Save Money Now
Create Your Own Recession Action Plan
The recession is taking its toll on everyone. It's easy to feel anxious, angry, or helpless in the face of the huge issues we're facing. Nearly everyone from the blue collar worker to the executive is anxious about their job right now. Taking action in your own personal life is one way to feel that you have some sense of control during this challenging time.
Find ways to trim your personal and household budgets now. This is getting yourself into financial shape, just as an athlete trains for a big athletic event. The athlete doesn't wait until the day of the contest to get ready. They train for months or years so they're in peak condition. That's what we all have to do with our expenses. From the easy daily tasks to the more far-reaching, it's up to each of us to get as much control of our own financial habits as we can. Create your own saving money plan!
EVERYDAY ACTIONS
1. Begin keeping a record of everything you spend. Especially cash. You've got to know where your money is going. Cash slips through our fingers easily. Carry a little notebook with you to record cash expenditures. No matter how small. Know where all your money goes. Track your debit and credit card charges. Categorize it: Utilities, groceries, insurance, entertainment, education, etc. Divide your category list into the necessary and the flexible.
2. Prioritize what's important to you. Most people don't do this. Is going out to eat once a week really important to you, more important than other things you might be willing to do without? Is your gym club membership vital to your well-being? Is your hobby something that's still affordable? How about the car you drive? It's now fashionable to be frugal. Instead of keeping up with the Jones family, (who may now be in foreclosure) now we're all bragging about how much we've figured out to save. The pressure to live beyond your means is a thing of the past. Are you so overextended that you are at that point where you've got to take desperate measures?
3. Negotiate everything. Get comfortable asking for discounts or price reductions whenever you buy. See a button loose on the piece of clothing you like? As for a discount on it. The key to this is to be willing to say, "The marked price is not worth it to me with this flaw." And be willing to take it back. Most of the time you'll get a break on the price. On larger purchases, for anything, always bargain. Just say, "For me to buy that today, I've just got to be able to have a little lower price. What can you do for me?" You can play this two ways. You can tell them what you want to pay, or see what they say first. If you wait until they tell you what they can do, you know how motivated they are to make the sale. Never be embarrassed about this. You're offering to be a customer.
4. Convert to automatic payment plans. For any recurring bill you have, ask if you can save money by switching to an automatic credit card charge or checking account debit. Many companies will reduce the monthly bill or give you a free month. They know they have greater customer retention if they can get you on an automatic payment system.
5. Skip the daily gourmet coffee. Even if your habit is plain brew, you'll save $10 a week..that's is if you count just weekdays. That's 40 bucks a month. Or change from your fancy designer drink down to just the plain cup of coffee. It's about the same savings.
6. Shop for groceries more frequently. This has two advantages: You'll waste less food because things won't spoil in your refrigerator. Plus by shopping more often, you'll be more familiar with the prices and take advantage of specials. I've just started doing this in the last two months and I've been amazed at the savings.
7. Use coupons. Look for the supermarket coupons that reduce the entire bill, rather than a few cents off on individual products. Coupons are becoming more common now from other kinds of businesses. My car repair shop is now sending them out. Use them.
8. Join a supermarket rewards club. It does make a difference. In the northwest, both Safeway and Fred Meyer have reward plans.
9. Compare prices between stores on items you buy often. Trader Joe's has significantly lower prices on several items I like. Or try the low-priced grocery chains such as Winco Foods.
10. Compare ready-to cook entrée prices with what it would cost to make it yourself. Sometimes it is cheaper to buy the ready-to-cook item when you consider the cost of all the ingredients you need to buy. The locally owned health food store in the Portland area, New Seasons, has great prepared entrées for good prices.
12. Keep your tires inflated. It'll increase your mileage by about 5%.
12. Explore joining Costco, and go to one that has gas. It's 10 cents a gallon cheaper on average. Make sure you'll have more savings than the annual membership. Everyday household products are a lot cheaper there. One tip: always go in with a specific list and stick to it. It's very easy to spend more than you intended because you're enamored with the prices.
13. Turn down the heat one more degree.
14. Trim your cable, satellite bill, or internet bill. Know what you're really paying for. It's usually easy to trim $10-20 off your bill. Play vendors against each other. It's competitive business, and they want to keep you. Check to see if newer competitive services are available in your area such as Fios or Clearwire.
15. Cancel your hard line phone. Unless you need a fax machine, you can probably make do with your cell phone. About 25% of Americans already do.
16. Educate yourself about the economy and personal finances. There are many websites that offer free, timely information.. Check out cnnmoney.com
BIGGER ITEMS
1. Trade down to a car you can afford. If your car payment is a burden, consider selling it and trading down for a car that you can pay cash for. Cars are depreciating assets. Don't tie up your money in them. If you have three cars can you make do with two? If you have two can you go down to one? If you live in a downtown area, can you eliminate having a car entirely? Check out car sharing plans such as Zipcar.
2. Watch the mortgage rates. Rates are coming down. Refinancing at a rate where you can save real money may soon be an option if you have good credit.
INVEST IN YOURSELF
This may seem contrary to saving money. But now is the time to upgrade your marketable skills. You can save money here and there, but the best thing you can do is to keep your job, get a promotion, or find ways to make money outside of your regular job.
Take a class in something that will give you a new, usable skill. Learn how to use another piece of software. Get another professional certification. Improve your presentation skills. Your local community college is filled with these kinds of classes. Here's a list of community colleges by state. Check it out!
(Have a good way to save money that you'd like to share? Post a comment! If you like this blog, tell your friends about it!)
