We all have fixed expenses - mortgage / rent, insurance, taxes, utilities, - expenses that rarely change and are hard to miss because we write large monthly or quarterly checks. But, what about your other expenses? All your little trips to the store can sneak up on you, causing you to spend more than you planned. Variable expenses can take a surprisingly large chunk of your budget. Take a closer look at your spending habits. You'd be surprised how making even a few small changes will leave more in your pocket!
Some of these tips are common sense; some might seem to be a bit "frugal". Just remember, if you're working toward a goal, you've got nothing to lose by trying something new, frugal as it may be! Sometimes "baby steps" are the best way to start on the path to bigger and better ways to manage your expenses.
1. When you have multiple errands to run, do you have a game plan for accomplishing them efficiently? Take a few moments to check your driving route and plan the stops along the way. Save time and gas by not running all the errands separately.
2. What kind of grocery shopper are you? Whether you shop at discount stores, or by sales flier, remember to buy only what you need. Compare advertised sales prices with other brands (including generic). Remember to check sales sizes as well. What's being offered on sale might be a smaller size than what you usually buy. Be informed and take a few seconds to consider your purchases - it will save you money in the long run.
3. Do you look at the directions for laundry and dishwashing detergent, or do you automatically fill the scoop and throw it in a load? Make sure to follow manufacturers' recommendation for the correct load size usage. If you use too much per load, you can use up the product twice as fast.
4. How much does convenience cost you? Here's a great example: a friend of mine buys pre-bagged salads. Not only is it more expensive than buying a head of lettuce, but she'll admit that they hardly ever finish it off. Cutting a head of lettuce is an amazingly simple and quick task. When buying for convenience, ask yourself if the actual cost is really worth the time you think you save.
5. How many cleaning products do you have right now? When purchasing a power washer, I was told I should buy three bottles of cleaners - one for decks / fences, one for driveways and the other for home exteriors. Each bottle was $6.00 (a total of $18) vs. the generic bleach I purchased at the grocery store on sale for about $1 (savings of $17). Using bleach full strength or diluted does the trick for a variety of surfaces. Makes you think about how many different types of cleaners you really need to have.
6. Can you stretch an item? For example, will half of a dryer sheet do the same job as a full sheet? I've tried it and it works for me. This also works for scrub pads - cutting a regular size pad in half gives you at least several uses. You won't have to throw away a half used pad because it's rusty or gunky, and it's cheaper than buying those "junior size" pads. There must be many more ways to stretch everyday items - what else can you think of?
7. How about reusing or recycling items vs. buying something new? A great example is sharing a magazine subscription with a friend - one issue you both read (works for books, too!). Or clean your used jelly jars and use them for leftovers instead of disposable baggies. Glass jars last, and if you take the lid off, they're microwaveable. If doing either of these would make you feel unthinkably cheap, think about how much worse it is to be in debt or to not have savings.
8. Can you buy an item used at a fraction of the cost? Our patio furniture - table for six, chaise lounge, two chairs and coffee table - was purchased through the classified ads for $100. Purchased new, the same set would have cost at least 10 times as much. Check classified frequently, and if you're internet-savvy, online auction sites such as eBay have a treasure trove of bargains both used and new.
9. What about buying off-season merchandise? Now is the perfect time to buy winter items. When the other seasons role around, wait a few months in before buying those "must haves". This is not only a great way to stock up for next year, but for your vacation, decorating, and gift-giving needs as well.
10. Can you do it yourself? In the town where I live, the trash pickup is handled by private companies. When the bill hit almost $100 a month, we decided to handle it ourselves. My husband takes the trash to the dump (it's on his way to work) about once a week. What things are you willing to do to save you some money?
The list could go on and on. It's a matter of rethinking your priorities and taking a new view of your spending routine. Start small today, and you could really see a difference in your savings over the course of a year.
Here are 16 of the simple, everyday changes that have worked for us.
1. Use a coupon, absolutely whenever possible. I was really surprised by how many money-saving opportunities are out there when I knew where to look.
For online purchases, stick to the reputable retailers. You certainly will not save any money if you are the victim of fraud or if you are simply unable to return an item. And before you start shopping, always look for a coupon code that will allow you to save on your purchase. In the past, many online retailers sent out promotional codes as a series of letters or numbers that could be entered at checkout. Now, many retailers use a button or text link that automatically activates your coupon when you click through, so it is often a good idea to find the coupon first, before you start to shop.
2. Shop around. The internet is an amazing tool for researching products and retailers, as well as for comparison shopping. We make nearly all of our large purchases online (with a coupon code, of course). It is also important to know where to shop. For holiday gifts, plan ahead and check out the big online discount stores. Overstock.com and Smartbargains.com offer significantly reduced prices on trusted brands. And you can get great shipping prices, too, even on large gifts. Overstock.com, for example, generally charges a flat $2.50 for shipping per order, not per item. I once had an enormous game table shipped to me for $2.50. Overstock often offers coupons for free shipping, too, so be on the lookout for those.
