Save Money

Johannesburg - In 2014 I travelled to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholders meeting. Thirty-nine thousand shareholders in Warren Buffett’s famous holding company travelled from around the world for a six-hour question and answer session with the 84-year-old Buffett and his 91-year-old business partner Charlie Munger.

Buffett has referred to the meeting as “Woodstock for Capitalists”. If you were attentive and took in every word, you would have heard all about the company in immense detail, with matters such as preferred annual returns, bolt-on acquisitions, return on investments etc.

Being slightly more of a layman, I preferred to listen out for the high-level wisdom that Buffett dispenses. He has a way of simplifying life and business down to common sense - Buffett famously only invests in businesses that he himself can understand.

I feel the same way. It is crucial to un-cloud complicated money matters and to look at things on a fundamental level. Most of us spend the majority of our lives working hard for our money, but how much time do we spend thinking philosophically and simply about the everyday ways in which we spend and hopefully invest it?

These are some of my basic money tips:

1. Pay your DStv account upfront for the year

This is my number one tip to anyone who asks me how to start saving money. It’s the best, guaranteed saving I’ve seen on a R9 000 upfront spend. If you’re saving money into any sort of risk-free investment, you should seriously consider holding back the first R9k and paying it over to our friends at MultiChoice at the beginning of each April. I’d look at this as if it were an investment.

Here’s why: as they do each year, DStv increased the cost of DStv premium (including access fee) from R740 per month to R780 per month from April 1. That’s an increase of R480 per year. However, if your account is paid upfront for the year before April 1, Multichoice will charge you last year’s price. What’s more, they will also only charge you for 11 months!

Let’s calculate the saving/return they’re offering you: (R480 + R740)/R9 360 = 13%. Obviously, if you kept the money in an interest-bearing account and let the balance diminish throughout the year you would earn interest, which is an opportunity cost to you.

But this is minimal compared to the 13% on offer. If you pay the R9k on your credit card, you could even roll the physical payment for another two months (at which point you would already have paid three months of subscriptions anyway), but we’ll get to that later.

2. Switching funds triggers CGT

This might not sound like something particularly important until it happens to you – and I’ve seen people hit by it twice this year already. When you move money between funds within an asset manager or a bank, capital gains tax is triggered. For example, you invested R500k in an equity fund 5 years ago. Your money is now worth R750k.

You decide that the market is a bit too volatile for your liking and you switch the money into a balanced or a stable fund. A capital gain of R250k is triggered and you will be required to pay tax of R33 825 [R250k x 41% (tax rate) x 33% (CGT inclusion rate)] if you are in the top tax bracket.

Of course, you will have to pay the CGT at some point in your life when you cash out the investment anyway. It just brings the cash flow forward. If you’re not expecting it, this can be a big hit for you. Make sure you double check the tax implications with the financial institution before doing something like this.

3. Tax-free savings accounts are a must

Tax-free savings accounts are a new savings product introduced in South Africa this year through government legislation. They allow you to save a maximum of R30 000 per year (and R500 000 in your lifetime) into a specially designated fund/account.

Often, these are the same funds that you may already be investing in (if so, you might as well change over by opening a tax-free version of that account). For anyone looking to save long term, these accounts are an absolute must-have because no tax or withholding tax is payable on your capital gain or on your dividends/interest earned.

In my opinion, it is ideal for younger investors to invest this R30 000 in high risk/high yielding funds as opposed to stable funds/fixed deposits. Firstly, the larger the gain you can potentially make, the higher your potential tax saving will be when you eventually cash out. This is different to a pension/retirement annuity where your main tax saving is on your upfront contribution.

Secondly, we all already receive an interest exemption annually, which should be exhausted on your more stable, interest bearing investments. The tax-free-savings account could then be used for dividend-yielding investments.

What is also important to note is that once you cash out your investment, your lifetime allowance into the savings account is depleted by the base value of the amount you cashed out. So it makes sense to let this money grow for as long as possible.

Lastly, if you have a family, I would consider investing the 30k per year for every family member on the first day of the year (giving your money as much time to compound as possible). Keep in mind that you are only allowed to donate a total of 100k per year to your children/spouse tax-free. So if you have more than three dependants, don’t forget about the donations tax implications.

4. Don’t keep idle money in your bank account

By far the most profitable type of deposit for a bank is what they term “idle deposits”. An idle deposit is money that an account holder leaves in their current account earning very little or no interest. The majority of that money is lent out as short-term loans and the bank makes a fortune on the difference between the interest charged and the interest it pays (or doesn’t pay). My bank account, for instance, earns the tidy sum of 0.2% interest on balances above R100k.

Many of us leave money lying around in current accounts earning nothing, while spending our time complaining about the 13c per litre increase in the petrol price. My suggestion would be to:

• Move the money in and out of your bond for short-term purposes (if you have a flexi-bond);
• Move the money into a money market account or seven-day call fixed deposit; • Use your credit card effectively (to be discussed later in the article); and • Apply for a Facility or a “One Account” (FNB).

The latter is a truly ingenious product offered by FNB. It turns your home loan into an overdraft on your current account. As an example, let’s say your home loan balance is R1m and your salary is R30k per month. Your salary is paid into your home loan, reducing the balance to R970k.

As you spend your salary throughout the month and your debit orders come off the account etc, the balance on the home loan increases again slowly back up to the R1m mark. In effect, you are saving say 8% to 10% interest on money that would have earned nothing until spent.

5. Saving into your bond

In November 2014, I wrote an article for Moneyweb about residential property investments. I received a lot of critical response for suggesting that saving into one’s bond/loan is a bad idea. Obviously, a lot depends on your personal financial circumstances. However, I still propose that paying off your home loan as quickly as possible does not always make financial sense. My reasons for this are twofold:

1. Interest rates have been extremely low for the last few years, to the point where it has been fairly easy to find an investment that will earn you a better return than the interest saving you can make by repaying capital on your loan. Perhaps this will not be as true going forward if interest rates increase sharply and the market pulls back somewhat.

Paying off other debt can also be a better investment than your bond. I recently met someone who was saving monthly into their bond even though they had a car loan and credit card debt – always remember to pay off your more expensive debt first. If you are more of a passive investor or you are very risk-averse, then saving into your bond is a better option than a money market account or a fixed deposit.

2. Interest paid on a loan for an investment property is fully tax deductible. If you are in the top tax bracket paying 41% on each rand of marginal income you earn, you will be entitled to a tax deduction of an effective 41% on each rand of interest paid. If your loan interest rate is 9.25% (prime), your effective cost of interest is actually only 5.45% (9.25*0.59).

Lastly, if you’re going to save into your bond, make sure that the bank does not capitalise that payment and that you have a flexi facility so that you can access it later on as a form of cheap finance for another property, a new car etc.

6. Understand how to use a credit card

A credit card can be your best friend if you know how to use it correctly. Of course, banks earn crazy amounts of interest from credit card users who don’t pay their balances on time each month. Here are some basic things many people don’t know about credit cards:

• The 55 days interest-free credit doesn’t necessarily start from the day you swipe your card. It starts the day after your statement date. Each day after that, you have 1 less day to pay back the money all the way down to 25 days. For example, if your statement date is the 13th of the month, you will have 55 interest free days if you swipe on the 14th and 54 days if you swipe on the 15th etc. If you swipe the day before your next statement date – on the 12th - you will only have 25 days to pay.

• If you do pay the “minimum repayment” (and not the full payment), you are charged interest. If you don’t pay the “minimum repayment” on the card, you are charged backdated interest from the day that you swiped the card (up to 55 days back)!

• The interest rate charged on your card is generally very high. Don’t fool yourself into thinking that this is a good way to borrow money.

If you manage your repayments properly (most banks allow for an automatic debit pull for the minimum amount due at 55 days), you can effectively roll your spend over for payment up to two months later. You should take advantage of this by investing the money that you would have spent in cash into short-erm investments to earn interest on the bank’s money.

7. Channel your spend to your credit card

I could write for a long time about credit card loyalty programmes – they’re somewhat of a passion of mine. I even tried to buy my car on my credit card. Programmes like eBucks (FNB), Greenbacks (Nedbank) etc can be lucrative ways to benefit from your existing monthly spend.

Depending on your rewards level, banks pay anything between 1% to 6% on everyday spend and I’ve seen up to 50% on fuel spend. There are certainly many hoops to jump through to get to the top loyalty earning bracket. However, at the least you should expect to earn 1% back on your credit card spend.

If you can channel an annual spend of for example R100k per year (R8.3k p/m) to your card, you could earn an extra R1 000 per year.

8. Medical savings account versus hospital plan

I’m going to write very generally here because I haven’t researched every medical aid scheme in South Africa. A medical savings account is a way for a medical aid to force you to save for day-to-day medical costs that the medical aid itself does not provide for in benefits.

In many cases, there is no difference in benefits between a hospital plan and a basic medical savings plan. The additional amount that you pay for the savings plan goes directly into your “savings account” until used.

For example, if a hospital plan costs R1 000 per month and a medical savings plan costs R1 500, the additional R500 x 12 months will be your savings for the year. This R6 000 is depleted as you use it throughout the year. If you don’t use it this year, it carries over to next year. If you leave the medical aid, they will pay the savings back to you. It’s your money. The medical aid just holds it for you – and pays you very little interest on the balance.

Obviously, if you happen to use up most of your savings in the first month or two of the year the medical aid is, in effect, giving you interest-free credit on the savings you’ve used but for which you have not yet paid (your break-even point here is 6 months).

But I suspect that this would not apply to the majority of members – otherwise the whole idea of medical aid would probably not work in the first place. If your savings are carried over for a second or third year, then there is a compounded lost opportunity cost to not investing the savings money yourself.

So if you have the self-control to save for day-to-day medical expenses and you are a fairly healthy person, a hospital plan could perhaps be better suited to you. NB: there are many schemes that do offer additional benefits on their savings option so you need to investigate this fully before making a decision.

