By Tim Gamble
A Penny Saved Is a Penny Earned. This maxim by Benjamin Franklin is very true. If you can find $25 worth of savings from you budget, then you suddenly have $25 more to spend on your preparations (or paying off debt, or starting an emergency fund). It is as if you earned an extra $25. Most of us think our budgets are already tight, so you may be wondering How can I save money?
Realize that small purchases add up to big money. Money spent on little things - sodas, snacks, and impulse items of all sorts - can add up quickly. A great example is a guy I used to work with who constantly complained about not having any money. Every afternoon he would head down to the break room and buy a Pepsi and a Snickers bar from the vending machine. It was only a $1.75, but he spent that money five days a week. Over the course of a year, that adds up to almost $450.
Ideas to Avoid Impulse Purchases:
- Don't to pay attention to TV, radio, or print ads. Hit the mute button. or simply don't watch or read the ads.
- Don't watch infomercials or home shopping channels.
- Leave junk mail unopened. Throw away catalogs, fliers, and leaflets unread.
- Don't use shopping as a form of entertainment or a means to relax.
- Avoid social shopping with friends. People tend to talk each other into things, not out of them.
- Shop only with lists, and stick to them.
- Don't browse Amazon, eBay, or other Internet sites. Shop them the same way you would a physical store - with a list.
- Shop with cash only. Spending cash feels more real than using checks or credit cards, so you are apt to spend less.
- If you do find an item you want that is not on your list, wait at least 24 hours before buying it. Chances are the impulse will pass.
Look to big categories for big savings. This list may both inspire & horrify you:
1- Stop smoking. In my home state of NC, a pack-a-day habit will cost you more than $2000 a year. In many other states the cost is much higher (due mainly to taxes). Think how much food storage or ammo you could buy this year just by not smoking. Or how much debt you could pay off.
2- Conquer your other addictions. It is not just smoking which is costly, but all addictions - alcohol, gambling, drugs, etc. Not only are they bad for your health (physical and emotional), but they wreck utter havoc on your financial life.
3- Brown bag your lunch. Many of us eat out for lurch during the week, but this can be costly, even if you stick to the fast food value meals (which are extremely unhealthy). If you spend just $5 a lunch eating out (is eating that cheaply even possible in Biden's America?), it will cost you over $1,200 a year. Average $10 (more realistic), and that amount doubles to over $2,400 a year. Huge savings potential in this category.
4- Skip the next version of your iPhone or other electronic toys. It will cost you hundreds of dollars to impress people by having the absolute latest toy. Do you really care that much about impressing others? If so, why? Besides, there is rarely hundreds of dollars worth of improvements from one version to the next.
5- Drastically reduce your entertainment expenses. Watch a DVD at home instead of going to the movies. Get a library card (lots of free knowledge and entertainment). Have a family game night at home. Cut back on your cable/satellite TV package (going from the EVERYTHING INCLUDED package to a more basic package could save you more than $100/month, $1,200/year).
6- Skip the expensive vacation. "Staycations" are the hot new trend anyway. Stay home, relax, and visit local swimming pools, parks, and museums. The savings will range anywhere from hundreds to thousands of dollars depending on your family size and what your normal vacation is.
7- Shop around for a better deal on your bank accounts. Fees vary widely between financial institutions. Be especially aware of overdraft fees. Switching from a high cost mega-bank to a low cost credit union potentially could save you hundreds of dollars a year. Same goes for your car insurance, home owners insurance, and other financial products. If you haven't shopped around lately, you could be missing out on hundreds of dollars worth of savings.
8- Don't ever take a pay-day loan. These loans are stunningly overpriced, and borrowers often get trapped into constantly taking out these loans each payday. If you really need short-term cash, talk to your bank or credit union. Many have started programs similar to pay-day loans, but with a much less expensive interest rates.
-----------------------
Ad: Wrangler Authentics Women's Stretch Denim Jacket (Amazon link). These classic denim jackets will keep you warm and fashionable on a cool day or night. They make for a great gift, too!
No comments:
Post a Comment
Comments are posted without moderation. Use caution when following links, and beware of SPAM and fake links. Please keep discussions civil and on-topic. NOTE: Certain ad-blockers and other security software installed on your browser may block the ability to leave comments on this website. This issue is with that software, not this website.