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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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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Tip 57: Don't carry small bills

Tip 57: Don't carry small bills

I like to carry some cash in my wallet for situations where credit cards are not accepted.  I find that carrying larger bills- $20 or bigger- makes it less likely that I will spend the money unless I really need to buy something.  This is a tactic that helps you avoid spending money by making it inconvenient.  Any time you can put a psychological barrier between you and spending money, it can help you keep the money in your wallet.

Small bills are just right for spending on small unnecessary impulse items like soda and unhealthy snack food.  Vending machines often accept $1 and $5 bills, so avoid carrying these.  My favorite bill to carry in my wallet is $20 bills.  Everyone accepts $20 bills, but it is too much of a hassle to break a $20 and get all of those small bills and coins back for change that I won’t do it unless I really need to buy something.

For a long time, I simply did not carry any cash at all.  Then one time I had a tire that was nearly flat and the only nearby place to add air charged a quarter to run the air pump.  I had to go in and ask for a quarter since I did not have any cash with me.  I did not like the feeling of asking for money, so now I always try to keep some cash with me.  Cash could also be handy if the credit card reader at the gas station is not working and I need to buy gas to get home.  I don’t want to risk getting stranded in the event that I am low on gas and the credit card system is out of order.

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Tip 58: Wait 48 hours to buy

Tip 58: Wait 48 hours to buy

Many times when you feel like buying something, simply waiting a couple days can help you make a good decision.  It is so easy to buy something on impulse that it is likely you’ll end up buying something you don't really need.  Try waiting 48 hours on purchases like furniture and appliances.  Maybe you’ll decide you don’t really need new furniture, or maybe you’ll simply change your mind on the style or color after spending some time at home thinking about it.

There are few circumstances where you must buy quickly or the deal goes away.  In most situations, taking some time to think about a spending decision is a good move.  You can take some time to check out prices at other stores and consider other product options carefully.  You can look for coupons or deals on the internet.  You can check opportunities to buy similar used items for much less.  You can check your budget and make sure the potential purchase will be something that you can be happy with.  No matter what the item, if buying it will stretch your budget, you will likely be happier without that item.

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Tip 59: Use a black permanent marker to revive old clothes

Tip 59: Use a black permanent marker to revive old clothes

My wife had a few spots on her favorite black sweater, and was reluctant to wear it out anymore.  The spots may have been from being splashed with a small amount of cleaning chemicals or maybe bleach.

“Just use a black marker to fill in the spots,” I suggested.  At first she thought this was a ridiculous idea, but decided to give it a try.  It was easy to find a black marker- we have some black Sharpies around from marking moving boxes on our recent move.  A black marker may not be a perfect color match, but you can certainly use a black permanent marker to make spots or stains on black clothes blend in and get some more wear out of your black clothes before you decide to replace them.

If you like this tip, you’ll like my tip coming up on duct tape and other cheap repairs...

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Tip 60: Carry your best coupons in your wallet or purse

Tip 60: Carry your best coupons in your wallet or purse

I keep a few good coupons in my wallet all the time, in case I end up at the store and don't have my entire collection of coupons.  I use a small plastic accordion case for my coupons and sometimes carry that into stores with me so I can check all of my coupons as I shop.

I don’t always have my coupon file with me, but I do always have my wallet with me.  I have save money lots of time by having good coupons in my wallet ready to go.  A couple times I have ended up at the store on an unplanned trip and had my coupons at home when I needed them.  When this happens, I weigh the cost of driving home and back to get the coupons and bring them to the store.  It is a lot easier to keep some coupons with me in my wallet to reduce the chances that this will happen.

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Tip 61: Spend more thought and less money on presents

Tip 61: Spend more thought and less money on presents

I suppose buying presents is like driving- everyone thinks they are good at it!  I like to think that I can choose really good presents for people I know that don’t cost that much.  I like to find things that the recipient didn’t know they wanted, but that they really will enjoy.  The success of this approach depends on 1) knowing the person and their interests and 2) knowing what they already have.

Sometimes gift cards are a good option.  Anyone can use a gift card, and no one needs to return a gift card because it is the wrong size or color.  We had a really great realtor working with us on selling our house and buying the next one.  He went the extra mile to work out a deal on a for sale by owner (FSBO) property we wanted to buy.  Most realtors would not have been able to work out such a deal.  We asked his assistant what he would like for a gift.  The right gift was obvious when she suggested it.  Many times when we were house hunting or filling out forms at the realtor’s office, he would be having a Dairy Queen Blizzard for dinner.  It was clear that he really enjoyed Dairy Queen Blizzards.  So we got him a gift card at Dairy Queen and wrote “To the World’s Best Realtor” on the card holder.  He really appreciated this gift and mentioned it several times.  He kept the card holder with our note with his mementos.

