Ways to Save Money
Saving money these days is becoming harder and harder. As of July 2007, the average savings rate in the United States was NEGATIVE 0.6(!!!) In order to help you avoid being a part of this horrible statistic I have compiled a list of tips and techniques that you can use to boost your savings. These tips have been gathered from the various books, websites, articles, and personal experiences that I have encountered on my journey through life. Don’t be surprised if you have seen some of them before.
The list is arranged by category and it is constantly being updated. If you have a tip that you would like added leave it in the comments!
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General Tips
- Set a savings goal - Start by setting a goal that you know you can achieve (but don’t set it too low!). Once you surpass your first goal your confidence will soar and the process of saving will become easier. Increase your goal and start again!
- Make it a game - If you have friends or family that are in the same financial shape as yourself then why not have a friendly competition to see who can save the most money in a given period of time?
- Make saving automatic - If possible, have a certain amount automatically taken from your paycheck and put into savings. The amount does not matter, even $10 or $20 would be fine to start with.
- Treat it like a bill - Saving money should be like paying bills. Schedule to “pay” yourself a certain amount each month and put that into savings.
- 10% of each deposit - Every time that you make a deposit put 10% of it into your savings account. If 10% is too much then adjust it to where you do not miss the money. This technique should be pretty easy if you have an online savings account or a savings account at the same bank as your checking account. (Make sure that you are not charged for transfers!)
Credit Cards
- Ask for better rates - Call your credit card company and ask them for a better interest rate. You would be surprised how many times this will actually work!
- Switch cards -If you find a card that provides better interest rates or one that does not have an annual fee then you should switch.
Auto
- Auto Insurance - If your insurance company will give you a better deal if you pay every three or six months then do it! The key to this is to still budget for your insurance monthly. If you pay $600 every six months then you should be putting back $100 every month.
- Tire pressure - To get the maximum amount of gas mileage make sure that your tires are properly inflated. The recommended amount of air will be labeled on the side of the tire.
- Oil changes - Change your oil and service your vehicle as recommended in your owner’s manual to extend the life of your vehicle.
- Change your air filter - Just like tires that are not inflated properly, a dirty air filter is robbing your vehicle of both horsepower and gas mileage!
Home
- Refinance - If you can drop your interest rate by at least one point then you should think about refinancing. Always take into consideration closing costs and other fees. You should also refinance if you have an ARM or some other hybrid loan that is about to increase.
- Ask for a better deal - Call all of your service providers (cable, phone, etc) and ask if they have any deals or promotions to offer. If all else fails tell them that you like the service but due to the costs you may have to switch providers. In fact, you should try this with everything! The worse that will happen is you will be told “no, we are not offering and specials at this time”
- Hot water heater - Adjust your hot water heater to 120 degrees. Not only will this save you money, it is also safer!
- Air conditioning - In the summer, adjust your thermostat to 74 degrees. Change your filter every 30 days (a good way to remember is to change it at the same time that you pay your rent). Consider buying a programmable thermostat.
- Heating - During the winter time keep your thermostat set on 68 degrees. There is no reason your house should be hot enough for shorts and a tank top in the middle of December (unless you live in the desert) put on more clothes and keep your thermostat set low!
- Heating and air conditioning preventative maintenance - You should schedule to have your furnace serviced BEFORE winter and your air conditioning serviced BEFORE summer. During times of extreme heat and cold your heating and air system works double time. Most heating and air contractors are backed up in the middle of summer and winter so if your system fails you will have to wait a while and you may end up paying more. Preventative maintenance can help you fix small problems before they get worse or in some cases may even save your life — an improperly functioning gas furnace can release ample amounts of carbon monoxide into the air!
Groceries
- Store brand items - Every time that you go to the grocery store swap out some name brand items for the store brands. Most of the time they taste pretty much the same, and they can save you quite a bit of money.
- Don’t buy processed foods - Processed foods (like most of the stuff in the freezer section) are generally expensive, and lack the taste and nutrients of home cooked foods.
- Turkey, not beef! - Ground turkey is an excellent replacement for ground beef. Not only is ground turkey healthier than ground beef (less fat and cholesterol) it is also cheaper in most cases!
- Buy in bulk - Items that have a long shelf life or items that you use a lot should be purchased in bulk. Only do this if you will truly use the stuff and only if have the room to store it all (30 rolls of paper towels can be difficult to hide!) Consider getting a membership at a discount wholesaler like Costco or Sam’s Club.
- Buy on sale - Scan the newspaper for sales at the grocery store. If you see something on sale that you would normally purchase then go to the store and stock up! Do not buy something “just because it is on sale”
- Soft Drinks - If you drink two soft drinks at work each day, and the average drink costs no less than $1.00, by cutting out just ONE drink a day you can save yourself upwards of $300 each year! That’s one “free” car payment for some people!
- Convenience Items - If you stop by the gas station each morning and spend $2.50 on a Red Bull, $0.75 on a honey bun, and $1.20 on a pack of gum (the breakfast of champions..?) then you are paying WAY TOO MUCH for this junk. If you “must” have it then consider going to the grocery store once a week and buying all of the items in bulk. You will be amazed at the money you will save (and you should eventually get to the point of not buying this stuff at all!)
Personal
- Smoking - Of course, you should quit. However, take it slow. If you normally smoke one pack a day try to cut that in half. Physically time yourself from when you put a cigarette out until you light another one. If you watch the clock between smokes your inner voice may kick in and say “Didn’t you JUST smoke?!” Try to keep yourself occupied and keep your mind off of smoking.
