Aside from big picture stuff like extreme frugality, I’ve never focused much on ways to save money here on Monevator. Plenty of blogs have that niche covered.
But be under no illusions. Spending less than you earn is the key to getting rich, whether you earn 20K a year or two hundred. The Micawber Principle is the one rule of financial planning that rules them all.
So I was delighted when fellow money blogger David Hamilton agreed to fix the frugal tip deficit on my blog with a guest post offering more than 100 ideas for how to save money. David is the owner of Financial Planning Tips, and is well-versed in thinking of ways to ratchet down on your spending to save more.
None of these ways to save money are rocket science. But that’s the point – if they were, they’d be hard to implement. Instead, a quick skim through this list should spark a frugal push in your own household. A few quid saved here and there a day soon adds up to a lot more funds for investing.
Over to David!
1. Pay your credit card bills in full on time, every time: No more excuses for paying interest or late fees.
2. Buy cars used: Always buy used, never new – you aren’t gaining much by buying new except a nice smell, you lose a lot of value as soon as a new car rolls off the lot.
3. Learn to cook all your meals: Impress your friends and your wallet by cooking at home regularly.
4. Don’t fly or take vacation during peak travel season: This will always be more expensive. Instead, visit on the tail ends of each season – so you can still enjoy the weather along with better rates.
5. Buy your vegetables at the Farmer’s Market: Are you aware of the insane markup that happens because of the use of food distribution centers? Farmer’s markets are great because they cut out the middle man and that’s why the prices are lower. [Editor: This may depend on geography – in the UK, everyday markets or supermarkets will be cheaper, unless you’re after roasted ox truffle oil]
6. Borrow or rent heavy duty tools from a site like Neighborgoods.net: If you have any special projects, there’s no need to buy or even rent special tools. You can find someone who probably has the tool you need.
7. Don’t go shopping just because there is a sale: Do you really need it? Start with the need first, then look for the sale.
8. Change your own car oil: Yes once you learn to change your oil, it’s easier than it seems, no more paying the markup an oil change as a service. Your auto parts store can tell you exactly what you need for your make and model of car.
9. Use a push mower: It’s less expensive, requires less maintenance overall, no gas or oil – and you get a nice round of exercise along by mowing your own lawn.
10. Make food in monthly batches: Preparing food in larger quantities saves money in the long run. You’ll have to spend a day or two cooking for the month, but you’ll save both money and time over the course of the month by having all your meal prepared and frozen.
11. Keep soap remnants: Save those little soap fragments and make them into a soap ball. Also make sure to take any soap in your hotel room home with you – that’s good free stuff!
12. Only wash shirts, jeans, pants when necessary: Unless there is a spill of massive proportions on your clothes, these items don’t need to be washed often. You’ll save by having smaller-size laundry loads. This DOES NOT apply to undergarments however.
13. Install solar lighting or low-voltage lighting: This is great for outdoor lighting like patio or driveway lighting. Installing this type of lighting will save you on electricity bills in the long run. You also can install this for indoor purposes, but outdoor is the more popular option.
14. Ride your bike to work, or take public transportation: You save on parking and gas.
15. Never drink and drive: Besides the obvious safety factors – if you do get caught you can pay thousands in fines.
16. Get rid of your cable subscription: In the age of the Information Highway you can watch movies on your computer, and get news from the Internet or from the radio if you’re concerned about receiving breaking news. All for free.
17. Eat before you go food shopping: An oldie but a goodie – help yourself stick to your shopping list by not going to the store hungry.
18. Don’t buy a smart phone, only a no frills cell phone: Do you really need that data plan? Leave that iPhone or Droid phone at the store. It’s most likely just a fun and convenient thing to have, but certainly not a necessity. [Editor: Oops. I bought an iPhone!]
19. Sharpen your multi-blade razor on the back of your arm: You really may never need to buy one again! For some reason this guy figured out that your arm works like leather.
20. Don’t go shopping at high end grocery stores: It’s overpriced and you can get everything you need at cheaper groceries stores. There’s a reason why they call stores like Whole Foods, ‘Whole Paycheck’.
21. Make your own coffee: If you drink coffee, make your own batch each morning and carry a thermos with you daily. No more Starbucks.
