30 Days, 30 Ways to Save

We just concluded our 30 Days, 30 Ways to Save campaign and we wanted to consolidate the tips we’ve sent out on our social media feeds in one place for those who may have missed a day or two or would like to print it off and post it on your refrigerator. Even if you don’t hang it up, you may want to store it someplace else where you can reference it from time to time or pass it on to a loved one.

1. Cash is King – YO! Ditch the credit cards and use cash instead. Research has proven that spending cold hard cash affects us emotionally in a way that credit cards don’t. As a result, we spend less when we pass out those hard-earned dollars.

2. Is one car too far? This may be extreme for some, but this is a biggie! The cost of a car is much more than the gas you buy. Even if you don’t have a payment, consider the gas, insurance, storage & maintenance. Do the math and just consider it for a sec….Maybe a carpool, riding a bike, or sharing the car will seem more like a bright idea when you assign a value to it.

3. Be a TRACKER! “Where’d it all go?” So many of us have no idea where it goes. Investigate it….check in on the apps and subscriptions you pay for, the food and drink purchases we make when we are too tired or need to wake up, the gym membership you may not be using. It all adds up.

4. Cottages are the New Mansions. You don’t have to wait until retirement to downsize your living space. It costs money and energy to maintain large living areas. For our pre-retirement clients, we recommend a mortgage of only 15-25% of your net income on a 15-year mortgage. Paying that thing off even earlier will change your life.

5. Be your own Barista! Make your own coffee. I am amazed at how many Starbucks, Dutch Bros. and other coffee shops there are in the Tri-Cities and they are always slammed. At about $4 for a coffee, that can really add up – about $100 in a month if you partake near daily.

6. Grocery Drive-By… In the TriCities, both Fred Meyer and Walmart offer online grocery ordering with scheduled grocery pick up. It’s legit. You can be in your house looking through your fridge and pantry while you place food in your virtual cart. Just think of the savings you’ll have by not buying a head of lettuce at the store and when you get home find you already have two! Not only that, but you can see the total purchase price in your cart, so if you’re on a strict budget, you can simply remove it from your cart….no trying to decide whether you should put something back while the line grows at the register! No more will you be tempted into impulse buys as you pass the endcap display with the newest Oreo flavor. And perhaps, BEST OF ALL you won’t have to decide whether you should suck it up and learn to cashier by scanning your own groceries or wait in a mammoth line. They automatically scan it all for you AND THEY BRING IT TO YOUR CAR! You can pay online with a debit/credit card or pay with cash when you arrive. There are so many perks with this one!

7. Brown Bag it! Pack your lunch instead of buying it on the go. (Might help with the old waist line as well.) Consider prepping portion-sized components on the weekend; sliced veggies, baby dills, rice, hummus, bunches of grapes, crackers, pretzels, etc. Others will simply make extra dinner and pack left overs for the next day. If you’re not a morning person, be sure your lunch is ready before you go to bed….don’t wait until morning or you may end up in the Wendy’s drive-thru at noon instead.

8. Save for Retirement Pre-Tax. One of our biggest expenses is TAXES and we often omit the expense line entirely from our written budgets. Many don’t consider the impact and benefit of saving for retirement and getting the added perk of reducing your tax bill for that year. Depending on account type and income, you can reduce your taxable income by $19,000 (401K) or $6,000 (IRA) if younger than 50, $7000 if older. PLUS, if you didn’t max out last year, you can still contribute for slightly lesser amounts for 2018 until April 15th. So, while growing your nest egg, you can cut the tax bill significantly!

9. Don’t Stress-Shop! While hitting the mall (or should I say, Target?) might make you feel better when you are stressed, you may end up with stuff you don’t need or don’t want. Instead, find more effective ways to release your stress. Some options include exercise, meditation, reading, coloring, watching a movie, gardening, puzzles, or take a nap! Social shopping can be a temptation for you as well.

If you have shop-a-holic friends, be brave. Suggest other things you can do to spend time together that will still allow you to gab your stress away….meet up to pack healthy lunches for the week, join a fitness class together, volunteer at a food bank, take a walk in the park on a new trail, organize a closet (always more fun to help a friend with this than to tackle your own). The ideas are endless. And remember, friends don’t let friends shop too much!

