Top 10 Things I Do To Save Money

I just read a post at Family CEO listing 25 things they do to save money. Apparently Frugal for Life has been gathering similar lists from people so I thought I might try it out.

I'm only going to list things that I have consciously added to my repertoire and not behaviors I "was raised with". Unfortunately, I couldn't come up with 25! So here are 10 things I do to save money- or more specifically, to cut costs.


1. Reduce. Just use less of everything- particularly household supplies like detergents and toiletries.

2. Reuse -my stuff. Lose the habit of using disposables. Real towels instead of paper towels, china plates instead of paper plates, reusable containers instead of plastic baggies. This also includes ceasing to think of clothes as disposable.. they do not need to be washed every time you wear them unless they are soiled.

3. Reuse -other people's stuff.

• 3a. Buy books used online. But only after having read them already (borrowed or speed-read at the bookstore) and deciding that they will be referred to often in my personal library. (I do frequent the bookstore to look at new books. Because I read so many books there I do make a point of buying some at full price from them occasionally. I do not have any ethical issues with this though I am sure some people may.)
• 3b. Find a good used clothing store and shop there. There's a Goodwill store in Arlington, VA that I always stop at when I am down in that part of the country a few times a year. This city has plenty of well-off people who donate quality clothes they have never worn. I can go on a crazy shopping spree for $20.
• 3c. Check out craigslist or freecycle.org for used furniture etc.
  

4. Use a price book when grocery shopping.

5. Keep my hair long so I don't have to cut it so often. If I was particularly fashion conscious I might consider learning how to cut my own hair but I don't see that happening any time soon. The long hair idea may not work for most men out there but it's easy to cut your own hair with electric clippers if you keep it short.

6. Find a place to live that is within reasonable commuting distance to work. I live less than 5 miles from work.

7. Live with a roommate and cut down on housing costs. (This depends on being able to find a suitable roommate though)

8. Plan meals and eliminate wasting food because of spoilage.

9. Decide what I am looking for and research numerous options before making a purchase. Step 1: Figure out my real motivation for wanting the item Step 2: Figure out what aspects are not negotiable Step 3: Shop around and see what's available that will meet my needs/desires. I am often surprised at what I have found.

10. I don't watch cable!

Being Organized Can Save You Money

I admit, I enjoy organizing. I like things to look neat and orderly, I put things away and my home is beautiful (to me anyway). But I wasn't always like this. In fact, I was quite a slob. Too much clutter, too much paper, too much stuff, and not enough getting done.

When I first started working, I made very little money. I had to learn to live on a small income really fast. Getting organized, and learning to love it, was one of the best things I did.

Here are some of the ways that being organized saves me money:

No Late Charges $$
I don't lose bills and statements in a pile of mail and forget payments. I never have to pay late charges, overdraft fees, or ATM fees. I know how much money is going into and out of my checking account, and when.

Quick tip on how to handle mail: when you pick up the mail, walk directly to your recycling bin (with a table next to it). Open each piece of mail, tear up junk or useless items and toss them in the bin right away. Save only the one or two sheets needed from your statements or other important mail. With a highlighter mark the due date and put it on your desk for bill-paying day. Don't have an intermediate holding place for all your mail between your mailbox and your desk unless you religiously schedule in time to deal with mail.

No Unnecessary Shopping $$$$
A good storage system saves tons of money by eliminating unnecessary spending. I know a lot of people who simply toss a new purchase into a catch-all closet or drawer because they found it on sale, or it looked good... and then completely forget about it and go out and buy another one.

Quick tip for organizing storage: Use plastic drawers- they are easily stackable yet keep contents easily accessible. If my things aren't easily accessible, I tend to avoid using them. If I have to move two or three items out of the way to get to them, forget it. In your closet, hang up as many of your clothes as you can- this is easier to maintain than folding, and keeps clothes visible. I like having a visual reminder of how many things I have- cuts down on the urge to buy more stuff!

No Wasted Food $$$
Menu planning and using a price book are fantastic ways to slash your grocery budget. Menu planning eliminates impulse buys, unhealthy snack purchases, and wasted food. Maintaining a price book keeps you on track with getting the best prices for your regular purchases. Check out Organized Home for more details on how to make and use a price book.

No Last-Minute Expensive Gifts $$$
This one used to be a killer for me. Rushing out to buy someone a gift at the last minute is a sure0fire way of busting your budget. I now keep a gift box which I stock throughout the year with items I find on sale. If I were a dedicated gift-giver (which I am not), I would probably make a list of all the people I buy gifts for and note down things they would be interested in. then I would keep an eye out for those items and buy them when I found them at a good price. There is a good collection of gift giving tips at The Dollar Stretcher.

No Stressed-Out Urge to Spend $$
I do believe that over-spending is often a mechanism we use to cope with stress, much like over-eating. The problem is, it's a vicious cycle and ends up causing more stress. I also think clutter is an insidious source of stress. Read more about stress and clutter here. So, maintaining an organized home is a very good way to reduce stress and spending.

The Dollar Stretcher has a great set of articles on how to get organized on a budget. Check it out!

