Some random thoughts about saving $$$$$

[Raven]

A lot of talk lately about mortgage foreclosures and the collapse of the sub-prime lending market and just general talk about how hard it is these days to make ends meet. I have discovered a few things that work for me and would like to pass them on. They may seem pretty simple and self-evident but you'd be surprised how important they can be.

Do a monthly budget! Surprising how many folks don't have a clue about what it really costs them to live. Be sure to include things like taxes and insurance...things you may only pay once or twice a year.

Keep a log of what you spend. Every penny, cash, credit card, debit card, check. Somehow, when you actually write things down you realize what you don't need to buy. Especially keep track of your cash expenditures since that seems to be where the most leakage occurs.

Use one credit card and pay more than the minimum each month. If you can, pay the whole balance each month to avoid the outrageous interest charges. I try to use my credit card for monthly expenses only and I pay off the full balance each month. If I want something extra, I pay cash because, somehow, handing over the $$$ makes the purchase real and immediate and makes me think before I do it.

If you have a substantial credit card debt, put that card away and figure out what you can afford each month to pay down the debt. Paying at least 5% of the balance is a good way to start. The important thing is not to use the card if you can.

Energy use.Watch how you use your car. If you can walk, walk or take public transportation. Be aware that you can live quite well in a house or apartment with the thermostat set at 64 during the day and 60 at night if the heat ($$$) isn't flying out the windows and doors. There are a lot of fairly inexpensive ways to insulate those things these days. Use the new energy efficient light bulbs and turn things off, completely, when not in use.

Cook in quantity and freeze. I have been amazed at how much food I have wasted!

When I first started doing some of this I was looking for big budget savings and I did't find many. What I did find was a lot of little savings that added up. If you end up saving 100$a month, that makes a dent in credit card debt or a big difference in your savings account in a year.



If it's on sale and you buy it when you didn't need it, then, it's not a bargain...you are wasting $$$. I have a friend who is addicted to sales. She may have 10 pairs of slacks but buys the 11th because it is on sale. I say, "wow, you really needed that?" She says "No, but it was on sale".

Anyway, this has worked for me and has given me a feeling of more control over my life.

[underpants]

1. Stop eating

You'll be amazed at how long lemon juice and maple syrup goes

Thanks for the quip earlier :hi:

[Raven]

3. Couldn't resist!

You must be a millionaire by now and skinny too!

[Raven]

2. Just as I posted this, I saw Retro's post

and the problems he/she has won't be solved by any suggestions I've made. In Retro's case I would wonder if the house could be rented and they could move in with friends or relatives for a time until the market comes back. I also wonder about seeing a reputable credit counsellor, taking on another job (I have a friend who delivers newspapers in addition to her full time job and large growing family).

[crim son]

4. I thought the same thing as I was pondering his situation last night.

We may have to rent our house because we are in, if not exactly the same situation, a situation that can lead to disaster if we don't find a way to lessen our mortgage/property/tax/energy payments. Renting is not a bad idea, especially if you can live rent-free somewhere until things stabilize.

[Raven]

5. The housing market will come back

sooner or later, it always does because people need a place to live...it's the timing that can be the killer.

[crim son]

6. That's what we've discovered. We were fine here until the taxes

rose dramatically and heating the house to warm became, literally, untenable. Every penny goes to the house and it's scary to think what would happen if we suffered any further financial setbacks. Like the divorce. hehe.

[KG]

7. self discipline.

a big factor.

i've lived like i'm poor even after i've started making a little money. i refuse to be broke again. it's very liberating. been able to up and quit jobs coz i knew i had plenty to live on til i found another.

[Raven]

10. I'm not great on the self-discipline when it comes to $

but I have noticed a big difference since I've started to keep a list of daily expenditures.

[skygazer]

8. Put money aside - even a little bit

I have a high interest savings account into which I have ten dollars transferred automatically from my checking account every week. It's not much but it's $520 a year and it does add up. I don't really notice the absence of that ten bucks (though I do budget for it) and the money I've put aside has helped me more than once in a pinch.