Lastly, it’s important to note that if your company “contributes” a portion of your medical aid cost, it is often just a reallocation of your cost to company. Many people opt for more expensive medical schemes because they think their employer is paying more towards them.

In reality, the employer contribution is just an allocation and if you opted for the less expensive scheme, your take-home salary could be higher.

9. Tax benefits of pension funds and RAs

There’s a lot about pension funds that bugs me. They are one of the most fee intensive ways to invest your money. Most functions are generally outsourced to providers - from the admin to the investment decisions to the investments themselves.

In effect, this makes for a layered system in which everyone involved takes a cut in the form of a percentage of funds invested or a percentage of the return generated. Fees are charged all along the chain. On top of this, many pension funds are also mismanaged due to the disconnect between management and decisions made.

But you cannot avoid the massive benefits pension funds and retirement annuities (RAs) offer you from a tax perspective. Undoubtedly the biggest benefit is the full upfront tax deduction. This means that if you are paying tax at a 41% marginal rate, you will receive 41% of everything you contribute to your pension/RA in upfront cash from the South African Revenue Service (Sars)!

• If your pension is deducted monthly from your salary, the tax saving is embedded in your net salary received – the benefit to this is that your money has longer to compound in the fund, earning you tax-free gains. You also get an immediate tax benefit set off against your PAYE each month.

• If you contribute to the fund directly, you’ll receive the money back in the form of a refund when you submit your final tax return – the benefit here is that you can invest the money for the year yourself and make your contribution just before the end of the tax year.

I’ll let you decide which is preferable. But in effect, Sars is paying you to save money! Depending on how much your company is paying over for you already, you can also look at topping up your contribution to take advantage of the full deduction allowed (which is capped).

When you cash out (after the age of 55 aside for a few exceptions), you can only withdraw one-third of your funds as a lump sum and there is a partial tax exemption on this withdrawal. The remaining two-thirds must be paid as an annuity (fully taxed). So in reality, a portion of the upfront tax saving is recouped when you cash out, but there is still a major cash flow timing difference to take advantage of because you can invest the upfront tax saving elsewhere.

* This guest post is by Dean Gerber CA (SA), who works at VAT IT and is a residential property investor. He can be contacted on: gerberarticles@gmail.com.

Disclaimer: All letters and comments published in MyFin24 have been independently written by members of the Fin24 community. The views are therefore their own and do not necessarily represent those of Fin24.

at 05:59

SAVINGS TIPS

Saving Tips from Old Mutual

Below are some practical tips on what you can do to start saving.

MAKE SAVINGS A PRIORITY

Your goal should be to save at least 10% of your pre-tax earnings. Consider paying yourself first by starting a regular savings plan that could form the backbone of a fund from which you will be able to draw money to cover the necessities of life.

Whether you are saving for a major purchase or for your retirement, you will never reach your goals unless you make savings a priority. Little changes can add up to big savings on expenses. Those savings can be put to good use for achieving your long term savings goals.

Are you a spender or a saver? Be honest with yourself and select investments that will provide you with the discipline you may need.

MAKE SAVINGS FUN

Turn savings into a game. Instead of force feeding budgeting tips to yourself, look at this as an adventure. Try to top your own savings each month or compete with a friend. Make savings a family affair – have a fun programme of savings for everyone to enjoy.

Consider having a kitchen jar to save money for a family holiday. You might want to give yourself pocket money allowance. The key is that your spending should not exceed your allowance. After the money is gone, its gone.

GETTING STARTED WITH A SAVINGS PLAN

Don’t neglect tomorrow due to extravagance today. If you need to start savings, start TODAY! Procrastination is enemy no 1.

Invest when the market is low, its sale time! Its important to invest for the long haul and be prepared to ride out the highs and lows.

It may help to draw up your bucket list and separate it into short, medium and long term goals. This will play a large part in selecting appropriate savings vehicles to achieve these goals.

CREATE A BUDGET

A great way to help save money is to create a budget, and then stick to it. Even by just tracking where the money is going, you will be more aware of your spending habits and eliminate unnecessary spending. One of the best ways to save money is to never see it. Set up direct debits and designate that some of your money goes directly into a savings account.

Keep a money jar that you can throw all your change into each night is a great way to save money. Plus, if you keep a note of how much you spend, you will be able to calculate how much your day-to-day living is costing you.

Avoid temptations such as special offers popping into your mailbox daily, unless it’s something you have been looking out for specifically.

BUDGET TOOL

SAVING FOR RETIREMENT

Retirement should not be regarded as a point in time but rather as a period over which transition is made from living off earnings to living off savings. When you cannot work in old age, your money will be working for you.

You must start early enough, and you must save enough. If you leave off starting to save for retirement from 30 years before to 10 years before, you will have to put away 10 times as much each month.

Take retirement savings seriously and do more than your parents and grandparents did.

RETIREMENT CALCULATOR

SAVING FOR EDUCATION

Savings funds can be set up long before it is known exactly where they will be needed. Save a bonus in an RA and each year after that top it up by the amount saved in tax from the previous year plus the amount by which the bonus for the current year exceeds the bonus from the previous year. Double up on money saved by your children to encourage them to develop a savings habit.

EDUCATION CALCULATOR

SAVE ON BANKING & INSURANCE

Reduce your banking costs

· Eliminate unnecessary fees.

· Avoid ATMs outside your network.

· Check with you bank to make sure you have the best type of account for your needs.

· Sign up for automatic bill paying to avoid late fees and tarnished credit.

· Move it out of sight. Getting money immediately withdrawn from you paycheck and put into savings is a great way to create a nice little nest egg.

Monitor your mortgage

Keeping on top of your mortgage situation can help you save big.

Review your Car Insurance each year

Always keep up to date on your car insurance – remember each year the value of your car will decrease so remember to amend the retail/ market value on your insurance to ensure you are paying the right premiums for your car insurance.

Regularly update your home and contents insurance

You don’t need to insure your house with your lender. Rather, shop around to find the best home building insurance deal you can get. Plus, update your household inventory for insurance purposes. Check on replacement costs and grade your household goods correctly to ensure you are not over insuring your household items.

Consider your health insurance options

Your health will directly impact the cost of life insurance and in some cases can reduce your health insurance and unforeseen or budgeted for bills if you get ill.

REDUCE HOUSEHOLD EXPENSES

Food shopping tips

· Stop buying processed food at the supermarket and make food from scratch. Go fresh food – pre-packaged food generally costs more and are not good for you.

· Buy only what you need in perishables – how many of us root through our veggie draw to find mouldy lettuce?

· Buy in bulk – single packs often cost nearly as much as multi-packs.

· Buy family pack items these often work out cheaper than smaller packages and can be divided and frozen for later use.

· Don’t let your eyes be bigger than your tummy. Buy only what you need for the week and avoid stocking up with food which could spoil quickly. If you run out of food mid-week its no big deal to make a second trip to the supermarket.

· Cook at home and bring your leftovers for lunch. Get into the habit of rustling up your own food and you can easily pocket half of that cash, using the other half to bulk buy your groceries at the supermarket.

· Plan your meals and take a list when shopping.

A guide to smart shopping

· Downgrade your brand purchases. Going for the cheapest is a bit over the top but how about dropping a brand level on everything you can and the overall price drops by roughly 30%. Often you are only paying for the branded packaging anyway.

· Give alternative gifts and remember, “it’s the thought that counts” – put that to the test by offering alternative gifts. Home make your presents, offer a service, - they’ll love your thoughtfulness and you get to pocket the cash you would have otherwise spent.

· Compare prices – shop around for the best prices.

· Familiarize yourself with seasonal sales. But, forbid yourself from buying things simply because they on sale. Regardless of bargain prices an extra expense is just that – yet another drain on your resources.

· Be a smart shopper by buying quality when it counts.

· Delay gratification – giving yourself more time to think about a purchase means you’ll make a more informed, less impetuous decision.

· Always shop with a list – it keeps you focused on what you really need.

· Discount shopping - some products are cheaper at certain times of the year. Follow the shops' sales cycles and use this to your advantage and build a shopping calendar.

Save on your electricity bill

· Electricity is a problem in South Africa and the cost keep soaring, so you have to do what you can to keep your electricity bill down.

· Switch off the TV when no one is watching.

· Turn off the lights when you are not using them.

· Buy energy efficient products/appliances (this also saves the environment).

· Unplug unused appliances – only have chargers plugged in when you are charging things.

· Wash your clothes in cold water, and limit the use of a tumble-dryer.

Reduce household expenses

· Maintain your home – taking good care of your house can save you lots of money.

· Watch less TV. Do you really need 300 channels? Going down a tier in your DSTV service can save you some cash too.

· Cell phone - change your cell phone package to suit your real needs.

CAR EXPENSES

Keep your tyres properly inflated – you’ll prolong their life as well as save on petrol. Regular maintenance of your car – like your home – will ensure it lasts longer. Make it part of your routine to check the car's oil, water and tyre pressure regularly. Live closer to work. It's better to pay more for the house, an appreciating asset, rather than on petrol and maintenance on the car.

at 05:54

20 Simple Tips by Brittney Castro

These days, in our world of instant gratification, it's more important than ever to be able to stay focused on saving money any way you can. So to help you monitor your spending habits and cut expenses, here are 20 easy ways you can save every day—starting right now. How's that for instant gratification?

1. Make a weekly "money date." Commit to sitting down with your money once a week for a money date. During this time, update your budget, review your accounts and track your progress against your financial goals. Like any relationship, if you want your financial life to improve, you must spend time with your money.

2. Plan out your meals for the week. Taking a few hours every weekend to grocery shop and meal plan for the week will definitely save you money, as dining out is the No. 1 expense for most households. By eating at home, you save money that would otherwise be spent on tax and tip—and you usually save calories, too.

