1. Be Conservation-Minded
Turn of the lights. Throw away less food. Being wasteful over time can accumulate in lost savings. Think of it as improving efficiency. The closer you approach money out = benefits generated the more you save! The apartment I live in is poorly insulated and heating it in the winter time is difficult. On cold nights I turn on an electric oil heater to warm up the room for a half hour before bed and then I turn it off. Taking a hot shower/bath before bed is another good way I like to warm up and avoid having to run my heater.
2. Cut the Cord
The internet has become a utility, but TV? Not so much. It’s no secret that cable TV is expensive. Not to mention the hidden fees like the broadcasting fee for the sporting event you aren’t even tuning into. Nearly everything can be streamed online via Netflix, Youtube, Hulu, Amazon Prime Video, WatchESPN, and many others. Need access to live TV to watch sports or another live event? Try splitting the already discounted Youtube TV ($35 per month) or Hulu TV with family members. Buying a digital Antenna can give you access to local channels and the big players (ABC, NBC, CBS) that host big sporting events like the Superbowl or the NBA Finals.
3. Get a Roommate
Own a home and want help with the mortgage and utility bills? Splitting the costs with someone responsible is not rocket science. For so many people that spend long hours at work and commuting, the short amount of time spent at home not sleeping might be worth sharing with someone else. Renting to a roommate makes more sense than having a nearly vacant house that you pay a mortgage and utilities on.
4. Ditch the car
Cars cost money. Gasoline, insurance, normal wear and tear, and routine maintenance all add up. Not to mention the depreciation from racking up miles (or driving it off the lot), licensing/fees, and major maintenance that you hope you never have to shell out money for. The IRS mileage reimbursement rate in 2016 was 54 cents per mile. So if you’re commute is mileage intensive and costing you valuable time, consider public transportation, carpooling, or relocating closer to work. Many companies will even subsidize public transportation costs. Living 20 miles closer to work could save you an estimated $15,000 per year!
5. Minimize Eating Out
Eating out is expensive. Taxes, expensive drinks and entrees, and the tip (15-20% or more of the total) all add up. Most restaurants charge a 300% markup on the items they serve. This means that any time you spend $15 on an entree, the food only cost $5 to make. That’s how restaurants make their money despite paying waiters, cooks, managers, rent, and the cost of the food. Home cooked meals cost much cheaper especially when cooking for a large family due to economy of scale. Going out to eat should be a rattle treat. Though, Americans aren’t treating it as such. 54% of Americans eat out at least three times a week or more. Consider “brown bagging it” and packing a lunch to work. Eating leftovers can minimize the amount of food thrown away and save money in the process. We can all eat out less and our savings accounts will thank us.
6. Hold on to Things
The buy, buy consumerism might be good for the economy, but not for your pocketbook. There is a lot of junk at there. Buying junk inevitably means it won’t last long. When purchasing things, especially more expensive items, do your research and buy durable, well-reviewed products. Well-made clothes tend to last a while. Hand-me-downs are great if you have kids since they grow faster than they wear out clothes the first time around. Be maintenance minded. Keep things in good condition and you won’t have to buy things as often. Be happy with the things you have and focus on making memories.
7. Buy Generic
Not everything you buy needs to be the best brand. Plenty of things including some medications, canned food items, and other household goods are better off bought generic. Many generic items are manufactured in the same factory as name brand items. Save money, live better, and not just at Walmart.
8. Hit up Thrift Stores – functional
My dad is king at thrift shopping. Specifically at Goodwill and Desert Industries. He found a tennis racquet still in the packaging for $20 and the retail value was $200 brand new. His best thrift shop purchase was a mint condition goose down feather winter sleeping bag from goodwill for $40. The retail value was $600! I have not been as lucky. My best purchases were name brand clothes that fit well and had no stains. A vast majority of stuff donated to Goodwill and other thrift shops is junk. But beneath the layer of junk a diamond in the rough that may be right underneath your nose.