This summer my friends were faced with the prospect of losing their home. A lot of bad financial decisions were made along the way with difficult times in their careers culminating during one hell of a month. It came to light that they could’ve paid for their house years earlier if they had paid more while they were both employed. Now that they have both been out of work for more than a year their decisions are catching up with them and so far only a massive garage sale has paid their mortgage for the time being.
I sat down with them and another friend to brainstorm ways to save and build up some income and I have to say that evening was eye-opening and life-altering for all of us. It takes a lot of courage to open up about your finances, even to close friends and family… seeing where they were and where my family currently is was scary but good because now I can make changes and be prepared. So of course, we consulted Google and Pinterest for ideas and ways to build up savings and reduce debt.
My first step in this process is trying to save money and be better at budgeting our expenses. There are a few tricks and tips I can share with you that I’ve learned along the way. Thanks to my searches I found plenty of cliff notes to various budgeting tools that people swear by for FREE. I thought I was living frugally, but when it came time to share all my “tracked” expenses, I fell way short of reaching my savings goal for the month. Personally, I like to blame online shopping, but in true accountability, it was my own fault and impulses. Armed with information we talked it over and found the following tips/tricks/ideas for getting savings up. Just keep in mind that you need to resist the urge to use this new money as a payment or “spending fun money”. It’s not… it’s for your savings that you’ll need if the poop ever hits the fan. After you reach your savings goal you can go ahead and pay down those debts and go out to celebrate.
Our list from easiest to hardest (in our opinion):
- Sell your soul… I mean your books… trust and believe that I love my bookshelves just like the next bookworm but in today’s age of Kindles, iPads, and other reading devices those same books can be downloaded (or borrowed) for free. Selling your books helps with cleaning space, bringing in some cash, and helping you move forward with savings. I started with my college textbooks. Let’s be honest, even if they were my FAVORITE books, I don’t look at them often enough for them to justify space on my shelf. Besides, pretty much anything in them can be found, you guessed it, ONLINE. Keep in mind that I’m married to a crazy man (who makes good points, thanks Interstellar for reinforcing that) who thinks that books will be changed and the information manipulated… the rule for his books is “if you haven’t even dusted the shelf it’s on in the last year, it goes”. AMAZON is a great place to sell books because you can let the inventory stay on your shelf while it is listed there with no time limit. Granted they are going to take a small chunk but it’s not like your books haven’t been sitting on those shelves for years anyway.
- Cut your grocery spending – not extreme couponing but it’s a start. I know, I know, “what good can $0.50 coupon do” you think. Change that mindset, if you can save even just fifty cents that’ll add up over time. I recently signed up for eMeals through a fantastic deal on GROUPON. I got three plans (breakfast, lunch, and dinner) for roughly $35 (instead of the original price of $152). I’ve already saved so much! Our average grocery bill was full of impulse spending and “quick trips” to the store that ended up costing way more than I had thought. This streamlined our shopping and gave me great recipes to follow. I love it and while I don’t stick to it 100% it’s still incredibly helpful. You can also try it for free for two weeks to get an idea (and a jump start) on saving money. In one month we saved $284.34 from our average AND lost 15 pounds (we did the low-carb meal plan) together.
- Utilities – Cable gets cut first, and this will need to be a group decision because you will always piss someone off by “losing” their favorite show. But hello Netflix, they have a lot of them and are updating daily. Our cable bill was the rock bottom price of $78/mo after all the genie stuff we had signed up for, that was the cheapest we could get it. Now, we pay less than $10! We have Netflix and our Google Chrome TV (initial cost of $34 or a gift like it was for us). We had to wait out our contract (termination fees are ridiculous) but once we made the switch we’ll never go back. Sure my husband misses football but now he’s forced to be more outgoing and either join friends at a bar or their house (side note – this is a win for most spouses because you don’t have a mess at your house hosting and don’t have to hear all the yelling). Call and see if you can at least reduce your monthly bill while keeping channels you love during your contract. Then move on to the next bills. Unplug electronics and chargers that aren’t being used, don’t leave lights on when you’re not in the room, and keep that thermostat to a normal temperature. These all seem like a “yeah, I know that” type of idea but my friends had their house set at 60 degrees in the summer and 80 in the winter, 75 works just fine and won’t put that much pressure on your air conditioning. Ceiling fans are also more economical once you get the house to your ideal temperature. Quicker showers and kids sharing a tub are also great ways to save on your electric bill. Sharing a shower with your spouse may not get you clean as quick but it’ll be fun.
