More Smart Spending Ideas
By: I Love Making Money
Tags: Investing, Budget, Jobs, Spending, Finance

Now that you’ve changed your financial mindset — and you’re committed to making it a lasting change — here are a number of other concrete ways you can spend more wisely and value your hard work.

https://www.youtube.com/watch?v=vwjubecM2IM

· Make a shopping list — and stick to it! For example, grocery shopping makes up a significant part of your spending. Before you go, make a list of what you need. Plan the week’s meals. Then buy only what you need — don’t bother with the “just in case” stuff or be tempted to pick up a few impulse items. And don’t go grocery shopping when you’re hungry — you’ll almost always spend more!

· Plan ahead for purchase you’ll make. If you wait until the last minute, you’re at the mercy of whatever is available, at whatever the cost. Even if you still have a quarter tank of gas, fill up if you’re near the lowest-price gas station in your area. If you’re out of milk and your only option is a convenience store… you’ll pay too much.

· Delay purchases. You may think you need — or maybe you just want — something right now. But do you really need it? Wait a week… or better yet a month… and see if you change your mind. Often, our emotions drive us to get something now. If you let yourself “cool off”, that desire may go away, saving you a lot of money.

· Carry cash. That way you can only spend what you have, and you’ll make smarter choices. In fact, here’s a thought: Try only using cash for a week. No checks, no credit cards, no debit cards… just cash. Your spending will most likely go down when you have to take out cash to pay instead of swiping a card. Cards are easy spending; cash is hard.

If you have credit card debt, then try the debt snowball method or a consolidation. You could also get a credit card consolidation loan. I used a service called Payoff, which combines all the payments into one. That frees up cash to pay down the principal.

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You could also check out this paid off guide to get out of debt.

· Try store brands. House brands typically cost 20 to 30% less than name brands, and often are made by the same supplier. Why pay extra for a fancier label?

· Don’t buy designer labels. Celebrities on the red carpet were given the clothes they wear; unless a red carpet is in your future, you’ll have to pay for yours.

· Consider dropping towing insurance. If you have a breakdown it’s nice to know you can be reimbursed for towing… but how often, realistically, have you needed to be towed? Put the $20 or $30 premium in your pocket instead.

Going through each bill and renegotiating / cancelling or even lowering your bill is essential to getting your spending under control. There are now services that will cancel subscriptions for you, like Lower My Bills.

· Book your travel early. Buying airline tickets early can create significant savings, sometimes of over 50% or more. Begin your planning now. The planning itself can be fun, and you can save money while you’re at it. Also, a little time spent researching discount travel websites can pay you back many times over when you save on flights, hotel rates, rental cars, etc.

· Start saying no to your kids. You may be tempted to give in to your kids demands, but don’t feel pressure to buy them what their friends have. I cringe when I see parents take their kids to the mall so the kids can point out everything they want. One game system is enough! Think of it this way: Children who are not earning a salary do not “deserve” or need designer or luxury items. Teach your kids the value of money now — and they’ll thank you later.

· Maintain what you have. You may have noticed that rich people take care of their belongings. Shouldn’t you? Taking good care of what you own will keep you from replacing items before it’s necessary… and it teaches your children to value their belongings too.

· Stop trying to keep up with the Joneses. Appearances are superficial. Your neighbors may have a nicer car, but chances are they are also in more debt than you. Your friends or neighbors may seem wealthy, but remember, what you see on the outside is not always what’s going on inside. Is keeping up worth it? Instead, focus on having more than the Joneses, by living debt-free, with bigger retirement funds.

· Gym membership: Use it or lose it. If you pay your $30 a month and you use your gym three or more times a month, that’s great. If you don’t, cancel your membership. Start walking, jogging, or biking. I turned my garage into a workout space, and surprisingly, I’m getting better results.

· Check out the library. Most libraries have all the books, DVDs, CDs, and magazines you’ll ever need. For free.

· Don’t buy a new car just because yours is paid off. Keep your monthly payment in your pocket instead. Keep it in good mechanical repair, and wash and wax it as often as you would if it were new. Most cars easily will last up to eight to ten years with minimal service costs. Not only will you save on monthly payments, but your insurance will also decrease as the value of your car decreases. And if it needs a few repairs do the math before you ditch it: $200 for new brakes is a lot less than a monthly payment on a new car.

