Tip 23: Avoid recreational shopping

Tip 23: Avoid recreational shopping

Going shopping or going to the mall to walk around is a family activity that everyone can do together, although the down side is that you will often end up buying things and maybe even going out for dinner.  This can turn out to be very expensive and you can end up with a lot of items you don't really need that will fill your closets and house.

Stores and shopping malls are designed for maximum extraction of money from shoppers.  The more time you spend in stores, the more money you are likely to spend.  I try to stay out of stores unless there is a specific item I am looking to buy.

Try to come up with alternate activities such as visiting a library, museum, park, or doing a project at home together instead of going shopping.  You could even go for a walk around the neighborhood for free with no risk of buying anything.

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Tip 24: Cut small unnecessary purchases

Tip 24: Cut small unnecessary purchases

Cutting small expenses can provide a big opportunity for savings.  It is amazing how fast small purchases can add up- buying coffee, lunch, a new toy for the kids, a music download, etc.
Start by figuring out how much you can save to provide motivation to change your ways.  Keep receipts or keep a notebook and record all of your expenses for a week to get a baseline.  Then work to see what you can eliminate.

The key word to keep in mind is unnecessary.  As I have mentioned, the line between “needs” and “wants” is fuzzy, but some things fall clearly on the “wants” side of the line and can be eliminated without causing any significant consequences.  You may be in the habit of bringing home a toy for your kids when you go shopping- they would be just as happy if you write them a note of play with them.  I am sure a lot of kids would be just as happy eating a sandwich from home with you in the park instead of getting a Happy Meal at McDonalds and bringing home yet another toy that will never be played with.

Many unnecessary purchases are a product of habits- maybe you always get a cup of coffee or a donut when you get gas.  Maybe you like to get a new toy for your pet when you pick up pet food.  Maybe you like to buy a new book or magazine at the bookstore just for fun.  Purchases like this can be enjoyable- which has value, buy you may value the money you could save over time by avoiding these purchases even more.

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Tip 25: Utilize free resources at your library

Tip 25: Utilize free resources at your library

Libraries have tons of resources- and almost everything at a library is free.  Of course, you can check out free books at a library and you can also check out DVD's and CD's.  Going to the library is a good family activity, and everyone can bring something home for free.

I like to spend time at the library- in fact, I wrote parts of this book on my laptop at a local library.  I enjoy the quiet scholarly environment that you find in some libraries.  Something about being in a library makes it easy for me to concentrate and think clearly.  Maybe all of those years studying at the library in college have me trained.

You can check out free books at any library, and some libraries sell used books that they are removing from their collection and donated books that the library does not need.  I have found some interesting paperback books for 25 cents and hardcover books for 50 cents that I bought at the library and took home to keep.

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Tip 26: Free or cheap hobbies

Tip 26: Free or cheap hobbies

Some hobbies require a lot of money for equipment and expenses.  I try to avoid these.  For me, it is hard to enjoy something that costs a lot of money when I have bills to pay.  I look for free or cheap hobbies that I can enjoy and feel good about.  Some of my favorite cheap hobbies include:

* Walking
* Pets: dogs and cats
* Hiking
* Biking
* Blogging
* Writing
* Gardening
* Reading
* Watching free TV
* Repairing things
* Selling things on eBay, on craigslist, at consignment stores

You’ll notice that some of these hobbies actually can make money.  This book is focused on ways to spend less money- in a future book, I plan to explore easy ways to make money.

Take a look at your hobbies and how much you spend on them.  Consider switching to less expensive hobbies- you may find that you enjoy them more since you have to worry about spending less.

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Tip 27: Get an artificial Christmas tree

Tip 27: Get an artificial Christmas tree

For 10 years or so, we would buy a natural Christmas tree every year.  Although it was fun to bring home a fresh tree, it cost about $50 per year depending on the size and quality of the tree.  One year we got a potted live evergreen tree with the roots still attached and planted it in the yard in the spring after using it as a Christmas tree.

A few years ago after my favorite Christmas tree lot closed, I ended up getting an artificial Christmas tree instead of buying a natural Christmas tree each year.  The artificial Christmas tree cost under $100 and we have been using it for over 5 years so far.  This is another example of a small expense that can add up to a lot over years.  I think my parents have been using the same artificial Christmas tree for about 40 years- imagine how much they have saved on Christmas trees over the years.

Artificial trees are more convenient, since you only have to transport it home once, and they don't try out and drop needles like natural Christmas trees.  Also, I never really liked the idea of killing a tree just to use as a decoration.

