7 Money Saving Tips for Families in 2024
Save your money! Whether to pay down debt, invest for the future, or save for a family vacation, every dollar saved can go towards something more meaningful. It's important to develop good habits with your money, especially in 2024. The past few years have been marked by a hot mess of rampant inflation, cost of living increases, and a housing war that has priced out countless people from purchasing a home. Not to mention a monster avian flu outbreak that caused the cost of eggs to skyrocket 70% from 2022 to 2023.
One key thing to keep in mind, spending money is a zero-sum game. Every dollar spent is lost to whoever you gave it to. Purchase the essentials and use the savings to make your money work for you by paying down debt and investing.
Here are seven money-saving tips that you can implement today to get ahead:
1. Family fun on a budget
Whoever came up with the idea that you need to spend a ton of money to have fun for a family night out is a genius (at least for the entertainment business). That's just not the case - you can create amazing memories without breaking the bank. Stay at home and have a board game night. Instead of going to the movies, order something off Amazon Prime. The cost for one night at the movie theatre for a family of four can easily cost the same as a year subscription for one of the many online streaming platforms. Explore your local area like a tourist. I'm sure there are plenty of fun activities to do for free. My daughter loves the outdoors, so we always look for new parks, gardens, or walking trails to take her on.
2. Stop paying professionals for everything
Do-it-yourself (better known as DIY) is an amazing way to save money! Everything from taking care of your lawn to making minor home and car repairs can make an impact. We live in a world where you can find almost anything online - use it to your advantage. If you're not ready to roll up your sleeves and replace your roof shingles, I'd recommend starting with making your own cleaning products. It'll save you money and use less harsh ingredients than what you get at the store.
One word of caution. Don't bite off more than you can chew. Replacing a ceiling fan is one thing, but I wouldn't change out your circuit breaker if you aren't a trained electrician. Don't risk your life and those around you to save a buck.
3. Strategically use your credit card
Credit cards are amazing when used correctly. Most offer some sort of income-generating perk, whether it's cash back or points. The number of credit cards you have is up to you and your financial goals. Most retailers will try to rope you into signing up for their card, but it's usually not the best deal. Take the time to analyze your spending and what works best for you. According to the most recent data from Experian, Americans hold an average of 3.84 credit cards. While many argue that having multiple cards maximize perks, I prefer to keep it simple and only have two. By using one strong cash-back card, our family maximizes what we can make back based on our spending. The second card we use is the Amazon Prime card, we get 5% back at both Amazon and Whole Foods. Plus, it's a good idea to have a backup credit card in case something happens with your primary card.
If you plan to use a credit card to pay for everyday purchases, make sure to only purchase what you can afford. Pay your balance at the end of each month to avoid carrying a balance and generating interest. Carrying a balance is a slippery slope and will kill your ability to get ahead and invest in the future.
4. Cut the cord - cancel unnecessary subscriptions
The average cable service costs over $200 per month! If you haven't already, it's time to cut the cord and enter the world of streaming exclusively. This is one of my favorites on this list - the savings are immediate. While the streaming wars are getting out of hand, there are a few standouts. Peacock is a must for our family - NBC is king of workplace comedies, including The Office. If you can afford it, I recommend purchasing an annual plan, as it’s 17% cheaper than paying month to month. As of the date of this writing, they’re offering their Premium plan for $50 and Premium Plus for $120.
Another great option for families is Disney+ - their collection includes everything from the Star Wars and Marvel collections to Moana and everything in between. One reason people keep cable is to watch sports, but Disney offers a bundle that includes ESPN+. Their most expensive bundle (which also includes Hulu) costs $20 per month. That's only $240 per year for three services, which is a tenth of the cost of cable.
There is zero need to get all of the subscription services. Pick one or two at a time - you can always cancel and restart service later if you want.
5. Stop impulse purchases
I hate it when people say to me, "Look at this (insert non-essential item) I bought today, it was on sale and I saved a bunch of money!" Did you though? An even better deal would have been to not buy that item at all and put that money to work for you. Impulse buying is something that we can all fall prey to. Retailers spend big money to understand the best ways to tap into impulse buying behavior and use it to increase their sales. Combat this by following the 24-hour rule and 30-day rule. For all minor non-essential purchases, sleep on it for a night before making the purchase. For major non-essential purchases, wait a full 30 days before pulling the trigger. You'll notice that most of the time you'll end up postponing the purchase or giving it up altogether.
Wait until a major holiday such as Black Friday or Cyber Monday for all major purchases. Retailers typically offer discounts during most major holidays.
6. Pay off high interest debt
I realize that most of us don't have piles of cash lying around - taking on debt is a part of life. But if you do take on debt, you need to pay it off as soon as possible, especially if you were slapped with a high interest rate. Interest compounds over time, reducing your ability to use your hard-earned money to invest in your future. Depending on your situation, you could consider refinancing your debt terms or consider a debt consolidation loan. Debt refinancing allows you to renegotiate the rate you pay, how long it will take the pay back the lender, or both. Debt consolidation loans typically have a lower interest rate which you can use to pay off the high interest accounts. Interest rates are pretty high at the moment but it could still be worth your time.
7. Make a savings plan
According to America Saves, those who create a savings plan are twice as likely to save successfully. Keeping a close eye on where your money is going will allow you to identify areas to cut, freeing up money to pay down debt or invest. This is a crucial step to achieving financial independence and retirement. There are several budgeting strategies to choose from, I'd recommend starting with the 50/30/20 budget.
There are many ways to create a budget nowadays, from pulling out a trusty notebook, downloading a digital budget planner to your phone or desktop, or using an app. It should only take you a few minutes per month to update and review.
Create a savings plan, put the work in every day, and get ahead financially.
