Introduction
1. HOLIDAY GIFT GIVING
2. CLEARANCE
3. THRIFT / SURPLUS STORES
4. WRAPPING PAPER AND BOWS
5. REUSE
6. LANDSCAPING
7. BUDGET
8. PLAN
9. BUY IN BULK
10. ALLOWANCE
11. WHAT MATTERS TO YOU
12. SETTING GOALS
13. BE REALISTIC
14. FLEXIBILITY
15. INSURANCE
16. COUPONS
17. CREDIT CARDS
18. MORTGAGE PAYMENT
19. CREDIT CARD INTEREST
20. PATIENCE
Introduction
People are always trying to save money, especially with today’s
economy. No matter what your reason for saving, through this e-
book, you will discover ways never considered.
The price of everything has gone up, requiring people to be more
conscientious about money. The problem is that by the time the
mortgage, car, utilities, and credit cards are paid, there is little money
to put aside. Saving money is not that hard, just a matter of learning
all the different options and being creative.
In addition to the obvious of putting money into a retirement fund or
savings account, there are hundreds of ways to save money. Although
some ways of saving may not seem like much, once you add them up
at the end of the year, you will see how substantial the savings really
are. Keep in mind that saving is more than a single lump sum of money put
aside. Saving is something found in your everyday life by the way you
live and the choices you make.
Rome was not built in a day and neither will your bank account be.
Each penny saved is one more penny than before. If you have the
ability to save big, that is great. However, most people are not in that
position, which is why this e-book will show you how little savings can
add up quickly.
Be encouraged that it is never too late to start saving, regardless of
your age. Set your mind that now is the time to start building your
future.
Imagine you have a huge water pot. Each morning you fill that water
pot to the brim with lovely refreshing clean water HOWEVER you don't
realize that the water pot has numerous leaks in it.
What happens?
Of course... During the day that water pot slowly runs empty because
of all of the leaks. You come home from work dying of thirst and you
go to your precious water pot and it's dry.
Sadly this is what we do with our money too... Unless we find ways to
save it our financial life resembles very much that of the water pot.
Unless we plug the leaks there will come a day when we need to buy
something but the money pot will be dry.
It all starts with plugging the biggest leaks first...
Plug just one big leak and that will keep the water and money pot
fuller for longer. Manage to plug a few other leaks and your money pot
will not be empty when you need it most.
1. Holiday Gift Giving
This tip is especially helpful for large families. Although it is fun
buying for and receiving from everyone, it can be very expensive.
Make an agreement with your family that you will continue to buy
for the children but that the adults will go with a name exchange.
This way the children are not disappointed and you can spend a
little more on one or two people rather than spreading your
money thin. For the members that you did not pick to exchange
with, bake a loaf of their favorite homemade bread or cookies.
Here’s another way to give gifts to everyone for less then
$1.00 each…
Do you own a computer?
If so the chances are you will have all the equipment you need to
implement the following money saving gift strategy.
You will need to already own a computer, scanner or digital
camera and CD burner.
The idea is to take photos… either with your digital camera or scan
in photo’s from your existing album of your family.
Create a slide show and burn both the individual photos and slide
show onto the CD. This will cost you less then $1.00 for each CD
and your family members will love it.
By having the individual photos on the CD your family members
can print out there own images afterwards.
This is especially great if you have photos of major family events
throughout the year such as reunions, gatherings and birthdays.
You could also create calendars and even video shows with the
same content and burn them on the CD as well.
2. Clearance
Always head straight for the clearance rack where you can find
amazing bargains. Sometimes you may have to dig a little to find
the right item but the savings will be well-worth your time. Most
clearance racks offer variety, current trends, and great value. For
example, Bed, Bath & Beyond has a clearance section where you
can find all kinds of wonderful household items for a fraction of
the original cost.
Another great way to save money is to shop on the Internet.
There are big savings to be had from online auctions especially
eBay
Be careful to take into account the cost of shipping before buying
a product this way.
Other huge savings can be made from online stores because in
most cases you are purchasing direct from the wholesaler. Here is
a list of just a few items you can save money on…
Top Selling Footwear
Hobbys and Toys
Contact Lenses
Accomodation
Telecommunications
Baby and Nursery Items
Dental Coverage with Huge Savings!
Oriental and Persian Area Rugs
Treadmills
Womens Clothing
3. Thrift / Surplus Stores
Unfortunately, thrift and surplus stores have been given a bad
rap. Many of these stores are filled with hundreds of top quality
items.
