5 Ways to Stretch Your Money Right Now

Good Things Never
Happen Quickly…

But there are some notable exceptions. This article is the first in a series that will bring you real ways to start saving money right this very moment.

Surely this seems like common sense, and we all feel like we have a good grasp of exactly what comes out of our coffers every month. But if you were to be honest, how often do you conduct “a methodical examination and review”? I will tell you right now, there is a high probability that you are paying every month for something that you either don’t remember signing up for or don’t recognize at all. At the very least, that subscription that you started a few years back has inflated into a bonified, considerable expense. This happens because we fail to audit ourselves regularly. We forget, get comfortable, and become complacent.

Don’t confuse this with justifying the expense, that is a whole other jar of pickles that will have its own spotlight in a future article. We’re talking only about things that are off your financial radar, and leaks to your wallet that are oblivious to you. And the only way to catch them is to sit down and look for them.

If you are like me, you don’t carry around as much cash as you used to. As for myself, I carry hardly any at all. My spending is reflected by a plethora of debits and charges that take the place of exchanging cash. And this is a good, safe way to handle transactions as long as you are keeping track, of course. The point is, at the end of the month there is allot of stuff to “audit”. And this is the leading cause of lethargy in this regard. But it is absolutely necessary. And to be clear, you don’t need to do this every month to reap the benefits, quarterly should be sufficient. At least that way you won’t burn out, and you will continue to be vigilant.

Remember, it’s not just your checking account… you must pay special attention to those pesky credit cards that make it all too easy to sweep away forgotten recurring charges; out of sight is out of mind, but still out of wallet. Ironically, it’s easy and quick to pay a bill (even automatic) but it takes effort to make sure you are not paying more than you should. But the effort is worth it. Sit down and scrutinize those statements, line by line. If something is unfamiliar, make it a mission to find out what it is, don’t put it off… that’s what starts this tragedy in the first place. Do a complete audit. Chances are, you will be glad you did.

2. Refinance, like NOW

2023 Update: With interest rates near record highs, use this option only if your current interest rate is considerably higher.

Seriously, this is a really good time to refinance. You may have heard that before, but throughout 2020 and into 2021, interest rates have fallen like a rock. It also appears you have time to shop around, as the rates are probably not going to go up any time soon. And we are not talking about just your home here, your auto loans are also prime candidates.

In 2020 the average auto interest rate fell from 4.60 to 4.22 percent. That’s 38 basis points, and that’s allot. If you are financing an automobile and haven’t checked into how much you could lower your payment, you may just be throwing money away every month. There really isn’t any downside to checking your offers, as long as you can get prequalified without a hard credit inquiry. Depending on your current rate and how long you have left in the loan, this could be up to thousands of dollars.

If you currently have a home mortgage, it’s almost criminal to not consider a refinance. Considering the amount of money involved in a home purchase, the potential for savings could be tremendous over the long term. The real key is to determine how much you save over the life of the loan and compare it to the closing costs involved with refinancing.

Let’s say for example you are 10 years into a 30-year mortgage. Your original interest rate was 5%, and you still owe $200,000. If you were to refinance at 3% and incur closing costs of $6200, you would save around $2532 per year by making this choice. It becomes clear that over the life of the loan that is serious savings. Saving around $211 per month it would take you about 30 months to recoup the closing costs, but the long-term savings are much greater.

This may seem like an obvious way to stretch your money, but many people know this and are still not taking the plunge. Of course, everyone’s situation is different but it deserves real consideration.

3. Sweat it Out

Really. Get up and go adjust your thermostat by 1 degree. That’s it. Did you know that according to the U.S. Department of Energy, this could save you 1% off of your energy bill? And it scales linearly as well. For every degree you turn back your AC (or heat in winter) you can save 1%.

More than likely, I could not tell you if the AC was set on 74 degrees or 75 degrees. And that’s free money for just getting up and changing one degree. And by the way, that estimate was based on scaling back the thermostat for 8 hours a day. The savings increase if you quit fiddling with it and just make that miniscule change permanent.

