Tip 37: Get enough sleep

Tip 37: Get enough sleep

Getting enough sleep is free, you'll feel better, and be less likely to over-eat or make poor decisions when well-rested.  I try to be in bed 8 hours a night which usually results in about 7.5 or so hours of sleep considering interruptions like my dogs needing to go out.  I like to have it very dark when I sleep, and prefer cooler temperature.  I use a programmable thermostat that automatically turns down the temperature at night in winter.  I use a fan in summer to stay cool and get good sleep.  I think it is easier to get good sleep when you go to bed at the same time and get up at the same time every day.

If you are not getting enough sleep, try to make changes to get enough rest.  This provides a good foundation for increasing your willpower and being able to consistently make good choices to spend less money.

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Tip 38: Eat less

Tip 38: Eat less

Most people are overweight.  If fact, the average American is 23 pounds overweight- that is a lot of extra weight.  Most people can simply eat less- you will save money on food and loose some of that extra weight.  Food is one expense that almost everyone can reduce and it is actually good for you to eat less for almost everyone.  The cost for food to gain 23 extra pounds that most Americans have is about $720.  I know I would rather have 720 extra dollars than 23 extra pounds!  Most people can simply eat less and pocket the money they save by not buying unneeded food.

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Tip 39: Cut down on travel

Tip 39: Cut down on travel

Traveling for meetings is expensive- use technology to save money.  Sometimes meeting face to face cannot be replaced, but routine business can often be conducted effectively through Skype or phone calls.  This can apply to traveling long distances and also to traveling a few miles in town.

Sometimes I call into meetings instead of driving to a different location.  This works well for routine meetings when you already know the people involved.  You can easily add video cameras, but I usually just go with audio and share slides or spreadsheets from my computer at teleconferences.  You can save a lot of time and money if you can find ways to travel less.

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Tip 40: Install a programmable thermostat

Tip 40: Install a programmable thermostat

If you have an older thermostat, you may be able to save a lot on your utility bills by upgrading to a programmable thermostat.  A programmable thermostat allows you to set temperatures for various times of day so you can spend less heating or cooling your house when no one is there.  For example, you can program your thermostat to warm the house up to 68 degrees by 6am, and then turn the temperature down to 60 degrees starting at 8am when no one is home on a week day.  You can turn the thermostat down manually, but it is easy to forget and you waste money heating your house when no one is home.
You can install a programmable thermostat yourself in about an hour with no special tools.  The total cost for the project is around $75 for a nice touch screen programmable thermostat that will last for many years and will pay back many times over in energy savings.

I like it when I can find a way to save money that results in improving my house and making things more convenient for me.  Once I got my programmable thermostat installed, it takes care of turning the temperature up and down for me automatically.  I think of it as a robot that works for me to save money on my utility bills.

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Tip 41: Chew gum instead of eating a snack

Tip 41: Chew gum instead of eating a snack

As we have learned in one of the other tips, most people are overweight, so eating less is usually a good thing.  Chewing gum instead of having a snack is a good way to save money.  A piece of gum costs less than 10 cents and is good for your teeth.  Chewing gum can give you a lift, but without the calories and expense of eating a candy bar or similar unhealthy selection from the vending machine.  I usually go for sugar-free gum- Orbit Sweet Mint is my favorite.

For some reason, my son bought some sugar free bubble gum and decided he doesn’t like it, so it’s bubble gum for me for a few weeks...

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Tip 42: Switch from soda to free water

Tip 42: Switch from soda to free water

Free is hard to beat, especially where beverages are concerned.  You can get a bottle of soda for about $1.50 that is loaded with calories for regular soda or loaded with chemicals for diet soda.  It takes some time to switch from drinking soda- if you are accustomed to drinking soda, then plain water will not taste very good.  If you are used to having caffeine, it will take time to get used to not having as much caffeine.  Start by substituting some of your soda with water and eventually try to have soda only for special occasions.  This is much healthier and will save lots of money too.

If you drink 2 sodas a day at $1.50 each, you'll save $90 per month by switching to water.  Just make sure to switch to free water- bottled water costs about as much as soda and is the same as tap water.  Some popular brands of bottled water are actually bottled from city water supplies- it is literally bottled tap water marked up from less than one cent worth of water.  You can easily bring your own water from home.  I sometimes use an aluminum water bottle and fill it with filtered water from my refrigerator.  You can usually find a place to fill your own water container during the day- for free.

Tap water is so cheap it is virtually free.  The cost of tap water is about 2 cents per 1000 gallons in most places.  All you need to take advantage of free drinks is a refillable bottle.  I have an aluminum bottle that I sometimes use.

