Melody Teh
Money & Banking

The best ways to make $200 go as far as possible

You don’t have to spend much to save big. Smart little investments can reap big rewards for your hip pocket.

Shop in your own backyard – If you’ve got available outdoor space at home, establishing your own little veggie patch can be a smart way to spend. Not only will you save money you’ll also get better quality produce than the artificially enhanced supermarket stuff and bragging rights with friends family and neighbors on your prowess as a green thumb.

Pack smarter – With airlines charging extra for everything these days, travellers need to pack smart to avoid checked-bag fees. Look for wheeled carry-on cases that are lightweight and expandable for extra capacity and that meet both domestic and international size restrictions. Luggage that meets your needs should cost $150 or less. By carrying your suitcase onto the plane, you not only don’t have to worry about it being lost, it pays for itself after four to five return flights or so.

Change over to LED bulbs – Prices on LED bulbs are dropping dramatically. They use 70 to 90 percent less energy than an incandescent bulb and lasts up to 25 times longer. Replace 20 bulbs in your home, and with an average of three hours of use per day, you should recoup that $200 in a year and a half, or even quicker in some states with higher electricity costs.

Related link: 6 strategies to save money at the supermarket

Freeze or seal and save – The average Australian family throws away more than $300 worth of food a year. Buying groceries in larger quantities or on sale in season can stretch your food dollar. You can also extend your food’s shelf life three to five times by using a vacuum food sealer.  A basic model runs about $80; a year’s supply of bags costs another $50. You can then stock up on the best food at the best price and make significant savings. Once sealed or just frozen, many foods can last weeks — sometimes months longer.

Membership pays – Buy a membership to your favorite gallery or museum. Membership usually gets you in the door without paying a cent, and there are also often discounts at the facility’s shop, restaurant and special exhibits as well as special member benefits and privileges. It may take only a couple of visits to find yourself ahead. An added bonus is that many such places have reciprocal arrangements with their counterparts interstate. Showing your membership card at a sister site could get you a free or discounted entry.

Pay off your credit card debt – One of the best ways to spend an available $200 is to pay off debt, specifically credit card debt. Many personal finance experts advise lining up your credit cards by interest rate and using the $200 to tackle the balance with the highest interest first. But if obliterating outstanding bills provides emotional satisfaction consider the debt snowball plan.

List your debts in order of smallest payoff balance to largest. Every dollar you can find from your budget goes toward the smallest debt until it disappears. A thousand dollars can eliminate that nagging $52 medical bill or that $122 mobile phone bill from eight months ago. This strategy to start small builds a debt-payoff momentum that snowballs to bigger debts.

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Tags:
money, Spending