Years ago I was approached by someone who tried to sign me up for a seminar about saving money. I was interested at first but the more he talked about it the more suspicious I became. He didn't seem to want to talk about concrete ways to save money and just wanted to discuss ways of changing my thinking and motivation. Now there is nothing wrong with this approach but I needed real ways to save money. He insisted that this could still help me, so I said ok, give me an example.
He proceeded to tell me a hypothetical situation about me drowning in the ocean and the water is rising over my head. He then asks me, "Now, how hard would you struggle to stop from drowning?" and then added "You should be fighting that hard to save money." I wanted ideas not motivation.
If you need motivation to save money then this article isn't for you. I wanted to come up with real, concrete ways to save money. Ways that will give you real results that you can see if you are willing to spend a bit of time and effort.
When people hear the word frugal most automatically think of "cheap" but there is a big difference. Being frugal is becoming a very wise way of living and with more people trying to save money where they can more ways of saving can be found.
Change Your Bank/Accounts
Many people are loyal to certain banks and are unwilling to change but banks these days are fighting to get your money. Some banks offer programs that pay you some money back every-time you use your debit card or give you loyalty points. Even better than that there are banks that have zero fees for chequeing accounts. PC Financial in Canada and Charles Schwab in the United States are two such banks. Take a look at your monthly fees and add them up and you will be surprised how much they are. Shop around for your bank.
While you are at it, open a savings account. When you get paid transfer a small amount to the savings account right away. You wont notice a small amount and it will force you to budget around the remaining balance.
Cook at Home
Anything you buy at a store or restaurant, in this case will be marked up by a huge amount as long as someone has had to put their hands on it. Nothing raises the cost of a product more than the human labour spent preparing or making it. If you want roasted chicken and french fries just go to the grocery store and buy it at a fraction of the price and cook it yourself.
Learning to cook and not eating out will definitely save you a noticeable amount. If you cant cook, now is a good time to learn. You could also buy a slow cooker or pressure cooker. Both of those appliances are almost fool-proof and the results are amazing.
Become a Smart Shopper
If you can wait, then wait for a sale. Never pay full price for something. This is a good opportunity to try something new at the grocery store. If its vastly reduced then give it a try. Find out which stores will price match others and bring in a flyer for the competitor. This happens more than you think. Better yet if you have a smartphone download a price match app like Flipp. Also, at a grocery store the end-caps will have the best deals.
If you need to buy medication then buy the generic store brand instead of name brand. By law drug companies must all have the same amount of active ingredient regardless of who makes the drug. Don't believe me, check the label. If you want something slightly stronger like codeine, many times you can ask the pharmacist for it and they will sell you a generic brand very cheap.
Analyse Your Monthly Bills
Everyone has monthly bills like cellphone, car insurance or cable. It doesn't take long to forget about what you are paying for and just except that the money is coming out of your account. When it comes to these bills a lot of money can be saved if you are able to lower them or get rid of them all together. As long as you don't watch live sports then eliminating cable TV is the easiest thing to do. Go with Netflix or Hulu or watch TV shows straight from the internet.
Other things you can do are to ask for a discount or better deal on your cell phone plan. As long as you find a better deal somewhere else and are not on a contract then your cellphone company will give you a better deal to keep you on. Spend some time calling around to different insurance companies to see if you can find a better deal. Insurance companies are used to this and will try and find the best deal for you. If you cant find a better deal look at the coverage you are paying for and decide if your vehicle is worth the coverage. If your old car is only worth around $2000 then consider just having comprehensive or even liability only which is the cheapest option. Collision is the most expensive.
DIY (Do It Yourself)
The potential savings by doing your own car repairs, house repairs, clothing repairs or landscaping can be tremendous. Any licenced trade is going to cost a lot of money, even to just have the person walk through the door. If you have a relatively simple repair then go on the internet and find out how to do it yourself.
There are multiple car repairs that are very easy to do with basic tools. Oil changes, brakes, battery, wheels and tires, engine filters are all simple repairs once you get down to it. Home repairs can all be done yourself on the cheap as long as it doesn't involve the structure of the building. Installing and patching drywall is very common and very easy.
Make a Monthly Budget
Many people don't like the idea of sitting down and tracking and planning their finances. Maybe it reminds you of what you don't have money for but making a budget is very important. Tracking finances will outline what you need each month but it will also show you where your money is going. It can be very surprising when you look at your expenses and bills and see where you can make some savings.
Today it is much easier to budget and track expenses since everything can be done digitally with a smartphone. Download your bank's mobile app and you can see at any time where your money is going. Also, you can download other budgeting apps for your phone that are highly useful. There are tons out there for free but 3 good ones are Mint, PocketGuard and Mvelopes.
Buy Used
There is a stigma attached to buying used items but any used item can be bought at a fraction of the cost of the same item brand new. Some things are cheap enough to buy new and there are some things that should be bought new such as underwear. If you are able to find something that you wanted to buy used at half the cost then you can realize big savings. If you are in a jam don't be over prideful and just save the money.
Thrift stores are good places to find cheap items of all kinds. Most of the stuff at thrift stores wont be great quality but good items can still be found. Garage sales are another great source for deals. People are just looking to get rid of stuff and don't really care about getting a lot of money for it. The other avenue for buying stuff on the cheap is using smartphone apps. 5 apps that get you money for your stuff. For Canadians use Varagesale or Kijiji.
Final Words
Learning to be frugal and save money is partly changing the way you think but also having the knowledge and tools to do it. It might take some getting used to and you may fail but if you are facing hard times then you just have to keep trying. If you have patience and discipline you will be able to see the money you are saving and when you see the savings it will motivate you to save more. When facing hard times in your life its ok to swallow your pride and live a leaner life.
No comments:
Post a Comment