Keep More Cash by Preventing it from Leaving

Finances and budgeting have this negative stigma surrounding them, mostly because people are afraid to face the facts about money or afraid to be told they don’t make enough to support the lifestyle they are living.

Budgeting and tracking spending to ensure you’re spending within the allotted values is what will allow you to have the lifestyle you want when you’re old. My prior post was about clever ways you can make extra cash without getting an additional job. Those actions build your cash flow.

The other side of the equation is to keep more of your cash and allow less of it to go out the door. This doesn’t have to feel restrictive though. Much of the immediate advice out there is to ground yourself from shopping or drop the daily latte. 

I’m going to shed light on some behind the scenes ways to cut spending. I found ways that aren’t common – secrets and hacks, if you will. Some of my money saving tips will require research and time on your part. As with any advice, you have to make the best decision for yourself and your family. 

Take one of these at a time over the course of a week or two. Don’t tackle them all at once, or you’ll quickly get overwhelmed. You’re going to need to call people, check websites, compare things, and maybe even run an idea by a friend or the hubs in order to execute some of these money saving tips. 

The good news? If a daily latte or going out to eat is in your budget/ cash flow plan and you aren’t going deeper into debt each month, do it. Enjoy life. Do what makes you happy. Just be smart about these other things.

Reward Points

One way to make some headway on your debt without actually paying it out of your checking is to look into reward programs associated with your credit cards and cash in the points. Many cards earn points, travel miles, or some form of credits based your spending. 

You just never see them because they are in some sort of separate rewards account. There’s almost always a cash or gift card option, and many times there’s an option for you to apply the credits directly toward the balance of your credit card. 

Cash in these credit card points however you see fit. If the card loaded with points is toward the bottom of your debt pay off strategy, try to get the points value converted into cash and have it direct deposited into your checking. Then take that deposit value and make a payment in that amount to the debt at the top of your priority list. 

If you needed help knocking down the balance on the card associated with the points, apply the cash there. 

The other option you may have is to opt for a gift card to a place where you already shop. Think about groceries or kids necessities like clothes or shoes, not a shopping spree.

Nobody NEEDS a Macy’s gift card, girl. Cash in your points for gift cards and then use those for your weekly expenses like food. 

The deal is even sweeter if the rewards program offers a gift card you can use anywhere. Discover or Visa gift cards, for example are much more flexible than one to a specific store or restaurant. 

On this note, scour your purse, junk drawer, and any other clever hiding spots for gift cards you already own. We always have a random few we received last holiday lurking around somewhere.

Call and check that there really is a balance, and then make use of these gift cards, even if it’s to a restaurant or store you don’t normally go to. If I’m getting a free dinner, I really don’t care where we’re going.

The credit card reward programs and gift card game are great for the companies offering them because most people completely forget that the points, value, or perks exist! Cash them in and make headway on your budget or debts without actually spending any additional cash.

Credit Cards

Speaking of credit cards, time to scour your account for fees and credits. If you have an old card you don’t use anymore, but your last transaction was a return, you may have a credit balance on that card.

This has happened to me just a few times over the years, but it does happen. Think about it, you pay the bill when you owe, but what happens when they owe you back?

It takes months for them to process a credit and each creditor has their own policy as to what they do with any credit due. You may have to call and request they issue a refund check before anything happens.

Some companies will hold your credit 60-90 days prior to sending you a refund check. Either way, make sure you log into all of your accounts (you should have stopped racking up purchases on all of them by now) and check for credit balances.

Another place you can find extra cash is in the case of fees and interest. If you’ve had a little hiccup and got a late fee or got charged interest on a balance that you paid in full. Don’t be afraid to call them and request it be reversed. If your credit card bill is a chronic problem, consider these tips.

Every fee reversed and every bit of interest discounted makes the cash go that much further and the debt pay-down process go that much smoother. I know you’ll feel this way too, so don’t be intimidated or scared of what that banker thinks – or rather what you think they think.

