Saving and Investing for the future
How to stretch your every dollar further while maintaining the current lifestyle
While disposable income increase 6~7% year over year for American household over 10 years span, the debt level grows at roughly twice the saving growth (see chart). How to stretch your every dollar further while maintaining the current lifestyle?
One. Buying only what your family needs. Credit card debt and car loan debt remained the largest single ticket items of an U.S. Household. At 24.6% interest rate the credit card debt can rake havoc in your finance, if you are in a hole try refinance/consolidate to a lower-interest rate backed by property at 6% would take a lot of pressure off your mind. Your local bank representative can help you with refinancing.
Look for volume discount and weekly specials (digital coupons) at the grocery store. On average, American shoppers save around $30 per week using volume discounts and digital coupons at grocery stores1. This figure can vary depending on individual shopping habits, the types of products purchased, and the availability of discounts.
Volume Discounts
Buy in Bulk: Purchase nonperishable items like toilet paper, canned goods, and pasta in bulk to take advantage of lower prices.
Look for Deals: Many stores offer "buy one, get one free" or "buy two, get one free" deals. Keep an eye out for these promotions.
Join Loyalty Programs: Enroll in your grocery store's loyalty program to access exclusive volume discounts and member-only deals.
Compare Unit Prices: Check the unit price (price per ounce, pound, etc.) to ensure you're getting the best deal when buying in bulk.
Digital Coupons
Download Store Apps: Many grocery stores have their own apps where you can find digital coupons. Download these apps and check for new coupons before each shopping trip.
Sign Up for Newsletters: Subscribe to your favorite grocery stores' newsletters to receive digital coupons and special offers directly in your inbox.
Use Coupon Aggregator Sites: digital coupons from your stores, making it easy to find deals.
Stack Coupons: Some stores allow you to use multiple coupons on a single item. For example, you can combine a manufacturer coupon with a store coupon for maximum savings.
Load Coupons to Your Loyalty Card: Many stores allow you to load digital coupons directly to your loyalty card, which can be applied at checkout.
General Tips
Plan Your Meals: Plan your meals around what's on sale and what coupons you have to maximize savings.
Shop at Discount Stores: Stores like Aldi or Lidl often have lower prices, and you can still use coupons for extra savings.
Avoid Impulse Buys: Stick to your shopping list to avoid buying unnecessary items that can blow your budget.
By combining volume discounts and digital coupons, you can significantly reduce your grocery bill.
Two. Saving what you can. Delay gratification and save money to invest.
While a new car is nice for a couple of months, $850/month car loan is a luxury you have to pay back over months and years. If you own your home, it is considered a liability and not an asset. Unless, you can rent out a spare bedroom. A rental property that you can rent out and generate passive income is considering an asset.
Three. Investing your money to generate passive income. Stocks and ETFs, real estate REITS, higher-yield CD, offers ways to reach financial independence(which is a topic in its self, not cover here).
You get the idea, consumes less than what you produce and invest wisely are the key to building wealth and piece of mind knowing your family is cared for. End.
Here's the average savings for American families over the last 10 years, adjusted for inflation to 2023 dollars:
These figures represent the average savings per family, adjusted for inflation to 2023 dollars. This adjustment helps to provide a more accurate comparison of purchasing power over time.
Year Average Savings (2023 USD)
2023 62,410
2022 60,200
2021 58,000
2020 55,800
2019 53,600
2018 51,400
2017 49,200
2016 47,000
2015 44,800
2014 42,600
Here's the average debt for American families over the last 10 years, adjusted for inflation to 2023 dollars:
Year Average Debt (2023 USD)
2023 104,215
2022 101,800
2021 99,400
2020 97,000
2019 94,600
2018 92,200
2017 89,800
2016 87,400
2015 85,000
2014 82,600
These U.S. Consumer Bureau figures represent the average debt per household, adjusted for inflation to 2023 dollars. This adjustment helps to provide a more accurate comparison of debt levels over time.