It’s no state secret inflation is out of control currently, and economists are arguing that ‘greedflation’ and ‘excuseflation’- newly minted terms- are currently ruling the free market. Companies got used to being able to excuse high prices due to demand or supply chain issues during the pandemic, and they haven’t let go of those same principles since, nor has the government stepped in in a substantial way to curb price gouging within industries. So, if you perceive your grocery and home goods bill has gone up substantially, you’re not crazy. The reality is your dollars don’t go as far anymore.
Being in the mortgage space, we see how that problem impact’s people’s ability to save, and it can impede one’s ability to someday put money towards a down payment. Whether you’re in the market to eventually go house hunting or simply need extra breathing room for your wallet, I’ve compiled some great budget hacks to help ease the financial stress of inflation. Some of these fixes are immediate, but several are long-term plans to boost your savings. I hope you find them helpful either way!
Embrace the gig economy
Take advantage of the growing gig economy by exploring part-time freelance work or online platforms like Uber, TaskRabbit, Fiverr, or Rover. You can shoot for earnings as little as $30/week and gradually put over $1,400 per year into savings. It’s a minimal-effort method for slowly saving for your future home purchase.
Downgrade your streaming
Many streaming services have or are rolling out ad-supported plans nearly identical to their non-ad offerings. Do ads suck? Sure, sometimes, but having them mostly resembles the TV many of us grew up watching, and I’ve found that a commercial break sometimes benefits show pacing. I’ve saved about $25/month by switching over to ad-supported plans, a savings of $300 a year. See how much you can save for your house fund by making this simple switch. Netflix, Hulu, HBO, Paramount Plus, and others all offer ad-supported tiers that are cheaper.
Embrace batch cooking methods
This is a huge one. The math simply doesn’t support eating out all the time. It’s radically more expensive, and for a fraction of the price and minimal effort, you can make better food for the money. Invest in a simple slow cooker and corresponding cookbook or spend a little extra on a pressure cooker to shortcut things even more. Calculate those savings per month and put them into your down payment fund. Reserve restaurant visits or takeout for the weekends when you’ll be out and about. You may find that it’s hundreds of dollars per month you’re able to save.
Go generic and bulk your raw goods
Many companies produce the same exact product and put it into off-label cans, tubes, containers, or wrappers, so don’t be afraid of the generic! Kirkland is one especially great value brand that does just that, and many people with Costco memberships will attest that they can’t tell a difference between name-brand products and the generic. This principle holds true for literally any big-box store, however, and there are many instances of companies stopping the production line simply to change labels they’ll be slapping on packaging containers. It will often be the exact same product. Don’t be duped by name brands and their markup! Likewise, consider bulk items like rice, beans, legumes, and grains that sometimes require pre-soaks before cooking. Not having to process them in-factory lowers the cost margins and, if you cook frequently and aren’t afraid of an extra step or two, the savings are passed onto you.
Use no-interest installment pay on bigger purchases
Before making non-essential purchases, apply the 30-day rule. Wait for a month to see if you still genuinely want or need the item. If you do, consider paying for your item in installments through interest-free services like Afterpay that require twice-monthly payments. This hits your wallet slower and can be helpful if you’re on the fence about a purchase.
Lower energy bills by upping efficiency
Change all of your lights to cheap LED bulbs of your color temperature choice, invest in window shades you can close during sunny months, and add draft stoppers to the bottom of your door gaps. Make a habit of turning your thermostat up or down at night, decrease usage when you’re away, and turn off all lights you don’t need on. Remember your Midwest mom or dad harping about not ‘heating the outside’ or ‘lighting empty rooms’? Be more like them to save extra money each month!
Downgrade your internet
This one may be controversial to the tech types out there, but you likely don’t need the internet speed you currently have to accomplish what you’re doing. Unless you’re streaming on multiple 4k devices or have kids who game regularly, there’s no real reason to have peak internet speeds. Streaming platforms have been built around adjusting to various internet speeds, so check if you’re paying too much for internet, and lower your monthly by downgrading or switching to a new vendor with better price tiers or an intro pricing plan.
Dump your traditional cell phone company
Have a phone you’ve paid off? Great, now go dump your cell phone carrier in favor of a mobile virtual network (MVN) provider like Mint Mobile, Visible, Xfinity Mobile, or Cricket Mobile. Large phone companies are banking (literally) on you not knowing what MVNs are. MVNs are cheaper, largely the same service, and easier to work with than the big three providers. Many of the companies I listed utilize the same exact towers as the bigger players. In fact, the service I use operates on the exact cell towers I used to pay four times as much to use. I truly can’t tell a difference. These companies are willing to sell you a tailored plan based upon how much data you use, so it’s a much cheaper route to go. The install is simple with a SIM card you pop into your phone, and the cost is about ten minutes to save potentially hundreds a year. Personally, I’m saving about $500 a year after converting my phone over.
Regardless of your goal, I hope these tips helps set you on a path towards saving more each month and increasing your quality of life, something our Homebody series is all about! In particular, saving for a down payment requires discipline and commitment, and these additional saving strategies are mainly meant to be implemented alongside what you’re already doing. That said, when the time is right for your next home, we’re here to help, so give us a call! Until then, be well and save!
This weekly Sponsored Column is written by Fountain Mortgage. Located in Prairie Village, Fountain Mortgage is dedicated to educating, and thus empowering, clients to make the best financial decision possible for their situation.
Fountain Mortgage NMLS: 1138268
