How do I save money?
How can I save money on my day by day costs?
Answers
153 points
ning answered one year ago …
I suggest that you come up with a budget and stick to it.
$$ you have to spend - $$ you usually spend = $$ you should save.
312 points
mjrenn answered one year ago …
ning has certainly put you on the right track.
What you could do is just go about your business-buying all the things you have been buying, paying all the bills that you have been paying for 1 month. During that 1 month you should write down every single cent and where it has gone/what you have spent it on.
Review the month and decide if you have been spending money on what you want or what you need. After the review concentrate on what you need to buy and not what you want to buy. You might be surprised because needs and want are not the same. August 1 will be a good time to begin writing it all down.
Good luck.
781 points
jillybeansisme answered one year ago …
PAY YOURSELF FIRST as though you were billing yourself, beginning with your very next check. Automatic deposit from your paycheck to an account if often offered by employers. It doesn't matter if it is $5/paycheck. Just get started. It will accumulate over time. And then pay all your other bills. You'll find a way. It works!
You can still do the writing down idea. But just get started.
I have the following, which I fund every paycheck (which is allowing me to take the month of August off work to recouperate from surgery without an income):
401K and IRA
Emergency Fund
House Fund (pays property taxes, rennovations, repairs, splurges for the house)
Car Fund (maintenance, insurance, saving towards the next vehicle purchase)
Stuff Fund (presents, vacations, gotta have that splurge item)
Kid Fund (she might want college or a car or whatever when she's old enough)
Stash Fund (what you put in the pillow that nobody knows about for whatever your reason is)
Piggy Banks (to show my daughter the act of saving)
It doesn't matter if I only put $1.00 in each every paycheck as long as something goes into them. Believe me, it becomes a game and you try to put in more and more.
781 points
jillybeansisme answered one year ago …
Additionally, there are plenty of ways to cut down day to day expenses.
Don't order in pizza -- instead buy the 16" UNBAKED pizza, cut it into 6 slices, individually wrap them and freeze them. When you want pizza, simply take out a slice, unwrap it, put it in the oven and 20 minutes later is hot, fresh pizza costing $2 instead of $20.
Don't buy a latte every day -- make it a special treat 1-2X/month.
Install the cfl light bulbs in your most often used fixtures.
Eat before you go grocery shopping -- you won't buy as much -- and write a list and stick to it.
Turn your water heater to a lower setting.
Unplug rarely used appliances.
Bring a lunch to work rather than eating out.
Stop going to convenience stores and plan your shopping day in a circle from your home to stop wasting time .
Buy in bulk and shop the specials for items you need.
Hope these few suggestions are helpful.
119 points
zellic answered 11 months ago …
I agree with jillybeansisme as far as pay yourself first is concerned. I'm a very very por budgeter(?).
I set a reasonable amount to put aside each payday and live off the rest. I don't care about my other expenses. If i spend money like a fool then I don't eat You learn how to economise pretty quick.
I don't put it off until I pay off or down debt because (guess what? you will always owe mony in some form or other.
I have been doing this for the past 28 years. Life is great. I take lots of vacations and pay lots of taxes.
The more you earn the more you. I don't mind.
1902 points
alanj answered 11 months ago …
Only buy what you absolutely need. If it's something that you don't absolutely need but really, really want, wait as long as possible, even several years. Then buy it (especially electronics), you will pay a fraction of the original price.
Don't eat out, or as little as possible. Buy your food at a grocery store and eat at home.
If you can't help yourself and you still have to buy, become a member of a wholesale buyers club (Such as SAMS CLUB or BJ's) if there's one nearby. If you make enough purchases throughout the year the annual membership fee with pay for itself.
For the long term, start some kind of retirement account (401K, IRA ) and put regular deposits into it. And invest in safe investments. Real estate is a good safe investment over the long term. Look into REIT's.
During Summer turn your AC thermostat up a few degrees, but not so hot that you're sweating. During Winter turn the heater thermostat down or off and wear your winter clothing inside your house.
jillybeansisme recommends using cfl light bulbs. These are screw in florescent light bulbs in place of standard screw in light bulbs. DON'T DO IT. They contain toxic mercury vapors. If you break one, you are suppose to place it inside a sealable baggy or container. (How you are suppose to do this without breathing in the vapors I have no idea unless you keep a respirator nearby.) Open the windows in your house and leave the house for at least 30 minutes to several hours. Give it time to completely air out. Take the broken bulb to a hazardous waste facility.
781 points
jillybeansisme answered 11 months ago …
AlanJ-
Yes, the older cfl bulbs were hazardous. According to the news and power company, the new generation bulbs are less hazardous. It was on the news about airing out the house and bagging the glass, etc. I was told they contain mercury, NOT vapors. If you're concerned, use gloves and you should be fine-- and this comes from my daughter's lung specialist who says they aren't a problem. Oh, and those garage lights are probably flourescent too.
If you are concerned, cut your expenses in other ways.
3970 points
EthanR answered 11 months ago …
Jilly's overall answer is the best, although I personally do not like the CFL bulbs. And let me add that you should definitely read the book, "The Automatic Millionaire", by David Bach. I think some of the above answers have their roots in that book. Incidentally, an alternative to cutting back on spending to save money is to figure out how to generate more income. Second job, overtime, starting a P/T business, trying to get better investment results, etc. Good luck.
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dustbusterz answered 11 months ago …
ok you want to save money. first thing is to resolve never (ever) to use credit cards to pay for anything. save the money for that new washer ,don't pay for it with your credit card> send those cards back to the issuer (with a very nicely written letter) saying you don't need credit cards right now , and please close my credit line . Thats your start. next, buy a bike and resolve to ride it to the store each time you go to the store(healthy way to get there) and maybe ride it one or two days a week to work(if your not suburban that is) . this will not only save on gas, but on replacement of tires, oil and other items . nice little savings there when considering the cost of gas alone.
the answers above give plenty of great advice too, like keeping track of spending so you know exactly where your money is going and cut down on those expenses that are not really needed. Cut your own lawn instead of paying someone to cut it for you ,another way to not only save money but get that sunshine which is essential .
with the saved money, go ahead and find a way to create another form of income like investments or starting a small sideline business. works wonders .
427 points
larryat36 answered 11 months ago …
Along with all the great advice in each of the previous answers, I would like to geve a tip that was passed on to me by a wealthy man many years ago. When spending cash always keep your change seperate putting it away each evening. If you make just 4 or five cash purchases a day it is amazing how quickly thos nickles dimes and quarters add into dollars.
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jillybeansisme answered 11 months ago …
I disagree with Dustbusterz about using credit cards. I pay for 98% of everything on my Visa that gives me points which I can then redeem for cash. I pay that card off monthly, so that I do not incur interest. Yes, this costs me a service fee of $1.50/month, but I get more than that in points. The money I redeem each year then goes into savings for the purchase of a big item (such as a new car). It works for me (although I do not pay my mortgage using this card because the mortgage company would charge me $16 to do so).
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