ways to save money

Get Someone Else to Pay For Your Ventures: Strange Ways to Make and Save Money

August 25, 2011 By Jennifer Derrick 3 Comments

If you have aspirations to be an entrepreneur or inventor, you know that one of the hardest things to do is to get enough capital to make your invention or business a reality. The traditional path has been to get a loan (or several) from a traditional bank, find a benefactor willing to back you, borrow from friends and family, or work three jobs to bring in enough income to finance your venture until it takes off. But thanks to the Internet, there are now other options.

A new phenomenon called “crowdfunding” has emerged. Like crowdsourcing that uses the power of the Internet to bring together large groups of people to do odd jobs, crowdfunding uses the power of the Internet to bring together large groups of people with small amounts of money to collectively back a venture. Basically, the person looking for funding posts an appeal on a crowdfunding website and people interested in backing the person contribute money to the cause. Sometimes no payback of the money is required. It’s simply generosity from one person to another. Other sites have specific payback arrangements, while others use a revenue sharing model. Almost all of them charge fees in some form, so make sure you understand your costs before you enter into any agreement. If you want to try this funding route, here are three websites to consider:

Profounder.com: This site is for those who want to open or expand a business. You first do some business planning, risk analysis, and forecasting on their site and then you set your investment terms. You will specify how much revenue you want to share with your investors and for how long. If people believe in your concept and like the revenue sharing model you’ve set up, they may choose to invest in you.

Rockethub.com: This site is more for creative types who want to write a novel, make a movie, record an album, or create some other artistic project. While the site will also support other endeavors, creative types are the most prevalent. You describe your project and then set a financial goal and a timeline within which you will raise the money. Users give you money if they like your project. Rather than receiving money or revenue from you upon completion of your project, your donors will receive “rewards.” This is usually the finished project (CD/DVD, etc.), tickets to see the finished project, or similar items. You do have to pay a percentage of your total funds raised to Rockethub.

Quirky.com: This site is for inventors who think they have the next big thing. You submit your idea to Quirky.com for a $10 fee. The idea is posted on their site and other users vote on whether it’s the best idea of the week. If you win, Quirky will design, engineer and manufacture the item and then sell it on their site. You share revenue with the people who helped develop your idea. If you lose but still believe in your idea, you can resubmit for the next week by paying another $10. Unlike the other sites, this one is more of a gamble. You aren’t just relying on other people to give you money, but you’re betting that enough people will like your idea to vote for it above all the others.

These are just three possibilities. There are other options out there. As with anything on the Internet, you need to do your research before committing to any sort of money-related program. Do your research to make certain that the program is legitimate and not a scam. Make sure you read the fine print and that you know exactly what each party is responsible for. Do you have to pay back the money? How long do you have to do so? If anything seems off or fishy to you, find another option.

If you are giving money to someone on one of these sites, make certain you understand what, if anything, you’ll get in return. Will the money be paid back? If so, when and how much? Are you simply donating with no payback required? How will any revenue sharing models work and what happens if the venture never makes any money? Make sure that you’re okay with the answers to these questions before you give money.

It is possible to get other people to pay for your ventures without agreeing to usurious loan terms or begging family for help. Just be careful when using crowdfunding options and know exactly what you’re getting into before accepting or giving money.

Check and Keep Your Receipt: Strange Ways to Save Money

August 4, 2011 By Jennifer Derrick 2 Comments

When a cashier hands you your receipt, you probably just think of it as one more annoying piece of paper. Many people toss their receipts in the nearest garbage can on their way out of the store. It’s particularly tempting to toss it when you paid cash and you don’t even have to enter it in the checkbook. But receipts are actually very useful pieces of paper that can help you save some money. How? Here are some savings that you’re likely to find on a receipt and some instances where keeping your receipts can save you money.

Errors

Before you leave the store, check to make sure that all of your items were priced correctly and that any coupons were applied correctly. This is particularly important if you were distracted while the items were being rung up. It’s much easier and convenient to have an error corrected while you’re in the store than it is to do it a few days later. Some stores will give you an item free if you catch incorrect pricing so it’s worth a minute to stop and verify your receipt.

