7 Tips To Save You Money

If you always stick to your budget and save a few dollars a day, then you are on your way to a debt free life.

Keeping a budget log where you jot down your expenses would help you in saving more money.

Take a look at your monthly expenses. Mark the things that you spend less money on and find a way to cut down on them even more. After doing so, make your way up the list and do the same thing.

A few dollar savings can effectively help you save big in the long run. For instance, if you normally buy a large coffee switch to a small coffee and you will be surprised on how much you can save over time. Just imagine how much you can save if you cut down on the more expensive things that you usually purchase. If you want to add more funds to your savings account, try these tips today:

  • Always categorize your purchase. Does it fall under wants or needs? Prioritize buying what you need more than what you want. Needs are necessities like food, clothing and household stuff, among others. Wants are the things that you enjoy and enhance your being.
  • Do not be an impulsive buyer. Before doing the groceries, list the things that you need to buy and stick to the list as much as you can. When shopping, try clothes or shoes on before you buy it. Make sure that you spend money on the things that you would use for a number of times. Be a budget shopper. Go for discounts and sales. If you are meaning to buy something expensive, give yourself the entire day to think about it.
  • Avoid late fees as much as you can. You can save big if you can avoid late fees and penalties on your credit cards, loans, mortgages and other monthly bills. You can always change the due date of your credit card bills so you can pay them at the same time you pay your monthly bills.
  • If you have some loose change in your pocket, save it! It will pile up and before you know it, you already have created funds for emergency use.
  • If you are taking prescription medicine, ask your doctor if he can prescribe to you generic drugs. Buying generic drugs can help you save hundreds of dollars every month. You can buy store brands over commercially advertised brands that can cost you so much more.
  • Avoid bounced checks and save about $30 a month. Use a debit card instead of credit cards if you do not have enough cash with you. Avoid using your ATM from other banks that would charge you a certain amount for withdrawal.
  • Shop for the cheapest gas around your area. Make sure that you maintain a good engine so that you do not spend more on gas. If you have to commute, try using public transportation instead of taking a cab. If you have to fly out of town or outside the country, book in advance so you can get the cheapest rate.

With these tips above, you are sure to add more dollars to your piggy bank!

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13 Responses

  1. I now see how you’re doing this! This is a refreshing money blog. I particularly like the shop for cheap gas tip…LOL!

  2. Gaida says:

    I purchase meat on special and pack in serving sizes & freeze it and other items I purchase additional of.

    Paying extra off your mortgage each month, even $20, can amount to huge savings. I was paying more than this but reduced my mortgage from 25 years to 13 years & paid it off.

    I always try to fill up on the cheaper days… we also use discount dockets. But you don’t want to be sitting in line running your engine, otherwise those savings are soon gone.

    • Gaida says:

      Additional note re paying off mortgage… Do not totally close this account as you can use it, usually without fees or at least lower fees, if you decide to purchase another property.

  3. mnc says:

    Gaida, thanks for the comment and additional suggestions.

    One question I have for you is regarding your last comment – as I am not familiar with the possibility of leaving a mortgage account open. Once the final payment has been made the installment loan is considered to be closed so I would be interested in hearing how it works where you are located.

    Also, what is a discount docket?

  4. Gaida says:

    Hi MNC,
    In Australia eg with Westpac Bank you can keep your home loan balance at zero (O) but do not close account. (If you close your account you are usually charged a fee for the paperwork etc. & lose any of other benefits.)

    The advantage of this is if you have paid your loan off early you can redraw on those funds that are in advance or transfer loan to another property – this is called Portability. Most of the time there are no fees or very low fees rather than having to pay new loan establishment fees etc.

    Re discount dockets. Shopping at Woolworths or Coles supermarkets…if you spend $30 or more you receive 4 cents a litre off your petrol. This discount is usually printed at end of your grocery sales voucher. It has an expiry date & must be handed in when paying for your petrol to get discount.

    As in my previous comment if you’re sitting in line burning fuel you’ve probably already wasted that discount.

    • Gaida says:

      With the redraw facility (usually for payments in advance so your account is in credit) these can be used eg if you need to purchase a new car. Once you draw these funds that amount is added back onto your loan at a rate of home loans at moment approx 6%.

      If you took out a personal loan for the car you would now be paying an additional loan amount, so, now you’ve got 2 large payments, instead of a much lower monthly payment if added onto your home loan.

      These personal interest rates can be 17% or higher. You also save on establishment fees that would have also been charged for the new personal loan.

      Now I know which rate I’d rather be paying.

      If you do take out a personal loan & pay it off early, you will most probably be asked to pay out an early release fee. If you just let it sit there until the term finishes there are no extra charges. Always check with your loan provider if this applies.

      The other thing you have to watch… especially for personal loan for a car is it’s usually a secured loan (on car) then they have to be noted on your insurance cover.

      There is usually an additional fee of approx $150 for your premium which is not a one off charge which you would think it would be!! but charged until your loan is finalised! They’ll get you every way they can & it’s costing you money. Always look at your best options.

      Remember… these answers are not volunteered unless you actually ask the questions.

    • Nick says:

      The idea of keeping a mortgage account open after the mortgage is payed off is a new one to me, I don’t think this is common practice in the US though. In some respects, I think it might be problematic if we did this in the US though. It would make it way to easy for people to get way too much extra debt.

      In regards to the gas discounts at the bottom of your shopping receipt, I usually don’t may much attention to them mainly because they are usually only good for that day and it I probably don’t have the time or need to get fuel that day. Occasionally they come in handy though.

  5. Millinoster says:

    For me the cheapest gas was always at costco, a point proven by gasbuddy.com — but rather than looking for cheap gas — I took the next great leap and moved to within 3 minutes of my job. I’v been saving a ton on gas, skipping traffic, and always on time to work. =)

  6. mnc says:

    @Gaida :: Thank you for the explanation on how things work in Australia. That is all new information to me but I find it to be very interesting.

    @Millionster :: Lately the Meijer, Walmart and BP right near our house have all been matching prices. I typically go to the BP as I use their rewards credit card to receive the cash back. That is great that you were able to move so close to work. I’ve been doing a little more work from home to reduce my lengthy commute.

  7. Nick says:

    Thanks for some more great tips Derek! I am occasionally amazed by how much can be saved from throwing lose change into a jar and letting it accumulate.

    • mnc says:

      Nick, you’re right that something as simple as collecting your change can add up to a nice little chunk of money. We have a habit of throwing all of our loose change in a jar and using that money to put towards vacations.

      Regarding your comment about gas discounts, I’ve noticed that stores in our area such as Domincks, Walmart, and CostCo offer a discounted price at their gas station when you spend so much money at their store.

      • Nick says:

        Yeah, I have noticed that type of thing as well, but usually the discount is negligible and is more of a marketing tactic than something that actually saves you money. From my experience a lot of those discounts are only good for that day too.

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