You can save some money by drinking bottled water instead of soda.  You can get bottled water in large packs for around 30 cents per bottle, which is a lot cheaper than soda.  Tap water is much cheaper than bottled water if you want to save even more on beverages.

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Tip 43: Cut down on coffee

Tip 43: Cut down on coffee

Even though I was brewing my own coffee, I was drinking about 32 oz each morning.  That is a lot of coffee and a lot of caffeine.  I would carry a 16 oz mug and a thermos with another 16 oz of coffee.  I would stop half way to work to fill my cup on my drive to work.  I remember my doctor’s eyebrows going up when I told him how much coffee I was drinking.

I gradually cut back to 16 oz of coffee a day.  Since coffee has caffeine, changing the amount you consume can cause headaches and other symptoms.  I gradually reduced the amount I was drinking until I could get by on a 16 oz cup.  This reduced my coffee expense from $1.20 per day to 60 cents per day.  If you are buying coffee at a coffee shop, you could save $2 per day by dropping form 2 cups per day to one cup per day.

The “gradually cutting back” part is important if you want to reduce the amount of coffee you are drinking.  I have tried at times to suddenly cut back.  I get headaches and then go back to my usual amount.  What works will for me is gradually cut back on the amount of regular coffee grounds.  You can either just drink less coffee, or use some decaf coffee grounds and reduce the ratio of regular coffee to decaf coffee over time.

Since I have cut back to one 16 oz cup of coffee per day, I get decaf when I want to have a second cup to warm up.  I think this is about the right amount of coffee for me, and I can handle the 60 cents per day cost.

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Tip 44: Pay off high interest credit cards first

Tip 44: Pay off high interest credit cards first

You can save money on interest by paying down credit cards with high interest first.  Some credit cards have interest rates over 20%- these are the ones to pay down first.  Consider a balance transfer to a card with a lower interest rate.  This will help you pay off your debt faster.

Some financial planners recommend a "snowball" approach to pay off credit cards by starting with the cards with the smallest balance first.  When you get a card paid off, you apply its payment amount to the next card.  I think this can work for some people, although you would spend a bit more on interest than if you attacked the cards with highest interest first.  One advantage to paying off the cards with small balances first is that you get rid of a minimum payment every time you pay off a card, which gives you more money to pay down other cards.

I would say that as long as you are paying off credit cards, the order is not that important.  If you have to choose which card to pay off first, choose the one with the highest interest rate.

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Tip 45: Negotiate on hotel rates

Tip 45: Negotiate on hotel rates

I have been able to get a lower price on hotel rates by negotiating.  Here's how it works:  at the front desk, ask for their best rate on a room.  Even if you already have a reservation, ask for their best rate.  If they are trying to fill their rooms, they may offer you a good deal.  If the price they offer is the same as your reservation price, ask if they have discounts for AAA.  If they do offer a better deal than your reservation, they can easily update the price for you.

I have signed up for several hotel points programs.  These programs let me accumulate points on personal and business travel.  I have been able to use points to stay free in some pretty nice places such as downtown Chicago and Washington DC.  If you stay in a hotel, you might as well sign up for the points program and start collecting points.  It doesn't hurt anything and you might end up getting some points you can use for free hotel stays.  I hesitated to sign up at first since I didn't think I would travel enough to get many points, but over time I racked up enough points to get some free stays.

Obviously, the best way to save money on hotels is not to stay in one.  Buy if you are staying in a hotel, you might as well try to get the best deal you can.

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Tip 46: Take advantage of kids eat free nights

Tip 46: Take advantage of kids eat free nights

When I had young kids under 10 years old, I knew a place where kids could eat free almost every night of the week.  Eating out is not the cheapest way to go, but if you are going to eat out with kids, you might as well go somewhere where kids eat free.  This will save you at least $5 per kid at most places.

If you don’t have kids, another idea to save is to carry good coupons.  I had good coupons from a nearby Bennegans, but that restaurant closed.  I carry a pizza coupon in my wallet all the time that is good for $5 off pizza.

The idea is to use information and planning to save money.  If you know where kids eat free on any given night, it makes it easier to save money if you do end up eating out.  If you have some good coupons with you, it makes it easier to save a few dollars that way as well.

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Tip 47: Inexpensive foods that are healthy

Tip 47: Inexpensive foods that are healthy

There are a few foods that are not only really cheap, but are also healthy.  Some great cheap foods are:
* Peanuts
* Bananas
* Rolled Oats
* Popcorn
* Tea

Some slightly more expensive and healthy foods are:
* Chicken
* Oranges
* Broccoli
* Greek Yogurt

Some other cheap foods that are not as good for you include:
* Potatoes
* Eggs
* Bread

Any food you grow in your garden is cheap and good for you.  I think coffee is good for you and it is cheap if you make it at home.  Try to keep cheap, healthy foods in mind when grocery shopping and planning meals.

