How to Save More and be Stress Free from Worry on Less Money
The key to stress free living when it comes to money....is just save more and spend less!
This coming year is going to be a tough year for most when it comes to finances. But fear not, you can always do things to help you still live on what you have. In fact, someone once said that wealth is really just in direct proportion to how much you earn – how much you spend! So if you can find ways to spend less, then your wealth will actually increase. That’s a good thing nowadays, as we probably don’t “need” many of the things we are spending money on are just not finding the cheaper creative solutions.
Here’s some quick suggestions:
- Enjoy more free (or cheap) things – check with local schools and community centers for musical concerts, plays or otherwise), go to the park, go hiking in the mountains, play frisbee at the beach. Plenty to do out there if you look hard enough and know what you are wanting to do. Even free movies online (see below under “cancel your cable”).
- Eat out less – I think this is pretty obvious to most people. If you are eating out alot, you are spending alot of money. If you want to go out, try looking for coupons as most places have advertisements out there. Or just eat in more with friends and family and enjoy the lost art of cooking and the social aspect that comes with it.
- Save gas and examine your driving habits - do you really “need” to be doing as much as you do? Are you making trips for one thing here and there? Try shopping less and make a list, so you don’t have to go back later in the week. Get all your errands done on one day if you can. Or better yet, just walk or bike more to local places.
- Cut your own hair – I’ve been doing this since I got out of college (and there was no college barber doing cuts for $4). It may take a little practice, and yes you may mess up a few times but pretty soon you may be skilled at cutting your hair with some adjustable clippers. Or you could always have a friend/spouse cut it for you as well.
- Don’t buy clothes that need dry cleaning - alot of people spend a ton of money on the maintenance of things around them, and clothes are included. Try getting more daily wear that doesn’t cost you a fortune to clean.
- Buy in bulk (food, supplies, etc) – This is especially true for meats, or other deals that you can store/freeze and keep for a long time. Shop the stores when they are clearing out on meat about to go bad (which can be up to 1/2 off) and then freeze it.
- Eat less – I know, sounds too simple right? Well the great thing about not “trying” to eat 6x a day (as we all know now that is not doing anything for the metabolism….right?) is that you aren’t wasting money on bars, shakes or other foods. You can eat big and healthy meals less often and still save money. Heck, it makes the $8 lunch special at the local buffet a bargain when I consider how much meat I can eat there. Who knows, intermittent fasting (IF) may just be able to save you some money afterall!
- Use simple cleaning methods - like lemon and water, or baking soda and water…you don’t need a special cleaner for everything in the house. I’m no expert here but I am sure you can surf the web and find a simple cleaning solution for most everything (including using WD40 to get out stains).
- Use generic (no-name) brands - soap, toothpaste, shampoo, detergent…bet you won’t notice the difference.
- Buy used - on everything you can….remember when you get it from someone else it is stil “new to you”! Use the local papers, hit garage sales, the internet, craigs list, ebay…lots of places.
- Don’t buy the latest and greatest - While we can all get sucked in by cool advertising and wanting to impress our friends, sometimes we just dont need all the bells and whistles. Take for example electronics, do you need the top of the line computer of this year….or is the top of the line computer from 2 years ago still good enough to do the job? How about TVs? Stereos? Cameras? Remember, whatever you buy now will not be the greatest in a year. So ask yourself, are you wanting to spend money all the time just to impress others….or will a model that used to be the newest be good enough?
- Use the library -for books, magazines, music, DVDs. All the same info, at zero the cost…unless you get late fees.
- Have a neighborhood garage sale (sell off your crap, maybe even find some hidden gems at your neighbors house…worst case you break even and have some new stuff that interests you)
- Cancel your cable - You don’t need TV that much and 800 channels. You can use the rabbit ears (or new digital rabbit ears…which is a high def signal for free, minus the cost of the $40 box). Or watch all your shows for free online at places like Hulu or Fancast (like having TiVo for free on most all shows, plus each network has their own online shows). You can also cancel your Blockbuster account and watch some movies online…for free too!
- Stop feeling deprived – like you need more stuff because someone else has it or you are just bored….go do something more with your life than collect items to put in a closet. Appreciate what you already have…or get rid of it.
