Has the pandemic put a dent in your savings account? As businesses, restaurants, and shops began shutting down and following local restrictions, many Americans were left with reduced work hours and turned to their savings accounts to help supplement the gaps in their finances. In fact, a study containing a sample of 5,401 individuals conducted in August of 2020 by CNBC, indicates that 17% of Americans had already tapped into their emergency savings, while another 14% had exhausted their emergency savings account1. As you work on rebuilding your First Bank savings account, here are some tips on how to save money on your monthly bills, including your groceries, electric, mortgage, and your cable.
1. Groceries
We all know groceries are a necessity, and sometimes we find ourselves spending more on them than we’d like to. When you’re at the grocery store shopping for your items, consider buying store brand products instead of name brand products. The store brand products are similar to the name brand products, but are offered at a reduced cost. Coupons are also a great way to help you save money. You can find coupons in weekly grocery store ads offered at the store, online, or in your mail. They offer products at a discounted price allowing you to maximize your savings opportunity.
2. Electric
Turning off the lights when you leave a room can help you save on your electric bill, but changing your light bulbs can help you save even more. If you have incandescent light bulbs, or traditional light bulbs, in your house, consider switching them to LED light bulbs. LED bulbs are long-lasting and use less energy than incandescent bulbs, helping you save more money. An easy way to indicate if a light bulb is energy-efficient is to look for the Energy Star logo. Products with this logo are certified as energy-efficient.
Read more: Could You Be Losing $675 a Year (By not Going Green?)
3. Mortgage
Your mortgage is probably one of the more expensive monthly bills you are responsible for, but also a very important one. One way you can save on your mortgage is by considering to refinance. If you currently have a high mortgage rate, refinancing your loan has the potential to lower your rate and help you save more on your mortgage over time. Additionally, if you already have a low interest rate, consider paying extra toward your mortgage principal each month. This will help you save money on the interest of your loan by reducing the amount you owe. For more information on if you qualify to refinance your mortgage, find a First Bank Home Loan Advisor near you.
4. Cable
While cable isn’t a necessity, it’s a service that many enjoy. If cord-cutting isn’t an option, there are still other ways to save. Contact your service provider for more information on their cost-effective solutions. For example, do they offer bundling your cable, internet, and phone? Bundling these services can often help you save more each month because you’ll receive a discount for all of your services being offered through the same provider. If you’ve already bundled these services, are there channels you are paying for that aren’t being watched? Downsizing and eliminating unwatched channels from your plan can help lower the cost of your monthly bill by reducing the size of your entertainment package.
Our Household Cash Flow Calculator can help you analyze your spending and identify your highest expense areas.
As you work to rebuild your savings, look for opportunities that provide the potential to save money each month. Even the smallest amounts can help you grow your savings over time. Visit www.first.bank for more information on our savings solutions.