how do YOU save money

[pianistimo]

maybe i do have a few new years 'resolutions.'  i think i want to get organized and also save more money this year.  it might not actually be in savings, but i want to stay solvent.  we have been turning down the heat and wearing warmer clothing, paying bills as on time as we can - so we don't pay extra charges, i color my own hair (not sure if this is really good), attempting to cook more and eat out less, when we eat out - we sometimes either skip alcoholic drink or skip dessert, i like to exercise by walking around the block or bicycling (when weather is good) so exercise is free, and stuff like that. 

what are some more good ideas to save?  must work it down.   

[BoliverAllmon]

when i threw out the budget and asked myself if I really needed those things. I was constantly telling myself that I didn't need things and BAM I had money.

boliver

[pianistimo]

just thought of a few more that i haven't done since last year.  one was closing all the vents to 'unnecessary rooms' so that the main part of the heat goes to main bedrooms and livingrooms.  have thought about coupon clipping - but i found eating more vegetables sometimes cheaper than buying chips or soda on sale with coupons.  of course, there are lots of cleaning products on sale (and now some pretty good natural cleaning products). 

does anyone make their own cleaning products?  i have heard that rubbing sea salt and a sliced lemon over a cutting board cleans it.  window cleaner is just a little ammonia and water, right?  i think i have this huge bottle of ammonia and am thinking of skipping buying glass cleaner.  these things are expensive!  i'm not at the point of making soap yet.  but i have thought about it. 

anyone want to have a party and make cleaning products?  just an idea.

[BoliverAllmon]

you could be like Brad Pitt and make soap from human fat. That would be fun.

[pianistimo]

agreed about need vs. want.  women need to have clean bodies and a clean house for sanity - so skipping on buying shampoo or stuff like that would cause a revolt.  does anyone make their own shampoo?  should we look into the ingredients of stuff?

my dad used to make toothpaste out of soda and salt.  it was kinda gritty though and none of the rest of the family was interested.

maybe on the stuff that you can't compromise - you use less. 

and, maybe with my kids, i can trick them.  like start mixing in generic brands with their favorite sweetie brands.  i often use 1 c. of wheat flour to pancake mixes, brownie mixes, etc. and it makes more - just adding more water to the batter.  i think they taste better, too.

[pianistimo]

very funny about the soap made from fat.  are you implying that there's some to be had around here?  thanks a lot!  and, i thought you were my friend. 

just wait until you have three children.  you'll see what i'm talking about.  the littlest one just says 'oops' and half the milk is gone.  the toilet paper is all rolled out on the floor.  and, the middle daughter thinks that going to the mall has her name on it somewhere.  oh, and my son wants a car.  i am wondering about insurance.  maybe a scooter? 

but, i must not ruminate tonight or i'll become a worrier.  i don't want to go around monitoring toilet paper useage - or, continually adding more to the wash to make sure the load is full (which i already do).  yoohoo, in there ' only TWO sheets of toilet paper.'  hmmm.  how do you make toilet paper? 

i once heard that a fairly large family split the toilet paper in half and rolled it back up so that it made two rolls.  not quite that dedicated yet.

[oksanapianist]

A) Shop at discount stores and only buy sale items
B) Make all of your meals from scratch
C) Keep the heat down as low as you can stand it
D) itemize EVERYTHING on your tax returns if you are running your business in your home
E) Record ALL mileage that has to do with business
F) Visit the library for all of your enjoyment needs (music, movies, books, mags)
G) Shop for gifts throughout the year as you find clearances- I already purchased my christmas cards for next season at $2 a box
H) Seek the advice of a tax preparer or money management advisor for more "business" tips

[pianistimo]

thanks!  keep them coming.  i have to save this year more than last - and i am finally more dedicated to find bargains (and trick my kids) since there are sometimes really good quality things in discount stores.  it just takes time to look.

one thing i found out in california was to take a trip to palm springs once in a while and freqent THEIR thrift stores.  much different than the ones in lancaster. hahahh  and really nice stuff that was maybe not even worn due to size or whatever.

once a year, people ditch large items, too - and (this is really cheap and i can't believe i'm saying this) but i would go around the 'rose bowl' area and once picked up some kids chairs (perfectly good) left on sidewalk for garbage collection.  ok i'll say no more.