3. Cut out cable. Gasp! Cut out TV?! Never! But with services like Hulu, Netflix and Amazon Prime, you can now watch your favorite TV shows and movies for a fraction of the cost of cable TV.

A study by market research firm NPD Group shows that cable bills will soon grow to an average of R123 per month, or R1,476 per year. By switching over to an online service or cutting out TV altogether, you can save that money for another financial goal—such as paying off debt, traveling or saving for a down payment on a home.

4. Switch to an exercise pass program. If you love working out, an exercise pass program such as Class Pass is the way to go. By paying a membership fee of R99 per month, you are welcome at many of the best studios in your area. And classes—like cycling, yoga, Pilates, barre, strength training, boot camp, dance and more—are unlimited. This beats having to pay for each studio's monthly membership or individual class fee, which can add up to hundreds of dollars a month.

5. Host a potluck. The more friends you have, the more money you spend on lunch dates, birthday parties and gifts. Switch it up and, instead of meeting over a fancy dinner, host a potluck and have everyone bring his or her favorite dish. That way, you can save money you'd spend on restaurant extras, such as tax, tip and parking—and you'll usually have a more intimate meal together, too.

6. Leverage lodging rental websites. Finding a place to stay while traveling is so convenient when you use a lodging rental website such as Airbnb, Travelmob or Housetrip. You can often find a place that has a kitchen (so you can cook meals at home to save money) at a rate that's comparable to hotels. You can even rent out your own place on sites such as Airbnb while you travel to make some extra cash to pay for your own travel expenses. It's a win-win scenario.

7. Make coffee at home. This one's not my favorite, as I absolutely love going to coffee shops and drinking delicious organic coffee. However, spending R4 to R5 on coffee every day definitely adds up. So try my approach and allow yourself a few days a week to buy coffee at cafés, and make it at home the rest of the time.

8. Work more. When you're working a lot, there's not much time left to shop and spend money. So stay busy and pursue a career you love.

9. Wait 48 hours before you click "buy." Since we can have anything we want these days with just the click of a button (there's that instant gratification again), you need to find a system to help buffer your impulse purchases.

Example: Wait 48 hours before spending money on things that cost more than a certain amount. When you do, you will find that, most of the time, the item was more of a "want" than a "need." Plus, you'll save money and work toward being more mindful with your spending.

10. Use blogs and Pinterest to learn DIY beauty treatments. Self-care is important—but going to spas and getting pedicures, massages, etc., can really add up. Allow yourself a certain amount to spend on these things; then use blogs and apps like Pinterest to find at-home beauty treatments to help you save money. Often you can find a DIY organic option using common household or kitchen products.

11. Outsource online. Time is a commodity, and your time is precious and valuable. And these days, there are so many tasks you can outsource that will save you time and money. But how do you figure out if outsourcing something is worth the expense?

A great thing to do is to actually calculate the cost of your time, which will help you figure out if you can pay someone to do something for less than your hourly rate. Here's an example: A monthly net income of R3,000 divided by a total of 160 hours worked equals an hourly rate of R16.75. Now that you know the value of your time, you can strategically outsource it using a service like Fiverr or Task Rabbit for a fraction of your own hourly rate.

12. Get creative with gifts. Find creative ways to express your love to friends and family members with free, lower-cost or handmade birthday and holiday gifts. After all, a handwritten note explaining why you love someone can be more sentimental than some expensive gift he or she may never even use. Most people will appreciate the thought behind your gifts more than anything, so don't be afraid to save money and find free ways to celebrate birthdays and holidays.

13. Choose quality over quantity. This can apply to food, clothes, electronics and much more. Although it's tempting to choose the more budget-friendly version of an item, sometimes choosing quality over quantity will save you more in the long run. Save up your money and get the best-quality product you can afford, and leverage the cost-per-wear philosophy with more expensive clothing and shoes.

This applies to food, too: Buying quality organic food can nourish you in ways that fill you up more than the prepackaged, processed stuff and potentially save you money on health-care expenses in the future, since you're taking good care of yourself. Find a balance that is right for you and choose quality whenever you can.

14. Deal with your emotions. Excessive spending is often a way to avoid feeling certain emotions. If you check in with yourself before you go on a major spending spree, you may be able to identify if you're feeling bored, lonely or stressed and are therefore spending money as a means to avoid the underlying emotion. Check in with yourself before you buy, and be mindful with your spending.

15. Stop trying to keep up with the Kardashians. It's hard to keep your blinders on and not compare your financial life to that of others, especially celebrities. However, it is really important to be clear about what matters most to you and make sure you build a financial plan that supports that vision. This will keep you moving toward your financial goals and stop you from spending money on things you don't need, to impress people you don't like.

16. Read a personal finance book. When you learn about personal finance, you'll learn even more strategies to help you save money for your goals in life. Knowledge is power, and the more you know, the more you can save.

17. Balance your "FOMO/YOLO" mind-set. With social media controlling our lives like never before, people often fall victim to the "fear of missing out" phenomenon and instead go overboard with a "you only live once" mentality.

While it is important to live in the present and soak up each precious moment of life, make sure you balance that out by saving for your financial future, too. Without checks and balances in place, you can find yourself saying yes to everything and spending more money than you have—all due to the fear of missing out.

18. Map out your financial goals. Be very specific with your financial goals. For example, saying, "I want to save for a home down payment" is not enough. You need to map out how much you need, by when and what you need to save every month in order to reach the goal. When you know what your targets are, you're more likely to stay the course and continue saving for them for the long term.

19. Keep your eye on the prize. Staying focused on your goals takes discipline and determination. Saving can be easy and exciting at first, but after a while you may lose that initial motivation and start to find other things you can spend that money on. To avoid veering off course, check in with your goals regularly and keep your eye on the prize.

"The truth is, there are many ways to save money. Find the ways that work for you, and slowly start incorporating the strategies into your life."

20. Track your progress. South Africans save only 5.5 percent of their money compared to the 20 percent that personal finance indicates you should put away. But instead of feeling ashamed about your lack of savings, just start by saving something.

Even 1 percent is better than nothing. Track your progress and continue to increase the number year after year. Step by step, day by day, you can get to that 20 percent savings level.

The truth is, there are many ways to save money. Find the ways that work for you, and slowly start incorporating the strategies into your life.

—By Brittney Castro, founder and CEO of Financially Wise Women.

Some More Tips

FOR MORE TIPS AND TRICKS,

100 Ways to Save Money

1. Move bank accounts to take advantage of perks and earn more interest

If you’re paying a monthly fee for your checking or savings account, you would benefit from researching some of newest banking offers out there. Not only do some banks offer sign-up bonuses simply for opening an account and setting up direct deposit, but some offer attractive interest rates to new customers as well.

It’s true that interest rates are not what they once were, but it’s still worth a look. Some of the best free checking accounts and best savings accounts can be found online. Here’s a guide on how to make that switch.

2. Turn off the television.

One big way to save money is to drastically cut down on the amount of television you watch. There are a lot of financial benefits to this: less exposure to spending-inducing ads, a lower electric bill (and perhaps a lower cable bill if you downgrade your subscription), more time to focus on other things in life — such as a side business — and so on.

Want to take things a step further? Consider cutting the cord to cable TV altogether.

3. Stop collecting, and start selling

There was a time when people thought their collections would bring them riches. Beanie Babies were a big fad at one time, as were Longaberger baskets. Now you can find those items on resale sites like Craigslist and at garage sales for a fraction of their initial cost, leaving many people who sunk thousands of dollars into their “investments” wondering what happened.

If you want to avoid that situation, don’t collect items of questionable value. And if you want to recoup some of the money you’ve already spent on collectible items, you can start selling them now and use those funds for any number of worthy financial goals. Read our “Guide to Selling Unwanted Items” for some simple strategies that can help you profit as much as possible.

4. Sign up for every free customer rewards program you can.

No matter where you live, you’ll find plenty of retailers who are willing to reward you for shopping at their store. Here’s the basic game plan for maximizing these programs: create a Gmail or Yahoo address just for these mailings, collect every card you can, and then check that account for extra coupons whenever you’re ready to shop.

You can add to those rewards and discounts by using rewards credit cards to earn points on purchases at a wide range of stores that can be redeemed for cash back or other benefits.

5. Make your own gifts instead of buying stuff from the store.

If you want to save money while also giving generously, creating your own homemade gifts is one way to accomplish both goals. You can make food mixes, candles, fresh-baked bread or cookies, soap, and all kinds of other things at home quite easily and inexpensively.

These make spectacular gifts for others because they involve your personal touch — something you can’t buy from a store — and quite often they’re consumable, meaning they don’t wind up filling someone’s closet with junk. Even better – include a personal handwritten note with the gift.

6. Master the 30-day rule.

Avoiding instant gratification is one of the most important rules of personal finance, and waiting 30 days to decide on a purchase is an excellent way to implement that rule.

Quite often, after a month has passed, you’ll find that the urge to buy has passed as well, and you’ll have saved yourself some money simply by waiting. If you’re on the fence about a purchase anyway, waiting a while can give you a better perspective on whether it’s truly worth the money.

7. Write a list before you go shopping – and stick to it.

One of the easiest ways to save money is to only shop when you have a list. Because when you’re without one, you typically end up making impulse buys and unplanned purchases – all things that cost money.

Creating a list before you go to the grocery store is especially important. Not only can it help you buy items that fit with your meal plan, but it can also help you avoid buying food you might waste. Always create a list and, more importantly, stick to it.

8. Invite friends over instead of going out.

Going out to eat or “out on the town” has a way of completely destroying both your food budget and your entertainment budget in one fell swoop. And no matter what, it is always cheaper to stay in with friends and come up with your own entertainment.

Instead of hitting the town, host a fun pitch-in dinner with your friends. Play cards, sit around a fire pit, or watch movies with your guests. You’ll all save money – and have a blast.