22. Carpool: A thing of the past? Nope, you can still do it. Bring it back in style with friends or co-workers to save on gas and car maintenance costs.
23. Get a hybrid car: If you have to buy a car, get a hybrid and save on gas.
24. Limit your dinners out to once a month: But make it a nice one and look forward to it.
25. Don’t drink alcohol: Empty calories and dollars down the drain! [Editor: I couldn’t live without a drop of red. Your mileage may vary].
26. Cancel magazine subscriptions: Are you really reading all those magazines? I doubt it, so save the one or two you love. All others should be canceled.
27. Download your music legally from GoMusicNow: At 5 to 9 cents per song for cheap and great quality downloads you can’t go wrong. Don’t use Amazon or iTunes at $1 per song. [Editor: Not sure this works outside of the US? Here in the UK I use Spotify for free].
28. Use coupons: When buying food and other household items, always use coupons and buy what is on sale. That’s not an excuse to buy what you don’t need, however. [Editor: I’ve never used a coupon, but some swear by them. Depends how much time you’ve got, perhaps].
29. If you’re a going bald, shave your head: Don’t buy all that hair restoration crap. Save on haircuts, shampoo and dignity from comb-overs. Besides the Buddhist look is in.
30. Sell Stuff on eBay: Go through your stuff that you absolutely don’t need and sell it.
31. Stop smoking cigarettes: So much money wasted; so much cancer-potential gained. [Editor: Hear hear!]
32. Don’t buy junk food ever again: That includes chips, sodas, cookies, cakes. Wasted money and calories.
33. Cancel your gym membership: No, this isn’t an excuse to not exercise. You can work out at home with isometrics, body weight exercises, go running in the park, or ride your bike.
34. Go generic: From food to drugs and more, going generic almost always saves you money.
35. Get a programmable thermostat: Let it be cooler at night in winter climates, or warmer in the day for summer climates.
36. Rent out an extra room in your house: Help pay down your mortgage by renting out that spare room to a relative or tenant. [Editor: Or a tourist].
37. Keep your blinds and curtains closed: Save energy by keeping the warmth in or the sun out.
38. Learn how to do basic home repairs and maintenance: Unless it’s a major project, you can fix many things around the house yourself. Home Depot offers free classes from the Home Improver Club.
39. Drive the speed limit: Never get a ticket, no paying for speeding.
40. Homebrew: If you must drink, learn to brew your own beer or wine.
41. Take vacations nearby: Forget long flights and big resorts in the Caribbean. Most likely, you don’t live very far from some nice places to visit.
42. Eat less meat and more beans for protein instead: Buy a pressure cooker and cook dry beans (not canned) to really save money. Meat is much more expensive. [Editor: There are big environmental benefits, too].
43. Refinance your home: When rates are low take advantage of refinancing deals.
44. Don’t buy or rent books or DVDs: Get a Public Library card and borrow them – it’s free.
45. Don’t use toothpaste: Use baking soda instead. Toothpaste is a luxury, it’s the brushing that does almost all of the work actually. Baking soda will help whiten your teeth. [Editor: This is a frugal tip too far for me. I love my teeth!]
46. Never buy extended warranties: Ever noticed how these warranties usually last the life of the product anyways? You don’t really need it. If you need additional warranty, use the extended warranty feature for free on your credit card.
47. Bid for your travel needs: Yes, Priceline is still around and you can bid for flights, hotels and rental cars.
48. Create a budget: Fail to plan, plan to fail. Make a tight budget and stick to it.
49. Use open source software: Never pay again for software. Use OpenOffice for documents, Linux for your operating system, and other free software available for free on sites like SourceForge.Net.
50. Settle all of your credit card debt: Make a solid plan for settling credit card debt on your own and balance transfer to 0% APR cards. Just make sure to pay it all off before the 0% rate expires.
51. Always pickup your food, never get delivery: Don’t be lazy – get out of the house and go get it. If you can walk or ride your bike to pick it up, even better.
52. Don’t buy bottled water: Either use a water filter at home or boil your own. Take water with you in reusable water bottles or a thermos.
53. Use gas at home: For heating and cooking, make sure it’s gas to save in the long run.
54. Telecommute: Get a job where you can work from home – at least some of the time. You’ll save money on commuting, lunches, and clothes. Plus you won’t have to see your boss every day.