[Tash]

when i threw out the budget and asked myself if I really needed those things. I was constantly telling myself that I didn't need things and BAM I had money.

boliver

that's exactly what i started doing when saving up for nz! it was so tempting sometimes, like with earrings, and then i was like DUDE you ave like 70 pairs of earrings you don't need anymore!! and then i got mum to make me lunch for uni (not that that helps you pianistimo...) and cooked my own snacks (cookies, brownies, muffins etc)

get someone else to take half your money and put it somewhere where you can't find it!

[pianistimo]

those are good!  making your own snacks is a great idea.  snacks seem to cost the most at the store.  and, hiding money.  my grandmother used to do that -but then wouldn't find it for years.  guess that does help you save.

i vaguely remember some camping trip where they suggested a dry shampoo of 1/2 cup of cornstarch brushed through hair - but i think that one's too extreme yet. 

someone once said something about unscrewing unnecessary lightbulbs.  suppose that the maintenence guy had a good idea about the dryer,too. he said that often when a dryer is installed - they leave a long hose to vent air outside.  he said, 'you don't need this' and proceeded to cut the hose in half.  i was somewhat shocked - but then he explained - this will save on energy by blowing the air out faster.

[BoliverAllmon]

actually I was thinking of stealing the fat from a plastic surgeon's office.

[arensky]

I spend as little as possible....

[leahcim]

what are some more good ideas to save?  must work it down.   

Make lots of money so you don't need to worry about it.

[pianistimo]

my husband makes good money, it's just that the money doesn't go as far each year.  there is a catch 22 also, where working sometimes requires you to spend on car, gas, lunch money, clothing, and babysitters.  i've decided staying at home and keeping a few hidden hobbies won't add to the tax base much - such as i want to start making quilts and/or pillows and when people come over and say 'oh, i want one'  - i'll barter for housecleaning.  i really need help! 

[allchopin]

Make lots of money so you don't need to worry about it.

I think it is these very people who often need to worry about it most!

[BoliverAllmon]

I think it is these very people who often need to worry about it most!

agreed

[leahcim]

I think it is these very people who often need to worry about it most!

Yeah, right

Oh, ok in part I agree because wealth is generally associated with some employment or a business that takes lots of time, effort and so on and a lot of the wealth isn't money in the bank. Unless it's either inherited or won in the lottery. Even so, I think it's possibly worrying about the same thing in a different way.

But I'd just been reading this https://news.bbc.co.uk/1/hi/magazine/4585026.stm which is basically $1M in real cash, with little effort. In context, probably far less effort than the ideas in this thread to save a few $.

It's not a huge amount [compared with, say, creating paypal or google or even what you are likely to earn going to work every day for x years] but as a lump sum, relative to what most employees earn it is.

I wonder how many more $1M there are [although not in the sense that world+dog are all now creating a site using exactly the same idea as he did]

[pianolearner]

maybe i do have a few new years 'resolutions.'  i think i want to get organized and also save more money this year.  it might not actually be in savings, but i want to stay solvent.  we have been turning down the heat and wearing warmer clothing, paying bills as on time as we can - so we don't pay extra charges, i color my own hair (not sure if this is really good), attempting to cook more and eat out less, when we eat out - we sometimes either skip alcoholic drink or skip dessert, i like to exercise by walking around the block or bicycling (when weather is good) so exercise is free, and stuff like that. 

what are some more good ideas to save?  must work it down.   

pianistimo,

I worked with a man who was close to retirement age. He was very wise, quite wealthy and was only working because he enjoyed what he was doing. We often had conversations about saving and investing and one time he pulled out a little black book and said, "With one of these you will never be poor". Every time he spent money, regardless of the amount (even if it was a penny) he wrote it in his book. He said many people who started doing what he suggested were surprised (and shocked) to see how much they actually spent each week on crisps, chocolate bars, coffee etc. He said none of these people have complained about money since. I use a similar system.

Before you have any hope of saving money you need to know *EXACTLY* where it is going *AND WRITE IT DOWN*.  Even if you think your memory is good, seeing it on paper has a profound effect.

Here are some interesting articles about average people,

https://finance.yahoo.com/columnist/article/millionaire/2058

https://finance.yahoo.com/columnist/article/millionaire/1287

[leahcim]

Here are some interesting articles about average people,

https://finance.yahoo.com/columnist/article/millionaire/2058

https://finance.yahoo.com/columnist/article/millionaire/1287

Yeah, but if you don't spend any money for 42 years what are you worrying about having it in 42 years for?