The recession is taking its toll on everyone. It's easy to feel anxious, angry, or helpless in the face of the huge issues we're facing. Nearly everyone from the blue collar worker to the executive is anxious about their job right now. Taking action in your own personal life is one way to feel that you have some sense of control during this challenging time.
Find ways to trim your personal and household budgets now. This is getting yourself into financial shape, just as an athlete trains for a big athletic event. The athlete doesn't wait until the day of the contest to get ready. They train for months or years so they're in peak condition. That's what we all have to do with our expenses. From the easy daily tasks to the more far-reaching, it's up to each of us to get as much control of our own financial habits as we can. Create your own saving money plan!
EVERYDAY ACTIONS
1. Begin keeping a record of everything you spend. Especially cash. You've got to know where your money is going. Cash slips through our fingers easily. Carry a little notebook with you to record cash expenditures. No matter how small. Know where all your money goes. Track your debit and credit card charges. Categorize it: Utilities, groceries, insurance, entertainment, education, etc. Divide your category list into the necessary and the flexible.
2. Prioritize what's important to you. Most people don't do this. Is going out to eat once a week really important to you, more important than other things you might be willing to do without? Is your gym club membership vital to your well-being? Is your hobby something that's still affordable? How about the car you drive? It's now fashionable to be frugal. Instead of keeping up with the Jones family, (who may now be in foreclosure) now we're all bragging about how much we've figured out to save. The pressure to live beyond your means is a thing of the past. Are you so overextended that you are at that point where you've got to take desperate measures?
3. Negotiate everything. Get comfortable asking for discounts or price reductions whenever you buy. See a button loose on the piece of clothing you like? As for a discount on it. The key to this is to be willing to say, "The marked price is not worth it to me with this flaw." And be willing to take it back. Most of the time you'll get a break on the price. On larger purchases, for anything, always bargain. Just say, "For me to buy that today, I've just got to be able to have a little lower price. What can you do for me?" You can play this two ways. You can tell them what you want to pay, or see what they say first. If you wait until they tell you what they can do, you know how motivated they are to make the sale. Never be embarrassed about this. You're offering to be a customer.
4. Convert to automatic payment plans. For any recurring bill you have, ask if you can save money by switching to an automatic credit card charge or checking account debit. Many companies will reduce the monthly bill or give you a free month. They know they have greater customer retention if they can get you on an automatic payment system.
5. Skip the daily gourmet coffee. Even if your habit is plain brew, you'll save $10 a week..that's is if you count just weekdays. That's 40 bucks a month. Or change from your fancy designer drink down to just the plain cup of coffee. It's about the same savings.
6. Shop for groceries more frequently. This has two advantages: You'll waste less food because things won't spoil in your refrigerator. Plus by shopping more often, you'll be more familiar with the prices and take advantage of specials. I've just started doing this in the last two months and I've been amazed at the savings.
7. Use coupons. Look for the supermarket coupons that reduce the entire bill, rather than a few cents off on individual products. Coupons are becoming more common now from other kinds of businesses. My car repair shop is now sending them out. Use them.
8. Join a supermarket rewards club. It does make a difference. In the northwest, both Safeway and Fred Meyer have reward plans.
9. Compare prices between stores on items you buy often. Trader Joe's has significantly lower prices on several items I like. Or try the low-priced grocery chains such as Winco Foods.
10. Compare ready-to cook entrée prices with what it would cost to make it yourself. Sometimes it is cheaper to buy the ready-to-cook item when you consider the cost of all the ingredients you need to buy. The locally owned health food store in the Portland area, New Seasons, has great prepared entrées for good prices.
12. Keep your tires inflated. It'll increase your mileage by about 5%.
12. Explore joining Costco, and go to one that has gas. It's 10 cents a gallon cheaper on average. Make sure you'll have more savings than the annual membership. Everyday household products are a lot cheaper there. One tip: always go in with a specific list and stick to it. It's very easy to spend more than you intended because you're enamored with the prices.
13. Turn down the heat one more degree.
14. Trim your cable, satellite bill, or internet bill. Know what you're really paying for. It's usually easy to trim $10-20 off your bill. Play vendors against each other. It's competitive business, and they want to keep you. Check to see if newer competitive services are available in your area such as Fios or Clearwire.
15. Cancel your hard line phone. Unless you need a fax machine, you can probably make do with your cell phone. About 25% of Americans already do.
16. Educate yourself about the economy and personal finances. There are many websites that offer free, timely information.. Check out cnnmoney.com
BIGGER ITEMS
1. Trade down to a car you can afford. If your car payment is a burden, consider selling it and trading down for a car that you can pay cash for. Cars are depreciating assets. Don't tie up your money in them. If you have three cars can you make do with two? If you have two can you go down to one? If you live in a downtown area, can you eliminate having a car entirely? Check out car sharing plans such as Zipcar.
2. Watch the mortgage rates. Rates are coming down. Refinancing at a rate where you can save real money may soon be an option if you have good credit.
INVEST IN YOURSELF
This may seem contrary to saving money. But now is the time to upgrade your marketable skills. You can save money here and there, but the best thing you can do is to keep your job, get a promotion, or find ways to make money outside of your regular job.
Take a class in something that will give you a new, usable skill. Learn how to use another piece of software. Get another professional certification. Improve your presentation skills. Your local community college is filled with these kinds of classes. Here's a list of community colleges by state. Check it out!
(Have a good way to save money that you'd like to share? Post a comment! If you like this blog, tell your friends about it!)
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