How to save money

[Mike75]

Every body talks here about making money. But I wan to know the ways you save the money you already have. So tell me your long term saving habits. I am not talking about the money in the bank or investments. I am talking about how you save bucks from day to day.

[Fizgig]

You really have to look at your own history and spending habits. Some people blow money on clothes, some on restaurants, some on golf, etc. You need to figure out what your vulnerabilities are and then fix them. Track all purchases for at least a month and create an accurate spending record to see where your money is going.

Here are some generic tips. Most of these are pretty cliche and have been said before, but here you go -

1. Look at all your bills and see if they can be reduced or eliminated. For example:
- Call your electricity provider for a lower rate. Mine had crept up to $0.18 per kW/hr, and when I called they lowered it to $0.10.
- Consider ditching cable TV or at least downgrading your plan.
- Look at how many cell phone minutes you actually use and get the cheapest servicable plan.
- Shop around for car insurance/home.

2. Cook at home and bring your lunch. Restaurants are a MAJOR money leak for most people.
- Shop the sales and use coupons. Couponmom is a great free website that makes a list of weekly sales combined with coupons. Often food is ten cents on the dollar or even free.

3. Delay purchases and do not buy on impulse.
- Wait at least a few days. You can always go back and get it later. Chances are you won't even think about it again.

4. Make an accurate budget and prioritize savings.
- AUTOMATIC TRANSFER is the way to go. With every paycheck, have some money sent to savings and do not touch it.



That's just a few. I'm sure other people with have great recommendations.

[mom-from-missouri]

If you can live on what you make, take all future raises and invest them in company stock or something that is directly taken out from your check. If you don't see it, you won't miss it.

When I worked I did that for the last 6 years, living on the same amount that I earned the 15th year I worked for the company, even though I worked there over 20.

[mom-from-missouri]

Read through the column in here "what frugal thing did you do today". It gives lots of ideas, mostly little ideas, but they add up to some big bucks over time.

[Ima saver]

i save by keeping my hot water heater (electric) turned off when not in use. I have never had a big electric bills.

[sandrark]

I live by a written budget. It helps me decide my priorities up front, and then I only allow myself access to $$ that is not already committed.

It makes all the difference.

I also agree with the poster who said examine your expenses and reduce whenever possible. I find that the fewer contracts and agreements that are in place, the cheaper my fixed expenses are.

Once that's minimal, I have set up all savings and retirement to be automatic. So when I get my net pay, all I have left to pay from it is the mortgage, utilities, gasoline, and spending cash of $200 per month. (Notice I said CASH).

To control actual spending, I get cash - $5 per weekday, $10 per weekend day - from the bank at the start of the month. If I spend less than the day's allotment, that excess goes in my "cash stash", and the wallet is re-filled for the next day. I find that I can usually NOT spend $35 or so by the end of the month - which is when I get the car washed, or a pedicure.

I also get pre-planned cash for groceries, Costco/Beverages & More, Eating out with DH, and Entertainment. I do 50% of the cash 2x per month, so it's not all at home in a big lump sum.

Controlling spending is a real skill that gets better with practice. And for me, it's critical to actually SAVING money, much more so than "getting good deals" on what you do spend on.

Sandi

[KTP]

1. Look at all your bills and see if they can be reduced or eliminated. For example:
- Call your electricity provider for a lower rate. Mine had crept up to $0.18 per kW/hr, and when I called they lowered it to $0.10.

You can negotiate the rate on your electric bill????

[jasonnoguchi]

Well, I take the public transport for one. Even though i can easily afford a car without loan, I don't. All the tax + insurance + gas + parking costs + traffic fines does not make sense to me at all. Public transport's way cheaper.

[daviddane]

You need to keep a constant check on your expenses and cut all unwanted uses. By doing this we can save a lot of money.

[swanson719]

For us, Dave Ramsey's Envelope system. Put a label on all spending, then put that amount in cash in an envelope. When the cash is gone, so is the spending.

[Ima saver]

I have used the envelope system for 45 years, long before Dave Ramsey came along. It really works for me.

[ukgaz]

Everytime I take lunch to work I put $5 in to one of my savings accounts. This way makes me more focused to not eat out at In & Out Burger or somewhere

[MoneyBagz]

I'm a very frugal person, so saving money isn't that hard for me

I usually don't buy many things, unless it's things we need. Occasionally if I have some money to spend I might go out to eat or something.

[Mike75]

Thanks guys

I have taken some of the suggestions and have now started working on a monthly budget. Sat with my wife and worked on it. After like a dozen fights, we have finally agreed on a budget that will come into function from next month...

Will keep you posted.

[KTP]

The best thing to prevent fights IMO is to budget EVERYTHING that is a regular item (house payment, car maint/gas, utility bills, work related clothes/expenses) and then determine an amount in addition to that that you each get to spend however you like. Both of you get the exact same amount, and out of this amount will come food, entertainment and any personal items you want. This includes haircuts, dining out, that new fishing pole you have been eyeing, makeup (if not work related). This really teaches you to value money and gives you an incentive to save. You or your wife want to go out to eat at a steakhouse, you consider "hmmm, I really want to have $100 leftover this month so I can get that new golf club...how about we just go home and make some sandwiches and watch Hell's Kitchen instead?"

This has worked well for us at least.