9. Repair clothing instead of tossing it.

Don’t toss out a shirt because of a broken button – sew on a new one with some closely-matched thread. Don’t toss out pants because of a hole in them – put in a patch of some sort and save them for times when you’re working around the house.

Most basic sewing jobs can be completed by anyone, and a little bit of practice goes a long way.Learning basic sewing skills is a great way to save some money – and extend the life of your clothing.

Learn basic sewing techniques and you can mend worn-out clothing instead of tossing it. Photo: Chris

10. Don’t spend big money entertaining your children.

Most children, especially young ones, can be entertained very cheaply. Buy them an end roll of newspaper from your local paper and let their creativity run wild. Play ball in the backyard. Head to the park. Plant a garden. Teach them to ride a bike without training wheels once and for all.

Realize that what your children want most of all is your time, not your stuff, and you’ll find money in your pocket and joy in your heart.

11. Negotiate rates with your credit card company or complete a balance transfer.

If you’re paying a lot of interest on your credit cards, it’s important to know that you do have some power as long as you’ve been making your payments. Not only do you have the right to negotiate your current interest rate with your credit card issuer, but you have the right to transfer your balance to an entirely different card as well. (In fact, that is perhaps your biggest bargaining chip.)

Start by calling your card issuer at the number on the back of your card and explaining your request. If you don’t make any progress with them, check out these balance transfer credit cardsto find one with an introductory 0% APR that could help you save hundreds of dollars in interest over time.

12. Clean out those closets.

Go through your closets and find anything and everything you no longer use. Then, don’t just get rid of it, use it to your benefit.

You can have a yard sale with it, sell it on eBay or Craigslist, take it to a consignment shop, or even donate it for the tax deduction (mark down what you give away so you can get a receipt). All of these options can turn old stuff you don’t want anymore into money in your pocket. Not only that, it’s often a psychological load off your mind to clean out your closets.

13. Buy video games that have a lot of replay value – and don’t acquire new ones until you’ve mastered what you have.

My video game buying habits have changed quite a bit since my “game of the week” days. Now, I focus on games that can be played over and over and over again, and I focus on mastering the games that I buy. Good targets include puzzle games and long, involved quest games – they maximize the value of your gaming dollar.

Once you’re done with a game for good, take it to a video game resale shop like GameStop and see if you can trade it in for store credit you can use to get another game.

14. Drink more water.

Not only does drinking plenty of water have great health benefits — it has financial benefits, too.Drink a big glass of water before each meal in order to stay fuller longer and ultimately eat less. Not only will you save on the food bill, but you’ll also feel better after you become properly hydrated.

Even better, drinking more water — whether in a refillable bottle or at restaurants — means spending less money on beverages like soda, juice, and tea. Remember: Tap water is not only just as clean as bottled water, it’s also free.

15. Avoid convenience foods and fast food.

Instead of eating fast food or just nuking some prepackaged dinner when you get home, trymaking some simple and healthy replacements that you can take with you. An hour’s worth of preparation one weekend can leave you with a ton of cheap and easy dinner and snack options for the following week.

Also consider breaking out the ol’ crock pot for some inexpensive meal options that not only save money, but time, too.

16. For heaven’s sake, quit smoking.

If you’re still a smoker, you have to know by now that your habit is not only expensive, but potentially deadly as well. If you want to add years to your life and save a boatload of money, the easiest thing to do is to stop smoking altogether. You can quit cold turkey, try some of the many anti-smoking products that are out there, or switch to an electronic cigarette to buy some time. Whichever path you choose, you will be much better off.

17. Make a quadruple batch of a casserole.

We all know that casseroles are nice, easy dishes to prepare. The next time you make a casserole, make four batches of it and put the other three in the freezer. Then, when you need a quick meal for the family, you can grab one of those ready-made casseroles and just heat it up.

Preparing a few at once allows you to buy the ingredients in bulk, which can mean additional savings. Meanwhile, having several casseroles in the freezer makes it less likely that you’ll turn to fast food or junk food when you’re in a hurry.

18. Turn off the lights.

Keeping the lights on in your home may not be expensive on a per-watt basis, but it sure does cost money over time. To save as much as you can, turn off lights any time you leave your house – or even when you leave the room. Turning off lights when you have plenty of natural sunlight can also help keep your electric bill down over time. The bottom line: If you aren’t using a light, turn it off.

19. Swap books, music, and DVDs on the Internet or at the library.

You can very easily swap the books, CDs, and DVDs you’ve grown bored with online. Just clean out your media collection, and trade them with others online using sites like PaperBackSwap. If you live near a library that loans DVDs in addition to books, you’ll be even better off. The more you can borrow and barter with others, the more money you’ll save over time.

20. Maximize yard sales.

Yard sales are a great place to score awesome deals on items you need anyway – think housewares, shoes, clothing, or even sports equipment. The key is, you have to be careful not to use the low prices found at sales as an excuse to buy things you don’t need. At your next garage sale, limit yourself to items that were already on your list of things to buy.

21. Install CFLs or LEDs wherever it makes sense.

Energy-efficient light bulbs might cost a bit more initially, but they have a much longer life than normal incandescent bulbs and use far less electricity. It might be hard to decide which type to use, but either type of bulb will probably be an upgrade from whatever you’re using now.

CFLs, which use a quarter of the energy of incandescent bulbs and last for years, are the next cheapest option after traditional bulbs. But they also have some drawbacks: They take a while to warm up to full brightness, and they also contain a small amount of mercury.

Meanwhile, LEDs are more expensive. However, they’re getting cheaper all the time, and they are easily the best lighting option available: They light up instantly, are efficient as CFLs, produce a warm glow without getting hot to the touch, and can last for decades.

You don’t even need to replace every bulb in the house at once. Even swapping just your four or five most-used light bulbs can save you $45 or more a year.

22. Install a programmable thermostat.

Installing a programmable thermostat is a no-brainer if you want to cut down on energy usage while you’re not at home, or simply regulate the temperature in your home. By setting it to heat or cool your home at certain times, you can ensure that your utilities aren’t being wasted while you’re at work or asleep – and save money in the process.

23. Buy quality appliances that will last.

It’s worth the time to do a bit of research when you buy a new appliance. A reliable, energy-efficient washer and dryer might cost you quite a bit now, but if it continually saves you energy and lasts for 15 years instead of five, you’ll save significant money in the long run.

When you need to buy an appliance, do research: Start with back issues of Consumer Reports at the library. An hour’s worth of research can easily save you hundreds of dollars.

24. Clean or change out your car’s air filter.

A clean air filter can improve your gas mileage by up to 7%, saving you more than $100 for every 10,000 miles driven in an average vehicle. Cleaning your air filter is easy to do in just a few minutes – just follow the instructions in your vehicle’s manual and you’re good to go.

If yours is beyond help, also consider changing it out for a new one. At most stores, a new air filter goes for less than $10.

25. Quit using credit cards.

If you have a habit of getting into trouble with credit cards, hide your credit cards and keep them in a safe place in your home, not in your wallet. If you need to keep a card for emergencies, that’s okay. Just don’t carry it around with you. If you’re often tempted to use it, keeping your card “out of sight and out of mind” might help.

26. Plan your meals around your grocery store’s flyer.

Instead of creating your meal plan out of thin air, plan all your meals around what’s on sale in your grocery store’s flyer. Look at the biggest sales, then plan recipes based on those ingredients and what you have on hand. Do that for a few months and you’ll find yourself with a much smaller food bill than you’re used to.

27. Do a price comparison – and find a cheaper grocery store.

Most of us get in a routine of shopping at the same grocery store, and we may not even realize that we’re not getting the best deal. Fortunately, there’s a simple way to find the cheapest store around. Just keep track of the 20 or so things you buy most often, then shop for these items at a variety of stores. Eventually, one store will come out on top for your purchases – just make that one your regular shopping destination and you’ll automatically save money.

28. Make your own when you can.

Before I tried it myself, I thought making homemade bread would just be a complicated waste of time. But after I tried it, I found that it was pretty easy and it was actually much cheaper, healthier, and tastier than buying a loaf from the store.

We rarely ever buy bread at the store these days, mainly because the bread I make is not only cheaper, but much better too. Figuring out what you can make it home is a great way to save some money – and learn new skills along the way.

29. Avoid stress-spending.

It’s easy to justify spending money just to wind down from a stressful day at work. However, it’s rarely a good idea. Instead of buying things you don’t need to make yourself feel better, it might be wise to find other ways to de-stress instead.

Exercise is always a good option, as is meditation and even a good old-fashioned nap. Read, watch movies, or work in your yard if you’re stressed out. Spending money won’t reduce your stress in the long run.

30. Share your dreams with people you love.

This seems like an odd way to save money, but think about it. If you spend time with the people you love the most and come to some consensus about your dreams, it becomes easy for you all to plan for it. Set a big, audacious goal together and encourage each other to be financially fit – soon, you’ll find you’re doing it naturally and your dreams are coming closer than ever.

31. Do a “maintenance run” on your appliances.

Check them to make sure there isn’t any dust clogging them and that they’re fairly clean. Look behind the appliances, and use your vacuum to gently clear away dust. Check all of the vents, especially on refrigerators, dryers, and heating and cooling units. The less dust you have blocking the mechanics of these devices, the more efficiently they’ll run (saving you on your energy bill) and the longer they’ll last (saving you on replacement costs).

32. Cancel unused club memberships.

Are you paying dues at a club that you never use? Like, for instance, a gym membership or a country club membership? If you’re on the fence about any of your memberships or find that you’re not using them very often, cancel them. Remember, you can always renew the membership at a later date if it turns out that you actually do miss it.

33. Buy used when you can.

You can often find the exact item you want with a bit of clever shopping at used equipment stores, used game stores, consignment shops, and so on. Just make these shops a part of your normal routine – go there first when looking for potential items and you will save money.