Another way I keep expenses down during the holiday season is by not having outdoor Christmas lights.  I like to look at Christmas lights, but I am not a big fan of climbing around on a ladder trying to attach lights to my house or trees.  It is much easier to put some lighted decorations in windows that look nice from outside.  You can save a lot of wear and tear plus electricity by skipping outdoor the Christmas lights.

If you buy a natural Christmas tree every year, consider getting an artificial tree instead to save money.  You can even pine scented air freshener if you miss the smell of a natural Christmas tree...

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Tip 28: Plan meals, shop with coupons

Tip 28: Plan meals, shop with coupons

A big money saver at my house is to plan out meals for the week and go grocery shopping to make sure we have all of the ingredients for the meals.  This really cuts down on eating out and helps save money.  Planning meal ideas in advance is important at our house- otherwise no one can agree on what to have for dinner and we end up eating cereal or sometimes ordering pizza or eating out.

Another benefit to planning meals is that you can look at coupons that you have to help select meals based on the good deals at the grocery store.  It is a lot easier to figure out good dinner ideas when you are not tired and hungry at dinner time.

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Tip 29: Drop newspapers and magazines

Tip 29: Drop newspapers and magazines

There is lots of free news and articles available on the internet.  Dropping the daily newspaper was one of my first reactions a few years ago in the economic downturn around 2008.  I like getting a newspaper, but it is not really necessary for me.  I still buy a Saturday newspaper most weekends- I like the coupons, and having newspaper around is handy for starting fires and to use to protect surfaces during painting projects.
I still get a few magazines, many subscriptions work out to about $1 per issue.  Magazine subscriptions were another area that I cut back in 2008.  I had gradually subscribed to more magazines without eliminating any and was receiving more than I actually read every month.  I liked them all, but did not need them all.  There are all kinds of interesting things you can read on the internet free at any time.  Tip #101 has a good suggestion for free reading material that can help replace newspapers or magazines.

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Tip 30: Staycation instead of vacation

Tip 30: Staycation instead of vacation

Vacations can be an inefficient way to make memories.  You spend a lot of time and money moving from one place to another.  When I lived on the farm, we had "work camps".  We would stay in a tent in the yard and worked on projects like building a chicken coop.  If you don't want to stay at home, you can visit local attractions with your family during the day and stay in your own bed at night.  This allows you to skip the time and expense required to travel a great distance and stay in a hotel.

If you do decide to travel for a vacation, you can save money by staying with friends and family instead of staying at hotels.  Camping is also another inexpensive lodging option while traveling.

If you are looking for free lodging, you can sleep in your car.  I have stayed in my car overnight when traveling a few times.  Sleeping in a car can get cold at certain times of the year, and you have to be careful to park in a safe place.  One time I parked in a parking area at a rest stop in Pennsylvania under a streetlight.  There was a guy nearby who was frustrated with his car.  He was hitting his engine with a tool over and over, banging away for what seemed like hours.  I didn’t get much sleep that night since I was keeping an eye on that guy and since the light was too bright.  I thought about driving on, but by that time of night I was too tired to drive.  Another time, I pulled over at a rest stop in New Mexico in December to sleep.  It was quiet and dark there, but after about an hour, I was too cold to sleep- even with my Mexican blanket that I picked up on the trip.  So I kept driving so I could run the heat in the car.

It is easy to spend a lot of money when traveling or on vacation.  See if you can find ways to spend time relaxing with family and making memories that don’t cost so much.

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Tip 31: Stop buying lottery tickets

Tip 31: Stop buying lottery tickets

I still buy a lottery ticket occasionally- it is fun to imagine what I would do if I won.  But I realize that the odds of winning are extremely small.  Some people buy lottery tickets every week.  This is like paying a tax that you don't have to pay.  Considering the odds of winning, and the probability that you would have to share the prize if you win, the actual value of a lottery ticket is less than 50% of the purchase price.  Buying lottery tickets is not a good financial strategy.

Let’s say someone spent $10 per week on lottery tickets for 40 years.  That adds up $20,800 for lottery tickets.  The person may get lucky and win millions of dollars, but the most likely scenario is that our gambler will win some small prizes, perhaps amounting a few thousand dollars over the years.  But if our gambler were to invest $10 per week for 40 years, it would grow to $140,000 getting historical average stock market returns of 8%.  Of course, there are some people who say that investing in the stock market is gambling too, but your chances of making money in the stock market are much, much better than winning the lottery. The 8% historical average stock market return includes the Great Depression and other downturns.  If you can invest for the long term, you have a good chance to grow your money.  Buying lottery tickets has an average return more like negative 50%.

