There’s been a lot of political chatter lately about the value of an extra $1,000 and what it means to the average American family. For a lot of people, especially those with student loans, any amount of money is lifesaving. This is especially true during tough economic times, but even when the economy is soaring. We need to do a better job at saving money.
According to a report from The Washington Post, 46% of Americans don’t even have access to $400 if they needed it for an emergency. That’s one scary statistic! A lot of us are living so close to the wire. Barely able to cover our bills, all it would take is one minor setback to push us over the edge.
If you have a lot of student loans and are desperate for help, you can contact Financial Helpers today. We’d love to hear from you and offer solutions to your problem. You can reach us at:
Life is Scary if You Have Student Loans
Life is especially scary if you have student loans. Many people with student loan debt are delaying major life decisions. This is because they cannot afford to pay their monthly loan bill and essentials. Millennials get made fun of for living at home, but many have no choice. Student loans are crippling many young people.
No matter what your financial situation is, it’s important to find ways to save money. Whether you need a rainy-day fund, or extra money for student loans, saving money is key. Here are 5 things you can do right now to start saving money:
1) Stop Eating Out So Much
I get it. This isn’t a fun strategy at all, but it can save you a lot of money! Visa conducted a survey in 2013 that revealed that Americans eat out for lunch at least twice per week, which really adds up! This is undoubtedly a tough step to take. Most people think of eating out as a necessity, as we need to eat!
But, if student loans are hindering you financially, find better ways to take your lunch break. Not only will you be saving yourself the extra calories, but you can save yourself, on average, $80 per month. Of course, that number depends on how much you eat out. Sometimes you may not want to cook after a long day. Forcing yourself to do so will be rewarding in the end.
2) Get Rid of the Cable Box
Cable is expensive and because of that, there’s a continuing trend of people cutting the cord. More and more cable companies look for ways to squeeze extra dollars from their customers. Thankfully, the consumers themselves are becoming increasingly savvy with the choices they make. If you have a lot of student loans, this is an option you have.
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Rather than spending an extra $90+ for cable, streaming technology is changing the game. With Hulu, Amazon, Netflix, and other streaming avenues, you can pay for only what you know you’ll use. Honestly, how many of your 300+ channels do you watch? Going this route can save you between $50-$100 per month to help with student loans.
3) Look at Your Insurance
Most of us pay a lot of money for insurance each month. It can be quite expensive. At certain times, we’re required to pay the full price. For example, if you lease a new car, then you’ll be expected to carry full coverage. If you have student loans, high insurance costs are a major burden.
But what happens after you’ve made your last payment and/or the car is no longer new? Would it be worth it to consider changing your insurance options? Switching to liability insurance can drop your overall payments by 40%, which can save you as much as $50/month. It’s always worth keeping in touch with your insurance agent for this reason alone.
4) Follow a New Year’s Resolution
Most of us have a vice that we could give up (or dramatically reduce) that would save us a ton of money in the long run. Are you a big drinker? The average American guzzles down more than $1,200 worth of beer each year. If you’re a smoker, getting rid of that bad habit can save you almost $200/month alone. Americans drink $820 per year in soda.
If you really think about it, there are luxuries we literally waste our money on that we simply don’t need. You don’t have to completely cut these things from your life, but find ways to cut back for the benefit of your savings account. If it helps you pay back your student loans quicker, you’ll be happy you did!
5) Become a Frugal Shopper
It wasn’t too long ago when the couponing craze hit the nation. While a lot of stores became hip to their methods, there’s a lot to be said about taking the time to plan out your shopping trips thoroughly. Write out a list. Look up coupons (the internet makes this easy!). Choose stores that have the best deals.
There are apps, like Honey, that you can download that will save you a lot of time. These apps will automatically search for coupons when buying things online. Every little bit can add up to big savings.
Every dollar you can save is helpful in the long run. We never know when something bad will happen. If we’re not prepared, even the smallest of bad circumstances can set us back. If you’re living so close to the wire, week after week, what happens if you have to miss a week? Your student loans aren’t going anywhere until you pay them off.
The best advice is to sit down with your budget and look for things to cut. If you can find a way to save a few hundred each month and stick it into your savings account, you’ll be prepared for anything that might happen. Once you pay off your student loans, you’ll have the financial freedom you desperately desire.