55. Never finance anything: Never borrow to buy any purchase – except for your home. Always pay in full. Though this doesn’t apply to using credit cards, because we’re paying off those balances every month, remember? Think of your credit cards more like electronic cash (see tip #1).
56. No more fast food: Like junk food, a total waste of money for the nutrition you don’t get.
57. Drink water: Forget juice or soda. Most all drinks are filled with sugar or weird artificial sweeteners. Water is cheaper and far healthier.
58. Don’t buy cereal: For the nutritional value and amount you get, it’s too expensive. [Editor: Actually, I suggest you buy rolled porridge oats in bulk. Fearsomely good for you, and about 20p a serving with milk].
59. Buy frozen veggies over fresh: Frozen vegetables don’t spoil and they are always cheaper.
60. Plan your menu for the week: Planning ahead will prevent you from just saying ‘let’s eat out tonight’ when you aren’t prepared.
61. Use your shopping list: Do not deviate!
62. Buy Fair Trade coffee: For you coffee fiends, you’ll pay much less than most brands and get higher quality coffee.
63. Make your house airtight: Letting that precious heat and cool air escape will cost you. Make sure your windows and insulation are properly installed.
64. Stop using plastic bags for food storage: Use reusable containers for everything you can, instead of expendable Ziploc bags and the like.
65. Stop going to the mall: This place is designed to make you buy, buy, buy. Go directly to the store you need to buy something from, and then leave.
66. Get rid of newspaper subscriptions: Use the Internet for all of your news – it’s more up to date, anyway.
67. Wear more layers: In cool or cold seasons keep thermostat 68 or lower and wear more layers in the house to save on heating bills.
68. Sweat it out: Equally, don’t use the A/C if you don’t really need to. When it’s hot season sweat it out during the day. [Editor: We solve this problem in Europe by being too poor to have air conditioning].
69. Grow your own spice and vegetable garden: Got a green thumb? Grow your own and get fresh spices and veggies from your own backyard.
70. Wash your own car: No reason to buy a car wash, you can do it at home easily.
71. Buy clothes at thrift store: Save money on clothing, and get a cool vintage look by putting your outfits together the right way.
72. Move away: Live in a new town or even country where the cost of living is lower.
73. Get free prescription drugs: Stock up on samples from your doctor of your prescription of choice, and pay nothing more than your co-pay, which you have to pay anyways. Just ask your doctor and explain you have trouble affording them. [Editor: That’s for my US readers. In the UK we’ve got the NHS, albeit a tax bill to match!]
74. Use an insurance broker: When buying your own personal health insurance, never get all your insurance from one company just because it is convenient. Insurance brokers need to get you the best deals to stay in business, because they know they are competing against other brokers. You’ll be able to find the cheapest homeowners insurance, car insurance and life insurance plans by using brokers.
75. Keep your windows closed: In the summer when it’s hot, keep the cool in, or in the winter, keep the heat in with closed windows.
76. When traveling, carry food: Make your food ahead of time or get from your cheap grocery store. Especially when in airports, don’t buy anything there as it’s all overpriced.
77. Fly & return mid-week: Everyone wants to fly Fridays and weekend days, so mid-week has the best rates for departure and return.
78. Party at home: Invite your friends over, and rotate house parties. Make it B.Y.O.B. – share and share alike. (Offer up some of that homebrew that you’ve made after reading tip #40).
79. Invest in no-load, no-fee mutual funds: Invest over the long term with these types of funds and never worry about paying management fees.
80. Only withdraw from free ATMs: Don’t use the gas station or non-network ATMs. Or get a Charles Schwab checking account where you get reimbursed for your ATM fees. [Editor: In the UK, this means avoiding withdrawing money from nightclub ATMs or dodgy cash machines in newsagents miles from anywhere].
81. Setup auto-payments: For your credit card or other bills and never pay a late fee again. [Editor: Direct debits in the UK].
82. Use EnergyStar products: Make sure your appliances are EnergyStar rated to save money on electricity. The higher the rating, the better the savings. [Editor: Details on UK energy ratings].