Name brand merchandise is easy to find but just like clearance
racks, it takes some time to find. Find a thrift or surplus store
close to where you live and then plan spending some time to find
those outstanding bargains.
One woman in Kansas City, Missouri located such a store about
20 minutes from her home. After shopping through every isle
over the period of two hours, she walked out of the store with
eight huge garbage bags filled to the brim with designer clothes
for her and her children, many with the original tags still attached.
She even found a couple of Liz Claiborne suits for herself at $5.99
each and a Dooney & Burke purse normally valued at $225 for
$19.95. Her children had an entire season of school clothes and
best of all, she paid less than $200.
Do you know you can make money from
this as well?
I know one family who find brand name
clothes at these stores and then sell them on
eBay. It’s amazing… they are consistently
making about $300 profit every week
working part-time at this.
It certainly helps pay the bills.
4. Wrapping Paper and Bows
Create your own wrapping paper, which is not only unique, but
also fun. Use plain brown grocery bags and craft-like paints to
make your design.
After wrapping the gift, let your creative juices flow. For example,
using black and yellow craft paint, create a miniature road. Then
dipping toy truck tires into red paint roll them along the paper
making tire tracks.
You can then draw free hand a stop sign, yield sign, or stop light.
Next, using a hot glue gun, glue a couple of the miniature trucks
to the paper. This is perfect for a young boy. He will be just as
thrilled with the wrapping as the actual gift.
For a girl, you can simply create miniature bows from existing
fabric or lace and glue them on brown paper then free hand draw
colorful flowers. Just use your creativity and look around for
items you already have on hand to use.
5. Reuse
When you shop, look for items that can be reused. Rechargeable
batteries are a perfect example.
Even though the initial purchase may be more than non-
rechargeable batteries, there is a definite saving over a long
period.
Another way to save lots of money on batteries is to buy them
online from here.
Another option would be to purchase a nice artificial Christmas
tree. Many of the current artificial trees look amazingly real and
with the right lights and ornaments, you can change the look from
year to year.
We actually purchased one of these trees this year and the kids
absolutely loved it and now we can use it every year without any
further expense.
6. Landscaping
If you are considering creating a nice flower garden area,
shopping for plants even on sale, can be expensive.
Before you go out and start spending, look around to see if you
have other plants that can be split from your existing flowers.
Also compare prices before you go. Check out this Outdoor Decor
online shopping center to get an idea of what the prices should be
before you venture out.
Additionally, if you have a good relationship with any of your
neighbors, you might ask them if they have any plants you could
use as a starter.
Another great idea is the next time you are in the market to buy a
lawnmower, purchase one that mulches leaves. This way, rather
than buy mulch for your flowerbeds every year, you can simply
use the mulch you make.
7. Budget
Everyone should create a budget. If you are not sure how or just
not good with money, many businesses such as H&R Block, offer
free financial consulting to help you put a budget together.
Knowing where you are spending your money is by far the best
way to save. In most cases, people have no idea where their
money is really going and once they see it on paper, not only are
they surprised but also eager to change their spending habits.
If you are wondering where to start go to Google and search for
budgeting tips and you will find plenty of free advice including
spread sheets.
Another great place is to try your banks web site and go to the
loan application area and they should have some free budget
sheets as well.
8. Plan
Planning is a great way to save. Before you go to the grocery
store, make a list and stick with it.
If considering a vacation, plan everything.
Heading out with no set direction will certainly lead you to
impulsive spending.
This sounds so simple and obvious you may even overlook it.
For example do you know that the supermarket is deliberately laid
out to entice you to buy more then you planned to?
If you don’t write a list and then stick to it then you WILL
definitely buy more then you budgeted for.
Same goes for vacations. You can save a lot of money by booking
ahead of time. In fact you can save money on accommodation
just by booking online.
Accomodationonline is just one such place where you can make
hotel reservations for huge savings.
And another is RatesToGo where you can get unbelievable
savings for late bookings.
9. Buy in Bulk
It is true that warehouse shopping can save a lot of money. Even
if you have a small family, you can always split large quantities.
The price of items in bulk is generally a great bargain.
If you are single, you might go in with friends or family on bulk
items.
Every town usually has a warehouse of some sort where you can
buy bulk purchases.
Another place to find bulk items is eBay
Most of the time when we think of bulk purchases we think of food
or cleaning items however it doesn’t have to stop there.
Most search results in ebay also offer bulk lots.