I’ll tell you something- they don’t care – they are just trying to put in their 8 hours so they can go home to their family like everybody else!

Free Checking

If you’re paying for any sort of fees on your checking, you should call or visit your bank right away to see how you can get those fees reversed and prevent them from happening again.

Everyone should be using fee-free checking and savings accounts, as well as non-membership oriented credit cards. I’ve never had and never will have a credit card that charges a yearly fee because of some perks they offer (that I’ll never use anyway).

If you have a pretty clean history and had a hiccup with your cash in your bank account, you don’t necessarily have to suffer all those insufficient funds or “bounce” fees. Just the same as the credit card interest request, you can call your bank and request some grace be given this time.

I’ve been quite happy with myself each time I talked to the bank or credit card company and got my fees refunded. They are pretty nice usually, especially if you’re sweet to them, plus I got my money back!

Close Some Accounts

At the same time you’re scouring your accounts for credits and refund opportunities, consider closing any accounts you’re not using that have a 0 balance. Making them unavailable to you will prevent any temptation to use them. 

Some people freak when anyone suggests this, because they are afraid of damaging their credit score. But let me ask you this, is your credit that great anyway? 

Probably not, and you only need to worry about your credit score if you have a big home purchase or something that you’re going to finance coming up – which you shouldn’t if you’re working on paying down your debt with me. 

When you get your other credit cards paid down, your score will improve. Closing a few accounts now won’t really matter in the long run. 

A few that I closed included a Capital One card with a very low limit, Macy’s, Best Buy, Rooms to Go, and a Mohawk account. You can tell several of those were shopping cards and were opened for a certain purchase and then just remained open, even though I never need them again. Done and done.

Some credit accounts I purposely kept open, even though they have a 0 balance, are an American Express and a Discover card. The Amex was the first joint credit card my hubs and I got together and the Discover card had an extremely high credit limit. So, to preserve that long credit history and high credit limit (those things look good to the credit score people), I kept those open. 

That should give you an idea of the thought process I went through when closing cards. Just the same as in Step 1, we aren’t concerned about your score right now, that will come later. We are setting you up with a solid foundation for success. 

So close a few accounts as a matter of protecting yourself form your previously terrible spending habits. Oh, and I think this goes without saying, but don’t open any new ones. 

You shouldn’t be shopping right now. If you’re following the Mama’s Abundant Money series, you’re focused on paying down debt and figuring out how to stay within the budget. You’re finding ways to increase your income and appreciating the art of less. 

Cutting Ties

Speaking of appreciating less, it’s time to examine subscriptions, apps, memberships, and other “holes” in your wallet. I can’t even tell you how many times I’ve spent hours on some shopping app or in some group on facebook, and spent good money on some items, only to be disappointed in the quality.

There’s a certain level of shame that comes along with this spending-money-and-being-disappointed with the item cycle that no one talks about.

The cycle looks like this: You’re all excited to open whatever box came in the mail – your “friend” online sells this, so it’s gonna be good. You soon realize the item(s) aren’t as great as you thought. Then you figure out there’s either no way to return it, it costs even more to return it (pay for shipping), or you can’t return it because it’s from a “friend” online. She will be so offended if I request a refund.

Once I was able to recognize this cycle of disappointment and guilt that I was bringing on myself over and over again (like what am I, a glutton for punishment?), I started cutting ties and removing myself from these shopping groups, deleting the apps, and unsubscribing from the advertisement emails for these retailers. Removing myself from the position of temptation was key and something I definitely recommend for you.

I left facebook shopping groups, friends’ jewelry, hair product, health supplement, and natural oil/lifestyle groups on Facebook. Guess what happened – nothing! It wasn’t the end of the world, no one called me out on it, and I removed myself from the temptation of spending money on something I probably wouldn’t really like.