- Stop caring what people think – It’s amazing how much money you can save if you aren’t buying big and expensive things just to impress others. If you really like a sports car, and want it for your own personal enjoyment (and don’t go into serious debt in the process) then go ahead and buy things you enjoy. Just make sure that you are not doing or having things just to impress others. Just ask yourself before each purchase that “if no one ever knew you had something, would you still buy it?”.
- Surround yourself with like minded people – If you are around people who are dropping 100s a night going out all the time, then chances are you will too. If you are around people who truly enjoy doing less expensive and simple things, then you will save a lot of money. Take a hard look at the people around you and see if they really reflect your own personal values and goals. Sometimes we just have to move on.
- Pay Cash for Everything - credit spending is easy (anyone can spend $1000 without blinking an eye on a credit card), cash hurts to spend….pay in cash all the time and at least you know you are thinking hard about things.
- Most of all, just enjoy the sense of freedom – free from expensive payments, free from caring about what the “Jones” are doing, free to just go for a hike and not the mall, free from the costs of ownership on expensive items (repair, maintenance, storage), free from the financial worries of people struggling every month to pay for everything, free to have months worth of living expenses saved up for any emergency…..be free to enjoy life (including the things you do end up buying) without all the consumer traps around you.
Of course that is just a short list. But in the end, it’s your decision when to spend money. If you want that 50″ plasma TV…then it’s your choice. But do you need the top of the line or does the lowest model really fit the bill….or do you only need a 36″model? There’s usually a big difference between want and need.
Here’s some more gems from some other bloggers and what they have to say on how to save money this year:
Turn off the television. One big way to save money is to watch less television. There are a lot of financial benefits to this: less exposure to guilt-inducing ads, more time to focus on other things in life, less electrical use, and so on. It’s great to unwind in the evening, but seek another hobby to do that.
Master the thirty day rule. Whenever you are considering making an unnecessary purchase, wait thirty days and then ask yourself if you still want that item. Quite often, you’ll find that the urge to buy has passed and you’ll have saved yourself some money by simply waiting. If you want, you can even keep a thirty day list where you write down the item and the day you’ll reconsider it, but I prefer just to keep this one in my head – that way, I often just forget about the unimportant things.
Invite friends over instead of going out. Almost every activity at home is less expensive than going out. Invite some friends over and have a cookout or a potluck meal, then play some cards and have a few drinks. Everyone will have fun, the cost will be low, and the others will likely reciprocate not long afterwards.
Invest in a deep freezer. A deep freezer, after the initial investment, is a great bargain. You can use it to store all sorts of bulk foods, which enables you to pay less per pound of it at the market. Even better, you can store lots of meals prepared in advance, enabling you to just go home and pop something homemade (and cheap) in the oven.
the above are just a few tips from “100 great tips on how to save money” from The Simple Dollar blog.
Lend and borrow. Give books and clothes and toys you don’t need anymore to your friends and family. If you need something, send out an email asking if anyone has it. Chances are, they will give it to you for free if they don’t use it anymore.
Barter. It’s a lost art, but lots of people will take your services or goods instead of money, especially if you are friends or at least know each other. Get into the habit of offering to barter, and you’ll find yourself saving a lot of money. My website design was done through the barter system, so I saved well over $1,000 there, for example.
Find happiness in life, not spending. Many times people buy stuff because they think (subconsciously perhaps) that it will bring them happiness. They just HAVE to have the latest gadget or shoes or cars. It’s so fun! And yet, you buy that stuff, and you are only happy for a day or two at most. Then you just need to buy more. Its a never-ending cycle. Instead, learn to love life. Find joy in nature! In the people around you! In doing something you love! In exercise and meditation! There is so much in life to make us happy, there is no need to find it in spending.
from the article “20 Money Hacks” from Zen Habits.
photo by endlessstudio
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We cut the cable a few years ago, when we reorganized our professional lives in order to avoid using daycare for our daughter. What was at first a cost saving move turned out to be a boon for our time and productivity. We are also much less likely to get sucked into the conspicuous consumption now. We often don’t even know what the latest and shiniest gadget is…
Also, buying food in bulk is a great idea. I bought a freezer this year and then sourced out bison and purchased a quarter carcass. The quality to price ratio is amazing! I have also taken to buying a lot of our veggies frozen. Again, the quality is great for a much lower price.
Thanks for the great ideas.
