Huge Money Saving Tips
Posted on June 5, 2007
Too often I read bogus money saving tips like, "use a credit card with points back." The idea is that you could get something for nothing. Or the typical ad that says, "Buy now and save 50%." I often make the comment, "Don’t buy now and save 100%".
If you want to save huge amounts of money, I’m talking major savings, there are some simple ways to do that. The basic premise is that if you change fundamental, ongoing operational costs you will reduce your overhead and truly save big. Would you like a raise regardless of pay increases at work? For many people it’s in their reach with a few life changes.
Nine Ways to Save Big
- Move to a smaller house. A smaller house means lower price tag, less taxes, less room for stuff and less maintenance. I know first-hand as my family of five live in a 1225 sq ft. home. We maximize the space, spend time outside and enjoy our total environment. We pay a third the taxes as some of our neighbors and a third the utilities. Also, when we do upgrades like flooring, we have a third the surface to redo.
- Live closer to work or work from home. A year and a half a go I moved jobs from 25 miles away to 4 miles. I cut my commute time down by 2+ hours a day. I now come home for lunch many days and enjoy breakfast with my family everyday. My travel expense and stress level dropped considerably.
- Drive the miles out of your car. It may seem expensive to be nickle and dimed for an older car, but it’s usually way more economical to drive the old beeter to the ground. My Camry has 180K on it and going strong. I’m tempted to get a new machine but I just can’t walk away from a perfectly good running car. I have only financed one car in my life and Lord willing it was the first and last time I’ll do so.
- Only finance when absolutely needed. Finance charges usually make very little sense. Why give away money to banks? It’s easier to flush it down the drain on a regular basis which is the same. Stuff to not finance: furniture, clothing, food, vacations. Delayed gratification will build-in a greater appreciation for the object when you pay for it in cash.
- Buy used items. Garage sales and Goodwill are my top purveyors for fine items in our home. Yesterday I swapped for a porch swing and will pay pennies on the dollar for a nice new mower from a neighbor. One caveaut to this process: look for items that you really need and stay with your budget.
- Stay out of stores. Yep, the less time at the mall means less temptation to purchase. We also ditched the paper delivery to save cost but also to stop the onslaught of ads into the home.
- Use Mvelopes.com. No paid endorsement here. Mvelopes.com is by far the easiest and most effective money management system that trumps Quicken or Money hands-down. Check it out and start living below your means.
- Deduct from your paycheck. If you never see the funds, you won’t be tempted to spend them. If you have a 401(k) plan at work, max-out the amount. It is free money. If there are stock options or you set-up an IRA account, you are socking money away for your future that ads-up quickly.
- Give back. Giving to your church or other charities, among other things, promotes a heart of thankfulness for what you have, curves the lust for more, and will be a blessing in your life. It really is more blessed to give than to receive. Giving is contagious, you can’t outgive God.
Once you start down the track of more frugal living you will find that the opporunities to save are abundant.
Filed Under Productivity |
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Comments
7 Responses to “Huge Money Saving Tips”
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I came over here from my best pal Kellementology. I love this…brilliant post. I’m going to link into you. I hope you reciprocate. Its easier for me to visit my friends if I click and visit. My blog is Resource Economics…Grease your brain. Brilliant Post. I’m going to visit your envelopes recommendation.
Ev, Great to have you come by for a visit. Glad you liked the post and found it useful. Kelly’s a great gal, so I’m excited you found me through her. I’ll stop by for a visit for sure.
Hi Phil,
Thanks for the Great tips on money saving.
“Saving money is building a machine that works for us while we sleep, eat, travel, and retire.”
“No matter how small your income, if you save regularly, you’ll almost certainly become independent. No matter how large your income, if you don’t save regularly, you almost certainly won’t.”
Best Wishes
Sam, you are right-on with the importance of saving money. The challenge is to reduce the now for the power of later.
[…] decisions. I wrote a related post offering some other interesting ideas back in early June. Read “Huge Money Saving Tips” for more money saving […]
Great stuff, all very sensible, and all things that can add up.
Mike, Thanks. Yes a nip here and a tuck there and it really adds-up quickly.