If these people are really your friend, they still will be. If you really need that product, it will still be there. If you’re in these groups and spending money as a way to feel like you have friends, that’s an issue to be addressed another time.

So exit those facebook groups, cancel those auto-orders with not-really-your-friends, and think about any other auto-type charges your card is getting hit with each month (think products, memberships, magazines, apps on your phone, and even Audible).

I continued this trend into other areas too. Trust me, the barista at Starbucks, the cashier at Macy’s, and the front desk counter employee at the gym aren’t really your friends. Their job is to make you feel like you’re friends so that you feel warm and welcome and, primarily, so that you’ll come back and keep spending money.

Pick up on this marketing and customer service perfection, appreciate that they are doing a great job at it, and then cut ties so that you’re no longer the victim of this perfectly planned scheme.

Take a minute to look around – look at that commercial on TV, listen to that advertisement on the radio, really listen – everybody wants your money. You’re the only person in control of who actually deserves to have it.

Examine Utilities and Insurance Contracts

Another way to prevent money from unnecessarily leaking from your account is to check into your utilities and insurances. This suggestion of mine takes a bit more effort and digging, but is totally worth it.

I switched utility providers and saved nearly half of the bill. I used choosetexaspower.org to compare rates. Read the fine print and find a contract that you’re comfortable with. 

It will be worth it to check into all of your contracts – think car insurance, homeowners or renters insurance, utilities, the cell phone bill and anything else that you’re “locked into” for a year or more. Log into your account online or call customer service to request your contract end date.

Mark the end of contract date on a calendar with a reminder 2 weeks ahead of that date to compare rates and look into switching. That end of contract date is a great opportunity to negotiate with your current provider for a better rate, less fees, or greater coverage. Again, it’s all about what works for you and what your needs are.

We cut ties with AT&T years ago and went from $100 + per month cell phone bills to $35/ea with Net10 for the same coverage and data plan. We “cut the cord” and dropped cable a couple of years back. The bill went from $120 down to $45 a month for internet only. Every little bit counts!

We only recently switched to liability only on both of our cars because they are paid off and I think we have enough savings to make it by if something happened. That switch is saving us $400 per year. Make sure you’re still completely covered at all times, with no gaps and no sacrifices in this area just to save money. 

Declutter your Devices

Consider a digital declutter as well. We all would love less notifications, emails, apps, and junk mail. Now is the time to do something about that. Take the time to unsubscribe from a few things each day. Check out unroll.me to for help decluttering your inbox.

Sit down and go through the settings on your phone to reduce the number of notifications you receive from your apps daily. The less our day is interrupted, the more focused we can be on our families, our to-do lists, thus the more productive we can be. 

I deleted several apps that I didn’t need or shouldn’t have, and moved any that I wanted to keep for occasional use to the back page. This will make me scroll and look for the app if I want to use it. Making it harder to find is a trick that would trigger me to stop and think twice before even opening the app.

As part of a digital declutter, I cleared my browsing history, deleted saved credit card info from the computer’s memory, and deleted saved passwords and payment information from shopping sites. This makes it that much harder for me to log in and buy something. 

Some additional suggestions for digital declutter are outlined here. 

Any additional barriers I can put up to prevent me from making mistakes or diving off the deep end and spending on more clothes, jewelry, and shoes, the better. Realizing I don’t need those things to be happy or pretty made a big difference in my financial life, and I know it will yours too!

Make it a Game

Remember what it was like to be in college and actually have NO money? Somehow we survived though, so try to remember some things that you did – savings hacks, if you will – that helped you survive back then. 

I’m fully aware that as a mom with kids, it’s a little strange to mooch off your friends’ parents for dinner every other night, so don’t be that extreme. Just try to take the survivor and saver mentality you had back then and bring it forward into your adult life. 

Try to make a game of how little you can spend and how much you can save. Everything’s more fun when it’s gameified!