Coupons

Some stores print the receipts on paper that has coupons already printed on the back. These are frequently for local services, retailers, and restaurants. We always eat 2-for-1 at our local Mexican restaurant thanks to our grocery receipts. Other stores print coupons on the bottom of the receipt for you to tear off and bring in on your next visit.

Surveys

Many stores have surveys on the bottom of their receipts so they can find out about your store experience. Many times these are for a chance to win a gift card. These are of dubious value because the odds of winning are low. However, if you have the time it can’t hurt to enter. The ones to watch for, though, are the surveys that give you something free for completing them. Sometimes a restaurant will offer a free food item if you take their survey. Other stores might offer money off your next purchase. These surveys are rarely long or complicated so it’s an easy way to score a freebie.

Freebies

Occasionally I’ll get a receipt that says something like, “Bring this receipt to the local minor league baseball game and get a free ticket.” Last week I got one from a local office supply store that offered me a free dog treat at the pet store next door if I brought in the receipt from the office supply store. The pet store had made a deal with the office store to get the customers of the office store to visit the pet store. If the retailer is sponsoring an event or is in cahoots with another retailer you may get a freebie on your receipt, but you won’t know if you don’t look.

Returns

This isn’t something you’ll find on the receipt, but it is another reason to keep your receipts. If you have to return something, the only way to guarantee that you’ll get all of your money back is to keep your receipt. Without a receipt the retailer doesn’t have to take the item back at all. If they do, they will likely only give you the current selling price. If the item you have has gone on clearance, you may only get a small fraction of what you originally paid.

Rebates

If you toss the receipt and then later discover a rebate for something you bought, you’re out of luck. Most rebates require the original receipt or at least a copy of it.

Price adjustments

If you buy something today and then it goes on sale in the immediate future (usually one to two weeks), many retailers will refund you the difference between what you paid and the sale price. They’ll only do it, though, if you have the original receipt.

If you want to further increase your savings, you can pick up discarded receipts and take advantage of those coupons or offers. Many people can’t be bothered with their receipt and just drop it in the parking lot. Their discards can give you extra coupons or surveys that you can use to get some discounts or freebies for yourself.

Don’t forget to check all of the other stuff that the cashier hands you with your receipt, as well. At my grocery store I leave the checkout with the receipt, a printout showing my fuel rewards, a few extra coupons, and sometimes a special offer for discounted tickets to the theater or some other special event that’s coming to town. My store also issues gift certificates when you reach a certain level of rewards points. It looks like a receipt, though, so it’s easy to throw away. Before I toss any of the paperwork in the garbage, I check it over to see if there’s anything I can use. Don’t just automatically throw away everything that the cashier hands you. You may throw away something valuable.

29 Ways to Quickly Save Money

June 1, 2011 By Jennifer Derrick 13 Comments

Sometimes you have to quickly create some breathing space in your budget. Maybe you lose a job, take a pay cut, or have an emergency that eats up your available cash. Things like getting another/better job, starting a vegetable garden, or moving can help, but they take time. When you need to find extra money fast, what can you do (besides hit the payday loan places, which is a really bad idea)? Here are twenty-nine ideas that can be implemented quickly.

Sell stuff

Have a yard sale or put your goods on Craigslist. Consignment sales or selling to websites or stores that buy used merchandise are also good avenues. Sell your old gold or other jewelry.

Return things

If you have any purchases that you haven’t opened or used yet, take them back immediately. The cash or credit on your credit card will help.

Drop/downgrade subscriptions/memberships

Drop or don’t renew anything like Netflix, cable TV, gym memberships you don’t need or use, and any magazine/newspaper subscriptions you have. In the case of magazines, many of them will refund you for any un-mailed issues, so even if you have time remaining on the subscription, contact the publisher or the third-party where you obtained the subscription and ask about a refund.

Sell a car

If you can get by with one car (or none), sell one and pocket the cash. If you don’t want to sell, park the car and remove the plates. You won’t have to pay for insurance that way. Or, you can sell your expensive car and get a small beater to get around town in.

Ask for lower interest rates

Call your credit card company and ask if you can get a lower rate. They might oblige.

Refinance

If you can afford the closing costs and substantially lower your monthly payment, refinancing may save you more in the coming months.

