5 Money Saving Hacks

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If money seems to fly out of your bank account as soon as you make a deposit, these money-saving life hacks might give you few cash saving ideas.

Hack #1: Shop Resale

Need furniture, a computer, or even clothes? Buying second-hand can save you tons, and you don’t even have to go to thrift shops to find your hidden treasure. Apps like OfferUp, LetGo, 6PM, and Poshmark sell everything from gently used high-end clothing, to furniture, electronics, and even cars for incredible prices.  You can also try Craigslist and of course your neighborhood thrift shop for even more deals. Looking specifically for furniture? Check out your local furniture bank! A furniture bank provides gently used furniture to households in financial need. If you think this sounds like you check out Furniture Bank Network to find a furniture bank near you!

Hack # 2: High Interest Earning Savings Accounts

Do you like free money? Look online for banks that offer interest-earning savings accounts.  Offers on interest rates vary from bank to bank and month to month, but if you find a bank offering a 1.9% annual percentage yield (APY) or higher, you’ve hit the jackpot!

Let’s say, for example, you earn Illinois’s current minimum wage of $11.00 an hour working 40 hours per week and you save 20% of your gross income every month.  That’s a monthly savings of around $352 per month and about $4225 per year. At 1.9% APY compounding annually, your bank will deposit an additional $358 into your savings account at the end of the year, making your total annual savings $4582.  The more you save, the more your interest compounds or grows. 

Keep in mind, that your introductory APY, or the APY you recieve when you first sign up for an interest-earning account depends on current market rates. Most simply put, if the economy is doing well, banks can take on more risk and will likely invest more. This means they are willing to pay you more money in APY because they feel they are taking on less risk. If the economy is not doing as well, banks are not willing to take on as much risk so you will see significantly lower introductory APY rates when the economy is doing poorly. However, you can always change your savings account for a higher APY, make sure you speak with your bank of choice to make sure this option is available before you sign up. You may end up locked in a low APY account. To look at current rates and calculate potential APY earnings based on your budget, check out this APY interest calculator from AXOS Bank.

General rule of thumb, you want your bank to give you a high APY on your savings accounts, but you do NOT want your loans/credit cards to have a high APY. Click here to learn more.

For a list of online banks with the most current best interest-earning saving accounts, check out this link: Best Interest-Earning Savings Accounts

Hack # 3: Making the Most of your Rent

Paying rent on a tight budget? Consider finding an apartment with all utilities included.  With utilities costing between 8-10% of your income, finding housing with utilities included can open your budget up to the possibility of putting more towards savings or slightly increasing what you can spend on rent.  Finding a roommate can give you even more savings! Remember, you should not spend more than 30% of your income on rent. Increasing your housing expenses upwards of 30% puts you at risk for housing cost burden.

We do understand that some folks just do better on their own and prefer not have a roommate. If living on your own however puts you at risk for housing cost burden please check out our housing section for information on rent assistance.

Hack #4: Saving Money on College Books

Are you a college student or thinking about going to college? Your books could cost you hundreds of dollars! Even used books can sometimes cost a large chunk of your budget as a student.  Not willing or able to part with that much dough? Ask your professors/instructors to put the textbook on reserve at your school’s library and make copies. If that isn’t an option, consider borrowing the previous edition of the textbook from your school’s interlibrary loan system for free. Most previous editions of your textbooks are practically the same so you don’t have to worry about losing out on important information. Also, consider renting your books. Amazon rents and sells used textbooks to college students. Finally, check out social media! Students sell their books on Facebook Marketplace or in course groups

Hack #5: Use Your Public Library

If you haven’t gotten the hint from hack #4, we’re gonna be explicit here at hack #5: Use your library! You can rent movies, some even loan videogames, and, most importantly, FREE INTERNET! Remember that 8-10% of your budget is for utilities. You could easily spend $100 per month on internet and even more on buying games or going to the movies. Think of this hack as a way to cut down your utility and entertainment costs at once. For more on libraries, click here.