Saving money isn’t easy, but it doesn’t have to be impossible either. Some say that you should stick to your budget and “just do it.” However, there are more concrete ways to save. Aside from cost cutting techniques (visit our section on Spending Less for more details), there are also numerous saving techniques. Here are just a few:
Paycheck Math – Most employees are paid on an “every-two-week” basis. So, when figuring your monthly income for your budget, use two of these paychecks, as you usually receive two per month. Doing so allows you to keep that one extra paycheck (derived from the odd number of days in a month) as a sort of “budget-bonus.”
Coupon Mania – Clipping coupons is back! The newspapers offer a great deal of cost-saving coupons, as does the Internet. Simply type in the product name + “coupon” to find coupons for a multitude of products. Not all will offer coupons, but you’d be surprised at how many do.
Go Generic – Just because a box doesn’t have the brand name label on it doesn’t mean it isn’t just as good. Learn to differentiate between which brand-name goods you buy because it is the best of its kind, or just out of habit, because it is what everyone else buys. For food, read the nutrition facts and ingredients on the packaging to see how different the items truly are.
Reduce Unwanted Services – Find replacements for costly monthly cable or internet services that charges you for frills you don’t need. Switch service providers, or downgrade your plan. Don’t use that data feature on your new iPhone? Switch to a minimum data plan.
Rebate Riptide – Rebates may be hard to find during most times of the year, but when you do find them, take advantage. These can often reduce prices by at least 50% when used correctly. Consumer electronics are big items to look for with rebates, especially around the holidays.
Black Friday – Though this is only one day of the year, it is one of the most lucrative for the smart shopper. If you’re willing to get up at the crack of dawn for savings, this is the day to go. Save up all of your “wanted-but-not-immediately-necessary” purchases for Black Friday and the surrounding season, as these days may offer the best deals of the entire year.
Go Fishing! – When making big purchases, negotiations are definitely in order. Cars and houses are great times to sharpen your bargaining skills. When making an offer, never sound too enthusiastic, or the seller will know he has you hooked. Remember that the sticker price (or Manufacturer’s Suggested Retail Price) is always marked up to give the seller a large profit margin – research the invoice price that the dealer actually paid to start your negotiations.
Make it Automatic – Set up your paychecks or income sources to deposit a set amount directly into your retirement savings account, or your educational savings account. This reduces the risk of you “borrowing” from these long term goal accounts to fund current purchases.
Don’t Pay Banking Fees – There are many banks out there that would love to charge you for their services: don’t assume that all banks charge for the same services! The competition is tough enough that there are plenty of banks out there that offer free services. Do your research to find out which fees you absolutely have to pay, and which ones you can get out of.
Rewards Cards – If you must use credit cards, use rewards cards that give you cash back or points for every $1 you spend.
Drive Smart! – Resist the urge to hit the gas when the light turns green, and you just might have a little more green in your pocketbook! Accelerating slowly is proven to save on gas, and save on money.
Eat Right – Cook at home, and eat the leftovers for lunch. This can save hundreds of dollars per month versus dining out.
Energy Efficiency – Use CFL light bulbs: it’s good for the environment, and it’s good for your wallet. Turn off lights and electronics when not using them, and avoid phantom loads, or standby power.