10. Health Insurance Costs. If you are responsible to purchase your own health insurance, have no major existing illnesses, live a healthy lifestyle, and don’t smoke, then you may want to consider switching from a traditional health insurance policy to a Health Sharing account. It’s a huge cost savings, but you’ll need to be able to pay the bill upfront and submit for reimbursement with these plans. It’s a total mind-shift from the traditional health insurance, but it can make a HUGE impact on your budget for the better.

11. The Magic of 12! Whenever you sign up for a monthly payment or subscription multiply it by 12. This will annualize the cost and help you decide whether it’s worth it. Sellers know that if they break things down into smaller payments, they sell more product. Fight this by using the magic of multiplication – YAY MATH!

12. TRADE. If you spend money on something that a friend or family member could easily do….consider what you could do to help them. Then strike a deal! “Hey, favorite neighbor…would you be interested in trading babysitting for free mending?” Or how about “Hey Mr.Church-Friend-Plumber-Guy….Would you be willing to repair my leaky water heater in exchange for me re-staining your fence or making you a years’ worth of homemade cinnamon rolls?” The possibilities are endless, so put your thinking cap on!

13. Go with Term Life Insurance. Insurance should not be used as an investment! So steer clear of YUCKY whole life insurance policies! They are so dang expensive and if ignored, the cash value can and will be eaten up to pay the premiums. Then you could end up with a whole-lot of expensive-nothing. Instead, price out term life insurance through a company that shops 20+ companies for you that will find the best fit for you. Term life insurance is a lot less expensive than whole life. The extra money can be used for either real investments or add some wiggle room to your monthly budget. Also, don’t forget to reevaluate your insurance coverage periodically; major life events often necessitate changes in coverage.

14. Invite your Friends Over! Have you noticed how much you spend when you meet your friends at a restaurant for dinner and a movie? Instead, invite them over to your house for a meal. Afterwards, you can watch a movie, hang out in the back yard, or play a game. Hey, maybe they even reciprocate, and you’ll get two cheap dates for the price of one!

15. Audit your PayStub! Do you know what you have signed up with through your employer? Many people have 20 things coming out of their check sometimes and they don’t even know what half of them are. We DO NOT recommend short-term disability products, critical illness insurance, cancer insurance, etc. We DO recommend long-term disability, 401K contributions, traditional employer sponsored health coverage.

16. Paint Rocks with the Kids! Your kids want to spend time with you more than they want to spend your money. So, instead of spending hundreds of dollars all over town, take them to the park, kick a soccer ball around, have a backyard camp out – complete with a BBQ or picnic, play restaurant and let them cook delicious masterpieces for you. Have you noticed how many people are painting FREE ROCKS now for fun? I’m sure the kids would dig it!

17. Quadruple that Recipe! The next time you are making your family’s favorite dinner, quadruple it and freeze the extras. When you buy the ingredients in bulk (or even better when they are on sale) you’re saving money and reducing waste. Having freezer meals on hand will help alleviate temptation to eat out, making it better for your wallet and your health. When starting out, people often wonder what will freeze well….just follow the pattern of what you see in the freezer section at the store. If they can freeze it, so can you!

18. Save on a Mortgage! When looking into mortgages, you may notice 30-year and 15-year options. You may be turned off by the higher payments of a 15-year mortgage, but you might consider it for all the savings in interest. If you buy a $200k home with $40k down, with 4% interest, your total cost is $314,990 for 30 years and $253,030 for 15 years. That’s nearly a $62k difference! Not to mention, 15-year loans usually have better interest rates too.