Try to make a game of how little you can spend and how much you can save. Everything is more fun if it’s “gameified”. Consider a No Spend Challenge like Jen Smith (modernfrugality.com) does in her book. Start small and do a weekend or a week. I bet the savings will really add up if you did that each month!

Another thing you can do is to actually act like a millionaire, and no, I don’t mean buy a fancy car and a mansion. Have you heard of The Millionaire Next Door? There’s another book that just came out too, Everyday Millionaires by Chris Hogan. 

In both of these books, they prove that most of America’s millionaires are every day people like you and me! You wouldn’t be able to pick them out of a crowd at all because they dress normal, drive an old, paid off car, and live in normal neighborhoods. 

You’d never know that they had fat savings and retirement accounts, and that’s on purpose – clever, right? 

Act like that- be rich in cogito. Pretend like you’re one of them, living an unflashy lifestyle and practicing frugality, but sitting on some massive wealth. 

Change your Daily and Weekly Habits to Save

Meal plan, shop with a list, adjust where you shop, pack lunches, and plan your activities so that you can avoid the drive through and other last minute cause and effect expenditures. Check out Conquer your grocery list and this gal’s $5 meals.

Planning well prevents me from hitting the drive through to stopping off at the convenience store, both of which are total money pits!

After some extensive price comparison and research, I figured out that it was cheaper for us to get our household items from Amazon Subscribe and Save rather than Costco. My friends couldn’t believe I was cancelling my Costco membership! 

Sometimes going against the grain really is the best idea. 

Along those same lines, we have no gym membership. I can’t stand paying for something I want to use. Running outside and working out in my living room using YouTube is free.  I’m back to prioritizing my fitness again, and I couldn’t be happier than when I get all that fresh air and sunshine outdoors, even if it does make me sneeze. 

I started making coffee at home. While it was in my head that I was being deprived at first, I’ve quickly come to the realization that my brew at home is much better than the drive through stuff. 

Not only does saving cash taste delicious, but I can make it the way I want when I want! I’ve even been experimenting on my own with bulletproof coffee, which makes me so happy. 

I also sacrificed nails and highlights. I’ve realized that these things really aren’t that important in the grand scheme of things. I’m not going to get passed up for an opportunity because I don’t have highlights or French tips. 

My husband and I ex-nayed expensive dates a loooooong time ago. We still enjoy time together, of course, but we do our best to find something simple and fairly cheap to do. In fact, this list has some awesome free date ideas!

To save on babysitter expenses, swap date nights with another couple. Everyone wins in this situation, Free Baby Sitting! Yeay! Just remember to be courteous with scheduling with your friends and always return the favor. 

Another quick savings tip is to eat before you head out to meet friends. If you’ve already had dinner when you show up, you’re less likely to have a large bill at the restaurant or bar. Cha-Ching!

Not Going Out Doesn’t Mean You Can’t See Friends

Something lots of people say about a debt free journey, whether it’s an excuse or a fear, is that you’ll never get to see your friends because you “can’t “ spend any additional cash. Well, that’s bull and a personal choice you can make.

Statistics show that about 3/4 people don’t have an extra $500. That includes your friends too, but no one’s talking about it. Your friends aren’t saying anything, but they will appreciate a low-cost way to get together too.

Aside from eating before you go out, there are many money saving tricks you can use to still see your friends while not spending much.

One idea is to throw a pot-luck style party at your home (or convince a friend to host). Make it BYOB and have everyone bring a snack or a dish to share.

Throw an in-home party to celebrate an event by having everyone bring a gift to exchange. Consider making your bash a charity event and request everyone bring something to donate for a cause.

People will just be glad to see you and hang out for a couple of hours, regardless of the decor, food, or type of event. We seem to get distracted and bring all of those peripheral things to the forefront of our concerns instead of just looking for ways to see our friends.

Seeing friends doesn’t have to be at a restaurant or expensive event. I guarantee everyone will appreciate spending less and still having a good time.

