This week in class we had several great discussions in class about saving and reducing your spending so once you are ready to retire you have enough money to be actually able to stop working. I was surprised to hear that some people in the class have already had the foresight to open up a retirement fund. Those conversations have inspired me to look other ways in order to save money on your day to day life. I found the top ten ways to save money that is easy to do and can save you a ton of money in the long run.
1. Switch your bank account to a bank that respects you (check for the best interest rates)
2. Turn off the television
3. Look at your hobbies (see if they are worth spending mine)
4. Look for every free customer rewards program you can
5. Make your own gifts and instead of buying them at the door
6. Master the 30 day rule (if you want something wait 30 days and see if you still want it)
7. Write a list before going shopping - a stick to it
8. Invite friends over instead of going out
9. Instead of throwing out some damaged clothing, repair it instead
10. Don't spend big money entertaining your children
Great tips on how to save, Geaorge, thank you!
ReplyDeleteIt is interesting that most of these things my family has been doing for years, and not to save money but to survive on the miserably low Russian salary. In order to go out or buy new clothes you need to have money available (or a credit card!) which is not the case with so many Russian families. The vast majority of Russian families repair the damaged clothes because it is cheaper to repair than to buy something new, while in the U.S. clothes in general is much more affordable especially if you go to a thrift store. Russian girls are expected to sew, as my mother used to tell me that I would never get married if I do not learn how to sew, cook and keep my house pristine. None of my Russian friends and relatives go out to eat (even once a week) because we are so used to the home-made food, but my roommate here is used to go out because that was what her family did every single day, therefore she does not want to learn how to cook but at the same time keeps complaining that she is poor. Which brings another issue on the discussion table - what is poor for one person is not poor for another. Therefore some families would do these 10 things to save money (or I would call it not to waste money), while other families are doing it automatically because their income does not let them to do otherwise.
I really liked reading this list of ways to save as it is very applicable to my life as a college student. I had a summer job knowing that I needed to save money because I would not be working while taking classes in the fall. Now that I am paying my own bills at school I have become much more aware of things like a faucet or a light left on. I have applied the 7th tip, but in varied form. I'll look in pantry to see what I need and make a list, but when I'm at the store I will stock up on non-perishable items if they are on sale. I have also used the 8th tip, especially in the case of movies. I remember when going to the movies cost $4.50, but now that you can rent movies cheaper and aren't paying inflated prices for snacks and drinks at the movie theater I like watching movie at my house better.
ReplyDeleteI agree - this was a very interesting discussion. I was really surprised to hear about how many people in our class have savings accounts, etc. I personally do not have one currently but I am definitely going to open one soon. I don't want to be one of those people who lives day to day when they're older, like so many individuals do.
ReplyDeleteAlso, this is the first time I've ever had my own house and I've been doing all that I can to avoid paying high bills too! I've never realized how much money you can save by turning out lights when you're not using them because my parents were always the ones paying the bill when I was at home!
One of the most important things that I'm learning (slowly, haha) to do is cut out wasteful expenses. Instead of going out to dinner, I'm cooking more at home and cutting down on my shopping habit.
The tips in your post are really helpful and applicable to my daily life! Thanks! :)
Unfortunately the same as Stasia I do not have a saving account, only a checking account, but at the same time I am very careful with my expenses and I just do not touch the money that I am saving every month. But now I do think it will make more sense to actually separate the accounts and to start getting the interest from all the money I saved. It will also make me more organized and careful.
ReplyDeleteThis is a very interesting post with lots of good tips for saving. As the previous posts, I also do not have a savings account but hearing the discussions in class have made me really consider opening one very soon. Growing up, my parents did not save money until the past couple years but I learned from them that the earlier you start, the better off you will be in the future. With the economy now, you have to start saving at a young age to have a healthy retirement. Thanks for the great information!
ReplyDeleteI was also shocked about how many people in our class have already started thinking about retirement. It definitely was a wake up call for me, and something I need to look into. I think my dad is a wonderful role model for that. He has a budget for every necessity every month. He is great about doing those little things for example going around and turning the lights off, turning the TV off, and keeping my sister and I on a budget. He finds ways to keep himself occupied that don't cost a lot of money, like spending a lot of time outdoors. I think my mom could use an improvement when it comes to saving. She doesn't always think what she purchases through. I have to start thinking this out every time I want to go get chipotle or fall asleep watching television.
ReplyDeleteI can really relate to this post. Growing up, my family lived on a very limited income and we frequently followed (and continue to follow) many of the practices reflected in this list. We never discussed things such as savings accounts or planning for retirement; not because we didn’t think it was important but because building up a significant amount of savings was not a realistic option for us. I very much agree that saving ten percent of your paycheck is a smart and responsible idea, but for some lower income families it’s not possible. We’re fortunate today to be in an improved financial situation, although we still do not discuss financial issues very often (perhaps this isn’t the most intelligent choice).
