3 Life Downsizing Tips for 2022
Here’s how to save money and time and minimize stress. You may save money from the interest rate when you want to get $5000 loans from Payday Champion because their loans are with low interest rate.
What does downsizing mean? Less things, less bills?
Many people think of downsizing as moving into a smaller home once the kids have grown up. It is. But let’s go further. Downsizing has additional benefits.
There are other areas of your life where downsizing might save you money, time, and worry.
1. Streamline your money
Automate repetitive financial operations like bill payments and savings. You’ll reduce tension and save time and money.
Set up auto-pay to avoid late fees. Set up automatic payments with your bank, credit card, and service providers. After that, you can avoid paying regular bills. Set up reminders to monitor your accounts, so a phone bill increase doesn’t leave you in the negative.
Cancel unused services: Cancel unwanted subscriptions and memberships to save more. If this seems like too much work, use a service like Trim or Truebill.
Automate savings deposits: Your employer’s human resources department can likely explain how to have a portion of your paycheck automatically deposited. Or set up automatic transfers from checking to savings.
Automate retirement contributions: If your business offers a workplace retirement plan, have funds deducted from your paycheck. Set up automatic transfers from your bank account to your IRA.
2. Minimize your home theater
Streaming entertainment is one of the newest technical developments. With more streaming services and plans available, there are more ways to reduce your TV and video options without sacrificing quality.
Do you need 200 channels on your cable TV package? Is it worth it to switch to a cheaper package?
Downsizing from traditional pay-TV to streaming TV lets you avoid the high cost of cable without giving up live TV. Hulu and Philo are two cheaper options. See “13 Streaming TV Services for $20 or Less a Month” for information.
Get rid of TV and save money and time.
3. Minimize transportation
Rethinking your commute might have a significant influence on your finances. Finance and maintenance costs dominate our budgets.
According to AAA, owning and operating a new car costs $9,561 annually.
What is a “prudent” automobile payment? Edmunds.com experts advise spending no more than 15% of monthly take-home pay on car payments. If you lease, maintain monthly payments at 10% or less.
Wait. More: Fuel and insurance typically consume 7% of take-home pay.
Do you want to spend nearly a quarter of your income on a car?
Get rid of one car if you have more than one.
Stop driving and start cycling, walking, taking public transit, or carpooling.
Use public transportation as much as possible. Your car insurance may be reduced if you save gas and wear and tear.
Buy used: Carfax says new cars lose 20% of their value in the first year. They lose another 15% over the next four years.
Stop leasing and enjoy years of no car payments.
At the very least, “downsize” your car insurance policy. It’s easier than you think. Some of the best ways to reduce your car insurance costs are:
Annually compare prices to get the best deal. This doesn’t mean calling around for quotes. Using a service like The Zebra or Gabi will make comparison shopping a breeze.
Reduce coverage on older cars, such as comprehensive and collision.