The Boulevard to Financial Independence

By Mariette

I’ve been looking at a lot of blogs and websites recently that talk about ways to save money or to be frugal, so I thought I would share some of my suggestions and some good links to add to the mix. One of the first things you realise when you start delving into all the different resources that suggest ways to save money is that there are many different ways to do it, not all of which will work for every person or lifestyle. Trent at The Simple Dollar had a good post on this where he suggested that people try out different tips for one week to see if they work for you, then incorporate the ones that do and then try some more.

One thing which everyone needs to do if they are serious about being frugal is to draw up a budget and then stick to it. As part of this you also need to write down every penny you spend, this will help you to keep track of to where your money is going. There are some good tools for this and forms on the Boulevard to Retirement site. The only people who may not have to do this are those that are naturally frugal, don’t have trouble saving for retirement and don’t have any debt - which isn’t me, and odds are if you are reading this, it isn’t you either. I’ve had to teach myself to be more frugal and it’s an ongoing process. If you are trying to reduce your debt and having some difficulty saving enough money for retirement then to meet those goals you need to budget and probably pinch some pennies. Here are some ways you can do the latter:

1. REDUCE YOUR DEBT - pay off your credit cards and student loans, and whenever possible reduce your interest rates.

2. SAVING ELECTRICITY 1 - Turn off lights and electronic devices when you aren’t using them - also unplug electronic devices once you’ve finished charging them: laptop computers, cell phones, pda’s, etc. (these continue to draw power even when turned off.) Be sure to turn your computer off when finished with it, don’t just let it sleep.

3. SAVING ELECTRICITY 2 - Make sure your house/apartment is properly insulated - eliminate drafts around doors and windows, this will cut down on your heating and A/C bills. Also don’t run your air conditioner or heater when you are not at home.

4. BRING YOUR OWN LUNCH TO WORK/SCHOOL - you can save a lot of money a year by bringing your own lunch to work rather than eating out.

5. EAT OUT LESS - restaurants can be a huge drain on your income, even inexpensive ones. It’s always cheaper to eat a simple meal at home. It’s also a good idea to cook large amounts at one time and freeze the leftovers to be reheated later. This also cuts down on the time it would take you to prepare dinner during the week which is particularly useful if you view cooking after work a hassle and are then tempted to eat out or get take out so you don’t have to deal with it.

6. MINIMIZE SNACKING - This is related to the “latte factor”, cut back on the number of coffee drinks you buy and/or the pastries, muffins or other “treats” that may accompany them. If those treats constitute your breakfast then try baking muffins or tasty breads like banana bread at home and bringing them to work, or else keep cereal in your drawer and milk in the employee fridge at work. Or for breakfast you can also try something like oatmeal which is nutritious and very inexpensive.

7. COMPARISON SHOP FOR FOOD - make a list of items you buy regularly and go around to your different neighborhood markets writing down the prices for those items and then buy them at the cheapest store. Dry goods like grains, beans and lentils, nuts and pasta are often cheaper purchased in bulk (you also save on packaging.)

8. PURCHASE PRODUCE AT A FARMER’S MARKET OR CSA - CSA’s or Community Supported Agriculture is a program where you purchase your produce directly from the farm, and it’s usually organic. This works out cheaper than the supermarket or the health food store. This way you are also buying seasonal produce which is also cheaper then. Now at this point some of you may say “oh but the tomatoes and lettuce I buy at the grocery store are much cheaper than that.” To which I would say, that’s fine., personally I don’t find that the produce at most grocery stores has much flavor (particularly tomatoes,) so buying produce that way doesn’t work for me. Which harks back to my first point about everyone’s savings habits being different and the the need to find what works best for you. I would prefer to spend a little more on my food and less on something else, like clothes; for someone else the opposite would be true. For some interesting ideas on how to be really frugal with your food budget read How to Feed Yourself on $15 a Week at Get Rich Slowly.

9. GROW YOUR OWN FOOD - at this point many of you will say, but I live in the city…in an apartment, so I can’t do that. Ah ha! You can grow food in containers and pots on your balcony or patio (if you have one,) and in window boxes, and hanging baskets. All it takes is a little ingenuity and you have an apartment garden.

10. BUY LESS STUFF - AND WHEN YOU DO - BUY USED - resist the urge to comfort shop. It usually doesn’t make you feel any better since you’ve probably blown your budget by doing it, and that would make you feel worse. Buying second hand or barely used clothes, furniture, even appliances can save you loads of money. This rule also goes to cars. New cars lose a big chunk of their value in the first year, so you’re usually better off buying one used. You’re also better off not trading up after five or seven years. Buy it and then run it to the ground - then buy a new used one.

11. DRIVE LESS - ride your bike, walk, carpool or take public transportation to work. The first two have the added advantage of keeping you in shape so you save on gym fees too! You’ll save huge amounts on gas, plus the wear and tear on your car.

12. JOIN THE LOCAL LIBRARY - or dust it off your card. Any books or DVD’s you want to read or watch you can usually get from the library and if it isn’t at that branch you can get on a waitlist or have it sent over from another branch (interlibrary transfer.) You’d be amazed at how much money you can save not buying books and DVD’s.

13. DON’T IMPULSE BUY - this is related to 10 - most of the time when we buy something on impulse we later regret it. If you see something you want to buy then go away and think about it for a day, if you still want it the next day, and can afford it (i.e. it fits in your budget,) THEN go back and buy it. If not…

14. DON’T BUY THINGS YOU CAN’T AFFORD - if you don’t have the money for it - don’t buy it, even if you think you need it - resist.

For more suggestions on savings tips please see the resources at the end of the Boulevard to Retirement or else check out some of the personal finance blogs that are listed in our blogroll - most of these sites have many other suggestions as to how to live more frugally.

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