3. Keep a running list of gift ideas for your loved ones. I have found that when I am confident that a gift is perfect for the recipient, I am much less likely to overspend. But that kind of inspiration rarely hits me during the mid-December holiday rush, so I need to keep a list going the whole year through.
4. Budget. Of course, it is important to know what you are really spending. For years, the budget I had in mind was really more of a "wishful thinking" budget. But this quickly led to debt. It pays to get realistic. Whether you use a computer program or a simple ledger book, make sure you know where your money is really going.
5. Save for the future. Take 10 percent of your income and put it in savings, right off the bat. Now you know what you need to cut back on (or how much more you need to earn) to shore up the deficit.
6. Plan ahead. You will want to make sure you have money in the bank for emergencies. Experts say you should have three to six months of living expenses set aside, for those just-in-case times. It sounds like a lot, but start socking away money each month, and it will add up fast.
7. Get organized. When your home is organized, you will be less likely to spend money on items that are already hiding in the nether reaches of your closet and drawers. The same goes for your refrigerator and kitchen cupboards. Purge and organize before you shop.
8. Simplify. There is a certain romance to the "simplify your life" movement. And having too much stuff really does weigh us down. Take a look at everything in your home. If it does not add joy, beauty, meaning, or usefulness to your life, give it away. And when you are tempted to buy something new, it must pass the same test.
On a quarterly basis, go through your house and ask yourself these same things again. Go through your closet, attic, garage, and basement and purge those items that do not add genuine joy, beauty, meaning or usefulness to your everyday life.
9. Reduce, reuse and recycle. A simple lifestyle, for me, is about reducing my urge to over-consume. It is about being kind to the environment. It is about spending less money on material things, so that I have more time and money to spend on memories with my family. Make changes that will help the environment and your pocketbook at the same time. Install water saving kits on your toilet. Write on the back sides of paper. Use reusable containers in your lunches. All these little things really do add up, and it is important to show our children how we can all be part of the solution.
10. Shop without your kids. I know that if I get a shopping cart at WalMart and I do not have a list, I will spend $100. If the kids are with me, I will spend even more. This is another reason it makes sense to do your shopping online. You are less likely to purchase the incidentals.
11. Make sure that your credit card is paying you back via an incentive program. I found a credit card that allows me to earn points on my daily purchases toward our annual vacation trip, including airline miles and hotel accommodations. Since most of my expenses each month are incurred at the grocery store, I found a card that rewards specifically for these types of purchases. Of course, you will need to make sure that you are paying off your balance each and every month. Paying a high interest rate on your credit card will quickly negate any savings you accrue on your incentive plan.
12. Lower your interest rates. If you are carrying a balance on a credit card, give the credit card company a call to see if they will give you a lower rate. Sometimes, it is just that easy.
13. Shop around for insurance. The money you pay for auto insurance can vary greatly. Do some research to find out if you are getting the best rate.
14. Be wary of the influence of TV commercials and print ads, especially on your children. We hear fewer cries of "I want that!" when we keep our kids programming to those channels that do not rely on advertising dollars, such as PBS and Noggin.
15. Play "Time Warp." This is a technique I first learned from "My Monastery is a Minivan," by Denise Roy, and I use it quite a lot. It goes like this: When you are tempted to make a purchase, mentally fast-forward through the life of the item. For example, in her book, Roy thinks she needs new candleholders. She imagines spending time at the mall to find them, soon having to clean them, and then, years down the road, packing them in the giveaway box. She shirks the purchase and soon rediscovers the heirloom candleholders that are packed away right in her own home.
I like to play this "fast forward" technique in reverse, too, asking: What new clothes did I buy last season? (Sometimes, I can not remember). Where are those "I have to have it" items now?
16. Keep your mind on abundance. When you are thinking about money, it is really important to get out of the poverty mindset. Too often, when we are focused on saving money, we are living from a perspective that focuses on lack and scarcity, which tends to bring about more of the same. It has been really helpful for me to make a conscious effort to see the world as infinitely abundant and to rest in the notion that my needs will be taken care of. This is generally a simple matter of thinking more about what I *do* have than what I do not have.
All my days of penny-pinching have certainly proven to me that it truly does not take money to make us happy. Many of my fondest memories have occurred in the smallest homes. The favorite playthings of my children tend to be the inexpensive items that were never designed to be toys at all. And it is the simple, everyday pleasures that are the sweetest, when enjoyed together.
Both Jill Russo Foster & Jamie Jefferson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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