I also put all my change accumulated throughout the day into a jar. When it's full, I roll it and deposit it in my savings. It's usually a couple of hundred dollars.

You have good suggestions - I've used all of them and agree it's the little things that add up and make a difference.

[idgiehkt]

9. very good advice

:thumbsup:

[youthere]

11. I keep a small running "buffer"in my checking account...

If I write a check for $10.08..I subtract $11.00 from the balance. If I deposit $800.96..I add $800 to the balance. I keep track in the margin of my check register. You'd be surprised how quickly it adds up. I keep a change jar too, and I when I use cash, I never pay with coin. I always use the bills. About every six months I cash in the change jar and take the "extra"money from my checking account and put it into savings. You'd be shocked how quickly it adds up.

[meegbear]

12. I used to do that ...

every ATM withdrawl and check I wrote I added $1 to it. When I switched to online banking, I had over $500 more than my checkbook.

It's gone now, but it was a shocker.
-------------

I also pay with bills only. I separate the pennies from the rest and put them in 2 separate containers. I use it as my vacation spending money. I have 2 jug containers for the silver, which I average about $275 each. I always empty one and keep the other for that drop dead emergency (knock wood has not happened).

[youthere]

13. My grandmother used to "collect" dollar bills...

"K" bills to be specific. You know the serial letter on the federal reserve stamp? If it was stamped K she would put it aside and when she got so many, she'd put that into savings. I asked her once, "Why K bills? Why not G or L or M bills?" to which she replied, "Why not?"

[caty]

14. I replaced all

my light bulbs with the energy saving ones. I have my screen saver on my computer set to turn my monitor off 15 minutes after I stop using it. I also turn my computer off at bedtime. I save about $50 a month just doing those things.
I also make a grocery list and I stick to the list when shopping. I go to a "dollar" store first and get some non-food items there.

[Nicole]

15. Good advice

I do most of that except for the sale item stuff. That's where we differ.

I do buy on sale even if I don't need it at the time & find it saves me a lot of money. I buy staples when they are on sale so I don't have to buy them when they're full price. Having those extras has come in handy several times, they reduced my expenses when funds were low.

[AZBlue]

16. Keeping a log has been an eye-opening experience for me!

I started Jan 1 of this year and IMMEDIATELY saw places I could cut back. It's amazing how fast those lunches at work add up and how many other areas you can make changes - but only if you're aware of them.

[trof]

17. OK, here's what I do.

Everything, I mean EVERYTHING goes on my Discover card.
Even many of our utilities take Discover now.
You'd be surprised at how many of your monthly bills will accept a credit card payment if you just ask.
Homeowner's and auto insurance too.

I do this because I get 1% cash back on every purchase.
So I'm getting a discount on every single thing I buy.
That adds up to around $300 each year for us.
And I pay the entire bill, every month.

And now we're saving 39 cents on every bill we don't have to mail in. We write 2 checks a month now. One to Discover and one for the mortgage. You'd think the mortgage company would accept a credit card payment, but no. And they're a bleeding BANK, fer pete's sake. Wells Fargo.

Pluss, I bank at a credit union which pays a tiny interest rate on my checking account. It's not a lot, but at least I'm getting the float throughout the month by leaving my money in the bank until I pay the Discover bill.

[Wcross]

18. Geez, I had no idea I spent so much on lap dances!!!!!!

Seriously though, many people have NO IDEA where all their money goes.

[LSK]

19. good advice

I keep a spreadsheet of all my monthly bills ever since I have owned my home.

[Random_Australian]

20. Well, I'm down to about 240 a week, rent INCLUDED. :)

(180 per week is rent)

I'm so proud. :) 50 dollars for food and internets, 10 for social activities. And 0 dollars for transport. (I walk).

:D

[Raven]

21. And you're healthier for walking!

:-)