Ok, we can prioritise expenditure. But when you retire you can pretty much assume that if you've taken a sensible "write everything down" approach you've shunned all frivilous expense to save money for retirement. Your kids are grown, your house is paid for and so on. What do you need the money for? If you're just going to waste it on coffee and pancakes etc you may as well do that now

Let's say in 1964, our 23 yo had saved an equiv %age of their income. Their lump sum today? $25-$100k I'd say.

Not nothing, but it's hardly an amount that triggers the same "wow" response [unless you're in 1964], especially the 5% figure. It seems like a case of telling you a figure that looks a fair, even good amount today using a good interest rate.

[pianistimo]

i like the articles and think that 401 K's ARE good tax shelter, and keeping a black book (latte advice) is excellent, too.

unfortunately, as leahcim pointed out - we have in the past decided immediate gratification would help our kids.  well, it's just sort of spoiled them.  they like to shop and spend.  now i want to teach them to save - but it's harder.  it's a catch 22 because you don't want them embarrassed in school by what they are wearing - but then again - you don't want them getting a mindset that clothing and 'things' are so important.

having a good time together as a family should maybe be planned out.  i once heard or read from some money management mag.  that childrens allowances should be given and then divided in front of the kids.  10% to church or charity  25-30% taxes (used for whole family -govt - to go out to movies, dinner, etc) and so on.  but, now that my son is older and has mowed lawns and gotten paid separately - he stashes the money.  i don't blame him since i was like that too.  paid one day -spend it the next.  he doesn't have a concept of saving yet.

our grandparents maybe were one extreme, our parents less, and our generation and this generation - spend , get into debt, pay off debt, spend, get into debt, pay off debt.  it's a vicious cycle and the pay off gets harder.  MUST SAVE!

probably a combo of the two ideas - work harder, smarter, enjoy your life once in a while (and don't JUST save for the future) but save something.

[pianolearner]

Yeah, but if you don't spend any money for 42 years what are you worrying about having it in 42 years for?

Ok, we can prioritise expenditure. But when you retire you can pretty much assume that if you've taken a sensible "write everything down" approach you've shunned all frivilous expense to save money for retirement. Your kids are grown, your house is paid for and so on. What do you need the money for? If you're just going to waste it on coffee and pancakes etc you may as well do that now

Let's say in 1964, our 23 yo had saved an equiv %age of their income. Their lump sum today? $25-$100k I'd say.

Not nothing, but it's hardly an amount that triggers the same "wow" response [unless you're in 1964], especially the 5% figure. It seems like a case of telling you a figure that looks a fair, even good amount today using a good interest rate.

The little black book was for people who claim they can't afford to save. I agree, if you want to spend money on coffee and pancakes etc you can do that now but don't complain about your financial state, now or in the future 

[Dazzer]

i don't believe in saving anymore. I believe in spending wisely.

if everyone was saving their money for a stormy weather, there would be no money flow. thus businesses will faill. staff will get downsized. then they'd have no income, and save more. and businesses will collapse. more staff will get downsized. massive jobless rate. all because people don't want to spend their money to move the economy. its what we call "RECESSION".

you CAN spend. just spend it on the right things.
however if you have lots of money, all the more you SHOULD spend, to move the economy and send money back to the workers, instead of hogging it all.

my 2 cents, to move the economy.

[Bob]

Have an "Oatmeal Day" and eat nothing but oatmeal.  Cheap and healthy. 



You could take on a few more students if you need money too.


(Bob goes to invest in oatmeal stock.)

[pianistimo]

an oatmeal day.  ok. 

yes.  must call a couple students i had in october before this accident.  am becoming too helpless since it's kind of fun just to let people do everything for you.  must learn to become independent again.  what's really saving is I CAN't DRIVE yet (which is driving me crazy) and am saving on gas every day.

[ted]

Pianistimo:

I have had to do this all my life so it is pretty well second nature now. Mind you, it's easier for me because I can be content with very little. Even as a child I never wanted Christmas or birthday presents and my parents had to more or less force things on me.

I hesitate to advise people in other countries about saving because cost of living relative to average salaries varies a great deal depending on where you are. Nonetheless there are some broad principles which can be applied.

