When it comes to how to cut costs, a little creativity can go a long way. As we head into spring, saving money may be on your mind. Now’s the time to prepare for the next eight months of travel, extra-curricular expenses, and early gift planning. Cutting costs helps to free up your finances and give you control over them. 

Cost-cutting benefits 

Americans are no stranger to spending. When adding up the expenses for housing, taxes, bills, and other miscellaneous costs, “the average household spends more than 90% of their income.” And while this includes much more than shopping sprees and vacations, the fact remains that you can save very little with a percentage that high. 

Cost-cutting has some obvious benefits, including more money in your pocket at the end of the day (and year). This means having extra money for unexpected expenses, room to fund a vacation or downpayment on a house, or savings for college or retirement. 

Time to get creative 

With those benefits in mind, the next step is cutting costs. But keep in mind that spending is often high because of seemingly unmoveable bills or mandatory expenses. That’s why it takes a little creativity. 

Refinance your home or car

Refinancing higher-ticket items like your car or home can lead to lower monthly costs on average. And, “if your credit has improved a lot since you first purchased your car, you may now qualify for a far better interest rate.” As always, DEXSTA’S loan officers are here to talk through your options. 

Consolidate debts

If debt is keeping you from cutting costs, consider consolidating it where you can. One such way is with a balance transfer, which can give you a chance to transfer a high-interest card to one with lower rates.

Wait 24 hours for a big purchase

Good things come to those who wait. As does clarity on whether an item is worth it or not. For bigger purchases (you set the threshold for this), use the 24-hour rule “to stop to think for a day before you buy something you may want.” 

Monitor subscriptions

Most of us have dozens of monthly subscriptions, including beauty boxes, the gym, magazines, and online TV services. Go through each and take note of which you need and which you could live without. It might surprise you. 

Watch your savings grow at DEXSTA

Learning how to cut costs is not always easy, but it’s always worth the extra effort. DEXSTA’s member-focused system gives you the peace of mind that your money is protected, that your questions will be answered, and that you have the resources you need when you need them. But the creative cost-cutting is up to you.