Cheers,
Adam
Adam – it’s amazing how much time we DO have in our lives….when we eliminate the time wasters. No one needs time management, as you manage something you are lacking in (or have limited resources). We all have enough time….it’s just whether we are using it wisely is another question. That and when you cut yourself off from non-stop advertisments on TV, newspapers, magazines…it’s amazing how much stuff you DON’T need in your life to be happy…as marketers do a good job at making us feel lacking for not having the latest “shiny new” button….especially when the old button works just as good! Of course….doesn’t mean that I may not spend some money once in a while for something I will value and use….everyone loves a new toy once in a while afterall.
Hey, I like the post…very fight clubish. We do feel like we need way to much, and if we could only embrace more of a minimalist lifestyle we would be far happier in general.
oh…and I think you mean DON’T buy name brand…:)
Joel – Opps…..yeah, DONT buy name brand…go generic! Good catch…need to fix that. As for Fight Club….great movie….although have no desire to have a split personality named Tyler and go around punching myself. But here’s some interesting quotes from the movie below. I believe in the simplicity of life for enjoyment….not really getting angry over things not turning out my way, that and without needing to actually lose teeth in the process.
“The things you own end up owning you.”
“It’s only after we’ve lost everything that we’re free to do anything.”
“Advertising has us chasing cars and clothes, working jobs we hate so we can buy sh*t we don’t need. We’re the middle children of history, man. No purpose or place. We have no Great War. No Great Depression. Our Great War’s a spiritual war… our Great Depression is our lives. We’ve all been raised on television to believe that one day we’d all be millionaires, and movie gods, and rock stars. But we won’t. And we’re slowly learning that fact.”
“By the end of the first month, I didn’t miss TV. ”
“I flipped through catalogs and wondered: What kind of dining set defines me as a person?”
“Get out of your apartment. Meet a member of the opposite sex. Stop the excessive shopping. Quit your job. Prove you’re alive. If you don’t claim your humanity you will become a statistic. You have been warned”
Love the Fight Club references…one of my favorite movies. It really puts things in perspective, minus the whole anarchy thing. Great post Mike! In the past year or so, I’ve become much more interested in frugality, selling off the expensive car for one that gets the job done, is paid off, and has cheap insurance/gas. I can now spend the $400/mo I save on car note, insurance, and premium gas on paying down debt and traveling, i.e., making experiences instead of buying things.
Much like Adam, I have a freezer that I keep stocked with bulk meats. I split a 1/4 with a friend…80lbs of grass-fed beef for $320. I bought half a lamb, which was a bit more at $6.50/lb, but it’s pastured lamb and even cooking up a pound of lamb for me and a date with sides and a bottle of wine is significantly cheaper than going to even a mid-priced restaurant. Healthier and at least as tasty as well. I just found the score of the century…a friend hunts and took down a deer for me. I paid the $65 processing fee and ended up with about 30lbs of deer burger, steaks, roasts, and chops.
I took up drums 3 months ago. I have a friend that plays guitar and another that plays bass. Every couple weeks, we’ll gather at my place on a Friday and just jam, have a few drinks, perhaps do a small potluck. It’s a rockin’ good time (no pun intended) and a cheap Friday night.
Cheers
Scott Kustes
Yeah I discovered “the 30 day rule” over the years. Good one, serves me fine.
Also, no-one ever needs a 2500 dollar bike to exercise to lose fat. (or a $ 300,- heart rate monitor) etc. Maybe Ockhams razor has an application here. If a simpler (cheaper) solution exists it’s preferable.
(now if only I good get over this feeling of wasting things when I throw them away)
Wazzup – I take my things I don’t need or use (and not going to sell on Craigslist) to the Goodwill……or you could do the garage sale and just have people take stuff for a dollar. I agree….no one needs an expensive HR monitor to know how to run…..or an expensive bike….but if you enjoy riding that much and want one, it’s your choice to enjoy…..although I would look for a used bike before buying new to still save money.
Over the past year I have become an expert (in my eyes) in the “eat less” and in the “use simple cleaning methods” points.
I am amazed at how little volume I need to eat when I eat truly high quality nourishing food. I have eliminated sugar and processed junk from my grocery bill and the savings are huge! I feel better and I am able to enjoy life so much more now that I am free from the burden of garbage food bogging down my system. I love intermittent fasting!! What a great concept. I fast 17 hours daily, which isn’t that difficult. I don’t eat after supper until noon-ish the next day. It’s an effective, simple tool to health, wealth, and enjoyment…who doesn’t want that!?!