For example if you need a new camera you could buy a bulk lot
and sell them individually to others and share in the savings. You
would even be saver teaming up with 10 other people who needed
the same item before buying then the cost is covered with no risk.
You can buy all sorts of things in bulk from ebay and it’s well
worth the effort to keep an eye out for a bargain.
10. Allowance
Do not forget to give yourself an allowance for things you enjoy.
Even if on a tight budget, buy something that you enjoy, which
could be as simple as buying a new shirt or grabbing lunch at your
favorite café.
If you do not allow yourself this small “splurge”, you could find
yourself in the same position as if dieting. Total deprivation leads
to overindulgence.
The whole idea of this book is to show you how to save money
while at the same time living a normal life.
What’s the point of scrimping and saving to only live a miserable
live. You can still spend money and be generous to others and
perhaps even more so by being smarted with money in other
areas of your life.
11. What Matters to You
Make a list of the 10 most important things in your life. Next to
each item, rank them in order of importance using numbers 1
through 10.
The purpose of this exercise is to help you see the things you
consider the most and least important and to provide you with a
visual of why you need to save.
Some examples of things that a person might put on their list
include new home, car, special trip, artwork, starting a business,
or pay off debts.
Sometimes it pays to itemize how you are going to get those
items. For example if you go for the new home first you could use
the equity from the home to purchase a car.
However if you went for the car first you would more then likely
struggle to get the home.
See what I mean?
Sit down and itemize what you want and then draw up a plan for
how you can achieve those results.
12. Setting Goals
Break your goals into short-term, intermediate-term, and long-
term. Being able to see your accomplishments is a great
motivator for you to work hard at saving.
If you set a short-term goal of saving for tickets to the symphony
and reach that goal, you will be encouraged to keep saving for the
intermediate and long-term goals.
13. Be Realistic
When it comes to saving money, make sure the goals you set for
yourself are realistic. If you earn $50,000 a year, saving $20,000
would be nice but it is very unrealistic. Make your goals
attainable or you will never save.
14. Flexibility
Once you have set your goal for saving, realize that things can
and will change. The secret is learning ways to be flexible. If you
normally save $150 a month, when something unexpected
happens, you may only be able to save $50 that month. This is
fine as long as you focus on getting back on track.
15. Insurance
Shop around for insurance and work with a good agent that can
provide information on discounts such as good student, multi-car
discount, etc.
Some people think the price of insurance is the same from one
company to the next. However, prices can vary dramatically and
to ensure you get the best deal, you need to consider all your
options.
A good place to find savings on insurance is
http://www.affordable-insurance-cover.com
This is not to be ignored.
You can save enough from your insurance costs to pay for a
decent end of year holiday.
16. Coupons
Okay, maybe you used to laugh as you watched people pull out
their coupons at stores but the truth is that using coupons can
save you hundreds of dollars every year.
Coupons can be used at grocery stores, retail chains, any store
where the item is sold. Some stores offer double coupon days,
which is an extra bonus.
On average, you could easily save from 5% to 15% on a bill for
$100 simply by presenting a coupon. Coupons are not just for
food items and by scouring your local newspaper you can find
coupons for all sorts of merchandise.
17. Credit Cards
Use credit cards only for emergency.
Although convenient, credit cards are dangerous and damaging.
In addition, if you have a credit card that has a $1,000 balance
and you pay only the minimum payment each month, it will take
you between 20 and 30 years to pay off that $1,000 balance since
the majority of money is going strictly toward the interest and not
the principal amount.
Sadly the incorrect use of credit cards is the major cause of
bankruptcy.
18. Mortgage Payment
Paying one additional mortgage payment each year, whether in a
lump sum or monthly increments can lower a 30-year loan down
to 18 years.
If you pay more than one extra payment, the number of years will
decrease even more. Since this additional payment will be applied
only to the principal and not the interest, you end up saving
thousands and thousands of dollars once the home is paid off.
If you are budget conscious then home-equity loans will provide
even greater savings.
19. Credit Card Interest
If you have credit cards and your credit is in good standing, call
your credit card company, and ask for your interest rate to be
lowered. It is truly that simple. Unfortunately, most people do
not even realize this is an option so they never make the call.
Just tell the representative that you want a better rate on your
credit card and they will take care of your request.
20. Patience
Be patient when it comes to saving. This means that you need to
accept that it will take time to save and good planning. Be patient
and remember that just because you want something, do not rush
to buy just to satisfy your urge. Instead, wait for sales in order to
get the best price, which in turn will save you money.
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