Times are tough, get free help here!
We all know the saying, tough times don’t last, but tough people do. Well, I keep hearing (and occasionally saying) that times are tough, and I thought it was time to ‘tighten my belt a bit’. Due to a confluence of events, I find myself looking for ways to save a little more and spend a little less (just like old times), so I’m writing this article for both me and you!
First, offering full disclosure, the confluence of events… My wife and I were blessed with our second child on May 10, 2007; while it is definitely a blessing, it also increases our cost of living. I quit my JOB in December 2007. Just before that times were good so I bought a big house and a new truck. Despite a large down payment, the house still has a large monthly mortgage on it. The real estate market is doing worse than the overall economy, and the combined value of my real estate holdings has fallen quite a bit (meaning smaller paydays if/when I sell any of my existing properties in this real estate market). Last but not least, I recently bought two upper single-family homes to fix up, and we’re trying to finish one while doing initial repairs on the other… So the ‘cash cushion’ I had on hand is tied up in the purchase and repair of those two houses.
Second, with that out of the way, some pain-free ways to save more and spend less… If you haven’t shopped for auto insurance in the last 1-2 years, now is a good time. I am not settling for a low quality insurer, or less than adequate insurance, rather I am saying keep your insurer honest by making sure you are getting your money’s worth. Many people are surprised by the fact that the same two insurance companies, offering the same insurance coverage, two years apart, can completely change their rates… I have personally experienced this. Also, if applicable, you can search for other insurance, such as life, health, disability, etc. You can save money without any sacrifice! Do you have a cell phone plan that makes the most sense for you to use (I know someone personally who should have an unlimited plan, who continually spends a fortune on overage minutes, WHY?)?
If your electric bill is high, Lakeland Electric performs FREE energy audits. Maybe you know some things you’re not willing to do right now, like upgrading to more energy-efficient appliances, but maybe there are also some cheap and easy ways to significantly lower your electric bill that you haven’t thought of. If you have a sprinkler system, is it turned off during periods of heavy rain? Do you heat and cool your house sensibly (for example, I heat to about 73 degrees in the winter and cool to about 77 degrees in the summer; a 4-5 degree swing shouldn’t result in any real discomfort, and if further spread doesn’t bother your family, better yet)? How about you get a financial checkup? Are all of your investments, individually evaluated, performing well and making sense? Do you know what you are invested in, and how and why it should generate profit? Similarly, if you borrow, do your loans make sense?
Could they be better structured, have better rates, etc.? Especially if you have a balance on a credit card with a high interest rate, can you reduce it somehow? I know I’m constantly bombarded with zero interest rate for X number of months from credit cards that might help. As an example, when I have a loan that I plan to pay off in full in the next year or two, I get an eighteen month zero interest credit card, pay off the loan with it, and now my full payment pays the principal instead. part goes to interest. Are you one of those people who pays bills late for whatever reason, resulting in late fees, penalties, higher interest rates, etc.? Find out what it takes to get and stay on track, and the savings alone will help keep you there. If you tend to spend more when you use a credit card instead of cash (which most people do), throw out credit cards. If, on the other hand, you have a high level of self-discipline, then use no-fee, high-rewards credit cards, charge all your normal expenses, pay the bill in full every month, and rack up rewards (I do this and my business does that my wife and I go out to eat well).
In fact, since I’m rehabbing two houses, I redeemed over $200 in Discover Cash Back Bonus Rewards last month. If applicable, improve your credit scores so that any future loans are increasingly cheaper (better rates, lower fees). When it comes to tax season, are you getting all the deductions you’re entitled to? Many people intentionally do not take the tax deductions to which they are entitled because they think it might cause an audit; Little sidebar here: as long as you’re not doing anything ‘wrong’, the audit will probably do you less harm than the money you’re throwing away (in the rare case that you do get audited). Here’s one I found saving me a lot of money recently… When I see something in a store that I ‘must have’, I wait and research it online later. Two benefits: first, the need to spend often disappears, cutting spending entirely, and second, I find that almost everything I research I can buy cheaper online than I would have paid in the store (yes, even the shipping included). and manipulation).
