The economy is in a downturn, unemployment rate is up, gas prices remain high, and your monthly mortgage payments keep increasing. Luckily, the following 16 tips can help you navigate choppy economic waters and save some of your hard earned cash.
(1) Skip the $4 latte. If you’re a regular coffee drinker, it’s time to make your own coffee at home, or drink the cafeteria-grade coffee provided for free by your workplace. There is a good reason business at Starbucks is down these days—like others, you should skip the lines and save money.
(2) Bring lunch. It’s easy to fall into the habit of eating out with coworkers during lunch time. But $7 sandwiches add up quickly. To save time in the morning, prepare your meal at night and stick it in the refrigerator.
(3) Make a shopping list. Impulsive buying is one of the most damaging things you can do to your wallet. Make a list of items you need to buy prior to heading out, and be sure to stick to the list. Remember: self-restraint is a virtue.
(4) Watch for expiration dates. Ever have to toss out perishable items because they are past their expiration date? When grocery shopping, buy only the amount you need. Letting food products expire not only wastes money, but also creates foul odors in your kitchen.
(5) Buy in bulk. For non-perishable items such as canned foods, pasta, paper towels, and toilet paper, always buy in bulk. They won’t go bad, and you’ll save money and time in the long run.
(6) Pay down—and consolidate—your debts. Interest payments are money down the drain. As soon as it’s financially feasible, you should pay down your debt. If you hold multiple loans, see if you can consolidate them into one loan with a lower interest rate. And most importantly: avoid late fees at all costs.
(7) Avoid ATM fees. Some ATM machines charge up to $3 dollars per transaction if you are not a customer. On top of that, your bank may charge you an additional fee for using a non-approved ATM machine. Just walk the extra two blocks and go to your regular bank.
(8) For big ticket items, shop online. You’ll be surprised how much money you can save by shopping online, even with shipping charges. Sure, it takes a bit longer to receive the goods, but not only will you save money, you’ll save gas too.
(9) Bottle your own water. Buying bottled drinks at convenience stores may not seem like much, but the dollars quickly add up. Buy a filter to purify your water at home, and fill up a plastic or stainless steel container for the road (but make sure the bottle is BPA-free).
(10) Steer clear of vending machines. This is a tough one—3 p.m. hits, you walk past the vending machine, and that bag of M&M’s is waving at you. The smartest thing to do is to keep walking. Products from vending machines are usually unhealthy, and the markups are exorbitant.
(11) Don’t buy a new car. You know the saying that once your new car leaves the lot, it drops $2,000 in value? Well, it’s true. Automobiles typically lose 10 percent or more of its value in the first 6 months of ownership. A newer used car is a great deal, but make sure to perform extensive due diligence for any “under the hood” issues.
(12) Save on electricity. Make sure all lights are off. Unplug energy-hungry electronics, such as TVs, computers, and the air conditioner, when you leave is also a good idea (but don’t unplug your refrigerator!).
(13) Get a roommate. If you are fairly clean and civilized you can get a roommate—it’s a good way to save money. Utility bills, cable bills, the rent, and sometimes food expenses can all be shared. You never know, the new roommate can turn out to be a new friend or business contact down the road. If you are fairly young, moving back to your parents’ house is also an option—your friends may laugh at you but you will be laughing all the way to bank.
(14) Do your taxes correctly. When tax time comes, don’t cut corners. Studies show that many Americans overpay their taxes because they do not know about the federal, state, or local tax laws that apply to them. Sometimes, buying a book on taxes or hiring a tax accountant can actually save money.
(15) Cut the landline. If you’re like most Americans, you have a mobile phone, which has free long distance built-in. Make an analysis of your monthly phone usage—who do you call, and where are they located? In most cases, local phone companies charge a flat fee just for keeping the line open, even if you don’t make any phone calls.
(16) Peanut Butter. You can’t beat it. It’s full of protein, it’s cheap, it’s way better for you than Spam, and in case you ever get bubble gum in your hair, you just have to rub a glob of it in there and voila!
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