Get aggressive with your utilities

Turn off everything that’s not in use and turn off everything at night. Take shorter showers. Do less laundry and dishes or at least make sure the machines are full. Line dry clothes. Keep the house warmer or cooler than usual and either put on a sweater or turn on a fan. Utility use is one of those things that is within your control, so take advantage of that and cut as much as you can.

Stop eating out

Not only meals, but stop getting coffees, pastries, and other snacks away from home.

Buy Generic

When times are tough, brand loyalty needs to go. Buy the cheapest brand you can get.

Modify your insurance

Call your insurance agent and ask if there are any discounts. If not, shop around. Ask about raising your deductibles. Make sure you’re not paying for double coverage and make sure you’re not paying for something you don’t need. Don’t drop your insurance altogether. That’s asking for trouble. Many insurers will send you a check, prorated for any overpayment you’ve already made if you modify your policy and it reduces your premium.

Cancel your cell phone or your landline

If you can get out of your contract or it is ending, switch to a prepaid cell phone and limit your usage. If you can cancel your landline phone, do it.

Cancel services

If you have a maid, landscaper, handyman or any other service provider, drop them.

Stop smoking or drinking

Expensive and bad habits need to go.

Stop shopping recreationally

Make lists and stick to them. Don’t go to the stores if you don’t have to. Beware the $10 Target trip that morphs into $100.

Get rid of pets

It’s harsh and I would only use it as a last resort, but pets are expensive. You can save a bundle if you can find them new homes.

Learn to coupon

You don’t have to resort to extremes, but you can cut your food, cleaning, and hygiene budgets by a decent sum.

Make your own cleaning products

I’m amazed at how much cleaning products cost. You can make your own with vinegar and baking soda for pennies.

Stop charitable giving

I’m all for giving to charities and churches when you can afford it, but if you can’t afford it stop it for a time.

Cancel any planned vacations

If you’ve paid deposits, cancel and get those back. You can rebook later.

Pull kids out of activities

Things like sports, clubs, and other activities are expensive. Stop paying for memberships and lessons until things are better. The kids probably won’t like it, but you have to do what you need to do to get by.

Pull kids out of private school

Tuition is high and your kids will survive in public school until you can get them back into that private school. At the very least, ask the school if there is any aid available.

Stop paying for your adult children

Too many people are paying for weddings or tuitions to the detriment of their own finances. These kids are adults. Let them find their own way to pay for some stuff. If they’re living with you, make them pay rent.

Renegotiate your bills: Call your phone, Internet, TV, cell phone, or trash providers and ask for a discount. Many will give you something to retain you as a customer. Some may have money saving alternatives that you didn’t know about. Ask nicely.

Find new places to shop: Stop shopping at the expensive supermarket and try the lower priced markets or farmer’s markets. Don’t shop high end department stores, shop the big box stores. Try dollar stores. There are plenty of places to get what you need for less.

Eat what you already have: Make meals from what you already have on hand rather than heading to the store. You may have to make some strange combinations, but it’s cheaper than shopping.

Ask for help: If things are really bad, ask for help from your church, family, friends, food banks, or government assistance programs. Don’t abuse the generosity, but such programs are there for a reason. Don’t be afraid to ask for help to get you through.

Collect any money you’re owed: Send in any rebates you have lying around, cash in any points at rewards and survey sites, and call in any debts owed by family, friends, or people you’ve done work for. Check your state’s unclaimed property office to see if you have any outstanding money owed to you.

Cut entertainment: No more movies or store bought books and DVD’s. Borrow from the library or friends, instead. If you have to go out, look for free options.

Put the kids on the bus: In our area, the school system provides bus service, paid for with taxpayer’s money. But many parents drive their kids to and from school because it’s “convenient.” It’s also expensive because it wastes gas. You’re already paying for the bus. You might as well use it.

Some of these things will work for you and others won’t. You may find some of these ideas insensitive. That’s okay. Everyone has different priorities and things that they are willing to do. Take what you can use from this piece and ignore the rest. However, if you need to quickly open up some space in your budget you should at least consider anything and everything, even if it seems drastic. When things get better, you can always add in the things you miss.