83. Turn off the lights: Whether you’re leaving a room or the house.
84. Use Skype or Google Talk: The best choice for long distance calls with family and friends. The quality is amazing, it’s like they’re in the next room. Get on board!
85. Never impulse buy anything: Wait two weeks after the impulse to see if you really need it. Bet you don’t!
86. Make your gifts: Get your craft on, and make your gifts for family and friends.
87. Negotiate prices: Wherever you can, from large corporations to small businesses. And always be willing to walk away.
88. Book in advance: As far ahead as you can when traveling to save money.
89. Stay with friends: When you go on vacation, plan to go where friends are. Most likely you’ve friends that live in a nice place.
90. Crash on a stranger’s couch when traveling: Find a couch to crash on with – it’s safe and been going on for years.
91. Beware tourist areas: Stay away from high tourist traffic areas where everything is more expensive when traveling.
92. Buy clothing out of season: You’ll find the best deals after a fashion season is over.
93. Buy in food in bulk: Set up shelves just for bulk food storage.
94. Get a large freezer: Put one in the garage for the storage of bulk meats, veggies and other bulk frozen foods.
95. Move in with family: If you’re renting save money, or if you own, rent out your home to others.
96. Make your own protein shakes: For snacks or meal replacements, shakes are more nutritious and cheaper.
97. Clean your own carpets: Just like your car, you can rent or borrow a cleaning machine and clean carpets yourself.
98. Don’t play the lottery: Your chance of winning is extremely small. Save that money for an emergency fund or investing.
99. Buy a refurbished computer: Buying a used computer is a gamble, but refurbished one from a manufacturer can be a good deal, because it comes with a warranty.
100. Use timers for your lights: You’ll never forget about turning off your lights in the day or late at night again.
101. If you own a home, plant trees: Yes, trees do provide shade which can keep your house cooler in the summer. Think long term.
What other tips you do you have to share? Feel free to comment below, to add any tips you think would be useful.
David Hamilton is owner and author of Financial Planning Tips, which offers sensible information on personal finance. Besides being passionate about his finance blog and helping others keep their finances in check, David also enjoys playing music, staying healthy, spending time with family and friends, and traveling the world. You can also follow him Twitter.
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Hi TI
Having trouble posting comments on your blog for some reason. Not sure if others are having the same trouble.
That is one long list which includes some great tips.
I agree with the Micawber Principle. Being debt free really does change your outlook on life.
.-= RetirementInvestingToday on: The low fee mantra – a look at the results of Hargreaves Lansdown =-.
@RIT – Thanks for that… any more information you can give me about the lack of comments? I have wondered about comments recently, as they’ve dropped a little. I put it down to the summer holidays! 🙂
Hi TI
I can’t remember the exact wording but it was a blank screen with a short message that went something like “Slow down you’re trying to comment too quickly”. I had to reload your blog and try again. Second time around was no problem.
I’m running Vista (unfortunately) and Internet Explorer.
.-= RetirementInvestingToday on: The low fee mantra – a look at the results of Hargreaves Lansdown =-.
Thanks very much for the swift reply, RIT. I have had that problem in the admin back end a few times, but over several years. I think it happens when comments are being added simultaneously.
There is a ‘fix’ here, but it comes at the expense of spam:
http://3kidsandus.com/2010/you-are-posting-comments-too-quickly-slow-down/
At the moment I’m inclined to leave things be, I think.
Thanks again for the feedback, really appreciated! 🙂
I agree with all but #55. I will finance something big ticket if it is interest free. Example I just bought a high efficiency washer and dryer for $1500. The company was running a special 36 months no interest. To give myself a cushion I figure in my head to pay it off in 32 months 1500/32. I pay $50.00 a month. Still letting the other money work for me. This is the ONLY way I finance things.
You mention coupons, and say “When buying food and other household items, always use coupons”. You can get a discount on almost anything if you shop online and use voucher codes. The most popular voucher code is one that gives you free delivery, but there are many “stretch and save” vouchers, such as save x if you spend over y. Just be sure you were going to spend over y anyway, and you’re not falling into the trap set by the retailer!
This is a brilliantly comprehensive list of ways to save money, and you are so right the way to be rich is by being frugal with what you earn and ultimately spending less than what you make!
There are definitely a few things I will be attempting from this list however I think I have already taken number 29 too far!!