19. Know your Discounts! Make sure you understand all the benefits your employer offers. I’ve had clients come in whose employer pays for planning services. Many employers will have a negotiated discount with certain stores, fitness gyms or even offer counseling services. Also, be aware of other discounts you may qualify for through various banks or memberships. Once you reach your Golden Years, don’t be bashful about flaunting it and getting some senior discounts. You earned it! Check out his INSANE list of 2019 Senior Discount you never knew about (Applebees, Dairy Queen, Fred Meyer, Kohl’s….This list is AWESOME!) . https://www.theseniorlist.com/senior-discounts/

20. Is it Drafty in Here? It’s winter and some of us may feel a slight breeze in our homes, but we don’t have to live with it. Caulk up, tape, balloons…Oh MY! Taking a few steps to increase the efficiency of your home in the winter will also save you money in the summer! Check out this link to Bob Vila’s site for a great list with pictures and cost estimates. https://www.bobvila.com/slideshow/11-ways-to-winterize-your- home-on-a-budget-10169#flush-the-water-heater

21. Practice the Envelope Method! This is a budgeting technique to help you visualize and maintain a budget. It’s a good idea to use envelopes for items that tend to regularly bust the budget…like groceries, restaurants, entertainment, gas or clothing. No money comes out of that envelope except to pay for what it’s labeled for. And don’t borrow from other envelopes. If you go to the grocery store and leave your grocery money envelope at home, turn around and go get it. This will help you to be intentional and prioritize your spending to ensure you don’t bust the budget each month.

22. Price Shop Prescriptions! Some of us who take prescriptions may feel like we don’t have a lot of options out there, but you might be surprised. First, know your coverage. Then, know your drugs. There may be generic options that are far cheaper and find out where those are offered for less. Ask your pharmacist if there are any other discounts that can be applied to your order. Some pharmacies may even offer free meds, like antibiotics, and you can usually take advantage of your loyalty programs too.

Here’s a link if you want to get an EasyDrugCard, go to this link: https://easydrugcard.com/ or you can download the app and have it on your phone. The description for the card: Operates like a coupon, Ready to Use! This plan is designed to benefit both the uninsured and insured cardholders by providing the best price for your prescriptions. To ensure you receive the best price, simply present your Easy Drug Card to the pharmacist at the point of your purchase.

23. Change the Bulbs! Switching out those inefficient light bulbs that seem to burn out every other month and replacing them with energy-efficient compact florescent lights (CFLs) or light emitting diodes (LEDs) will save you money even though they cost more to buy. Even if you replace only the 5 or 6 lights you use most, you can save nearly $50 a year and you’ll be replacing those bulbs less often. And turn them off when you aren’t using them!

24. Buy Nearly New! Not everything you buy has to be brand-new when there are a lot of alternatives to buy used. There a lot of options out there to find just what you need, such as consignment shops, used games stores, cell phone providers, and even Amazon has a whole section on their website, and you can find it here: https://www.amazon.com/Warehouse-Deals/b?ie=UTF8&node=10158976011

25. Get Organized! How many times have you bought something and realized that you already owned one? If you can follow that mantra of “Everything in its Place,” then you’re well on your way to not buying those things you have already!

26. Stick with Quality! If you find yourself having to buy a new appliance or other big item, do your research on what’s available and how reliable it is. Checking out online reviews or going to the library to comb through recent issues of Consumer Reports will help you buy a good product that should last you 10- 15 years or more instead of having to replace a not-so-great product in a few years.

27. Take Care of You! Simple things, like washing your hands, will reduce how often you get sick. Drinking plenty of water will keep you hydrated, which will make you feel better and it can help you by keeping you from getting sugary, high-calorie beverages and keep you feeling fuller. Also, when you eat breakfast before leaving home, you’re reducing the possibility of feeling starved later and getting an expensive and unhealthy lunch. Eating well and getting some exercise will make a huge difference in the long run with your health and possibly having to pay expensive medical bills in the future.

28. Go Generic! There are a lot of items out there that have a generic option, like pain relivers, pasta, frozen veggies, canned goods, plastic wrap, etc.. Often times the big difference in the cost of name-brand and generic is the name and the marketing expenses that are passed on to the consumer….You!

29. Have an Emergency Fund! Put some funds in your savings account for those unexpected situations and increase your deductibles on your home and auto policies, which can save you hundreds each year. Also, if your employer offers it, take advantage of a health savings account (HSA), which is like an emergency fund for medical expenses. A huge advantage of these is that the money goes in pre-tax, comes out tax-free, and can roll over each year if you don’t use it. 30 – Stay on top of it! The best thing you can do to save money is to do your best to keep on top of your finances. Don’t let your attention to it slip away. Calendar regular reviews of your budget and expenses. Are they still in line with your priorities and major life changes? If not, be a boss and take action to get back on track!