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Many people have decided to suspend spending for one month - except for their essentials of rent, utilities, food and transportation for work. If you can’t do this for a month, try a week. Find activities that don’t involve buying coffee, clothing or stuff at the mall. Why? You’ll find ways to enjoy yourself that don’t cost anything: take a walk, finish a project around the house, read a book from the library, test out a recipe.
You might be surprised how much you’re left with at the end of the month if you’re not always using your credit cards or debit cards for non-essentials. I found that when I moved from the city to the country, I found I’d have the same amount of cash in my wallet at the end of the week. I wasn’t tempted by coffee chains and other instant gratification splurges.
Take a spending fast.
I was in the vitamin store a few days ago. There are a few things I like to take regularly to stay on top of things health wise. It’s pretty well known that insurance in this country (USA) is a bit dicey so I like to stay as healthy as I can to avoid using the system for the most part (except for necessary checkups).
There was a very helpful clerk who I had asked about the quality of the various brands of the same type of product. He pointed out a few of the better ones and mentioned that one of them was on sale for half price. He also pointed out that what was on the shelf was all they had left at the sale price, and that they’d likely be sold out that day.
I grabbed a few bottles, double what I was going to get, and put them in the basket. Then, grabbed another, then another, until I had five of the six remaining bottles. (I felt a little guilty about depriving the next guy)
I basically spent more than twice the money I had planned on spending, but in the long run I knew I’d save big on something I used regularly.
I often talk to store clerks and just chat them up. Lots of times they’ve directed me to the best deals in the house.
-Phil
For decades, I wouldn’t buy a car with power windows. I couldn’t afford to fix them if they broke. I just considered it was an added expense that I wasn’t going to pay. When you buy a car, consider the cost of gasoline, repairs/maintenance, licensing, insurance and financing. When you break it down to a daily amount, it can be startling.
I had a friend who received an old fridge from a neighbour. One of those energy-sucking behemoths.
According to Michael Blue Jay, she could save about $150/year replacing her old fridge with a new Energy Star rated one.
When you buy something, consider how much the beast is going to cost you just to sit there and maintain it.
This applies to appliances, vehicles and possibly ex-wives.
You’ve been told that procrastination is a bad thing. But I say it’s a frugal strategy. Everyone has items in their closet that when they look at they say to themselves, “What was I thinking?” Haul it to the consignment shop and make some money if they’ll take it.
When you’re considering buying something like, say, gladiator sandals, it might be worth waiting. These will wind up in the same heap as leg warmers, parachute pants, suits with shoulder pads and spandex anything,
If you’re on a diet, wait until you lose those pounds before running out and buying those “interim” clothes.
Be willing to wait. Or count to ten before you spring for ugly shoes.
Developing a frugal lifestyle can allow one to live within ones means. Too many people have relied on credit, credit cards, and loans to get by. With good economy you can bring this under control and actually spend less than you make. But, once you do this, don’t go spending it on other things and get back into the ‘upside down’ game. Take some of the money you save on the little things each day, and sock it away. You’ll find that after a period of time you have a nice little nest egg building up.
Sometimes I just don’t want a home brewed coffee. It’s the same as cooking a meal for yourself. It always seems to taste better when someone else makes it.
Most times when we go out we’ll brew a cup of coffee and bring it along. But sometimes I’d rather just buy a coffee. The problem is I hate drinking out of Styrofoam or paper cups. So, we bought ourselves some really nice stainless steel coffee cups that we bring along.
The savings on buying coffee out now is tremendous. It’s literally 40% to 50% cheaper to buy a ‘refill’, putting it in your own cup, than buying a coffee in their cup.
Over the year that cup will pay for itself many times over.
-Phil
Formula: The amount of wasted money one has is directly proportional to the degree of disorganization one has.
I guarantee that if I look at someone’s office, home office, kitchen, bedroom, or whatever, and it’s a mess, then they are wasting more money than someone who has maintained an orderly environment.
To save money one has to know where it is being wasted. To do that one needs to be organized enough to be able to see the wastage in whatever level of confusion their life may be in.
So, start by cleaning your desk, if necessary. Then clean and organize your office, then kitchen, etc. If these spaces are already tidy I would bet you’re already staying on top of wasted expenses a whole lot more than those that aren’t. Once you’ve tidied up your life, then you can put in some organization that will help you track where your money is going. From there it’s an easy step to figuring out where you can save.
-Phil
I worked in sales for 3-4 years and I learned a few things from the other end of the cash register. Salespeople use pressure tactics and the “buy-now” and hope that you won’t think too much about the purchase. Remember, they want you to BUY their product. Your financial situation is not necessarily of concern to them. You can use this to your advantage. If you are buying something – whether it’s a widget or a large purchase – do your research and be willing to walk away from it. In fact, it is a good idea to walk away from it.
Ask yourself a few questions:
1. Do I really need this handy-dandy whatchamacallit?
2. If I hadn’t had the pitch on this product, would I consider it?
3. Do I have something right now that works as well?
4. If I do want it, how much am I willing to pay - tops?
I discovered this Bank the Rest Savings program with Scotiabank. Watch the demo which is pretty cute. Those round-ups can add up.
If you have a bankbook that you write in your deposits and purchases, you can easily do this yourself. Round up your purchases to the next higher dollar and at the end of the month, transfer the difference to a savings account.
Or - just get an ING Direct account and have an amount automatically transferred each month. If you don’t see the money, you can’t spend it.
Sometimes it’s nice to buy things we don’t really need. There is some enjoyment in being frivolous occasionally. But if there is a bit of a pattern, whereby we buy things just to feel good, or to keep up with our friends, or neighbours, then it can start to affect our financial stability and future. I know this goes against the whole philosophy the government is pushing to get us to start ‘buying’ again, but to just buy for the sake of buying doesn’t really help anyone long term.
Do we need to trade our car in every three years for a new one? Someone once told me that the cheapest car is the one you’re driving. There are lots of things we could look at in our lives that we are so accustomed to having, but don’t really need, that maybe we could just do without it this time. I get just as much enjoyment out of a bigger bank account as I do from a newer car.
If you want to save 100%, then find something you don’t really need to buy, and just don’t buy it.
I remember my mom would go and have lunch in a very chic part of Toronto (Hazelton Lanes) and just look at the beautiful things. She said it satisfied her desire to buy them and she enjoyed the lunch and the gazing.
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