Clothes, for example, often cost pennies on the dollar when bought used – even if they were only worn once. By buying used most of the time, you can save a ton of cash.

From tea cups to T-shirts, make it a habit to shop used first and you’ll often find what you’re looking for at a big discount. Photo: Laura D’Alessandro

34. Keep your hands clean.

This one’s simple – just wash your hands thoroughly each time you use the bathroom or handle raw foods. You’ll keep yourself from acquiring all kinds of viruses and bacteria, saving you on medical bills and lost productivity.

That’s not to say you shouldn’t explore the world and get your hands dirty sometimes – that’s good for you, too – but basic sanitation does help keep the medical bills at bay.

35. Remove your credit card numbers from your online accounts.

It’s easy to spend online when you have your card information stored in an account – just click and buy. The best way to break this habit is to simply delete your card from the account.

That way, when you’re tempted to spend, you’ll be forced to spend the time to dig out your card – and really think about why you’re spending this money. Sometimes being forced to take that extra step is all it takes to convince yourself you don’t need the item after all.

36. Give the gift of labor.

For new parents, give an evening of babysitting as a gift. If you know pet owners, offer to take care of their pets when they travel. Offer up some lawn care as a gift to a new homeowner.

These types of gifts are always a hit. I know that, as a parent of a toddler and an infant, I lovedreceiving a babysitting gift, probably more than any “stuff” I might get otherwise.

37. Do holiday shopping right after the holidays.

Most people use this technique for Christmas, but it works for every holiday. Wait until about two days after a holiday, then go out shopping for items you need that are themed for that day.

Get a Mother’s Day card for next year the day after Mother’s Day. Get Easter egg decorating kits the day after Easter, and Halloween decorations on Nov. 1. Get wrapping paper, cards, bows, and gift bags the day after Christmas. The discounts are tremendous, and you can just put this stuff in the closet until next year.

38. Join up with a volunteer program.

Volunteering is a great way to meet new people, get some exercise, and involve yourself in a positive project that can lift your spirit. It also comes without a cost to you and can provide a lot of entertainment and a fulfilling day when you’re in the right mindset. (In some cases, it can even help erase your student loans.)

I’ve come to spend more and more of my time volunteering, serving on various committees and groups in the community. It is hands-down the best thing I have ever done.

39. Declutter to save your sanity and some cash.

Go into a room and go through every single item in it. Do you really need that item? Are you happy that it’s there, or would you be just fine if it were not? If you can find stuff to get rid of, get rid of it – it just creates clutter and it might have some value to others. You also improve the perceived value of your house – and you’re likely to get a lot of cleaning done in the process. It’s a frugal win-win-win.

40. Try generic brands of items you buy regularly.

Instead of just picking up the ordinary brand of an item you buy, try out the store brand or generic version of the item. You’ll save a few cents now, but you’ll also likely discover that the store brand is just as good as the name brand — often, the only difference between the two is the marketing, which I’m not willing to pay more fore. Once you’re on board the generic train, you’ll find your regular grocery bill getting smaller and smaller.

41. Prepare some meals at home.

Get an accessible and easy-to-use cookbook (my favorite “beginner” cookbook is Mark Bittman’s excellent “How to Cook Everything“) and try making some of the dishes inside. You’ll find that cooking at home is much easier than you think – and way cheaper and healthier than take-out or dining out. Even better, you can easily prepare meals in advance – even handy fast-food type meals.

42. Switch to term life insurance.

Repeat after me: insurance is not an investment. If you’re stuck in an expensive whole life policy, choose cheaper term insurance instead and use that difference in cost to get yourself out of debt and start building some wealth.

Universal and whole-life policies are much more expensive and offer a subpar investment opportunity. In almost every case, you’ll be much better off with a cheap term policy and more money in your pocket. You can get rate quotes here:

A reliable and fuel-efficient car will save you thousands over the long haul. Let’s say you drive a vehicle for 80,000 miles. If you choose a car that gets 25 miles per gallon over one that only gets 15, you’ll save 2,133 gallons of gas. At $3 a gallon, that’s $6,400 in savings right there. Reliability can pay the same dividends.43. Stick to reliable, fuel-efficient cars.

Do the research: It will pay off for you. Learning some simple strategies for fuel-efficient driving can also help.

44. Avoid the mall.

The mall might be a fun place to people watch, but it can also be packed with temptation. That’s why you should avoid the mall unless you actually need to purchase something.

Trust me, window shopping when you’re on a budget can be torture. Unburden yourself and find something else to do when you need some entertainment. A walk outdoors, a fun puzzle, or a good movie can easily replace your regular mall shopping adventures.

45. Master the 10-second rule.

Whenever you pick up an item and add it to your cart or to take it to the checkout, stop for 10 seconds and ask yourself why you’re buying it and whether you actually need it or not. If you can’t find a good answer, put the item back. This keeps me from making impulse buys on a regular basis.

46. Rent out unused space in your home.

Do you have an extra bedroom or in-law suite that’s not being used? Rent it out on a site likeAirbnb.com. If you live near a popular or tourist area, doing so could bring in a lot of extra money. Just make sure you know the risks and are willing to take the steps required to protect your family and your possessions.

47. Create a visual reminder of your debt.

To put your debt into terms that are easy to understand, make a giant progress bar that starts with the amount of debt you have and ends with zero. Each time you pay down a little bit, fill in a little more of that progress bar.

Keep this reminder in a place where you’ll see it often, and keep filling it in regularly. It can help keep your eye on the prize and lead you straight to debt freedom.

48. Cancel magazine subscriptions.

Do you have a pile of unread magazines sitting around your house? It’s likely the result of a subscription that you’re not reading. Not only should you not renew that magazine, but you should give their subscription department a call and try to cancel for a refund. You never know – they might even give you the prorated amount back. I’ve had to cull my subscriptions in the past, and I’ve never regretted it.

49. Eat breakfast.

Eating a healthy breakfast fills you up with energy for the day while also curbing your desire for a big, expensive lunch. Meanwhile, breakfast can be very healthy, quick, and inexpensive. A bowl of oatmeal in the morning is often the one thing that keeps me from running out to eat an expensive lunch later in the day.

50. Swap babysitting with neighbors.

We live in a neighborhood with dozens of families with young children. Because of that, there are a lot of parents out there willing to swap babysitting nights with us, saving us the money of hiring one for an evening out. A few families even take this to incredible extremes.

Try to find another set of parents or two that you trust, and swap nights of babysitting with them. If you can pull it off, you’ll get occasional evenings free without the cost of a babysitter and save a ton of money in the process.

51. Don’t fear leftovers: Jazz them up instead.

Many people feel as if leftovers are just inferior rehashes of regular meals. However, there’s nothing cheaper than eating leftovers, and with a few techniques for making leftovers tasty, you can often end up with something surprising and quite delicious on the other end.

My favorite technique? Chaining – using the leftovers as a basis for an all-new dish. For example, if you have leftover ham and rice from last night’s meal, use them to make fried rice orblack beans and rice tonight.

52. Go through your clothes – all of them.

If you have a regular urge to buy clothes, go through everything that you have and see what you might find. Take the clothes from the back of the closet and bring them to the front, and suddenly your wardrobe will feel completely different. Take the clothes buried in your dresser and pull them to the top. You’ll feel like a brand new person who doesn’t need to spend money on clothes right now.

53. Brown bag your lunch.

Instead of going out to eat at work, take your own lunch — if not every day, then at least a couple of times a week. With some thoughtful preparation and just a few minutes of time, you can create something quite enjoyable for your brown bag lunch – and save a fistful of cash each time you do. Your co-workers may not understand your desire to save money, but that’s their problem.

54. Learn how to dress minimally.

Buy clothes that mix and match well and you won’t need nearly as many clothes. If you have five pants, seven shirts, and seven ties that all go together, you basically have an endless number of options already.

This is exactly what I do in order to minimize clothing purchases and still look professional – I just mix and remix what I wear by using timeless, simple pieces that go well together.

55. Ask for help and encouragement from your inner circle.

When you’re feeling discouraged, sit down and talk to the people you love and care about the most and ask them for help. Tell them that you’re trying to trim your spending and you’d love it if they would offer any suggestions and support they might have.

Then, pay attention to what they tell you. They might have some personal insights for your situation that will really help. At the very least, they might understand your situation better.

56. Try to fix things yourself.

Years ago, it was far more difficult to find ways to fix everyday items we have in our homes. But today, it should be a piece of cake. You can find online tutorials and videos that show you how to fix almost anything, and all for free. No matter what you’re trying to fix, it’s always worth a shot.Learning a new skill never hurts either.

57. Keep an idea notebook in your pocket.

I’ve wasted countless amounts of time and money simply because I’ve forgotten some of my best ideas. Nowadays, I keep a small notebook with me to jot down ideas so that I never forget anything important. This keeps me from forgetting the ideas I have throughout the day.

58. Invest in a deep freezer.

A deep freezer can be a great bargain after the initial investment, but only if you’ll use it. Often, having some extra freezer space allows you to buy in bulk and pay lower prices overall. Even better, you can store lots of meals prepared in advance, enabling you to just go home and pop something homemade (and cheap) in the oven. Read this post if you need help determining whether a deep freezer is worth it.

59. Look for a cheaper place to live.

The cost of living in Iowa is surprisingly low, enough so that I’m quite happy to give up the cultural opportunities of other places to enjoy Iowa all year round. When I want to enjoy the cultural attractions of another place, I’ll travel there – after all, I can afford it because I save on living expenses the rest of the year.

If you live in a truly expensive area, take some time to decide if the extra expense is really worth it. You may find that a move could mean the difference between having plenty of money and barely scraping by.

60. Check out free events in town.

My town has several wonderful parks, free basketball and tennis courts, free disc golf, trails, and lots of other stuff just there waiting to be used. You can go have fun for hours out in the wonderful outdoors, playing sports, hiking on trails, or trying other activities – and it’s all there for free. All you have to do is discover it. Here are more than a hundred free things to do if you need more inspiration.