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Tip 62: Reduce/avoid knick knacks and collectables

Tip 62: Reduce/avoid knick knacks and collectables

I am still overwhelmed by how much stuff we have.  We are still unpacking and putting away things from our recent move.  It seems like we have collected stuff that has no real use.  We have some coke collectibles, but don’t really display very many of them.  I have a collection of antique glass insulators from utility poles that was fun to collect, but I don’t really have a use for them now.  We have tons and tons of books.  Not literally tons... well maybe literally tons.  We have a lot of books.  I have lots of tools that I have collected- probably more than I can really use.  My wife has lots of fabric and craft stuff as well as some Pink Panther stuff that she has collected.  My kids have a rock collection- that was fun to move.  We have boxes of Star Trek and Star Wars toys stored in our attic and a collection of road signs in our garage.  Once you have collected stuff, sometimes it is hard to decide what to do with it all.

I have really cut down on collecting things that I don’t need.  Collecting stuff takes money and space- and lots of moving boxes when you move.  I have a collection of Santa Christmas ornaments that I still add to and display every year, and if I see a good antique rocket coin bank I would be interested.  Other than those few types of items, I am not looking to collect more things.

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Tip 63: Consider downsizing to reduce expenses

Tip 63: Consider downsizing to reduce expenses

I have moved from a larger, newer house to a smaller, older house to save money on housing expenses.  Most real estate price or rent is based on square footage, so moving to a smaller place can save you money on your mortgage or rent bill every month.  A smaller place also costs less to heat and cool, and property taxes are less as well on a less expensive property.

A couple things to consider when downsizing- you don't want to end up spending a lot more on utilities than you expect if you move to an older house that is less energy efficient.  This can offset a lot of savings.  Also, if you move somewhere further from work and school to find a less expensive place, you could end up spending more on gas for your car and eat into your savings from living in a smaller house.

If you are going through the hassle to downsize, make sure that it will actually save you money!

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Tip 64: DIY projects to save money

Tip 64: DIY projects to save money

Anytime you can do work yourself instead of hiring someone else to do it, you'll save money.  You can get a book about home improvement- check it out free at the library or buy a used book for a couple dollars.  If you can learn to troubleshoot some basic plumbing issues you can save money and resolve problems faster that waiting for someone to come to your house.  Some electrical problems or problems with appliances or HVAC systems can be solved with simple troubleshooting.

Some of the larger projects I have done include installing sinks and faucets, installing a whirlpool bathtub, insulating the crawlspace and attic of my house, building a scaffolding and painting my 2 story house, and installing plumbing hook-ups for a dishwasher.  It is rewarding to be able to sweat copper pipes together and install plumbing that will last a lifetime.  Plastic Pex tubing is becoming popular for plumbing now, but I do not have the tools to work with that.

I once built a chicken coop with an 8 foot ceiling and salvaged windows and doors from Habitat Humanity.  It had a nice poured concrete floor.  This chicken coop was like a small house- my wife said that we could almost live in it.  It didn’t look as nice after it had chickens in it, but it was really fun to build and cost a lot less than buying a pre-built chicken coop.

Doing things yourself saves money and gives you a sense of accomplishment.  Start with a small project and build your skills.

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Tip 65: Shop around for the best deal

Tip 65: Shop around for the best deal

A few months ago, I bought a carpet shampoo vacuum cleaner at Lowes.  It was a Bissell lift-off, and it was marked down according to the sign on the store shelf.  I checked the price on amazon.com and it was the same price at Lowes.  When I got home, I checked ads in my newspaper and found a sale on the same vacuum cleaner at Kohl's.  I also realized that I had a 20% coupon at Kohl's, which would make even more of a price difference.  Finally, I realized that I would get Kohl's cash.  So I returned the vacuum to Lowes, bought the same vacuum at Kohl's and saved $60 plus I got $30 of Kohl's cash to use another day.  The lesson here is to check prices carefully at several places.  Another lesson is that sometimes buying a 35 cent newspaper can pay off.

It seems obvious to shop around for the best price, but sometimes people neglect doing this and miss out on easy savings.  Lots of stores have price-match guarantees, so it is easy to let your guard down and assume that the store has done the work for you to check prices.  As the story about the Bissell shows, this is simply not true.

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Tip 66: Take good care of your teeth

Tip 66: Take good care of your teeth

Taking care of your teeth doesn't cost much compared to the cost of dental work that you’ll need if you don't.  It is a good investment to spend a little money to keep a good toothbrush, toothpaste, and dental floss on hand.  Dental check-ups and routine fillings and other dental work cost money, but if you don’t keep up it will cost even more money if worse problems develop.  If you're lucky, you can use your dental coverage to pay for most of your dental check-ups and cleaning appointments.  Chewing sugar-free gum is also good for your teeth, and helps you avoid eating snacks that may not be good for you.  Drinking tea is also said to be good for your teeth.