I also clean my house simply. I make my own laundry soap for a small fraction of the cost of typical laundry detergents. (Let me know if you want to know how.) I don’t stress over “normal dirt”. I teach my family how to properly take care of stuff so to minimize messes and they know how to clean up after themselves. I like things tidy and clean, but I don’t bleach the whole kitchen or disinfect every inch of the bathroom daily. Once a week I get the kids together and we clean the house in about 2 hours. We use simple, natural, homemade cleaners. I don’t worry about anybody being poisoned because I don’t buy poisons. Again, this is so freeing. The cost is less, the stress is less, and the joy in life is greater.
I’m also learning the lesson of “enjoy what you have, or get rid of it”. This is proving a little tough, but I’m getting there. After moving to a new home, I realized that we own way too much stuff and that life would be better without a lot of it. I’m very frugal and it is hard to get rid of good stuff. If only I knew who needed my stuff, I wouldn’t mind giving it to them at all. I think we’ll have a garage sale/give-away this spring.
Take good care.
new_me,
how did you make your own laundry soap? That’s something I’ve wanted to experiment with.
My laundry soap recipe:
1/2 cup Borax
1/2 cup Washing Soda
1 finely grated bar of Ivory soap
Mix together by tumbling in a container with a lid.
Use 3 tablespoons per load.
Sometimes I use plain white vinegar in the rinse, but it isn’t necessary.
This recipe is cheap, simple, effective, and safe for the environment and not harsh on your skin. You can add a drop of essential oil in each load if you want a fragrance, but I just like that neutral smell.
I have a front loader machine and this works great in it. I think my last calculation of cost was <5 cents per load. If you watch for sales on Ivory you can get it really cheap. Wal Mart has always had the best prices on the other ingredients.
Good luck and enjoy!!
new_me, thanks for the laundry soap recipe. That’s quite simple to make.
Also, for anyone looking for something to do with their old stuff that they no longer use, check out the Freecycle Network. You can give stuff away that’s more trouble than it’s worth to sell. You can also find other people’s used stuff. I’ve not used it to find things, but have given a few things away using it.
Reuse is an easy and important way to save money.
Cheers
Scott
Don’t dye your hair. What an expensive maintenance regimen, especially if done at a salon. I suppose coloring an home could be a more frugal option, but I consider my gray hairs as “free highlights”.
Another expensive salon routine is fake nails and nail tips. Fake nails need frequent maintenance to stay looking good. It adds up.
Thanks, new_me! that is a great recipe and really affordable. will have to try.
Good article Mike. However, I don’t think credit cards are always bad if you have the right mindset. In fact as long as you are disciplined I think they can help you save a little money. I’m generally good with my money and live within my means. I never need the credit as I have the money in my bank BUT I still buy all my necessities (groceries, fuel etc) on the credit card. Why? Two reasons.
First, as long as the credit card is paid off in full each month (and it always is via an automatic direct debit) I am getting a months free interest on all my outgoings. It’s not a massive amount but I may as well keep the money in my bank for 30 days longer each month and earn a little interest.
Secondly, it’s a cashback card so everytime I use it I get cashback points. Again these are not worth massive amounts of money but if I am going to spend this money on a monthly basis anyway I may aswell earn a little cashback.
Hey Tom, I agree with you. I use an AmEx Blue for monthly purchases, then pay it off. It generates $300-400/year, perhaps an average of 2% discount. Credit isn’t necessarily a bad thing, it’s just something that needs to be watched and treated with respect. Overuse of credit is what has our economy in such bad shape.
Cheers
Scott
Tom – Didn’t mean to imply to cut up all the credit cards (as having one for even just “emergency” purposes is a good idea…..had to pay off a hospital bill couple years back after getting a hockey stick in the eye….got expensive). Anyways, if you can always pay it off…then of course you are being responsible. I do like to pay cash for big purchases or nights out, as it makes me realize and think about if I really need it…or is there another model that will do the job….or do I need to buy the whole bar a round of shots?….well ok maybe not the last one too often, but you know what I mean. The main goal of course is appreciating things we have and purchase, and not just spending for the sake of it.