- Sign up for rewards points – if you’re not going to give up your daily coffee run to Starbucks then at least download their app to your smartphone or sign up for a gold card. This will get you a free drink after every 12 purchases and one for your birthday. Another trick to use if you are getting more than one item, split the order, you’ll get two stars for the same amount you were going to spend, and be on your way to a free drink that much quicker. Another fun way to save is to EARN while you shop, this is in direct defiance to #7 on our list BUT Ebates is magical. You were going to spend the money anyway, might as well get some cash back, and it’s just that, CASH (you get a check in the mail)! If you install the plug-in it will actually flash when there is a rebate for whatever site you are on, so you don’t miss out on the earning potential.
- Stop eating out – I voted for this to be farther down on the list because good gravy do we love going out. It’s so much nicer to get refills without having to get up, eat a meal I didn’t have to plan or make, and best of all not having to clean it up. I make a good case for it right? The truth is this was the second most significant area that ate away (pun intended) at my savings goals. While there are ways to save while eating out (kids eat free, two for $20, etc) cutting back on going out is the best way to save. My husband is gone M-F and sometimes M-Sat… so going out on the weekends was the norm… to the tune of $360/mo in the LOW months… it added up insanely quick. Right now we’re only going out twice a month (so as not to deprive my husband) on months that we reach our goal as a reward for meeting the aforementioned goal. If you are going to keep going out then stop ordering soda/tea, get water instead. It’ll save you roughly $5 each time. Staying away from single appetizers is a good idea too, we used to get one for each of us, but now if we get an appetizer we get the combo option, leaving us fuller and able to take our dinner home for leftovers. More bang for your buck!
- Staycations vs Vacations – If you don’t have the money in the bank you can’t go, simple as that. We went “home” three times last year and when I added up the expense of kenneling dogs, flights, car rentals, hotels, food, shopping, etc etc etc; the total that we spent… get ready $3,874. OMG! Granted we cut costs where we could by staying with family on one trip, having a friend watch our dogs once, borrowing my parent’s car, and other forms of cutting costs. In all reality though, we shouldn’t have gone unless we had the cash to cover it, because, with interest on our credit card, it’s over $4,000 and growing. Our next vacation will be a staycation at a fantastic hotel a few towns over that has an amazing pool set up (think pirate ship fun) that allows our pets to come with us. After that, we’ll be visiting a national park and letting our dogs stay with a friend. We have the cash set aside for those two trips already and have a savings goal for next summer of going on a short cruise with friends. If you’re interested look into booking “group cruises” where you save money by traveling with friends. Know what else rocks about that? You have people to swap off on daycare with if you have kids! I’m more than willing to take on 5 kids watching a movie/playing games in our stateroom for 4 nights kid-free on a cruise. It takes less than thirty minutes on the phone with a cruise line representative to get all the details and then however long it takes to work out a time/destination with your friends/family.
- Shopping Detox – Also a hard one, especially for those of us who impulse shop and buy online for convenience. It’s too easy to just add something else to the cart when we’re not physically touching it. This is where you need to “unsubscribe” from email lists. If shopping impulse is the enemy, then the last thing you need is a flashy email saying, “Buy now, before it’s gone”. I thought this should’ve been higher up on the list but still… it’s important to know yourself and what you’re battling.
- Garage sale time – This takes work in planning, organizing, running, and cleaning up but it’s one of the quickest ways to get cash. Running an ad in the paper might set you back, try listing the sale online with Craigslist, local sites, or even putting up a quick flyer at the grocery store. Go in with other families to maximize shoppers and have everyone color code their items for easy distinction after ring-up. Our process this last time was everyone had a color and when someone bought something we took the tag off and put it on a sheet of blank paper. At the end of the day, we added up all the greens, reds, blues, and yellows and divvied out the money. Each family got their own table (that they brought) so there was no fighting over what belonged to whom. One family offered to take leftovers to a second-hand store the next day in exchange for the tax receipt. He got a receipt to use on his taxes for $1,900 worth of goods, that’ll help come tax time all for the cost of loading up and dropping off!
- Work from home, kinda – babysit or walk dogs (sign up for people to find you on Care.com), list your services online in group forums or Facebook if you’re comfortable. If you live near a school (and aren’t a pedophile) then offer to watch kids after school for parents who are working longer hours, or just on those random short days during the year. There are plenty of online jobs that don’t pay much per work item but can add up quickly. Consider turning your craft hobby into an income with sites like Etsy.com.
- Get a part-time/second job – out of all the ideas, this takes the most time to do. But if you’re doing okay financially with your current situation this can boost those savings/debt payoffs like none other. My friend worked at a consignment store while her kids were at school and not only got great deals (seeing the stuff she wanted and using her discount) but she put all that money towards her debts and paid off her student loans in two years instead of twenty! If you’re struggling, then this is a great way to work towards being financially free!
Whatever you do, make sure you’re actually saving and not just fooling yourself.
