The 10 Most-Hated Money Saving Tips
It's too bad because many of these ideas can save people a bundle of money. We're not talking a dollar here and a dollar there, but thousands of dollars in savings (and some even offer tens of thousands of dollars in savings.) And yet, people don't want to hear them.
But since I'm a glutton for punishment, I thought I'd highlight what I see as the 10 most-hated money saving tips. I'll list them all in countdown fashion according to how much they are hated. I'll give a brief summary of each of them as well as some links to related posts in case you'd like more information.
With that said, here we go:
10. Be healthy -- Let's face it, people don't like being told they are fat and lazy. I think that's at the core of the disdain for a healthy lifestyle. But despite the pans this suggestion gets, there's no debating that being healthy can easily save you thousands of dollars on items like medical expenses and life insurance. Even something simple like losing some weight can add up to big savings. Or you can sit on the couch watching TV every night eating bon bons. You decide what's best for you.
9. Move to a foreign country (or even visit for health care) -- How dare I even suggest this idea? It's unpatriotic, would require extensive travel to see family, and, after all, the United States is the "best" in everything, so why move? Let's take these objections in reverse order.
First, here's a news flash: the United States is NOT the best in everything (such as health care, lifestyle, culture, weather, etc.) I know, some of this is subjective, but come on, does anyone really believe the U.S. is the best in everything? Second, living in Central America may actually require LESS travel to see family than if you lived somewhere else in the U.S. Example: You live in New York and your family lives in LA. You move to Mexico. Are you closer to them now? Besides, once you have to get on a plane, any trip is not that much longer away even if you live farther. Finally, I'm not suggesting you renounce your citizenship. What I'm saying is that you can still love the U.S. (as I do) and live somewhere else. Sheesh! Lighten up.
The fact is that the cost of living is significantly lower in other parts of the world and you can save a ton of money by moving overseas. Of course this brings up the "what do I do for a living" question, so this idea works best for retirees. Some money saving countries to explore: Mexico, Nicaragua, and Panama.
As far as health care goes, you can easily save thousands having a major medical procedure done in a foreign country. Concerned that the care isn't as good as in the U.S.? It isn't. In many cases it's better.
8. Quit smoking -- Ok, I expected the smoking addicts to hate this one. They, of course, decry the fact that I'm trying to steal all the fun from their lives. But I didn't expect the outcry from another group: those who invest in companies who make cigarettes. Ha!
I think everyone will agree that smoking is bad for your health. And, as we know by now, having poor health is bad for your wallet (re-read item #10 in case you've forgotten this already.) In addition, you can save somewhere around $6,000 a year by quitting smoking (maybe less, maybe more.) Heck, by just not buying cigarettes it's easy to save a bundle.
For you smokers, find a cheaper, better way to enjoy life. And for those of you buying cigarette stocks, do something better (and easier) and go with index funds.
See? Now everyone is happy! ;-)
7. Buying used -- Let's list the things people hate about buying used: 1) it's not new; 2) someone else has used it; 3) did I mention it's not new?
Really, is owning something brand new really worth that much more? I think most of us have generally accepted that a good-condition used car is less expensive than a new car, but we haven't made the transition to other areas of products. But if we do, buying used can save a bundle. And yet, people don't really like this idea -- especially when it comes to buying used clothing.
6. Buy a house you can afford -- This one used to get a lot more heat than it does now. Then the subprime mortgage mess hit and detractors have been silent lately. Funny how good advice seems to always win out in the long run, huh?
Anyway, buying a house you can easily afford is a key part of my formula for buying a house. Avoid this suggestion and it can cost you big time as many people are unfortunately finding out now.
5. Cutting your cable -- It's a known fact that the U.S. Declaration of Independence states that all men are entitled to life, liberty and the pursuit of happiness through watching endless re-runs of "dog police" and "the world's wackiest whatever" sorts of shows. Who cares that it's rotting your brain and costing you a fortune?
You can save thousands by cutting cable TV -- maybe even $1 million. And if you can't cut it completely, at least take steps to save as much as you can on cable costs.
4. Taking your lunch to work -- Who knew there were so many advantages of blowing $10 a day on lunch out? You get out of the office (which gets you exercise and allows your mind to freshen), you get to socialize with others (which can enhance your career), and you get to have fun!
