7 Money-Saving Hacks That Can Save You $10,000+ A Year

Matthew Conn Money Mastery Leave a Comment

Money saving hacks

Ever wish that you didn’t have to live pay cheque to pay cheque? That you could get ahead and not have to worry about falling behind again? That you could win the lottery and achieve financial freedom?

You are not alone! It’s normal to have these dreams.

But what if I told you they don’t have to be dreams. That they can become your new reality. And that implementing these 7 simple yet surprising money-saving hacks are the first steps to achieving those dreams. Sounds pretty enticing doesn’t it?

Well what are you waiting for!  These 7 simple money-saving hacks could save you over $10,000 this year and over $100,000 over 10 years! After reading the below hacks if you want to learn about more similar money-saving hacks that can save you even more money then Download your FREE copy of the Get Fit Get Rich Kickstart Guide. It is packed with Fitness, Nutrition, & Money-Saving Hacks that will help you to achieve better health and greater wealth. 

 

1) REDUCE PHANTOM POWER

What’s phantom power? It’s the invisible flow of energy from power cords plugged into power outlets when the devices they’re attached to are in standby mode or powered off. Computers, cell phone chargers, and other electronics often continue to use power even when turned off.

It’s often a hassle to pull the plug out of the wall every time you’re not using an electronic device; so one way to simplify the process is to plug items into a power strip that you can use as a master switch. You can save hundreds of dollars a year by reducing phantom power. As with most products, you can’t beat Amazon’s pricing on power strips. I bought these inexpensive power strips from Amazon.

SAVINGS POTENTIAL: 10% OF ANNUAL HOME ELECTRICITY COST

 

2) SWITCH TO TERM LIFE INSURANCE

Universal and whole life insurance policies are much more expensive than term life insurance policies, and offer a sub-par investment opportunity. Term life insurance is a much more economical option for a lot of people as it focuses solely on providing insurance, unlike universal or whole life polices that are also an investment product. I strongly believe investment products belong in an investment portfolio not an insurance policy. The money you save on lower term life premiums can then be invested in your investment portfolio where it belongs.

While term life insurance might not be the best product for everyone, it will meet the needs of most people. Decide for yourself. There are services that provide you with free insurance quotes from many insurance companies. It takes less than 5 minutes to fill out the form and you’ll never have to wonder if you’re getting the best life insurance rate again. Request a whole life insurance quote and then request a term life quote and see the difference in premiums for yourself.

If you reside in the USA click here to access the free US Insurance Online quote service and receive free quotes from American insurance companies. If you reside in Canada click here to access the free Canadian Kanetix quote service and receive free quotes from Canadian insurance companies.

To give you an idea of potential savings: I received term life and whole life insurance quotes for a 33-year-old male. I selected $500,000 of coverage over 20 years for a non-smoker. The best whole life insurance quote was $5695/year. In comparison, the best term life insurance quote was $273/year. Not taking possible investment returns into account, this results in an annual premium savings of $5422/year.

SAVINGS POTENTIAL: $5000+ / YEAR

 

3) SCRUTINIZE YOUR BANKING PRODUCTS

Why do banks seem to consistently make the largest profits of any company in the world? Because most of their customers don’t question the rates and prices they’re being charged. You need to evaluate your banking products at least once a year. I have yet to find a bank that uses customer loyalty when determining what rate or price they will charge you. Most banks will not give you their best rate right away, regardless of how long you’ve been a customer. They may tell you it’s their best rate, but it usually is not.

I was a customer of a bank for over 15 years. I was quoted a rate of 3.99% for a 5-year fixed home mortgage. I was told this was the best rate they could offer me. After some haggling they came down to 3.54%. I told them I was going to leave if they didn’t offer me a 2.99% rate. They told me they could not offer me a 2.99% rate so I left and went to another bank that I had never been a customer of, but who were offering a 2.99% rate. It wasn’t until I told the first bank that I had chosen to switch to the other bank that they offered me the 2.99% rate.

Note: Banks like to diversify the different types of debt they hold. For example, let’s say bank A has decided they have taken on enough auto loan debt and would like to take on more mortgage debt. To do this they need to get more customers to sign mortgages. In this case you may be able to get a great mortgage rate, but they will be unwilling to offer a competitive auto loan rate. This is how banks make their huge profits. They offer you a great rate on one product and then sell you other products with higher rates than their competitors. They do this because most people like to deal with just one bank and will not haggle. I use 4 different banks. The moral of the story is shop around every time you need a product or service from a bank, and don’t accept their first rate or price because it’s likely not their best.

How much can you save by utilizing this strategy? On a $300,000 mortgage every 1% difference in your mortgage rate saves you $3000 annually. On a $25000 loan every 1% difference in your loan rate saves you $250 annually.

SAVINGS POTENTIAL: $208+ / MONTH ($2500+ / YEAR)

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4) INSTALL LED LIGHTBULBS

Do you still have incandescent light bulbs in your home? If so, you need to upgrade to LED light bulbs. You also need to consider upgrading if you have compact fluorescent (CFL) light bulbs installed in your home.

LED light bulbs use way less energy than CFL and incandescent light bulbs and last longer. Yes, they do cost more to buy, but their price have come down significantly over the last few years. Taking into account their initial cost, how long they last, and how much energy they use, on average an LED light bulb costs $32/year to operate. Compare this to $76/year for a CFL light bulb and $328/year for an incandescent light bulb. This means that CFL light bulbs cost you 5 times more, and incandescent light bulbs cost you 10 times more than LED light bulbs to operate.