61. Inflate your tires.

For every two PSI of air pressure under the recommended level in your tires, you lose 1% on your gas mileage. Most people’s car tires are five to 10 PSI below the normal level, so that means by just inflating your tires, you can improve your gas mileage by up to 5%.

It’s easy, too: Just read your car’s manual to see what the recommended tire pressure is, then head to the gas station. Ask the attendant inside if they have a tire air gauge you can borrow (most of them do, both in urban and rural settings), then stop over by the air pump. Check your tires, then use the pump to fill them up to where they should be. It’s basically free gas!

62. Start a garden.

Gardening can be an inexpensive hobby if you have a yard. Just rent a tiller, till up a patch, plant some plants, keep it weeded, and you’ll have a very inexpensive hobby that produces healthy food for your family.

I like planting a bunch of tomato plants, keeping them cared for, then enjoying the huge flood of tomatoes at the end of each summer. We like to eat them fresh, can them, and make tomato juice, sauce, paste, ketchup, pasta sauce, and pizza sauce.

63. Dig into your community calendar.

Most communities have a ton of free events, although you may not know about them at the time. If you want to stay abreast of everything going on nearby, check out your town’s website or stop by the local library or city hall and ask how you can get ahold of a listing of upcoming community events.

You can often get free meals, free entertainment, and free stuff just by paying attention – even better, you’ll get in touch with what’s going on around you.

64. Take public transportation.

If the city’s transit system is available near you, take it to work instead of driving your car. It’s far cheaper and you won’t have to worry about the added expense or hassle of parking your vehicle either.

When I lived in a larger city, I bought an annual transit pass that actually paid for itself after less than two months of use compared to using an automobile. After that, for 10 months, I basically could ride to work (and to some events) for free. That’s money in the bank.

65. Cut your own hair.

This may not be a popular idea, but it works if you have a simple hairstyle. I cut my own hair with apair of clippers, for example. It may seem like an impossible feat, but it really isn’t that hard to learn how. Just put a garbage bag over the bathroom sink, bust out the clippers and scissors, and get it done. Two or three cuts will pay for the clippers, and then you’re basically getting free haircuts. With a bit of practice, you can make it look good, too.

66. Carpool.

If you live near anyone you work with, you might both be able to benefit by carpooling to work. Or perhaps your spouse works nearby — if so, consider whether it would make sense to take one car back and forth each day. Doing so could save money and wear and tear on both of your vehicles.

67. Design your ‘debt snowball.’

Everyone needs a plan to help them get out of debt, so sit down and plot out which debts you’re going to pay off and in what order. Simply having a plan goes a long way toward putting that plan into action, and paying off debts early is one of the surest ways to put money in your pocket over the long run.

68. Get a crock pot.

A crock pot or slow cooker is perhaps the best deal on earth for reducing cooking costs in a busy family. You can just dump in your ingredients before work, put it on simmer, and dinner is done when you get home.

There are countless recipes out there for all variety of foods, and every time you cook this way, you’re saving money compared to eating out. Crock pot meals are also notoriously good as leftovers, which can mean additional savings.

69. Do some basic home and auto maintenance on a regular schedule.

Instead of waiting until something breaks to deal with it, develop a monthly maintenance schedule where you go around your home (and your car) and perform a bit of maintenance where it’s needed. This little activity, taking you just an hour or two a month, will keep things from breaking down and help you catch problems before they become disasters. Maintaining your home can also keep it in better shape and improve the value of your property over time.

70. Buy staples in bulk.

With items we use a lot of, we buy them in bulk, and that’s particularly true when it comes to items that don’t perish. For example, we buy trash bags, laundry detergent, and diapers in the largest packages we can find. This cuts down on their cost per usage by quite a bit and, over the long haul, adds up to significant savings.

Buy generic products, and buy them in bulk — especially if they’re non-perishable. Photo: bnilsen

71. Pack food for road trips.

Whenever you’re ready to hit the road, take some time to pack snacks and meals you can easily eat on the go. That way, instead of stopping in the middle of the trip, driving around looking for a place to eat, spending a bunch of time there, and then paying a hefty bill, you can just eat on the road or, better yet, stop at a nice park and stretch for a bit. Convenience foods are notoriously expensive, so you’re better off avoiding them whenever possible.

72. Go through your cell phone bill, look for services you don’t use, and ditch them.

There are plenty of strategies to save money on your cell phone bill, and that includes switching from one of the big legacy providers to one of the smaller companies offering service in your area for less. At the very least, you should take a look at your monthly bill and see if you are paying for any services you aren’t using.

73. Consolidate your student loans.

Interest rates are very low right now, so depending on the type of loans you have, it could be worthwhile to consolidate your student loans into one low-rate package.

Look into the various student loan consolidation packages available and see what you might save: Even a 1% reduction on a $10,000 loan saves you $100 a year, and your loan is probably bigger than that (and the rate cut you could get is probably bigger).

74. When buying a car, look only at used models.

It’s hard to argue with the fact that new cars make terrible investments. Not only do they drop in value the moment you drive off the lot, but they continue dropping in value with each year that goes by.

If you want to save as much as possible on transportation, look only at used cars in relatively good condition. If you focus on cars that are only a few years old, you may also be able to find one within its warranty period.

75. Hit the library – hard.

Don’t look at a library as just a place to borrow books. Look at it as a free place to do all sorts of things. I’ve used it to learn a foreign language, meet people, use the Internet in a pinch, check out movies and CDs, grab local free newspapers, and keep up on community events. Best of all, it doesn’t cost a dime.

76. Use a simple razor to shave.

I’ve been a big advocate of the basic safety razor for a long time, but that’s just one piece of the puzzle. For “normal” shaves, I just shave in the shower and dry off the blade afterwards — using just soap for lather is also incredibly cheap since I only swap blades once every few weeks.

The real moral of the story? Use a simple razor — not an expensive electric one that stops working in three years, or the newest swiveling multi-blade model with its expensive replacement cartridges — and shave your face when it’s wet. You can get a very good shave with some practice and save a lot of money over the long haul.

77. Find daily inspiration for making intelligent moves.

I’m usually inspired by my children. Perhaps you’re inspired to make changes by your spouse – or even by someone in the community you respect. Maybe it’s just a personal goal, like an early retirement.

Find something that makes you want to make positive changes, then use that person or thing as a constant reminder. Keep a picture of it in your wallet, in your vehicle, and on your bathroom mirror. Keep it in your mind as much as you possibly can.

78. Learn about all of the benefits your company offers.

Spend some time with an HR person at work learning about all the benefits of your job – you might be surprised at what you find.

After sitting down with someone at my job, I gained access to free tickets to sporting events, free personal improvement opportunities, and an optional employee match on some retirement funds that maximized the money I was socking away. This not only cut down on my own spending on things like sporting and community events and educational classes, but also improved my retirement plan.

79. Make your own cleaning supplies instead of buying them.

I like to make my own laundry detergent and my own Goo-Be-Gone, for starters. I also like making my own Glade, Windex, and Soft Scrub. In all these cases, it’s way cheaper than buying the commercial versions.

Hunt around for recipes – it’s amazing how many things you can make at home in just a few minutes to save a ton of money compared to the commercial version. Our Frugal Spring Cleaning Checklist can give you some ideas.

80. Suggest cheap activities when meeting up with family and friends.

This is often a tricky thing to do, but there are a number of techniques you can try. My favorite one is to be the first one to suggest something – that often gives you the power to steer the group towards things that are cheaper. If you can convince your friends to go to the park and shoot hoops instead of going golfing, for example, those greens fees are going to stay in your pocket.

81. Don’t speed.

Not only is speeding inefficient in terms of gasoline usage, it also can get you pulled over and cost you a bundle between a ticket and higher insurance premiums, as I discovered a while back. It’s far more cost-efficient to just drive the speed limit, keep that gas in the tank, and keep the cops off your tail.

82. Read more.

Reading is one of the cheapest – and most beneficial – hobbies around. Most towns have a library available to the public – just go there and check out some books that interest you. Then, spend some of your free time in a cozy place in your house, reading away.

You’ll learn something new, improve your reading ability, enjoy yourself, and not have to spend a dime. Here are some more ways to get into the reading flow.

83. Buy a smaller house.

There are plenty of reasons to buy less house than you can afford. I currently live in a 2,000-square-foot house with my wife and two kids. Frankly, it’s just the right size for us – if anything, it’s a little big.

We often find ourselves in the same room in the house, just surrounded by empty space. You don’t need a giant place to live. Instead, buy something more modest and you’ll find yourself with plenty of room – and still plenty of cash in your pocket.

84. Drive a different route to work.

This is an especially powerful tip if you find yourself “automatically” stopping for something on the way into work or the way home. Get rid of that constant drain by selecting a different route that doesn’t go by the temptation, even if the new route is a bit longer. You’ll still save time by not stopping, and the money you save on any unnecessary indulgences you avoid will add up over time.

85. Always ask for fees to be waived.

Any time you sign up for a service of any kind and there are sign-up fees, ask for them to be waived. Sometimes (but not always), they will be – and you save money just by being forthright about not wanting to pay excessive fees. I did this with my last cell phone sign-up and got them to wave the fees, lowering my bill significantly.

86. Don’t overspend on hygiene products.

Most people would probably find that inexpensive hygiene products work just as well as the expensive stuff. Personally, I just buy whichever toothpaste is the cheapest, and the same goes with deodorant and the like. The key is to use this stuff regularly and consistently – bathe daily, keep yourself clean, and you’ll be just fine. No need to buy a $40 facial scrub if you actually scrub your face properly.

87. Eat less meat.

Meat is very expensive when you consider its nutritional value, especially as compared to vegetables and fruits. And in almost every case, protein-packed staples like beans offer a much better value. Even if you don’t want to become a full-fledged vegetarian, you can still save a bundle just by eating meat less often.