I've got an idea, why don't you bring your lunch to work, saving a bundle of money, then get a group of people from the office to run at noon. Then you get exercise, socialization, a fresh mind, and fun. Or, if you simply want to walk with friends you could do that too. Not to mention, you wouldn't have to find a place to shower afterwards. And you can save a few thousand dollars a year. Not bad.
3. Limiting small spending -- Personal finance guru David Bach came up with the "latte factor," the idea that you could save a bundle of money if you limited the small, worthless purchases you make every day -- like $5 lattes for example. But no one likes this idea. It takes all the fun out of life and besides, we all need to focus on the big amounts we spend, that's where you can save the really big money.
Yes, while it's true that we all need to watch our big money expenditures, it's also true that before you have millions, you need thousands. And before you get to thousands, you need hundreds. And before you need hundreds, you need tens. And so on. Ok, enough with the philosophical junk, what I'm really trying to say is that pennies can add up to millions. Live with it for Pete's sake!
And finally, while it may be fun to pour $5 down your throat for 15 minutes a day, I prefer to have more fun checking my ever-growing net worth. ;-)
2. Not buying a pet -- If cable TV is the #2 right of every American, having a pet has to be #1. And shame on me for suggesting that pets actually cost money. What am I, some sort of neo-fascist?
Ok, I didn't help my cause out any when I claimed a pet costs $48,000. I was doing that to get your attention. I've since done a bunch of posts on what pets really do cost and it seems to me that $1,000 per year is a fair, rough cost for a pet. And just for the record, I'm not the only one suggesting pets are expensive -- Money Central says getting a pet can be a stupid money move.
That said, I'm also open minded enough to consider the alternatives -- that pets might actually SAVE you money, make you happy (who said money couldn't buy happiness?), help you become healthier, extend your life and even allow you to buy love. Ok, maybe the dog people are wearing me down.
Still, I'm still horrified by the possibility of having a problem dog that needs to wear diapers.
1. Moving to a lower cost-of-living city -- This one really puzzles me. Not only is it that people don't like this idea, but they REALLY don't like it. As in "you're the stupidest financial blogger ever" sort of don't like it. But what do I care? I still have my day job. ;-)
It must be the fact that, in general, people love where they live. They like the area of the country, their job, and the fact that they have family nearby.
However, if you move from a high cost-of-living city to a lower cost-of-living city, you can literally save MILLIONS over the course of your lifetime. And yes, that accounts for the fact that you'll probably make less money in the new city. But your living expenses will drop so much more that you'll be way better off financially. I know -- you don't want to hear that. I'll shut up now.
Let me end by saying that I'm not against spending money. I'm not about saving every single penny, eliminating any fun in life, just to accumulate more. But what I am saying is that there are a number of good savings ideas that will allow us to save money -- so we can invest a bit more and spend the rest on things we enjoy. And even with ideas we may hate, there are some really good ways to save money if we simply take time to consider them a bit.
Source : Free Money Finance
Downsizing Your Friends
Recession calls for a tightened budget, and friends are expensive
By Penelope Trunk • Bankrate.com
When I was a teenager, my mom threw me out of the house. Maybe 20 times. I would ride my bike to my grandma's house and my grandma would put her arm around me and say, "Relationships are dynamic." At the time, I could comprehend this advice only in the context of the most popular boy dumping the most popular girl so I could have my chance. But now that I have half my grandmother's years and a mother who I get along with, I understand the concept of ever-changing relationships.
Here's another thing that's true about relationships: Money affects them all. Sometimes it's obvious and sometimes it's insidious, but money's always there beside the kiss-kiss-hello. For example, you can bet that if I couldn't afford to live in my own house, my mom and I would still be screaming at each other.
For the unemployed, getting through this recession will require a new, tightened budget. And since money is involved in all relationships, budgets impact all relationships. But don't worry, relationships are dynamic, and they were bound to change anyway, so a recession reassessment just speeds things along.
Friends are expensive. Most friends do meals. And meals cost money. You could invite a friend to go running with you, but sooner or later you'll want to talk face to face. You could invite a friend to watch TV at your house, but that'd better be a pretty good friend or else it'll look like you 're making a pass. So before you budget for friends, any friend who you were thinking of dumping, now is the time.
Once you've dumped the obvious, other friends will fall in gray areas. These friends must be reprioritized. Whereas interesting and fun used to be at the top, economical and supportive are what you need during your days of unemployment. Here are some examples:
Higher-ups
The friend who was a rung on the ladder. This is the person who makes a lot more money than you but has taken an interest in you -- an interest, which you fantasize, will facilitate some large, very important existence for you and your family down the line. The great thing about this person is he treats you like an equal. This is a great thing until there's a recession. Then it's just a bill for a $90 bottle of wine split in two. The only way to justify adding a line in your budget for a $200 dinner is if you'll get a job from it.
