How to Save Money: 86 Easy Tips
It’s 2010 and this is one of the worst economies we’ve seen in our recent history. That reality has forced many of us to become more aware and concerned about our personal economy.
Many men want to take care of their financial business but just don't know how and where to start. And for someone who's never really paid attention to their cash flow, it can be very overwhelming. But saving money isn't hard at all once you know what to do.
So I thought it would be helpful to create a list of ideas that can help eliminate debt and save money. The list below is not complete nor is it a step-by-step guide. Some tips may even contradict others (depending on what type of financial plan you follow). But the purpose of this list is to show a list of immediate actions that can be taken to improve your financial outlook.
1. Develop a Budget. – For me, this has been a huge part of my family’s success. Having your money down on paper (or spreadsheet) really helps. It’s different than just randomly spending. By knowing where those dollars are going, you'll have more control over your money.
2. Avoid eating out. – This really applies to all meals. But if you can not adhere to that, at least take your lunch to work. This can save a lot of money each month.
3. Set financial goals. – Do you have goals for your financial future? If not, then it can be hard to make any progress. Set both short term (i.e. I want to eliminate all credit card debt by December) and long term (i.e. I want to eliminate all debt by 2011) goals. Having a target in sight can go a long way.
4. Payoff credit card balances each month. – Many people get trapped by carrying credit card balances every month. If you are determined to use credit cards, than pay them off each month. That way, you don’t have to worry about interest rates.
5. Pay cash for everything. – Why pay cash, you ask? Well, think about paying cash. There’s something psychological about giving up the greenbacks when making purchases. The sting is likely more evident than using a credit of debit card.
6. Follow a plan. – Dave Ramsey, Suze Orman, David Bach and Robert Kiyosaki are all personal finance experts who promote their individual financial plans. Each is a bit different but the bottom line is having “a” plan is better than having “no” plan.
7. Get an accountability partner. – If you’re single, it can be hard to stay on the straight and narrow. Find a buddy, relative or someone to keep you in line.
8. Sell stuff. – Got some old stuff cluttering up your home. Make some money and additional room by selling on Ebay, Craigslist or even having a garage sale.
9. Make a list before going to the grocery store. – Going to the store without a list is setting you up for a fall. Keep yourself in check by creating a shopping list.
10. Repurpose used furniture instead of purchasing new. – I recently saved quite a bit of money by refurbishing a dresser for my baby instead of purchasing a new one. Things like this can save money and give you a sense of pride by doing it yourself.
11. Use coupons. – This may sound like advise for your grandma, but it works. Get the Sunday papers and check websites like ecoupons.com
12. Call lenders and ask for reduction in interest rates. – If you’re paying interest on anything, call and ask about reducing your interest rates, especially with credit cards. If they say no, consider a balance transfer to a card with a lower interest rate.
13. Read personal financial books. – Educate yourself by reading different personal finance books. Good ones to start with are Total Money Makeover, The Automatic Millionaire and Suze Orman's 2009 Action Plan.
14. Reduce or eliminate recurring bills. – Paying for services that you can do without (I.e. gym memberships, cable or satellite bill)? Consider evaluating whether you really can reduce the bill or get rid of it altogether.
15. Increase insurance deductible. – by increasing your insurance deductible, your monthly payment will be reduced.
16. Get term insurance instead of whole life. – Compare the cost of these and you will find that term insurance will be less expensive the majority of the time.
17. Establish an emergency fund. – Whether major or minor, chances are you’ll experience some type of emergency. By having money set aside, you will eliminate the chance of going further into debt.
18. Compare prices before buying. -– Use price compare sites such as bizrate.com to get the best deal.
19. Buy used cars instead of new. – New cars lose a ton of value very quickly.
20. Read reviews before making purchase. – Guides such as Consumer Reports, Consumer Search or even user reviews can help you negate making poor choices on products and services.
21. Haggle, Haggle, Haggle. – Remember that you are in control, not the salesperson. I always ask when trying to negotiate, “Is that the best you can do” or make a statement like, “That’s not good enough”.
