If you and your partner overspend every month and there's never enough cash, there are money saving strategies to improve your budget. Most people are concerned with saving money, but they don't always know how to save. However, saving money might be easier than you think. Here are seven simple money saving strategies for couples.
1. Use Sites like Groupon for Entertainment Deals
Just because you're trying to save money doesn't mean you have to sacrifice entertainment and fun. The trick is looking for deals to save money. For example, visit discount sites like Groupon.com or Living Social and purchase two for one deals to restaurants, theater shows, concerts and other local entertainment. You'll even find a few cheap, but fabulous travel deals for vacations and weekend getaways. With these deals, you can have fun and slash your entertainment budget in half.
2. Don't Jump into a Huge Mortgage
You might have your heart set on purchasing a dream home, but if you jump into a huge mortgage too quickly you could end up house poor. Take your time and keep your expenses low until you're ready to take on higher costs. Besides, with a low house payment, there'll be more cash in your budget for saving and paying off debt.
3. Have One Car Payment at a Time
This might be easier said than done, but if possible, resolve to only have one car payment at a time. This approach keeps about $200-$400 (or more) of your income liquid every month. This can provide a financial cushion, or you can use the money to increase your rainy day fund.
4. Review Your Cable Options
Cable can get expensive, with some packages costing as much as $200 a month. Evaluate your TV viewing habits, and then see if you can ditch cable and use streaming services like Netflix or Hulu. Chances are that the majority of the shows you watch are available on these services.
5. Only Contribute 2% to Retirement
If you're a young couple without a lot of extra income, you might decide to put off saving for retirement. However, the earlier you start planning for the future, the better. Even if you can't contribute 4%, 5% or 6% to your retirement, start small and only contribute 2%. Increase contributions as your income grows.
6. Automate Savings
Saving can be difficult, especially with a tight budget. But many banks and credit unions offer programs to help customers/members save effortlessly. For example, Wells Fargo has their Way2Save program. For every debit card transaction a customer makes, the bank deposits one dollar from the customer's checking account into his savings account. Talk to your bank about similar programs.
7. Use a Rewards Credit Card
If you're diligent about paying off credit card bills every mom, switch to a rewards credit card. For every dollar you spend, you can earn points, miles or cash back, and this can translate into big savings. Redeem reward points for air travel, hotels, gift cards, statement credit or a check.
Learning how to save money as a couple can improve your financial state. You'll increase your disposable income, and you can use extra money to pay off debt, make home improvements or build your savings account. What are other simple money saving strategies for couples?