A couple of semester’s ago I took a Personal Finance class that really taught me a lot and crazy enough how to save money. It is really hard right now being a full-time student but I thought I would write about some interesting ways to save money. It is amazing how the little things truly do add up to more than you would think. One book we had to read was The Automatic Millionaire by David Bach. I had never read a book like this until this class and I ended up loving it. This book has some really great ideas and really taught me that it is hard to make excuses even if you are “broke”. I never really realized how much money we did spend on extra stuff. I always complained of not having any money. It was all the little things that we don’t think about that add up. I encourage you to read this book if you already haven’t. It’s great!
One thing that has stuck with me is the Latte Factor. I am sure several people have already heard of this but this was a first for me. It is based on the idea that all you need to do to finish rich is to look at the small things you spend your money on every day and see whether you can redirect that spending and pay yourself first. Putting aside as little as a few dollars a day for the future rather than spending it on little purchases such as lattes, fast food, cigarettes, and other things that are not a necessity can really make a difference between accumulating wealth and living paycheck to paycheck. So many of us do not even realize how much we actually spend on these little purchases. It is as easy as changing little habits that could change our life.
I found a website that also gave 30 easy ways to save money that I thought I would share: http://www.dumblittleman.com/2008/01/30-easy-ways-to-save-money-and-no-you.html
1. Cook at home often
2. Make your own coffee
3. Brown bag lunch at least a few days a week
4. Make a list before grocery shopping
5. Go grocery shopping while you are in a hurry
6. Watch out for expiration dates on perishable goods
7. Buy in bulk whenever possible
8. Buy generic products whenever possible
9. Use grocery store bags to line trash cans
10. Consolidate and pay off debt as soon as possible
11. Pay your bills on time and avoid late fees
12. Be aware of your bank balance and avoid overdraft fees
13. Avoid ATM fees
14. Avoid credit cards with annual fees
15. Disconnect land line if possible
16. Instead of buying books, rent them from the library
17. If possible, buy a used book if you have to buy one
18. Price check before buying anything expensive
19. Avoid impulse buying
20. Bottle your own water
21. Avoid vending machines
22. Keep your car as long as possible
23. Do regular scheduled maintenance on vehicles
24. Avoid buying a new car
25. Ride your bike or carpool whenever possible
26. If you watch a lot of DVDs, get an online DVD store membership
27. If you enjoy to watch movies at the theater, go before 6:00pm
28. Regulate your electric use
29. Plan vacations ahead of time
30. Keep distance from high-roller friends J
I know many of these are things we all already knew but probably have a hard time sticking by them. I do think every little thing you can do to pinch pennies will help and make for a better future financially.
I think a lot of these would help a person save money. We just went out to dinner at the Japanese Steak House and spent a little over $80, incuding a tip, for three of us. That is a weeks bill of groceries. We also have a timer on our water heater so it doesn't run all day and night, and a timer on our heating and air unit. Our electric bill is still really high sometimes, but to be total electric, I think we are really saving quite a bit.
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