If you eat a lot outside of WORK, can you save money by packing lunch more often? Something my family is guilty of quite often: we throw away perfectly good leftovers while eating out or cooking something more appetizing. Three solutions quickly come to mind: one, eat the leftovers; two, freeze leftovers for later; three, prepare smaller meals. If you have the time and inclination (I don’t), plant a garden. Do you make sure to haggle and take advantage of deals on things you know you’ll use anyway? And, on the other side of the coin, avoid buying junk you absolutely don’t need just because it was on sale!
Do you clip coupons, actively search for sale prices, etc.? While I think exercise is great, and I work out actively myself, if you’re one of those people who has an expensive gym membership and only goes to the gym twice a year, ditch it. This is a fun and easy way to save a little money: my wife takes my kids to the library almost every week and not only do they get all the books they can read for free, they even get loads of kids’ movies on DVD! ! With the popularity of cell phones these days, I know many people who have gotten rid of their landline phone because it was wasted money. Last and definitely not least, the old adage, Pay yourself first! ‘If you pay yourself last, you’ll never make it. If you pay yourself first, you will never miss it. These are all things that, with just a little work up front, can help you save more and spend less without sacrificing your lifestyle. Next, let’s move on to the things that might hurt a bit…
Third, ways to save more and spend less where the ‘no pain, no gain’ terminology applies… Depending on how badly you want to achieve your goals, how bad your financial situation is, your time constraints, etc., Let’s start with the extreme: can you work more hours, get a second job, start a part-time business (even if temporarily to get over the hump)? Perhaps a stay-at-home spouse can pick up some work from home? In this economy, many stay-at-home parents babysit extra children for friends or family, allowing one family to earn extra money (babysitting) and the other to save extra money (cheaper than daycare). Maybe private school or homeschooling should be replaced by public school, if only temporarily while times are tough? It’s not for everyone, but I know a couple who happily rented out an extra room in their house for a long time.
Consider a smaller, cheaper, and more fuel-efficient car, now or the next time you shop for a car (yes, as mentioned above, I failed miserably in this category). On the subject of vehicles, most of you are probably already combining a lot of errands into fewer trips and avoiding unnecessary driving these days. Are you making the most of free home entertainment? Brainstorm with your family all the fun, free, or cheap things you can think of to do at home, then implement your favorites and save the cost of travel and entertainment.
Most Americans can save some money by eating out less, and I personally know that when I cut back on soda and drink more water, my body and wallet appreciate it. If you routinely drink coffee at Starbucks or drink alcohol at bars/restaurants, plus moral issues, let me kill you now for what you spend per drink! Oh! And I won’t even start with the cigarettes/tobacco. Finally, this is what everyone hates to do: create a budget! First, spend like you normally do and track every penny for at least a couple of months… and find out where your money is really going. If you can bring yourself to, keep track of expenses for a full year, so you’re sure to include expenses like vacations, birthdays, insurance, taxes, etc. once or twice a year. Nine times out of ten, there will be some shockingly high expenses, and you’ll know where to look to stop the bleeding.
This article is just to whet your appetite, but if you’ve gotten some helpful tips and want more of the same, check the internet for some places to save money… I know I stumbled upon some when I was looking for personal financial information not long ago, and I saw some great tips as well as some I would never recommend… I’ll share some as that can be good for a laugh… Reduce showers to once a week (save on hot water, shampoo, soap and probably appointments!) , for those of you who are single!). Train your pets to use the bathroom. Go early on garbage day and pick up what you need from what others throw away (I guess they say one man’s trash is another man’s treasure – LOL). Become a vegetarian – it’s a cheaper lifestyle (I know meat can be expensive, but that seems extreme for a meat and potatoes guy like me!). Anyway, enough of extremes!!! Best wishes to all, and hopefully I’ll see you…on the other side of the rainbow (you know, where the pot of gold is)!