Last Updated on May 20, 2021 by MoneyVisual
You’ve read dozens of articles on how to save money, and you’re frantically snipping out coupons, comparison shopping till you drop, and subscribing to every store app that might give you a discount.
But have you attended to the big money drains? Quite often, when it comes to the big expenses, we think we can’t do anything to reduce them. But with a little vigilance, you might save big time! Check out these big money savers. If they apply to you, your savings will be significant.
1. The Taxman Isn’t Always Right
Does your tax bill look insanely high? It’s just possible that it’s plain wrong. While tax evasion is a no-no, querying your taxation when there’s clearly a problem might result in a substantial correction. Yes, you need to be an expert. Chat to your accountant first, and if the problem looks like being a knotty one, consult a tax attorney for professional advice.
The same advice holds true if you’ve fallen behind on payments. If settling up looks like being an expensive business, you need help in order to settle for less. And yes, it’s often possible to achieve this provided you use a reputable company to help you sort out the problem.
2. Consolidate Your Credit Card Debt
Getting heavily into the red on your credit cards is best avoided, but sometimes, one has emergencies that require a quick line of credit. Now, you have a debt with a very high APR. Save by taking out a single loan with a lower APR and settle all your credit card debt with the proceeds.
Sure, you’re still in debt, but the costs that accrue should be lower, saving you money and helping you to pay off your liabilities faster. It may be easier for you to achieve this than you thought, so check out your credit card debt consolidation options.
3. Use the Power of Compounding
In our introduction, we mentioned some of the small savings one can make here and there on things you’d buy anyway. If you just use your savings to buy more stuff, your economies will have an insignificant effect. But if you can end the month below your personal budget and put that amount, however small, towards settling interest-bearing debts, you’ll be amazed at how compounding saves you money.
The theory is simple. Interest is calculated on the amount you owe, and it’s calculated at regular intervals. So, the small savings you pay towards debt save you interest every single time your interest is calculated. Add the amounts together, and getting a little bit ahead on your debt repayments can save you a lot more money than you may have realized.
4. Check Your Bank Statements
This may seem like a no-brainer, but many people are paying monthly for services they don’t use or don’t want. It’s also worth doing an insurance audit to make sure you aren’t over insured in certain areas.
Most suspicious of all are the payments you can’t identify at all. If you find yourself wondering what a specific deduction is even for, find out as soon as possible. It may be for a service you can do without.
Depending on when last you went through your bank statements searching for unwanted deductions, you might be able to save a considerable amount by being vigilant. After all, why pay more if you can pay less?