Are you trying to save up for something special, such as a new pair of shoes or even a relaxing getaway? It may be hard to imagine being able to pay for these things, but it is possible as long as you are willing to be a little creative. Consider these five ways to find extra money you need to make your goal happen.
How to Find Extra Money
1. Make a Budget
Yes, you have probably heard the old refrain “make a budget,” but it really does work. There are plenty of tools available online that can help you track expenses and provide an overview of your spending habits. That way you can make better spending decisions and “find” extra money.
2. Eat at Home
The U.S. Bureau of Labor Statistics has some revealing information about how we spend our money. According to the bureau, the average American household spent approximately $4,015 on food consumed at home (grocery shopping). Yet, Americans spent $3,008 on food eaten outside of the home, such as at restaurants. You could easily pay for a whole trip just on those restaurant expenditures alone! Next time you find yourself wanting to go out to eat (or get takeout) consider having a home cooked meal instead. Also, bring your own lunch to work instead of grabbing a quick fast food meal.
3. Use a Cash-Back Card
Credit cards that offer rewards or cash back have become popular. If you are not familiar with these types of cards, they offer points that you can redeem. The points are typically based on 1% of what you purchased. Once you have earned a certain number of points you can apply for a gift card that you can redeem. Or, you can use your points towards purchasing a plane ticket. Remember, different cards will have varying rewards, but if you want to go on a trip, this could be another helpful way to “find” some extra money.
4. Sell Unwanted Items
Dig around in your closet or the basement to see if there is anything you could sell to make a few extra dollars. For example:
- Vintage clothes
- Electronics
- CD’s
- Video games
- Athletic equipment
- Tools
- Books
- Furniture
- Dishes
- Toys
You could try having a good-old-fashioned garage sale, or find a consignment store that will help to sell your items and then share in the profits. Who knows, maybe you will find that “hidden gem” that could be the big payday you have been looking for!
5. Cut Down on Driving
We spend a lot of time in our cars and that can add up over time in fuel costs, vehicle upkeep, and repairs. In fact, the average American drives over 10,000 miles every year and spends approximately $2,000 on fuel. If you could save even one tank of gas every week that can quickly add up over time, as well as add longevity to your car. For example:
- Create a ride-share program at work with your colleagues.
- Use public transportation.
- If possible, bike or walk to get where you need to go.
- Check with your employer if they offer work-at-home days.
If you do need to drive, plan your route ahead of time so that you can maximize the number of stops that you need to do. You may wind up driving a lot one day but you will be able to spend fewer days per week driving.
We all have something special that we want to spend our hard-earned dollars on. However, they don’t have to break the bank. By following these five steps you will surprise yourself with how you can find extra money.
Denise Kautzer is a Licensed Professional Clinical Counselor and a Certified Public Accountant whose practice is located in St. Paul, MN. You can view her website at www.denisekautzer.com or contact her at denise@denisekautzer.com