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Tip 67: Grow your own food in a vegetable garden

Tip 67: Grow your own food in a vegetable garden

As I remember it, most of what we ate when I was a kid came out of our vegetable garden.  We always had big vegetable gardens, especially after we moved out to the farm.  During the summer and fall we had fresh vegetables all the time.  We had so many that we would sometimes sell vegetables at Farmer’s Markets.  We had hogs and chickens on our farm so we always had fresh meat, too.  My Mom would can and freeze vegetables to save for winter.

A little investment to start a garden in the spring can turn into a lot of vegetables during the summer and fall.  Even a few tomato and zucchini plants can produce a lot if you don't have much space.  Some years, we have had large vegetable gardens and for a few years we had more than one garden.  Lately we have had smaller gardens in raised beds.  Since we moved, I’ll have a chance to start a new garden soon.  Since I no longer have a rototiller, I will probably start small and see what I can do with a small space.

When we lived in town, I saw some house with very small yards that had a few tomato plants in small raised tubs.  Some houses had small raised beds that were like tables with sides on them that were filled with soil.  In just a few square feet, they had some nice looking vegetables growing.  It seems that you can almost always find a space to grow some vegetables and grow some food for almost free.

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Tip 68: How to cut expenses quickly in a financial emergency

Tip 68: How to cut expenses quickly in a financial emergency

What can you do to cut your expenses quickly in a financial emergency?  Maybe you just found out that you lost your job or that you have a big unexpected expense.  What can you do quickly to survive with less cash?

Here are some actions to consider quickly reduce your spending:
* Sell a car
* Cut your newspaper
* Cut cable TV or satellite TV
* Cut internet service (use cell phone data plan instead)
* Cut kid's activities (piano lessons, sports)
* Cancel travel for vacation and family events
* Stop eating out, stop going out to movies
* Sell any expensive toys that you have and are making payments on such as boats, travel trailers, and campers
* If you are renting a storage unit, empty it out and stop paying
* You may be able to arrange to "skip a payment" on some of your credit cards and loans.  You'll still pay the full amount, plus interest, but this will give you some time to get stabilized again.
* Sell unneeded items at a garage sale or take them to a consignment shop to sell
* Take credit cards out of your wallet and go with cash only.  It is psychologically harder to spend cash and you will be painfully aware of how much money is leaving your wallet.
* There are also lots of things you can do to make some money quickly.  I am focusing this book on spending less money, I plan to cover easy ways to make money in a future book.

The strategy to deal with a sudden drop in available cash is to quickly reduce you spending to compensate.  This list should provide some ideas on things that you can move on quickly to reduce your spending to have more money available to deal with basic needs.  Depending on your situation, you may also want to look at finding another job or otherwise increasing your income.

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Tip 69: Carpool to save on vehicle expenses

Tip 69: Carpool to save on vehicle expenses

Years ago, my wife and I had one car between us.  I used a carpool to get to work so she could use the car most days.  A carpool is an inexpensive way to get to work since you are sharing expenses among several people.  Some employers help organize carpools and subsidize some of the costs.

The downside of a carpool is that you have to come and go on someone else's schedule.  A few times I had to leave meetings before they were finished- otherwise I would not have a ride home.  One morning, I started walking the 4 miles from my house to the carpool site at 5am before the sun came up.  I was walking along the road in complete darkness, I was wishing I had thought to bring a flashlight with me.  Driving your own car is certainly more convenient, but it is more expensive as well.

If you are willing to give up some convenience, you can save a lot of money by using a carpool.  If you can avoid owning a car altogether, you can save on the cost of buying the car, insurance, and maintenance expenses.

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Tip 70: Keep your car clean

Tip 70: Keep your car clean

How can you save money by keeping your car clean?  For one thing, avoid buying junk food or fast food to eat in your car when you are driving.  You will save money by not buying junk to bring into your car in the first place.  You can also avoid hauling extra junk in your car- the extra weight cuts your gas mileage and it costs more to drive around with extra stuff.  Take everything out of your car that you don’t need and find a place for it in your garage.  Once you get your car completely cleaned out, it is easier to keep it clean since any junk looks out of place.  Make a habit of taking any garbage or unneeded items out of your car whenever you get out.  It is a lot easier to do a little bit of work each time you get out instead of letting junk accumulate to the point where cleaning out your car becomes a project.

Save money by keeping the outside of your car clean too.  If you keep your car washed, even in wintertime, you can increase the life of the body of your car.  If your car is rusty and looks terrible, you may be tempted to buy a newer car before you really need to replace your car for mechanical reasons.  You can wash your car for almost free at home with a hose and some soap.  Sometimes I use special carwash soap, buy a little laundry soap seems to work fine too.  I try hand wax my cars in the fall and spring to help protect the finish.  I also try to apply touch-up paint to any chips in the paint a couple times a year to try to prevent rust.  Eventually, rust will win the battle, but I try to hold it off as long as possible.

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