Take it one step further: Some Provincial and State Governments have programs in place where they will replace all the light bulbs in your home with LED light bulbs at a discount price or for free. Some jurisdictions also have certain times throughout the year where they will discount the price of LED light bulbs being sold in stores as an incentive for consumers to upgrade to energy-efficient products. Be sure to check with your local energy efficiency organizations for similar programs.

Savings potential is based on replacing 40 CFL or incandescent light bulbs (the average number of light bulbs in a home) with LED light bulbs.

SAVINGS POTENTIAL: $125-$1000 / MONTH ($1500-$12000 / YEAR)

 

5) CHOOSE DIGITAL OVER PRINT NEWSPAPERS & MAGAZINES

Most newspaper print subscriptions cost roughly 3 times the price of receiving the same content digitally. On average $27/month versus $9/month. Check out your local newspaper’s website to see the cost difference in your area. Most newspapers will also allow you to view some of the articles on their website for free. If you do switch to a digital subscription, you can save even more if you share the cost of the subscription with friends or family as most services allow multiple simultaneous logins.

Take it one step further: Do the same for any magazines you subscribe to. Digital magazine services such as Texture offer users access to thousands of digital magazines starting at $8/month. Compare this with one print magazine subscription costing as much as $5/month. You can save even more if you share the cost of the digital magazine subscription with friends or family as most services allow multiple simultaneous logins.

If you are in the United States Click here to learn more about Texture USA The offer 1 month free trial. Signup for free!

If you are in Canada Click here to learn more about Texture Canada. They currently have a 1 month free trial. Signup for free!

SAVINGS POTENTIAL: $20 / MONTH ($240 / YEAR)

 

6) TRIM YOUR TELEVISION PACKAGE

It’s called cord cutting and it’s one of the most popular trends over the last few years. Why pay for a $100/month cable or satellite television package when you can watch similar content for $10/month through Netflix or other services. You can also watch most of your favorite television shows for free online through television network websites.

What if you enjoy watching your nightly news or live sporting events? Many of the news broadcasts and sporting events can be found online through various websites including the television network websites too. Even if you don’t want to cut your television off completely, why not downgrade to a basic cable or satellite package. As of March 2016 Canadian television providers must offer a basic package for $25/month or less. The package must include the main Canadian network feeds but some also include the major American network feeds as inexpensive add-ons. Most of the American television providers offer similarly priced basic packages.

Take it one step further: Split the monthly Netflix cost with a roommate, family member, or friend. Netflix allows three simultaneous streaming media logins.

SAVINGS POTENTIAL: $75 / MONTH ($900 / YEAR)

 

7) PAY OFF YOUR DEBT WITH CREDIT CARDS

I know what you’re thinking; paying off your debt with a credit card is contrary to everything you’ve even been taught. The advice you received holds valid for most situations but there is one situation where it makes sense to pay off debt with a credit card.

If you pay off your credit card in full every month and on-time you should sign-up for a credit card offering an introductory 0% APR interest offer. These special offers are an inducement some credit card companies use to get you to sign-up and they are generally for 12 months or less. However, you can save big money if you follow a few rules. Be sure to read the fine print because some have a hidden 1% or more balance transfer fee. Most also have a clause that will cause your promotional rate to bump up to 5% or more if you are late or miss a payment.

For example, say you have a $15000 loan that you pay 6% interest on every year. This is costing you $75/month ($900/year) in interest costs. However, if you sign-up for a 0% interest credit card offer and transfer that balance to your credit card for the year, you will pay $0 in interest during the course of the year. At the end of the year if you haven’t paid the loan off you can transfer that loan back to where it originally came from (bank loan, line of credit etc.) to avoid the regular credit card interest rate once the promotional term ends. If you use this strategy, make sure you do not use the credit card for any other purchases. If you do charge other purchases to the card, those purchases will be assigned the normal credit card interest rate (average 18%) and any payments you make will go towards paying off the 0% interest debt first. This will result in fast accumulating interest charges.

Take it one step further: At the end of the promotional offer you could sign-up for another credit card with a similar 0% interest offer and transfer the balance to the second credit card to enjoy another year of 0% interest. Again, make sure to read the fine print first as some banks will not allow you to transfer a balance from one credit card to another if they are the bank who issued both cards. For this reason, it’s a good idea to make sure a different bank issues the second card. For calculating the below savings potential I used a loan rate of 6%.

Click here to see the best 0% Interest American Credit Card offers or Click here to see the best 0% Canadian Credit Card offers.

SAVINGS POTENTIAL: $900 / YEAR FOR EVERY $15000 IN DEBT

 

HOW MUCH DID THESE MONEY-SAVING HACKS SAVE YOU?

I hope you enjoyed the above money-saving hacks. Who doesn’t love keeping more of their hard-earned money. Isn’t it exciting knowing that you could save some serious money if you implement the above 7 simple money-saving hacks?

Even if you have already implemented some of the hacks, there is still serious money-saving potential by implementing the others. These simple hacks can have an life-changing effect on your financial situation.  Not only will they help to improve your current financial situation, they will lay the foundation for you to achieve the ultimate goal, financial freedom. 

Now get out there and put your new knowledge to use and start pocketing more of your hard-earned money. But before you go, please make sure to come back and let me know how much these money-saving hacks saved you.

One last thing! I have a little surprise for you. More money-saving hacks! If you want to learn how I keep even more of my hard-earned money in my pockets then Download your FREE copy of the Get Fit Get Rich Kickstart Guide. It is packed with Fitness, Nutrition, & Money-Saving Hacks that will help you to achieve better health and greater wealth.