Saving on Heating Costs

I've been doing some research to figure out how to bring down my heating costs. See the collection of links at the end of the post for some good ideas.

For those who have read my previous posts, you know by now that I live in a place that gets a decent amount of snow. Even with our unseasonably warm (and whacky) weather this year, this town gets cold. And I don't like being cold.

I recently got on the budget plan with my utility company so I have a consistent payment every month. However, I have been keeping an eye on the details of the bill anyway to compare my usage this year to last. I would ideally like to bring it down, not just to deal with the rising cost of fuel but also to be a little kinder to the environment.

So, what do I already do, and what can I improve?

Programmable Thermostat
Thankfully my house has one... and I know how to use it! I used to keep the temperature at 68+ degrees when I was at home but this year I seem to be managing just fine with 66 degrees in the evenings. Here's my temperature schedule:
5am-8am 68 degrees (I hate getting out of bed into cold air, the warmer the better)
8am- 7pm 59 degrees (this is the time I am at work or running errands etc.)
7pm - 10pm 66 degrees
10pm-5am 62 degrees

Wear Warmer Clothes in the House
You'd think this was a no-brainer. I didn't like doing it because the clothes felt so restrictive. But I got a couple of large roomy sweatshirts that I now love bumming around in. I also started wearing socks around the house. What a difference that made. Can you tell I wasn't raised in a cold climate? The things one learns.

Sealing Windows and Doors
The previous owner left a cute "draft dodger" for the front door. But the back door sure lets a lot of air through. On a particularly windy day I can have quite a bit of snow inside my back door. I need to get proper weather stripping there. Newer windows throughout the house so their weather stripping is pretty good. I just need to make sure they are closed and locked properly.

Hot Water Heater
I can turn down the temperature on my hot water heater. I can also shorten my showers and use cold water in my washing machine.

Furnace
I will make sure to check/replace my filter every 2-3 months.

Insulation
I will add more insulation to my attic.

That's the list I can handle right now. When I feel a little more adventurous I shall tackle a few more of the suggestions that can be found in the following links:

12 Simple Ways to Save Money on Utilities (and the Planet) at Fivecentnickel

Save Money on Heating Costs at About.com

Home heating tips to save fuel and money at Greenerchoices.org

Saving Money on Home Heating at Pioneer Thinking

Eleven Ways We are Going to Save Money on Heating Costs This Winter at Blogging Away Debt

And this huge archive at The Dollar Stretcher

Found Money

I'm usually pretty good about making a budget with my regular income sources and sticking to it but I've never sat down to account for all the little bits of money that happen to come my way from other sources.

Based on my activities over the past few years and some new stuff I have recently begun, here's what I can reasonably expect over the year:

Credit card cash back: $100
(for living expense purchases I would make anyway)

Mypoints: $50
(just for clicking emails, no shopping. I will get this in the form of a gift card to a store I regularly shop at for living expenses)

Inbox Dollars (referral link): $50
(just for clicking emails, no shopping; you can get $5 just for signing up)

Bond Rewards: $100
(online shopping for some of my living expenses- but this money is in the form of US savings bonds that will mature at a later date)

ING savings account interest: $150
(after accounting for taxes and even if I end up spending some of my emergency fund )

Health Insurance Rebate for Gym Membership : $300
I would maintain my gym membership regardless of the rebate, so this really is a bonus.

Property Tax Rebate: $250

That's an extra $1000 over the year. Not too shabby!

Saving on Gas

I am planning a budget of $80/month for my gasoline expenses this year. This will roughly fill up my tank twice. I am going to try to incorporate the following strategies to stretch my gas milage. That should free up a few extra dollars each month that I can put towards extra savings goals, or give me some breathing room as gas prices climb.

1. Check my tire pressure every two weeks
2. Be diligent about car maintenance. I sold my previous car at 207K miles and it would have lasted longer if I had been more careful about certain maintenance tasks.
3. Carpool with my roommate to work at least two days a week (every day will be tricky since our schedules can vary wildly).
4. Pay off the 0% balance transfer debt on my Chase credit card by Jan 31 so I can start accumulating 3% cash-back for gas purchases.
5. Use my Price Chopper grocery store membership card to collect points that will get me a discount at the Sunoco gas station.
6. Compare that discount to local gas prices on sites such as gasbuddy.com
   
7. Be conscientious about planning my errands to minimize miles driven.
8. Eliminate my occasional habit of "driving around" just so I can listen to music loudly and get some vibration going in my body. Maybe I'll get headphones and dance around my room. heh.
   

Things I already do:

1. Live within 5-7 miles of work, the grocery store, major shopping, and the gym- all places that I need to go to regularly.
   

Other strategies that would be great for some, but won't work for me:

1. Replace driving with biking/walking. Even though I live within just 5 miles of places I frequently travel to, I consider the road conditions relatively unsafe and I'd much rather be in my car.
2. Buy a more fuel efficient car. I have a paid-for 7-yr-old Honda CRV. I am not willing to give up all-wheel-drive as long as I live in a part of the country that receives snow for 6-8 months of the year. I am also not willing to give up the easily accessible trunk space of my CRV since I regularly need to transport fairly large items.
   

Looking forward to bringing that $80/month down a bit!