ReplyDeleteI really enjoyed this post! Being a college student has helped me really prioritize my money. I find myself looking for any solution to saving money. I have never heard of the 30 day rule and I really like it. If i did that more often, I might save a little more money. A lot of times, I am afraid of losing the sale, but at the same time, I buy things that I might not wear..ever.
ReplyDeleteWhen I saw this blog's topic I thought of how I have tried to squeeze the most out of my budget. From an early age my parents have preached savings to me. The N64 video game system had been tops on my toy list since it debuted. To install savings discipline, my father encouraged me to collect aluminum cans from around the neighborhood and turn them in for cash. After six months of collecting and saving I was finally able to purchase my dream toy. This mentality has carried over into my college life as I work three times a week and try to save 60% of my earnings. I enjoyed your tips about saving and have tried to be cognizant of turning my television off before I go to bed.
ReplyDeleteI believe a lot of what we have to do comes with how we were raised and how our family saved money or rather failed to. Ways of doing things are passed down from generation to generation so many teens don’t know of any other way to do things once they are out of the house and in our purpose, college.
ReplyDeleteOne that I have noticed in my house, similar to not turning off the t.v., here at school that has costs us extra money would be having windows and doors open. I use the phrase so so often in my house, “were you born in a barn?!?” because sometimes my housemates have no idea of what money they are wasting. Opening the windows while either the air or heat is on, you would think would be a major known of not what to do, but some people still do it. What I have noticed would be leaving the door open when the air or heat is on. Even if the door is open just to go run out and get the mail it is costing us money, which can all add up in the long run!!!
George--
ReplyDeleteI love the list that you've posted! I think the points you mention are basics that people need to remind themselves of as they plan financially and run errands. The one that hit home to me the most was about writing a list before going shopping and STICKING TO IT. I'm all for lists, but once I walk into a store, I suddenly remember at least ten other things that I want as well. It is such an easy way to spend money on unnecessary purchases. By sticking to a list, it will be much easier to follow a set budget. I think turning of the television is another smart way to make several lifestyle changes. I completely admit that I watch too much tv, and TIVO doesn't help either! But by reducing the amount of time in front of the TV, not only could I reduce bills, but I don't think sitting in front of the TV is the best permanent habit. I'm all for a lazy day or two, but time can be spent doing many other things. This is definitely more prevalent in our generation, because I notice the amount of time my friends and I spend watching TV versus my Mom and grandparents. It is obvious that technology is such a more integral part of our lives. I do think technology has helped people stay more in touch with their finances through online banking by making it so accessible. To get a visual of how much you are spending, I think this allows people to keep better track of their purchases. You touched on many ways that we can save money instead of constantly spending it. I think another great way to save money is to eat at home versus eating out. Sometimes it feels easier to grab a meal quickly from a restaurant rather than making one's own food. The truth is that one meal at a restaurant can be the cost of three meals at home. Plus, home cooked meals are potentially more healthy as well. It is important to establish financial guidelines now, so we can continue these as we have our own careers and families to account for.
I definitely shop way too much :). I think a lot of it is related to how poor I grew up. I was raised in a single parent home with 4 other siblings. We had nothing named brand nor could afford doing activities that my peers enjoyed. I have always told myself that I would not live out my adult life being poor and wanting things that I couldn't afford. I would buy up anything that I felt that I wanted if I could afford it. However, with the downfall of the economy and prices of merchandise going up, I watch what I spend on a daily basis and have invested in 2 savings accounts that I don't touch;no matter what. My husband saves every penny that he earns and something that he is accustomed to from his African culture. I think that with the aging baby boomers and the shape that social security is in, we all have to be consciencious about our savings and to save well...
ReplyDeleteThis is a very helpful post- thanks for the good tips! I was also shocked that people have already been thinking about retirement. After our discussion, I too began to think about ways to save money and plan for my future. I like your idea of waiting 30 days to buy something. I think your list is very helpful because its all the little things that add up to big savings in the end. I plan to start being much better at my savings.
ReplyDeleteI agree with Chelsea, every little bit counts. These tips can actually be applied to our lives as college students. If we want to save money on our bills and things like that. I have a bit of a shopping addiction (as does every girl my age) and the 30 day rule really helps me to see if I really want or need something. It has also helped me to write a list of things I need before going to the grocery store. Before, I would find myself putting things in my shopping cart that I really didn't need and I would end up spending a significant amount more than I thought at the end of the trip. Now, I actually think about my purchases.
ReplyDeleteI have also already considered saving more for my future. I am starting a Roth IRA in the next year and have researched the many options my future employer may give to its employees and have decided which would be the best plan for me.
These tips have helped me to put finances into perspective for me. Thank you!