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Tip 48: Free stuff

Tip 48: Free stuff

You can find all sorts of things for free.  Sometimes people what to get rid of something that is not worth selling, but is too good to just throw away.  I once got a bunch of wheat from a neighbor to feed my sheep.  The wheat was stale and he didn't have a use for it, but my sheep liked it just fine.  It kept them fed for months.  During late summer, you can usually find people who are giving away tomatoes, zucchini, and other garden produce that they have in overabundant amounts.  I once picked up some nice fence panels along the road with a sign that said “Free” on the pile.  My wife spotted a basketball hoop with a sign that said “Free” on it.  We ended up painting it and it looked great installed next to our driveway.

Sometimes you get can get lucky and find free things just walking or driving around.  Something about a sign that says “Free” always gets my attention for at least a moment.  You can check the free section on craigslist or frecycle to find free building materials and odds and end that may be useful.

Free is hard to beat, but can cause clutter.  I don't take free stuff unless I need it.  It is easy to accumulate too much stuff when it is free.

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Tip 49: Buy fewer things, but better quality

Tip 49: Buy fewer things, but better quality

For me, shoes are a good example of where I can benefit from buying fewer items of higher quality.  I normally buy cheap shoes that wear out in a year or so.  Since the shoes are cheaply constructed, they can't really be repaired and get thrown away.  A smarter approach is to spend more buying quality shoes that will last a few years.  I have an old pair of black wing tip dress shoes that probably cost around $100- but I have been wearing them for 25 years.  I recently got a new pair of brown leather shoes that were a lot more than I usually pay.  These were purchased to replace a pair of shoes that I got for $8, but was throwing away because they were falling off my feet.  I tried stuffing crumpled up tissue paper in the toes, but I could not get them to fit right.

Another example of buying something of high quality that lasted a long time is the brown leather coat I bought back in college.  I still wear it today 20 years later.  It is a very warm winter coat and I bought it on clearance one spring for $65.  I have bought cheap coats that have only lasted a couple years before developing large holes or having the zipper fail.

Sometimes the cheapest option is not the best option.  Sometimes spending a little more money can get you something that will last much longer and provide a better value over the life of the product.  Try to balance being cheap with being frugal.

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Tip 50: Avoid expensive clothing brands, especially jeans

Tip 50: Avoid expensive clothing brands, especially jeans

So, a pair of Levis jeans costs about $50, and a cheap pair of jeans costs around $10.  What's the difference?  The answer: $40.  That may be simplifying things a bit, but I don't see much difference between cheap jeans and expensive jeans.  The materials are the same- denim.  The construction is similar.  The main difference is the name on the tag.  I can do without paying extra for that.

Some people get into the perceived value of expensive brands of clothing.  I don't pay much attention to that anymore.  If you really want to get a fancy name brand on your clothes without paying a lot, consider buying used clothes at a consignment shop, second hand store, or Goodwill store.  With used clothes, it is easier to buy name brands since prices are so low.

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Tip 51: When to buy food items at convenience stores

Tip 51: When to buy food items at convenience stores

Some convenience stores sell some items at reasonable prices such as eggs, bread, and potatoes; however many do not.  Milk sells for 50 cents to $1 more per gallon than at a grocery store.  You'll get better prices at a grocery store, plus there are healthier food selections available as well.

Like all rules, there are exceptions.  If you have run out of milk and need some to get the kids off to school, it may be worth the money to pay an extra 50 cents to get it at a nearby convenience instead of driving further to get to a grocery store.  It costs about 20 cents per mile to drive a car in town, so if the grocery store is a few miles further away that the convenience store, you may be better off driving less and paying more in some situations.

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Tip 52: Sell unneeded appliances

Tip 52: Sell unneeded appliances

That extra refrigerator or freezer in the garage uses lots of electricity.  If the electricity goes out or if your appliance fails, you could lose a lot of food.  Plus, you could sell the extra appliance and get some cash.  Depending on the efficiency and size, it can cost $100 to $200 per year to run a refrigerator.  This expense adds up over the years.  Do you really need a refrigerator in your garage?

Some people make good use of a second refrigerator or freezer to stock up on bargain food.  If you do this regularly, it may be worth the expense of running an extra appliance.  Otherwise, consider getting rid of extra appliances to save on your electric bill and gain some space.

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Tip 53: Wait to buy materials for projects

Tip 53: Wait to buy materials for projects

It is easy to buy materials for a project, but often much harder to actually complete the project.  You can end up with lots of materials tying up your money and cluttering your house and garage.  I have definitely had this happen to me at various times.