It is surprising to me how many people genuinely have no idea of the state of their funds from one month's end to the next. Therefore the first step is to get all the facts, together with as much history as possible and acquire a really accurate picture of cashflow. It can be done on a yearly, monthly or weekly basis but as most people have one or two large payments with long cycles so, initially at least, the downloading and examining of a complete year's transactions is a good idea. If all income and expenditure goes through one account this is particularly easy using internet banking. You can sort everything in any sequence and total each category of expense.

Classify each type of expense for regularity, size and necessity. For instance, a one-off payment for a new hot water tank is necessary and perfectly in order while a costly gym subscription only used for a couple of hours a week might be cancelled in favour of a second hand exercycle in the basement. Neither is it sensible to ruthlessly cut down minor food and drink luxuries, say a bottle of Bailey’s every two months at $20, while the kids go about in designer label clothes and rent a pile of videos and DVDs at overnight rate every second day for hundreds.

Both my two are, to put it mildly, spendthrifts of the first water, so I have had twenty-six years of ruthlessly brandishing an iron fist to keep the ship from sinking. It’s a good job I’m the sort who doesn’t need very many material acquisitions to be happy. I’m quite proud of having arrived at retirement financially intact without either divorce or rebellion.

I digress. The first step then is to know the truth and the whole truth about income and expenditure. You can’t plan without knowing everything. What I did after that was to work from high to low in amounts per category and rate each according to importance. That is to say, is it a need or just a want ? A mortgage repayment is a need; a new camera is probably a want.

Initially I just aimed to have something, anything, left from monthly salary. As time goes on this should normally become easier. I just stuffed the small surplus into a growing investment account and pretended it didn’t exist, keeping a buffer of cash in another working account. Here again, interest rates vary from country to country, so it is impossible to recommend how to invest savings. I have to say I distrust superannuation plans unless the capital gain is clearly defined and free from risk. It’s no good going without for years only to see savings evaporate because of some stock market crash; better to have small but secure divvies from term investments or mortgage trusts. This is especially true as retirement approaches.

As for the small details, I have tried these at various times:
Buy a second-hand exercycle and cheap weights instead of a costly gym subscription.
Unless your lawn is huge, use a handmower – produces both savings and health.
Cheap casual shoes are just as robust as costly ones with famous labels. This has been investigated in documentaries several times yet people still fork out four times as much as necessary.
Within reason, do as many household jobs as you can yourself rather than getting a tradesman. For example, a couple of rubber plungers ($15) kept on hand can forestall plumbers’ visits at $50 a time. Many painting jobs are good fun and cost a lot less to do yourself. Who cares if it’s amateurish ?
If possible (might not be for you) walk rather than drive as often as you can.
Depending on the phone system where you are, introduce passwords to prevent people from dialling anything you have to pay for.
Make extensive use of public libraries instead of buying books.
Find out the most economical internet payment option for the family as a whole. Children downloading gigabytes of pictures and music is NOT necessary for their education.
Discourage the establishment of any regular pattern of expense which is unnecessary. It is easy to fall into the habit of getting DVDs out EVERY week, going shopping EVERY day, kids buying lollies EVERY day, leaving electrical appliances on EVERY night, recharging cellphones at shorter and shorter intervals. In general, irregular treat = okay, regular treat = not okay (unless clearly budgeted).
Fiddle use of bank accounts and credit cards (if you really must have these latter) to produce the minimum overall total of fees. It isn’t hard to do. Many people don’t even know what their banks are charging them. Be especially wary of direct debits.
Check all bills ruthlessly. Mistakes DO happen. Charges ARE often wrongly made. Accept nothing at face value.

[Tash]

oatmeal day, reminds me of when we once had a $5 day where we were only allowed to spend $5 for the entire day. so we spent the morning at a friend's place watching dvd's, then decided we wanted to go to our local shopping centre, so walked (took like an hr!) and bought lunch for like $4 and went window shopping haha. fun stuff. can't remember how we got home again...

speaking of spending way too much money on food i think i'll restrict the amount of money i keep in my wallet, cos i really do spend too much on food at uni, despite the whole my mum make my lunch thing oops!!

[thalbergmad]

I don't bother saving money anymore coz i is millionaire.

[Siberian Husky]

i become vry stingy with myself..its literally become second nature to say NO to anything i desire without actually fully knowing what it is, how much it is, or where to purchase it..whether it be a food craving or something i saw on TV..its sad..but it works..i dont have much of a social life either..my friday and saturday nights consist of sharing a bag ofbaked potato chips with my doggy on the bed watching old re runs..its the best..i love him



sleepy head