Debt and financial struggle is such a deep, embarrassing secret, but I bet if you start expressing your live for spending less AND having fun, your friends will be all about it too!

Consider Some Bigger Moves

We’ve talked mostly about the little things that add up like fees, interest, subscriptions, and out-to-eat costs. But have you examined the larger expenditures lately?

We get stuck in these grooves and think that this is “just what I have to do”. We habitually pay the car payment, the daycare costs, and everything else each month just because that’s the bill in front of us at this very moment. 

Step outside yourself for a minute and look at what you’re paying for. What are you unhappy with? Change it. 

Consider switching day cares if you aren’t in love with the place. Consider selling your vehicle or pausing your investments for a bit while you make progress on paying off your debt. 

I realize these are big moves. Yes, they will require some careful thought and consideration on your part. The goal here, is for you to realize that you aren’t stuck. You don’t HAVE TO pay for these things that you aren’t even happy with. You have the power to change them!

Is The Gas Guzzler a Cash Guzzler?

Do you hate your car as much as you hate the payment? Get rid of it! Sell the car and buy a cheaper one that you think is more worth the money.

Maybe you’ve had an addition to the family and something with more seating would make your life easier. It’s possible that you’ve had an older kiddo grow up and move out, so maybe you can downsize. 

When making this move, of course I suggest researching for sale values for your current vehicle, consumer reports for other vehicles you’re considering, and really planning out your budget so that you can buy the new vehicle with cash.

Remember the goal is to reduce the number of dollar bills that are going out the door each month, so don’t get distracted by the newest fancy SUV with screens in every headrest. This “new to you” vehicle should be a temporary move that helps you reach your financial goals.

Keep in mind that when you’re debt free, you can save up and buy an even better vehicle and pay cash for it!

Housing Costs

Rent/ Mortgage is likely the biggest line item in your budget by far. While shelter is a necessity, it doesn’t have to be expensive.  Try to think outside of the box about what can be done to reduce or discount this line item. 

Do you hate the rent house you’re in? Is it too expensive anyway? Look into moving. The same house just 5 minutes away could be much cheaper. If you’re driving a long way to work anyhow, is there something closer to your office you’d consider?

Maybe you’ve had your mortgage for a really long time and you might consider refinancing. We’re going to dive into this topic deeply in the next few weeks. For now, you can examine your current interest rate and comb your statement for all the details of what you’re actually paying for. 

Investing Much?

Consider pausing any investments you’re making for a short period of time. This is a tricky one, but it really helps some people make some major progress in their debt-free journey.

Maybe you’re contributing a small value to retirement, savings, and the kids’ college fund each month. Think about it – you’re stretched so thin and only able to put in small values here and there. 

Honestly, if you pause that for a single year, you’ll make much faster progress financially. Pay off the debt and then come back depositing a much larger number each month. 

Imagine putting all of those investments on hold for a single year (not withdrawing them!). Picture how much extra cash you’d have each month and how much faster you could pound down the debt. 

Now picture the debt all paid off, balances at 0, and that you’re able to allocate waaaay more to retirement, kids college, etc. at that time. You didn’t lose much ground and you made some big changes in your list of priorities. 

If this feels good to you, I suggest you look into it. One caveat here, pausing investments may not be a good plan if you’re over 40. If your’e 40 and above, I suggest you just focus on cutting the other expenses and work to earn more to pay off the debt. 

Oh, and I don’t care how old you are, no 401K loans or retirement account disbursements allowed!

There’s a Bigger World Out There

Beyond all the money saving hacks and tips and tricks, our thoughts have the greatest impact on our spending habits. Something that creates a huge mindset shift is volunteering. 

Get involved with a shelter or group that helps the homeless (or another cause that’s near to your heart). Giving back and volunteering and being exposed directly to people who have less and who are struggling worse makes you grateful for what you do have. 