22. Cut back on grooming visits. – When trying to get out of debt, I stopped visiting the barber and began cutting my own hair. Think about it this way, if you go every week to get a $15 haircut, you’re spending $780/year.
23. Buy CFL light bulbs. – They last longer and use less energy
24. Watch the PBS Frontline video on credit usage in America.
25. Rent the movie Maxed Out.
26. Consider refurbished items vs. new. – I have had nothing but success purchasing factory-refurbished items and have saved up to 50% off by doing so.
27. Drink water instead of sodas. – This is not only free, but much healthier for your body.
28. Rent movies instead of going to the movies. – In 2008, the average movie ticket price in the U.S. rose to $7.18, a 4.4% increase over 2007. And with Netflix or Blockbuster, you can save up to half that amount.
29. Purchase a programmable thermostat. – Instead of heating and cooling your home while you are not there, get one of these and save money.
30. Use regular gas vs. premium. – Check you car’s owner’s manual. It may be suggesting premium gas and will operate fine with regular unleaded.
31. Cancel monthly subscriptions (i.e. newspapers, magazines). – So much of the same information can be obtained from websites.
32. Call phone and internet providers about retention specials. – Many companies will give you a special “retention rate” if you call and threaten to leave.
33. Consolidate your student loans. – Consolidating your separate student loans into one payment can result in a lower interest rate.
34. Consider refinancing homes at lower interest rates (provided you don’t have to pay points). – Just don’t extend the years or you won’t save money in the long run
35. Buy clothes off-season. – Consider purchasing summer clothes in winter and vice versa.
36. Save up for big purchases. – If you know you will want to make a big purchase, save in advance over a period of time.
37. Use open source software. – check websites like Open Source Alternative and Sourceforge.net for free alternatives to popular software.
38. Adjust W-2s to avoid tax refund. – Stop loaning Uncle Sam your money at 0% interest throughout the year. Use that extra money throughout the year.
39. Buy energy smart appliances. – Can save you money by being more efficient and be great for the environment.
40. Get “rewarded” from your checking account. – If you meet certain criteria, you can get paid from your checking account. Check out www.checkingfinder.com for banks and credit unions with reward accounts.
41. Earn more money with a second job or existing skill set. – There’s only so much frugality that you can use. Try earning extra money by working overtime, a second job or using an existing skill you already have.
42. Use your emergency fund strictly for emergencies. – This isn’t a slush fund!
43. Purchase items on clearance. – Buying clearance items such as a year old product model is a great way to get good deals.
44. Avoid extended warranties when possible. – It gives us a safe feeling, but many extended warranties never get used. And for the price of some warranties, it’s cheaper to purchase the item again.
45. Make your own household cleaning products. – The internet has plenty of tutorials for this like here.
46. Establish personal blow $ for yourself. – Give yourself an allocated amount of money to spend on whatever you want. But when it’s gone, no more spending.
47. Determine current personal balance sheet. A simple way is to simply use the following: Assets – Liabilities = Equity.
48. Buy holiday decorations day after holiday (i.e. Christmas wrapping paper). – We’ve all seen how much you can save!
49. Create visuals for financial goals. – When my wife and I began our debt elimination plan, we created a bar chart with each debt and colored it in when we reached a certain milestone. Something visual can be a real motivator.
50. Use money management software. - If you want a clear financial picture, there are a number of software that can help and show you where your money is going. Check out Mint, Wesabe, Quicken)
51. Have recurring meetings (or calls) with friends with similar goals. – This is something I wanted to do. Get some people that are working to better their financial situation and have meetings to discuss progress, slip-ups, etc. Keeping each other motivated can be a huge help. Feel free to tweet your goals with me on Twitter.
53. Keep donation receipts for tax time. – Don’t lose your donation receipts.
54. Get intense! – Have you noticed that every time you put your mind to something, it usually gets done. So apply that same theory here with your finances.
55. Be patient. – Understand that your debt didn’t arrive overnight. So it may take a while to get rid of it.
56. Determine why debt reduction would make life better. – Dodging debt collection calls, not checking the mail because of delinquent bills is a beat down. So think about how much less stress your life would have without those around.