You can usually take unopened items back to the store and get a refund with no questions asked.  I recently did this with a couple of bathroom exhaust fans that I was just not getting around to installing.  I decided to take them back within the 60 day return policy window.  I’ll buy fans again when I am ready to install them.
The house I recently bought came with all sorts of building material for projects that never got started:  stacks of landscape timbers, rolls of fencing, bags of potting soil, a shelf kit, a water fountain kit, and much more.  I am happy to get these things for free, although I may end up selling a lot of the stuff that I will never get around to using either.

There is a balance between having materials for projects on hand and having too much clutter.  I have a nice collection of nails, screws, and miscellaneous hardware in my garage as well as some lumber and plywood.  This collection certainly takes up some space, but is very handy and saves me trips driving to a building supply store at times.

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Tip 54: Don't go for a test drive unless you want to buy a car

Tip 54: Don't go for a test drive unless you want to buy a car

A good salesperson can sell things to people who do not really need them.  If you are thinking about getting a new car, it is hard to resist over-spending with all of the shiny new cars around.  Salesmen are good at using emotions like fear, greed, and pride to get you to buy something right now.  They may convince you that a car is a special deal and won’t be around long.  The used car they are showing you may be one that a little old lady only drove to church on Sunday.  The salesman will be happy to arrange financing for you and offer you money for your old car as a trade-in.  All you need to do is sign and drive off in your new car.
Unless you are seriously looking to buy a car, avoid car salesmen and especially avoid going on a test drive.  The test drive gives the salesman plenty of time alone with you to convince you to buy that car, or to find out enough about you to make a great sales pitch for a different car.

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Tip 55: Watch out for high pressure sales pitches

Tip 55: Watch out for high pressure sales pitches

Any time you are on the receiving end of a salespitch, there is a risk that you will buy something you don't really need.  I just discussed the risks of going on a test drive with a car salesman.  Salesmen that sell other products are also skilled at making the sale- whether you need the product or not.  An easy way to avoid this is to avoid salesmen!

I recently received a sales pitch in my house from a vacuum cleaner salesman.  You would think in your own home that you would have an advantage over the visiting salesmen, but they have lots of tricks.  A salesman may try to wear you down with a very long sales pitch and keep repeating key sales points over and over.  This can be surprisingly effective, even if you weren't thinking of buying that sort of product before the sales pitch.  Some sales pitches involve a lot of pressure to buy right then- my vacuum cleaner salesman even said that the offer is good only while she was there.

Salesmen will try to remove all of your objections to buying something until you have no excuses left.  First of all, they will have lots of great information and selling points about the product.  You will not be able to make a good argument that there is anything wrong with the product.  The salesman will probably even have some slick product demonstrations to show how great it is.

Next objection- it costs too much.  The salesman will show how his product is a great value compared with other similar products.  The salesman may also roll out a financing package so you can buy the product for a low monthly payment.  So price is not really a problem since anyone can afford a few dollars a month.  My vacuum salesman even offered to give me the vacuum for free if I signed up to sell vacuums.  I think I would have trouble selling expensive vacuums to people who couldn't really afford one.

Once your objections to buying the product are removed, the pressure to buy now is applied.  There may even be a call back to the boss or the home office to get you a special deal that is only good if you buy right now.

If you are aware of some of the tactics that effective salesmen use, you can avoid purchasing something under duress that you didn’t really want to buy.

Note:  I used the term “salesmen” above and in the tip about test drives, but there are also plenty of “saleswomen” who use the same tactics.  I could have used the term “salesperson”, but I thought “salesman” is easier to read.

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Tip 56: Save on insurance with bundle discounts

Tip 56: Save on insurance with bundle discounts

Save on your insurance bill with a package that includes multiple policies from the same insurance company.  I get my home and vehicle insurance from the same insurance company and get a discount.  Plus I like the convenience of having only one insurance agent to deal with for all of my insurance needs.

It is pretty easy to get a quote for insurance.  I have changed insurance companies a couple of times over the years to get the right coverage and the best deal.  I have had a lot of contact with my insurance company this year- I have had two car accidents to report.  Someone rear-ended my wife’s car, and I hit a deer with my car.  This is the first time we have had anything to report on vehicle insurance in about 15 years.

Sometimes hail presents an opportunity to get some money from your insurance company.  I am not advocating insurance fraud.  I am suggesting that you can check your vehicles for legitimate hail damage after a hail event, and also have someone check your roof for hail damage.  I have gotten two roof replacements free for hail damage and have received insurance checks for hail damage on cars as well.  For the best chance of recovering damage, contact the insurance company right away after a hail event and have an adjuster check out the damage.

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