Not only are you truly spending your time and your heart’s energy helping others, that love comes full circle. When you realize how great your life actually is, you’re more aligned with gratitude. 

Gratitude alters our thought patterns and you’ll begin feeling less like you need to buy more all the time.  Wasteful shopping habits gone!

Face the reality that you really do have a good life, you really do have SO much. These feelings of appreciation help with the feelings of want and deprivation. 

The truth is, none of us are deprived or being held back in any way. Mindset and perspective is everything. 

Support Needed

While you’re slashing this and changing that, consider that there may be a point where you need some more support. Maybe you’re already there. 

This journey can seem lonely at times, especially if some of the closest people in your life aren’t as supportive as you expected. It’s shocking, right? Here you are trying to make the best decision with your finances for the future of your family and you’re getting push back.

Like, what is wrong with them? Why on earth would someone discourage you or roll their eyes at you when you’re trying to create a better life?

It’s the weirdest conundrum ever and the only way I can explain it is that “everyone” else is so complacent with their debt and blind to the fact that there IS another way, that their attitude seems discouraging. 

Find some frugal living, debt free journey, or spending smarter type facebook groups. Listen to podcasts to keep you thinking and motivated, and consider picking up a book or two that I recommend to just keep you going. 

Think about connecting with someone who’s already debt free or who’s at least on the path. Develop that friendship so you can rely on each other for support. An accountability buddy or partner through this whole thing really can make a big difference. 

I Had a Spending Problem

Our whole debt free journey had a profound effect on me. I started to realize how things I “just had to” have weren’t worth it a few years or even a few months later. 

I started to see so clearly how my own actions played a part in the game and how I could change the game forever. 

I noticed that most of the stuff we pay full price for in the brand-new well lit stores is a total rip off. I also noticed that there are TONS of expenses just draining us left and right that we don’t even see or think twice about.

It was the compounding effect of desperation at that time. Not only was I creating a budget, switching to cash, trying to find creative ways to earn extra cash, and scouring our accounts, insurances, statements, and big ticket items for savings. But I was realizing how much this “life” was costing.

It made me realize how much I spent daily at the store or online and that I had the most power of all to change things. 

How wasteful were my spending habits? I say this not as guilt, and you shouldn’t take it that way either. I say these things as an actual thought process that was going through my head as I experienced becoming a detective for cash leaks in our life.

My new shopping mantra: “Is this ______ actually worth ______ to me?” Do I really feel that this throw pillow is worth my hard earned $30? Probably not. Maybe $5, and since Target doesn’t negotiate, I’ll put it back on the shelf and let someone else waste their cash.

In that moment, it’s hard not to buy that pretty pillow that would perfectly match everything and that was oh-so soft. But, I also get to walk away with my cash still in my pocket and pride that the marketers didn’t “get” me this time. I won. I get the gold star today.

Experiencing Change

Budgeting and spending within the budget is often perceived as restrictive. To feel like we can’t have it all is the exact opposite of abundance. However, I know I’ll kick myself if I can’t retire with the life I want down the road. 

I managed to find creative ways to cut fees, save on interest, have a smaller bar tab, and spend less on things that don’t matter, that no one else sees, so that I could spend more on things that matter to me.

Going through these exercises caused a big mindset shift in me. I think I literally felt my brain change shape as I was seeing this new “value” of things. 

I saw how valuable simple services were to people and how much work it took to earn the money versus how easy it was to spend it. I started to realize the value of each dollar I got my hands on and think what it would be like if I didn’t so compulsively spend on things didn’t matter. 

I realized how much we were just tossing out the window on things we thought we had to pay for. I added up the values of fees, subscriptions, cell phone bills, cable, and excess utility charges and was astonished. 

I hope you’re inspired to get some fees refunded, examine your largest expenses, volunteer for a cause, and be aware, more than ever before, of your spending habits. Give yourself permission today. Allow yourself to keep more of what you already have.