Want a good way to save money, get your friends to cut your hair, and if you want to save even more shave it all off, no need for hair styling products now!!
hi
one or two tips from me
1) Family members should use a single living room for reading, homework etc. saves electricity. car pooling/public transport for saving travel cost
2) Lawn mowing machine, tools,garden tools can be shared by a few good neighbours
3) Avoiding heavy expenditure during festivals/carnivals can be a saving
Genarally presents and extravagance during such times puts people in debts
How about smoking it cost me 3000.00 a year until I found something that worked for me. Thanks to my sons concern of my health he helped me and now I would like to help others. Please help your self or someone you love that is still smoking. I am committed to helping anyone who has the desire. To save money and your self
Isn’t #40 illegal?? I could be sooo wrong, but making “moonshine” haha, isn’t that illegal?
Possibly I’m wrong, but I believe fast cars are generally useless nowadays. Additionally, I am sure likely more keen than ever before. It is more traffic and more difficult to trip, and when you possibly can drive it speedily tempts you. And that can only bring about an accident. What do you believe my friends? BTW, I’m sorry that i really ask in this topic as well as a comment, but last carressed me sad situation and My business is keen to the opinion.
(i) shop around for the cheapest mortgage rates – and ruthlessly switch mortgagee banks whenever
rates drop, or use the new lower rate to negotiate a lower rate with your own bank
(ii) save the water from your wash basin and washing machine to flush the toilet or mop the floor
(iii) save the water from washing your vegetables and rice to water the plants
(iv) never use your loose change , and instead systematically put all loose change into a piggy bank at the end of each day – you’ll be shocked
how much you manage to save each month. The average frugal adult generate $100-200 worth of loose change a month
(v) purchase slightly out of date bread , damaged biscuits, dented tins, bruised fruits and yesterday’s cakes. These are often
marked down and can save you a bundle.
(vi) never buy a new car; always buy a preowned car (but check its history and state of repair carefully). 35% of the
depreciation of a car occurs within the first 18 months, and within 60 seconds being purchased a car depreciates
15% (simply becoz once it is sold even once it becomes factually ”a used car”). The best buys are 3 yr old Continental cars.
Its amazing what fantastic bargains can be had at the 3 yr old used car market segment. $60,000 SAABs and
$85,000 Benzes are possible finds. Remember: the solid body work of a Continental car does not depreciate
with time. Alternatively, buy a 20 yr old car* in good condition, invest in a new parts, and drive on the minimum possible
expenditure. (*the only 20 yr old cars you should buy are those made by Toyotas, Mitsubishis and Mercedes Benzes – nothing else).
(vii) iron only the ”visible parts” of your shirt: collar, shoulders, upper sleeves, cuffs, front of chest and the upper half
of the back. The rest will immediately crease up once you put on your shirt (or are tucked into your pants), so ironing those parts
are just a waste of energy. Office workers who work in frigid air-conditioned offices do not sweat at all and therefore can launder their shirts after
wearing it for two days. Spray a little strach to keep the visible parts looking flat and ironed.
(viii) pack lunch to office, and never buy coffee/tea. Use the office pantry. Bring your own 3-in-1 drinks.
If you like fruit, bring your own. Drinks and cut fruits generally have the highest mark-up when sold
in food courts and hawker centers.
(ix) rotate between two pairs of leather shoes – it’d prolong their life span by at least 50% by allowing the leather to rest and breathe
on alternate days. Polish only the front part of the shoes becoz that is the only part people see – every other part of a shoe will likely
be hidden by your pants (when standing) or table (when sitting). Resole leather shoes – as the soles wear out before any other part.
Prolong the lifespan of the insides of a shoes by inserting in-soles immediately upon purchase of a new pair of shoes.
If you have to walk a lot commuting to work, wear black color no-brand canvas trainers or tennis shoes, and only switch into your office shoes
left at your office, to save wear and tear on the good shoes.
(x) purchase products and condiments (eg jam, biscuits, coffee) with screw-top glass or thick plastic bottles, and use these as your kitchen
anbd fridge containers. You will Never need to buy kitchen containers and jars ever again.
(xi) save one empty bottle each of shampoo and bath gel, and half-fill them with refills. Then top the bottle up with water till full.