57. Re-evaluate what’s truly important to you. – Taking time to think about the important things in life may clear up whether the things you buy are really making you happy.
58. Read clothing labels. – Most of us take garments to the dry cleaners that can actually be laundered at home. Save money by reading the labels.
59. Patron establishments on their “special days”. – I take my garments to the dry cleaners on Wednesdays because they offer an extra 10% off. Check the businesses you patron for similar deals.
60. Don’t buy rental car insurance. – Most of your car insurances policies cover you so double-check before renting.
61. Keep your credit cards from being easily accessible. – Having your credit cards in hard to use places will keep you from using them. Freeze them in ice or give them to a trustworthy person to make it difficult to add to the bill.
62. If determined to use credit, get perks. – There are plenty of credit cards that offer bonuses and perks, depending on your usage. Check sites like Bankrate to find deals.
63. Benefit from someone else’s misfortune. – Buying from people in hard times can save you money.
64. If married, have open discussions about money. – Money problems is the number one cause of divorce and marriage fights. Make sure you and your wife are on the same page with your household finances and goals.
65. Before getting married, have open discussions about money. – See #64!
66. If traveling, be flexible with schedule. – Save money by traveling on non-peak days and times.
67. Take advantage of tuition reimbursement if going to school. – I saved about $15,000 by using my company’s tuition reimbursement program to get my graduate degree. Check with your employer about a similar program.
68. Use flexible spending accounts (FSA) for purchases like eyeglasses, contacts, daycare, etc. – FSA uses pre-tax dollars and in turn lowers your taxable income.
69. Vacation with others. – Save money on lodging, travel and food by splitting the cost with others.
70. Exercise and eat healthy. – Living a healthy lifestyle can help eliminate medical bills down the line.
71. Search internet for workout plans instead of hiring a trainer. – Scour the web for exercise plans fit for your goals.
72. Ignore the Jones’! – Worry about your own situation and don’t try to spend money to keep up with others.
73. Consider cord-cutting. – How often do you use your home telephone? If not much, cancel the bill and use you cell phone and/or VOIP like Skype.
74. Automate your bills. – Forgetting to pay bills can allow late fees to creep in. Use online banking to schedule your payments in advance.
75. Pay yourself first. – Before you do anything, save a percentage of your income. Make it easy by automatically having it drafted to a savings account.
76. Ask for a raise. – Been busting your hump at work? Go to your boss with proof of your contribution to the company and ask for a raise.
77. Download individual mp3s vs. purchasing entire CDs – The worst thing in the world is to hear a great song, purchase the entire CD only to hate every other song.
78. Analyze your bills. – Most of us just look at the amount owed. Take a closer look at the charges. Company’s make mistakes all the time by adding in “accidental” charges.
79. Take advantage of bar and restaurant “Happy Hour” specials. – Save money by getting fed on a discount.
80. Write off businesses if operating a full-time or part-time business. – Keep up with expenses that can be tax-deductible. Take a look at Kiplinger's great resource for examples of write-offs.
81. Re-evaluate your gift giving. – Does your wife’s sister’s grandmother’s niece’s old college roommate really need a gift? If you can’t eliminate all together, send a nice card or letter.
82. Keep up with routine car maintenance. – By sticking with you car’s suggested maintenance schedule, you’re less likely to experience expensive car repairs resulting from neglect.
83. Practice good driving habits. – Driving fast can not only result in unwanted speeding tickets, but will reduce your gas mileage.
84. Read the fine print. – This is where the sneaky fees reside.
85. Understand what you invest in. – Don’t get suckered into paying hidden fees in investment products. Use the motto, “know where you put your dough”. If your advisor feels like he’s selling instead of helping, get someone else
86. Buy generic and store brands. – Grocery bills and prescriptions will be cheaper using this method.
Hopefully this list has sparked some ideas of easy and immediate actions you can take to improve your financial future.
Are you currently having success with any of the steps mentioned? Or maybe you have some additional suggestions. Feel free to share in the comments section.