88. Use a brutally effective coupon strategy.

To save as much money as possible, use the coupons in conjunction with your grocery store flyer and shopping list. Doing so can help you save double – both through the initial sale savings and through the use of the coupon. This strategy also helps you avoid purchasing items you don’t really need just because you have a coupon or discount.

89. Air seal your home.

Most homes have some air leaks that make the job of keeping it cool in summer and warm in winter that much harder – and that much more costly for you. Spend an afternoon air sealing your home and keep your energy dollars from leaking out. The DoE has a great guide on basic air sealing.

90. Make your own beer or wine.

If you enjoy an occasional drink, this is a great way to enjoy some of your favorite beverages at a steep discount. You can easily make five gallons of beer or wine at once and it doesn’t take that long once you’ve mastered the process. Even better, it’s a great activity to do with friends – youbuy the equipment, they bring the juice, and you both get a few bottles of delicious homemade wine out of the deal. Some nice entertainment, plus some free beverages – that’s a great frugal deal.

91. Make sure all your electrical devices are on a surge protector.

This is especially true of your entertainment center and your computer equipment. A power surge can damage these electronics very easily, so spend the money for a basic surge protector and keep your equipment plugged into such a device. To save even more, unplug anything you aren’t using frequently to avoid phantom energy use.

92. Get on the automatic repayment plan for any student loans you have.

Many student loans offer a small rate reduction if you sign up for their automatic debt repayment plan. This way, not only do you save a few bucks a month — you don’t have to go to the effort of actually paying the bill either. Our automatic plan saved us about $60 a year.

93. Cut down on your vacation spending.

Instead of going on a big, extravagant trip, pack up the car and see some of the sights in your surrounding area. One of the best vacations I’ve ever taken was when my son was an infant – we just packed up the car and drove around Minnesota, eventually camping for a few days along the north shore of Lake Superior. For a weeklong relaxing vacation, it was incredibly cheap and quite memorable, too. Another strategy is to look into travel rewards credit cards for ways to earn free hotel stays and airfare.

94. Cancel the cable or satellite channels you don’t watch.

Many people with cable services often are paying for a premium package that they don’t really need. For the longest time, my wife and I were subscribed to HBO, Starz, and Cinemax, yet we would only tune in once a month at best. We argued that it was worth it because we could watch a movie or a great drama whenever we wanted, but it would have been far cheaper just to rent a movie. Get rid of the channels you don’t need and put that cash back in your pocket.

95. Exercise more.

Go for a walk or a jog each evening, practice stretching, or partake in some light muscle exercise at home. These exercises can be done at home for free, but can lead to huge benefits to your health. Just set aside some time each day to get some exercise, and your body and wallet will thank you.

96. Utilize online bill pay with your bank.

This serves two purposes. First, it keeps you in much closer contact with your money, as you can keep a very close eye on your balance and be that much less likely to overdraft.

Second, it saves you money on stamps and paper checks by allowing you to just fill in an online form, click submit, and have your bill paid. Try it out – and take advantage of it if you’re not already. Some of the best free online checking accounts offer this perk.

97. Connect your entertainment center and/or computer setup to a true smart power strip.

A device like a SmartStrip can cut power to all devices on the strip once a control device is turned off to reduce phantom power drains. So, if you have your workstation hooked up to this, every time you power down your computer, your monitor powers down, your printer powers down, your scanner powers down, and so on.

You can do the same thing with your entertainment console: When you turn off the television, the cable/satellite box also goes off, as does the video game console, the VCR, the DVD player, and so on. This can save you a lot of electricity and significantly trim your power bill.

98. Don’t beat yourself up when you make a mistake.

Even if you make 10 good choices, it’s easy to beat yourself up and feel like a failure over one bad choice. If you make a big mistake and realize it, think about why you realized it now instead of then, and try to apply that later on. The memory of that mistake can end up being very valuable, indeed.

99. Always keep looking ahead.

Don’t let the mistakes of your past drag you down into more mistakes. Instead, look ahead to the future. Learn to see past mistakes for what they are – lessons that were meant to teach you something.

Sometimes the best life lessons are learned through life experience, good or bad, so embrace your past and don’t run from it. Promising to do better and setting goals can help keep mistakes where they belong – in the past.

100. Never give up.

Whenever the struggle against debt feels like it’s too much, go read a personal finance blog and remember that there are a lot of people out there fighting the same fight. Read around through the archives and learn some new things – and perhaps get inspired to keep going, no matter what.

14 comments:

