that best works for your situation.
Our general rule of thumb is to create three different budgets. A frugal option, a typical option, and an extraordinary option. The extraordinary option is useful to know how your budget would shift in case of an emergency where you need to spend more than expected.
Being realistic is going to make sure you’re only taking on what you can handle. When it comes to financial situations, going slow and steady will take you a long way, rather than overwhelming yourself from the start.
#7. Pay Attention to Where Your Money Is Going
It’s a common experience to check your bank account, see a recurring subscription, and think “How long have I been paying for that?”
With automatic payments, online tools, and subscriptions, it can be hard to have a full grasp of where your money is going. Along with analyzing your budget and allocating funds to specific categories, we also recommend checking your accounts regularly to make sure there aren’t unknown expenses.
Subscriptions can negatively impact your financial situation because these services are going to automatically charge your credit card.
When you have a clear knowledge of where your money is going, you’ll be able to increase or decrease spend when necessary. This money-saving tip is going to help you catch small monthly expenses that you may not realize you’re paying.
#8. Set Financial Goals
Tangible, actionable steps are crucial to meet your financial goals. Whether you’re looking to create a money-saving plan, start a college or retirement fund, or save for a vacation, these goals can help you stay on track for success.
Some examples of potential financial goals include:
- Put x% of your monthly income into a savings account.
- Decrease your credit card spending by $x each month.
- Analyze your current spending and decrease expenses where necessary.
Customize your goals and make sure you’re realistic about your capabilities. Slow and steady growth is still growth and going to be an advantage for your future self.
#9. Look Out For Your Future Self
A steady stream of income is exciting, but it’s important to consider your future self. If you haven’t had the conversation already, ask your employer about the company’s 401k or retirement plan.
Your employer likely offers a contribution match, typically up to 3%. This match means that if you contribute 2.5% to your 401k, then your employer will too. Although these payments are deducted from your monthly paycheck, your future self will be thankful.
We recommend taking advantage of financial calculators to give you a good idea of how much you should be contributing based on your income and how long you have until retirement. At Diamond, we have a retirement savings calculator to let you know how much you need to fund your retirement.
#10. Avoid Impulse Purchases
As we mentioned in our 9th tip, a steady stream of income is exciting. And sometimes, this excitement leads to impulse purchases. These purchases can deter your budget and set you back with your financial goals.
We recommend, especially with bigger purchases, to take the time and consider if it’s something you really need. Also, as we mentioned in the first money-saving tip, shop around before purchasing.
Ready to put these money-saving tips into action? As a Diamond Credit Union member, take full advantage of our services and a personal relationship with our representatives.