(IntegrityPress.org) – There are many different ways to save. Whether you already have a plan or need to put some cash aside quickly, a spending freeze can help pad your savings quickly. The concept is simple: don’t spend money on anything for a predetermined amount of time unless it’s cosidered an essential expense.
The timeframe could differ depending on the need. Perhaps it’s almost time for school shopping, Christmas, or a special event where having some extra savings would lighten the load. Implement the freeze for a pay period or two. The block in spending may need to last a bit longer if a significant expense is on the horizon. Forming a goal and setting reasonable definitions of what “essential” means are critical steps to success with this approach.
— Provident Credit Union (@ProvidentCU) January 22, 2022
What qualifies as essential will likely define itself for most people. Rent or mortgage, utilities, car and insurance payments, and basic food requirements usually fall into this category. Examine areas for additional savings from there. Have you been eating out a lot? Are all of those streaming services necessary? Maybe you have one or two unused subscriptions floating around. Some companies allow users to pause services for a time and then reactivate at no additional cost.
A deeper look into these and other common expenses may reveal a good amount of funds that a spending freeze could tap into without severely impacting your quality of life.
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