Savvy7 April 2016 at 04:36
How to Save Money on Groceries
12 December 2014

As South Africans, we’re used to hearing about how our national savings rate is disappointing and our debt dependency continues to climb. However, it’s only until you tackle your own budget, and begin to actively manage your personal finances, that you realise just how much you could be saving.
For example, food is one of life’s necessities but that doesn’t mean there isn’t room to curb how much this eats into your wallet. Here are 7 tips on how to cut down on these expenses.
1. Budget and Plan.
Always know exactly what your grocery budget is and what you need to spend in order to maintain your household. Never go shopping on a whim, always take a list and stick to it. Make it a game to try and come in under budget at the end of each month by tracking how much you’re managing to save. There are several dynamic budgeting templates available through Microsoft Excel alone, click here for a free download.
2. Every Little Bit Counts.
Put in the effort to price compare, saving a few rand by switching a brand for the same-quality product at a cheaper cost, or even the same brand at another shop at a lower price, could really add up in a year. When you’re reworking your budget try to aim towards shaving 10% off your current spend to put away each month, this will accumulate over time to an impressive amount.
3. Don’t Fall for Buy-2-Get-3 Deals.
Or at least not without working out the unit costs and assessing what the true saving being offered is. Also if it’s applied to perishable produce then it’s usually a sign the items are about to expire. Only purchase in this case if you are confident that you can use everything up in good time.
4. Get to Know the Neighbourhood.
For some of your grocery items, like frozen produce or toiletries, you can save by buying in bulk for the month – or even a few months. By planning visits to a local wholesale outlet, rather than paying convenience store or supermarket prices, you’ll quickly see the difference in your monthly grocery expenditure. In the case of meat, find the local butchery and compare the prices for bulk purchases that you can freeze and use over time.
5. Build a Savings Calendar.
Find a way of tracking which products are cheaper at certain times of the year in your area. A calendar that you can put up on the fridge or wall and record this on is ideal. You can capitalise on these “sales cycles” once you’re aware of them, and tailor your meal plans around the in-season prices. Also, pay attention to flyers and adverts regarding local restaurant specials. You can cash in on seasonal deals like two-for-one dinner specials in winter and even get a few frugal nights off from cooking groceries.
6. Get Out That Green Thumb.
Whether you have an expansive garden, or live in a tiny apartment, you can grow your own herbs and salad leaves rather than paying supermarket prices. Read this extensive guide on growing your own cooking herbs from special care tips to planting step-by-steps.
7. Use Online Resources.
Meal planning is one of the best ways to avoid overspending on impulse groceries or expensive fast-food purchases. There are lots of websites that provide great recipes and nutritious meal suggestions that you can use to plan your meals and shopping lists. Making savings a priority is essential to modern success. You can easily boost the income you are able to put away by being disciplined and strategic about your grocery spending. It may seem like hard work in the beginning but it soon becomes second nature.
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Savvy7 April 2016 at 04:39
Breaking into the property market is never plain sailing. Especially with the outrageous prices of homes nowadays, it is very important that when you decide to buy, you buy good.
Now while there are countless books, websites and companies dedicated to helping you choose and finance your dream home, we have listed three, quick tips that will make the process easier – and save you some money along the way.
1. Buy in an area you like
Location, location, location. The mantra that has been passed down from generation to generation and the slogan that echoes every estate agent. It’s true; you have to buy a house in an area that you can see yourself living in, at least for a few years.
With the property market today, very little people can afford to sell and move over and over. Transfer costs are ridiculously expensive – especially in South Africa – so you have to factor in those costs when buying.
Many people have made the mistake of underestimating the transfer costs and have ended up losing a ton of money. Don’t be one of them.
2. Check your credit rating
Most people would need a mortgage when buying a house – especially if you’re a first time buyer.
This is why it is essential to keep up to date with your credit rating. Remember, if you’re credit rating is good, you’ll be much more successful in asking your bank for money.
Also, try and clear up any ‘big debt’ before you buy a house. It’s an incredibly big investment to make, so make sure you don’t owe too much on other stuff.
If you notice any errors on your credit rating, be sure to amend them before knocking on your bank manager’s door.
3. Buy a house you can *really* afford
While we all have visions and aspirations for our dream home, sometimes it’s better to settle for value for money.
Thoroughly check out the house you are interested in. Will it need a lot of work? Does the space relate to the price? Is it a good area (read: point number 1) that will increase the resale value? There are many things to consider.
Also, keep the Golden Rule in mind: buy housing that runs roughly two-and-a-half times your annual salary. This is a great way to properly manage your mortgage payments – you don’t want to be in debt for the rest of your life.
Buying a house is as scary as it is exciting. Just remember to take your time and consider all your options. And hopefully these three tips can save you some extra cash.
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Savvy7 April 2016 at 04:58
Save your loose change. Putting aside fifty cents a day over the course of a year will allow you to save nearly 40% of a $500 emergency fund.
Keep track of your spending. At least once a month, use credit card, checking, and other records to review what you've purchased. Then, ask yourself if it makes sense to reallocate some of this spending to an emergency savings account.
Never purchase expensive items on impulse. Think over each expensive purchase for at least 24 hours. Acting on this principle will mean you have far fewer regrets about impulse purchases, and far more money for emergency savings.
Use debit and credit cards prudently. To minimize interest charges, try to limit credit card purchases to those you can pay off in full at the end of the month. If you use a debit card, don't rely on an overdraft feature to spend money you don't have. With either approach, you'll have more money available for emergency savings.
Are you looking for an effective way to establish a budget? Beginning on the first day of a new month, get a receipt for everything you purchase. Stack and review receipts at the end of the month, and you will clearly be able to see where your money is going.
It pays to practice preventative dental care, since a good cleaning routine helps prevent fillings, root canals, and dental crowns, which are expensive and no fun.
Most people don’t track what they spend and may not realize when expenses add up to more than their budget can handle. To keep track of what you spend, put what you think you should spend for the month on transportation, food, entertainment, etc., into envelopes. This will help you avoid buying things you don’t need, and what’s left over can go into saving.
Take advantage of discounts and/or incentive programs provided through your employer. For example, if the company you work for offers discounted rates for computers, fitness center memberships, movie tickets and passes to summer festivals, take advantage! Check your corporate intranet or talk to your human resources representative. And don’t forget the best deal of all – investing in your 401(k)!
One way to establish a savings discipline is to “save” an amount equal to whatever is spent on nonessential indulgences. Put a matching amount in a cookie jar for expenditures for beer, wine, cigarettes, designer coffee, etc. If you can’t afford to save the matching amount, you can’t afford the $4 super almond low-fat latte.
Take the amount the item costs and divide it into your hourly wage. If it’s a $50 pair of shoes and you make $10 an hour, ask yourself, are those shoes really worth five long hours of work? It helps keep things in perspective.
Aim for short-term savings goals, such as setting aside $20 a week or month rather than long term savings goals, such as $200 over a year. People save more successfully when they keep the short-term goal in sight.
Save money by buying items online, in bulk. Some companies even offer free shipping on large orders. Clearance items are sometimes available, and good savings can be found on non-perishable groceries and diapers. This saves time and money!
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Savvy7 April 2016 at 04:59
Food
Substitute coffee for expensive coffee drinks. The $2 a day you could well save by buying a coffee rather than a cappuccino or latte would allow you, over the course of a year, to completely fund a $500 emergency fund.
Bring lunch to work. If buying lunch at work costs $5, but making lunch at home costs only $2.50, then in a year, you could afford to create a $500 emergency fund and still have money left over.
Eat out one fewer time each month. If it costs you $25 to eat out, but only $5 to eat in, then the $20 you save each month allows you to almost completely fund a $500 emergency savings account.
Shop for food with a list and stick to it. People who do food shopping with a list, and buy little else, spend much less money than those who decide what to buy when they get to the food market. The annual savings could easily be hundreds of dollars.
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Savvy7 April 2016 at 05:01
Prescription and Over-the-Counter Drugs
Ask your physician to consider prescribing generic drugs. Generic drugs can cost several hundred dollars less to purchase annually than brand-name drugs.
Find the lowest-cost place to purchase prescription drugs. Make sure to check out not only your local pharmacist but also local supermarkets, area discount centers, and mail-order pharmacies.
Purchase storebrand over-the-counter medications. Storebrand medications often cost 20-40 percent less than nationally advertised brands. The savings could easily exceed $100 a year.
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Savvy7 April 2016 at 05:02
Banking
Avoid bouncing checks or overdraft fees each month. The $20-30 you save by not bouncing a check each month would save you enough money to nearly fully fund a $500 emergency savings account.
Reduce credit card debt by $1,000. That $1,000 debt reduction will probably save you $150-200 a year, and much more if you're paying penalty rates of 20-30%.
Make your monthly credit card payment on time. The $30-35 you save by not being charged a late fee each month on one card would save you most of the money you need for $500 in emergency savings
Use only the ATMs of your bank or credit union. Using the ATM of another financial institution once a week could well cost you $3 a withdrawal, or more than $150 over the course of a year.
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Savvy7 April 2016 at 05:03
Insurance
Shop around for auto and homeowners' insurance: Before renewing your existing policies each year, check out the rates of competing companies (see the website of your state insurance department). Their annual premiums may well be several hundred dollars lower.
Raise the deductibles on auto and homeowners' insurance: Being willing to pay $500-1,000 on a claim, rather than only $100-250, can reduce annual premiums by as much as several hundred dollars.
Assess your need for life insurance coverage. If your children are now on their own, or if your spouse works, you may not need as much life insurance protection. The annual premiums on a term life policy would typically fully fund an emergency savings account
Consider dropping credit insurance coverage on installment loans. Many consumers don't need credit insurance because they have sufficient assets to protect themselves in the event of death, disability, or unemployment. Terminating this coverage often reduces financing costs by three percentage points, a savings of about $1,000 on a four-year $20,000 installment loan.
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Savvy7 April 2016 at 05:03
Transportation
Keep your car engine tuned and its tires inflated to their proper pressure. Doing both can save you up to $100 a year in gas.
Shop around for gas. Comparing prices at different stations and using the lowest-octane (recommended by the car owner's manual) can save you hundreds of dollars a year.
When driving, avoid fast start-ups and stops. Over time, you will save hundreds of dollars on lower gas and maintenance costs.
Take fewer cab rides. Using public transit instead of cabs can save you $5-10 per trip or more. If you're a frequent cab user, the savings could complete ly fund your emergency savings account.
Check all airlines for cheap fares. Since no website lists all discount carriers, also check out the websites of discount carriers like Southwest and Jet Blue, possibly saving you hundreds of dollars.
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Savvy7 April 2016 at 05:04
Housing
Don't pay for space you don't need. Americans have relatively large houses and apartments. Think about more efficiently using space so you can purchase or rent less square footage.
Live relatively near your workplace. While this isn't always possible, driving 5,000 miles less a year can lower transportation costs by more than $1,000.
Refinance your mortgage to lower interest charges. Consider refinancing your mortgage to lower the rate and term. On a 15-year $100,000 fixed-rate mortgage, lowering the rate from 7% to 6.5% can save you more than $5,000 in interest charges over the life of the loan. For each $100,000 you borrow at a 7% rate, you will pay over $75,000 less in interest on a 15-year than a 30-year fixed rate mortgage. And, you will accumulate home equity more rapidly, thus increasing your ability to cover large emergency expenditures.
Choose home repair contractors wisely. Favor contractors who have successfully performed work for people you know. Insist on a written, fixed-price bid. Don't make full payment until satisfactory completion of the work.
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Savvy7 April 2016 at 05:04
Home Heating and Cooling
Ask your local electric or gas utility for a free or low-cost home energy audit. The audit may reveal inexpensive ways to reduce home heating and cooling costs by hundreds of dollars a year. Keep in mind that a payback period of less than three years, or even five years, usually will save you lots of money in the long-term.
Weatherproof your home. Caulk holes and cracks that let warm air escape in the winter and cold air escape in the summer. Your local hardware store has materials, and quite possibly useful advice, about inexpensively stopping unwanted heat or cooling loss.
Use window coverings to block or let in sunshine. In summer, use these coverings to block sunlight, keeping your house cool. In winter, open the coverings to let sunshine warm the house. You could easily save more than $100 annually while being more comfortable.
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Savvy7 April 2016 at 05:04
Clothing
Look for sales at discount outlets. There are huge price differences between clothing on sale at discount stores and that sold regularly at many department and specialty stores, though keep in mind that prices at the latter are often deeply discounted.
Consider purchasing previously-used clothes from Good Will, second-hand stores, or school or church thrift sales. With a little effort, you can find low-priced, high-quality used clothing items that can be worn for many years.
Assess clothing in terms of quality as well as price. An inexpensive shirt or coat is a poor bargain if it wears out in less than a year. Consider fabric, stitching, washability, and other quality related factors in your selection of clothes.
Clean clothes inexpensively. Wash and iron clothes yourself. If you use a cleaner, compare prices at different establishments. A 50 cent difference in cleaning a shirt, for example, can add up to $100 a year.
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Savvy7 April 2016 at 05:05
Communications
Assess your communications costs. As Internet and wireless use grows, many consumers are overpaying for unneeded communications capacity. For example, if you have a cell phone and two phone lines -- one for your computer -- consider receiving personal calls on your cell phone so you can give up one of the phone lines.
Communicate by e-mail rather than by phone. If you're on-line, e-mail communications are virtually free. Even for subscribers, landline and wireless calls often carry per-minute charges.
Be aware of your cell phone costs and how to reduce them. Cell phone use has dramatically increased communications expenditures in many households. Understand peak calling periods, area coverage, roaming, and termination charges. Make sure your calling plan matches the pattern of calls you typically make.
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Savvy7 April 2016 at 05:05
Entertainment
Research free or inexpensive entertainment in your community. Use local newspapers and websites to learn about free or low-cost parks, museums, film showings, sports events, and other places which you and your family would enjoy.
Give up premium cable channels or better yet, cable all together. It's a lot cheaper to rent one film a week than watch one on premium cable channels that may cost more than $500 a year.
Borrow books rather than purchasing them. Borrowing books and reading magazines at your local library, rather than purchasing reading material, can save you hundreds of dollars a year.
Attend high school rather than college or pro sports events. High school sports events rarely cost more than $5 and are often free, with hot dogs and sodas typically costing $1-2. College and pro football and basketball games rarely cost less than $20, and their concessions are usually several times more expensive.
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Savvy7 April 2016 at 05:06
Family and Friends
Plan gift-giving well in advance. That will give you time to decide on the most thoughtful gifts, which usually are not the most expensive ones. And if these gifts are products that must be purchased, you will have the opportunity to look for sales.
In families, discuss limits on spending for gifts. These limits not only tend to reduce expenditures; they also be greatly appreciated by the least affluent family members.
Socialize at pot-luck meals rather than at restaurants. Because one wants to be generous to friends and family, there may be huge cost savings here.
Consider writing letters instead of making frequent phone calls. Thoughtful letters are usually far more highly valued than phone conversations, and they are often saved by recipients for future reading.
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