Heck, if you want to ride this pony for all it’s worth, try this (recommended by the US Dep of Energy):

Summer: See if you can handle 78 degrees. Leave it there while you are home. When you leave, turn it up to 85 degrees or so. It doesn’t take it long to cool from 85 to 78, and if you have a programmable thermostat this task can be automated, so you don’t forget in the morning and it’s already done for you when you get home.

Winter: This is the time of year you can benefit from mother nature’s free AC. Try to limit the heat to 68 degrees when you are home and when you leave you can lower that quite a bit. Again, a programmable thermostat can be a really big help here so you never really have to think about it (and this is an expense that will certainly pay for itself quickly).

Seriously, the thought of your AC system running for hours conditioning an empty home should make you cringe.

4. Consolidate

Unfortunately, many people do not take advantage of the option of consolidating their debt. And that’s a shame, because allot of money is being wasted every month on interest. Many of you may be quite familiar with a debt consolidation loan, but for those who aren’t the concept is quite simple. To wipe out high interest credit card debt (or any debt that carries a higher interest rate than the consolidation loan) you can take out a personal loan for an amount that will eliminate all of it with one fell swoop. This gives you a single monthly payment instead of a zillion smaller ones. Depending on your situation, you will not only end up paying less in total each month, but also less in total period, thanks to the lower APR. I had a friend that I recently encouraged to do this, and he went from paying $600 dollars in combined payments to only $270. That’s a $330 per month savings. That’s how you stretch money.

This option is not for everyone and for everything, however. If you have a good rate on your automobile, don’t touch that of course. If your credit is less than perfect, it may be difficult to find a rate below 24%, or below your current credit card interest rate. But it doesn’t hurt to see what the options are, and the payoff could be significant. You may also receive a hard pull on your credit report, but this hit will be minimized or even welcome when your credit card balances are wiped out and your available revolving credit increases dramatically.

Of course, there is a major pitfall here. With a wallet full of credit cards with nothing on them, the temptation to buy things is tremendous. You have to discipline yourself here, seriously. You don’t want to end up with maxed out cards AND a debt consolidation loan. That would be foolish, really. Leave them at home and out of easy reach.

5. Ask for Lower Bills

Yes, that’s right. This is the easiest way of all and that’s why I saved it for last. It is highly likely that you will save money if you try this. The areas where you can apply this strategy are numerous and diverse. You’ll get the idea quickly, so I’ll just hit the high points.

Just a few months ago, I talked with my father’s internet and TV provider and casually mentioned that I felt he was paying a bit much for his bundled services. Two minutes later in the conversation they offered to knock $60 off his monthly bill for one year. That’s $720 saving almost instantly. That is money that would never be saved without asking. It took me 2 minutes to earn him $720 dollars. I will say again, this strategy works.

You are not limited to these services, either. You can negotiate many recurring charges, from cell phones to rent. Lease a storage facility? Pay a landscaping service? Oh yea, if you are not shopping around for rates on auto and homeowner insurance at least once a year, you are probably paying more than you need to. If you find yourself the unfortunate victim of a late fee associated with an account, and assuming you are not a habitual offender, ask for it to be waived. They probably will. Incidentally, this also works for overdraft fees.

Be prepared to jump on opportunities in the retail setting as well. You would be surprised just what kind of discounts you can get for just asking. Of course, don’t be one of those people who are always looking to give managers a hard time to knock down the price, but if a reasonable situation presents itself, pursue it. If you notice products nearing the expiration date, that’s a good candidate. Don’t like the price at the big-box home improvement stores? They have been known to knock as much as $50 off for just asking. Furniture stores, department stores, grocery retailers…. the list goes on.

So this is just 5 ways that you can start stretching your money right now. Be sure to look out for the next article in this series where we will bring you 5 more ways to save. As we continue to turn you into a financial ninja, one theme will become apparent: there are many easy ways to stretch your money, but it’s highly unlikely that those you owe will tell you about them. We will.

If you enjoyed this content, consider sharing. Also, leave a comment. We would love to hear what you think!