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Tip 32: Stop smoking

Tip 32: Stop smoking

Cigarettes are expensive- over $5 for a pack in most places.  Many people who smoke go through a pack or two a day, so the expense of smoking is like making a car payment.  Everyone knows smoking causes serious health problems.  Cigarettes are one of the few products that will kill you when used according to the directions.  If makes me sad to see young people smoke- they are ruining their health for no good reason.
If you smoke a pack a day and quit smoking, you'll save at least $150 per month just on the cost of cigarettes.  You'll save much more in terms of improved health and quality of life.  If you are a smoker, start with this tip, it will save you the most.

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Tip 33: Take shorter showers

Tip 33: Take shorter showers

Heating water is expensive, you can save money by taking shorter showers.  Some people like to take long hot showers.  I remember in a Civil Air Patrol summer camp as a teenager taking 1 minute showers.  It can be done.  Also use less shampoo, you don't need much to clean your hair.  The chemicals in shampoo are not good for your hair anyway.

The cost to heat water for a 10 minute shower costs about 50 cents.  If you take a shower every day, the energy cost for hot water is about $180 dollars.  If you take 5 minute showers instead, you'll save $90 per year.  If you have a family of four and everyone cuts there 10 minute shower to 5 minutes, you would save $360 per year.  This is not a huge savings, but I like the idea of spending less money and conserving resources whenever I can.  Shorter showers not only save energy, but conserve water as well.

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Tip 34: Find out where your money is going

Tip 34: Find out where your money is going

One way to cut spending is to really understand where your money goes.  There are a few big expenses that are easy to understand- housing, vehicle payments, utility bills, and food.  The opportunity most people have to reduce spending is by working on everything else, so understanding the smaller expenses and how much really goes for food is important.

Doing the work to figure out in detail where your money is going can be a great tool to spend less.  When you look at monthly totals and realize you are wasting hundreds of dollars per month on wasteful spending, you may be motivated to change spending habits and keep this money instead of giving it to others.  This is a motivator for me.  When you spend money, it generally ends up in the hands of people who need it less than I do.  It seems like store owners, company shareholders, bankers and others with lots of money are the ones who end up with most of the money that I spend.  I am happier keeping more of my money myself than having it end up in the hands of people who already have plenty of money.

When you see that you are giving a lot of money away to other people- people who need it less than you- this helps you focus on keeping some for yourself instead.

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Tip 35: Avoid boarding your pets

Tip 35: Avoid boarding your pets

Boarding pets can cost about as much as a hotel room!  See if you can have a friend or someone in your family watch your dog next time you travel instead of boarding your pet or taking fido along on the trip.  You can return the favor by watching their pet sometime.

You can avoid pet boarding by taking your pets with you when you travel.  I have taken dogs along on car trips.  I have had dogs stay on travel trailer camping trips and also at hotels.  You can find hotels that allow dogs.  I have seen dogs on trips at the airport, but have not tried this myself.  Airfare for a pet can run over $100 each way.  This could still be cheaper than boarding, depending on the length of your trip.

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Tip 36: Get multiple estimates for home improvement projects

Tip 36: Get multiple estimates for home improvement projects

It can be difficult and time consuming to get multiple estimates for a home improvement project.  I once got an estimate for roofing my house from a popular roofing company.  When I looked at the estimate, I realized I had no way to know if the estimate was low or high, so I got a couple other estimates.  The low estimate was about $3,000 less and I went with the lower price.  You may not always want to pick the lowest estimate, but it is good to have a few independent estimates for the same work.  If a company is busy, they may give a higher estimate.  You may be able to find a company that is hungry for work and will give a lower estimate.

You can sometimes use one estimate to help negotiate a better deal- explain that you got a lower estimate and give the company you want to deal with a chance to match the lowest estimate you received.
Another benefit of getting multiple estimates is that if provides a "cooling off" period that helps you avoid an impulse decision that you may regret later.  If someone offers to do work, you can always say that you need to get a couple other estimates.  During the time it takes to get the other estimates you have time to think about if the project is necessary and the highest priority for spending your money.  I can remember several occasions where I got estimates for projects and decided not to go forward.  Not doing optional projects is a great way to save money!

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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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