· Buy seasonally. Pick up Christmas presents during sale periods. Buy wardrobe basics during the off-season; for example, if you wear long-sleeve oxford shirts to work, buy a few basic colors in the spring when winter items are on clearance.

· Pay premiums and fees in aggregate. Insurance premiums can be paid monthly, but typically you’ll be charged extra for the privilege.

· Avoid payment protection plans. Banks and other lenders sell expensive insurance policies to cover loan repayments if you’re disabled or incapacitated. The cost is almost always prohibitively high.

· Avoid extended warranties. Electronics and home appliances are more reliable than you might think. Paying for “peace of mind” is a waste of money. Companies who sell warranties love them, because rarely do the items break — so they get to pocket 100% of the warranty cost. If you want peace of mind, do your due diligence and buy a reliable product that is less likely to need repairs.

· Avoid the car wash. Is the automated Platinum wash/wax at your local car wash worth $12? Check out your car the day after and see what you think.

· Shop for haircuts. It’s one thing to spend money for your haircut if you need to look professional for work… but do your kids really need a $35 haircut? In the end, the quality of the cut is based on the skill of the stylist, not on the name on the salon door. Find a good stylist at a franchise salon and you may save $20 to $25 each time.

· Create Extra Income by Working from Home. Companies are desperately looking for remote workers so this is a perfect time to find a work from home position, whether part-time or full-time. If you’re a mom, you could use a service called HireMyMom to look for companies that hire mothers.

Related Article:

How to Land a Virtual Assistant Job

· Buy generic medicines. Check the ingredients; the house brand pain reliever contains the same ingredients as Tylenol; often for 25 to 50% less. You’ll feel better simply by saving money.

· Pitch in with your neighbors. Need a ladder once in awhile? Have a chain saw your neighbor could use once a year? Share your tools — and your skills — with your neighbors. They’ll return the favor, and you’ll all save.

· Forget the bottled water. Unless you have a major water quality issue in your area, water is water. Plus, not throwing away all of those plastic water bottles is better for the environment, too. You’re saving money and “being green”, too.

· Use your lunch hour productively. If you get an hour for lunch, that’s 5 hours a week you can use productively. Instead of eating out or — possibly worse — shopping during lunch, sell unneeded items on eBay or Craigslist, pick up a new skill, plan your next vacation… do something productive!

· Free Education. Invest in yourself and take advantage of any free YouTube training. If you’re new to online business, then I recommend getting the best online marketing books which are free right now when you pay for shipping.

· Take a friend to a warehouse store. Never shop at a bulk item store without a list, and take a friend along, too. That bulk package probably contains way more than a family of four can use… but it may be perfect if it’s split between two families. Just ask yourself this question before every purchase: Will some of this end up at the back of my cabinet, never to reappear? If the answer is yes, don’t buy….

· Don’t show love with “things.” Show your love with your words and actions. Loved ones will understand if they don’t get a lot of “stuff” for birthdays and holidays. As the saying goes, “Those who matter don’t mind — and those who mind don’t matter”. Show you care through attention, kind words, and other compassionate actions.

https://www.youtube.com/watch?v=24L7r7SoK_Y

· Remember, price does not equal quality. Read reviews and purchase the best, longest-lasting items… not simply the most expensive ones.

· If you tend to over-spend at a particular store, quit shopping there.

· Watch for online bartering sites that allow you to trade items with other people for free. Sites like peerflix.com, switchplanet.com, and barterbee.com allow you to trade things with people all over the world.

· Take into account shipping and handling. Online items may cost less, but not once shipping is factored into the price.

· Use an incentive plan to encourage yourself to stay on budget. If you brown-bag your lunch for four days, treat yourself to lunch on Friday. If the family has been sticking to a budget by not spending on unnecessary items, have a night out — as long as the expenditure fits within your budget.

By now, you should be moving into a “Saving” mindset.

Related Articles in This Series:

How to Stop Impulse Spending

How to Develop the Optimum Spending Mindset

Ways to Make $1,000 This Weekend