Down-and-outs
The friend who was your poor friend. Now you are your poor friend. So you cannot pay for that friend any more. You have to break it to him early. Don't wait until you've been unemployed three months. The talk is inevitable. Besides, if he's a good friend, you can watch TV at your house. If he's not a good friend, thank goodness you're finding out early before you spend your precious severance pay on him.
Kindred spirits
The friend who complained about her low-paying job. This is what my friend, Beth, said every day of the Internet boom: "You make so much money! What a rip-off! Why did I go to school for so many years to become a psychologist? I'm in an economic ghetto." I bought Beth a new wardrobe when I sold my stock from my first company. Beth wore the pink sweater I bought her when she paid for dinner last week. She said, "I feel so lucky. I have tenure. I'll never be fired." She annoys me that she can buy a new car in a recession. But she moves to the top of my friend list, because she knows what it's like to want more money. She understands my desire for stability, even if she can 't imagine getting it without getting a graduate degree.
Shopaholics
The friend who loves to shop. She's gone. Done. She is poison during unemployment. Don't fall for her bargain hunting, either. You know you should not be buying anything. Anything you wore last year is fine for this year. After all, you are not Linda Evangelista trying to revive a dying fashion career. Remember, one step into the store and you will get that manic, comfort, things-are-my-friends feeling that won't end until you have too many bags to carry. What? You say you don't get that crazy, consumer high when you walk into Barneys? Then why go shopping in the first place?
Homebodies
The friend who never wants to go out. A keeper. This is the friend who will hang out with you while you job hunt. This is the friend who will be so happy on your sofa that she won't mind you whining about how you shouldn't have been the person who got laid off. People like this have a lot of food in their fridge. Eat it. It's free. And this person will think of that as a small price to not have to get up off the sofa to see you.
Kindly kin
The friend who is a family member. Family members know that relationships are dynamic. They understand that when you have a lot of money you can do a lot of fun things that are more fun without family. And when you have no money, family dinners are better than noodle Raman for one.
You need to save money, but you can't be a hermit. After all, if you don't talk to anyone all day, when you get to the job interview you will be too chatty -- like a crazy person just let out of confinement. The trick during unemployment is to keep your friends costs to a minimum, but dish out enough cash to ensure that you still have them. And remember that you always need a few, because like my mom and my grandma, if one tosses you out, you need one to take you in.
Source : Bankrate.com
Money Saving Habits for Recession
Make your own coffee.
During recession, coffee-makers are in the high demand. Think about it. A Starbucks coffee costs anywhere between $1.50 - $5, which means if you get a coffee on your way to work each morning, you spend anywhere between $7.50 to $25 a week or anywhere between $400-$1300 a year. Too much for a morning coffee? You decide.
Learn to turn off the light when you leave a room.
Electrical bill for an average family ranges anywhere between $30 to $300 a month, depending on where you live and how large your place is. So even a 20% reduction in your electrical usage, which is easily attainable, can save an average family anywhere between $70 to $700 a year.
Stop buying bottled water.
In many cities, bottled water is not necessarily cleaner than tap water. Especially if you use filter on your tap water, there is probably no reason to spend so much money each week on bottled water. Still research about the quality of your city's tap water, before taking any action.
Reuse your grocery bags.
Reusing your grocery bags for trash not only saves you money in the long term, but it’s also environmental. An average family spends anywhere between $2 -$5 on trash bags each week (as much $250 a year!).
Consider canceling some of your services.
Go through the list of services you have and think about which is necessary.
Stop using vending machines.
Using vending machines for snack can be very costly. If you really want to have that 10 a.m. or 4 p.m. snack, consider other alternatives such as taking snacks to work.
Buy used vehicles.
Buying a new car in recession probably does not make sense, unless you are financially secure. A new car depreciates immediately after your first drive.
Forget about brands.
If you are a loyal customer to a particular brand, this may be the time to reevaluate you loyalty. If it’s not based on quality or specific features you like in that brand, recession may be a good time to try other, cheaper alternatives.
Find frugal friends.
Friends often influence many of our decisions. Try to avoid hanging out too much with your lavish friends during recession.
Source : Recession Info Center