Voila. You enable your shampoo and bath gel to last twice as long, because modern shampoo and bath gel are so thick anyway
even at half-dilution you can achieve satisfactory cleanliness.
(xii) take and save TWO extra paper napkin from the office toilet each day and bring it home in your pocket. In one year
you save 700 paper napkins – that’s like buying seven packs of 100 napkins each which you can use as servettes at home.
Take two more extra from the office canteen each day and you effectively get 14 packets of 100 napkins a year.
(xiii) choose an employee with good dental and medical insurance plans.
These are some AMAZING ideas!! No joke this is one of the best lists I have seen. I have some advice of yours that I have taken and the most important must be saving money on phone lines and stuff. Switched my family of five ( 3 iphones, two androids) and put us all on prepaid phone Tracfones. At first my kids were so upset with me but then they got the option of some awesome smart phones like a samsungt404g is what we all got actually. Has the web, pictures, bluetooth, all that good stuff.. but the savings are incredible. We went from 540 dollars a month ( NO JOKE!! ) for our phone bills.. to a family bundle with tracfone ( and no contract) for 170 dollars. That is unreal if you ask me.
agree with a lot of this
read the comments as well
eleanor west- i agree with the fast cars remark- they have become useless
dean- financing is sometimes right- depending on what you are financing and what the interest rates are
marissa-own a tracfone myself- great value i agree and my roomate pays 3 times what I pay and we have the exact same phone. Some LG430g if that makes sense- anyways thats great advice as well
I learned lots of things, i realized where i went wrong and try to improve myself save money, time, relationships, health etc. thanks
On point 37 I’d like to add that switching your energy supplier or tariff to the most appropriate plan for your usage is a great way to save money each month. By paying by DD you’ll also get a discount from some suppliers.
I read all the tips concerning money saving and I totally agree with it. I just want to add one point. Don’t bring a lot of money with you to work or wherever you may go. It will tempt you to buy unnecessary things you don’t actually need.
Some great tips here!
Where on earth are you buying your porridge from, Harrod’s?! 😉
Ways to save more money
1. You can save more by canning, freezing and drying your own foods. If you grow a really big garden you can offer to can for others if they bring their own jars and bring the other things you need for canning. They can bring the salt, spices (if you don’t grow them), sugar and new flats for their jars. If you can theirs with yours them you save all the extra cost of canning. That makes what you grow and can for only the cost of seeds.
2. Trade what you grow with people that have things that you do not have in the garden. Then put them away for year. You can also put the word out you need canning jars. Some you will get for free. I also get them at yard sales. I can get jars for 25 cents or less doing this.
3. Grow your own corn for chicken feed if you raise your own chickens. You can get your feed for the price of seeds.
.4. Raise your own chickens for eggs if you have extra you can trade them for things you need. This is a good way to get your extra needed items like salt, sugar and flour. There is ways to really save money on food.
5. Set a budge and what money you do not use put it in savings and what change you have each day put it away and put that on paying your taxes each year. This will help making tax time less stressful. Money left over put in emergency funds ( if there is any leftover).
6. If there is any thing you need put the word out, maybe someone has what you need.
7. Trade with others clothes that you don’t need anymore. Free way to get clothes. You can make this a community thing.,
8. Trade services if you are good at cutting hair and someone else is good at something else trade your time for doing the services.
9. Trade cooking skills. If you are good at cooking something and you friend is good at something else. Each of you make enough of those dishes for both families then trade making dinner for the other family it saves on cooking for each family and the cost on buying a meal. Put cost of that meal in savings and you will have extra in your emergency funds.
10. Have a couponing party and trade the coupons you don’t need for something you do. Note- never by items you will not need just what saves you money on what you need.
11. Have a pot luck movie party with friends. You save the cost of going out to a movie and only pay for one dish of the dinner.
12. Have pot luck with friends on weekends. Pay for only one dish at dinner and get to have some time with your friends.
13. If there is a pricey item your family needs and other family members need the same thing divide the cost and share. Plan when you when you each use it.
14. If you need something that is not in your budget you can go throw your clothes or other items you don’t need and sell them on eBay until you have the cost of what you need. I did this for a small green house so I can start my own plants from seeds. A great way to clean out and get what you need.