We all know how to spend less by sacrificing. From eating out less to buying fewer clothes to cutting back on vacations, saving through sacrificing can be effective, but painful. So if you are looking for ways of saving money, why not start with money saving tips that are relatively pain free?
With a little imagination, you'll find plenty of ways to reduce spending without making big changes to your lifestyle. And to get you started, here are painless ways to save money.
1. Get healthy: As someone who has struggled to stay fit, I realize that eating healthy and staying in shape is easier said than done. But for those who are in good shape, you can save a lot of money on life insurance and individual health insurance plans. And as an added bonus, you'll feel better and have more energy.
2. Rethink auto insurance: Every year, reexamine your auto insurance policy for savings opportunities. For example, consider raising your deductible, which lowers premiums. For older vehicles, evaluate whether you really need collision coverage, which covers damage to your car when your car hits or is hit by another vehicle or object. And make it a habit to compare auto insurance quotes annually, which can be done online in minutes.
3. Improve your credit score: Of all the painless ways to save money, improving your credit score is arguably the most important. From home loans and car loans, to credit cards and auto insurance, a good credit score can save you a small fortune. Over a lifetime, the savings can easily reach tens of thousands of dollars.
4. Invest on the cheap: Whether you are a passive investor who sticks with mutual funds or an active stock and options trader, there are easy ways to save money. For mutual fund investors, stick with funds that have low expense ratios. My rule of thumb is to keep the weighted average expense ratio for all mutual funds under 50 basis points (0.50 percent). As compared to funds that charge well over 1 percent in fees annually, the savings over a lifetime of investing can be substantial. And for active traders, stick with discount brokers that charge $10 per trade or less.
5. Think triple play: One of the biggest monthly expenses for some is the cost of Internet service, cable, and phone. The major of providers today offer discounts when you bundle all three of these services together. Called a triple play, you not only save money, but you also get the convenience of a single bill each month.
Even better than this is to use Magic Jack or Skype for your phone service with your computer. Magic Jack costs you a one time fee of $39.95 for the device you plug into your computer and only $1.90 a Month for unlimited calls and long distance. Skype is free when calling from skype customers to skype customers and there is no device to purchase. Check out other details for all the many features they offer.
Senior Citizens in most areas can get a free trac phone through Safe Link with 71 minutes a month free, long distance included. This is for incoming calls and outgoing calls. You can enroll online and get the phone within 5-7 days. You can reload the phone by purchasing an additional 50 minutes for $10.00 a month. I was paying $50.00 a month to my provider Metro PCS and reduced that bill a great deal. The quality is the same. So maybe it will cost me a total of $10.00 a month instead of $50.00 a month.
If you don't have a computer, you can contact many major banks and other companies that donate computers when they upgrade their old computers. Also many thrift stores sell used computers where you can buy one for as little as $50.00 - $75.00. Also, if you can find on the Internet (Go to the Library to use a computer for FREE) a computer school that trains students to build computers, you can purchase one from them for very little. Also check out Craigslist.org on the internet for real deals on everything or Ebay.
6. Go prepaid with your cell phone: While this option won't be right for everybody, many can save a small fortune with prepaid cell phones. You can find prepaid cell phone plans that charge just $0.10 a minute. And because they are prepaid, you don't have to commit to long-term contracts. Two of the more popular prepaid cell phone carriers are Net10 and Cricket.
7. Shop online: There are several benefits to shopping online, convenience being chief among them. But shopping online can also save big money. Many retailers offer special discounts to online shoppers. And virtually every company that sells products or services online offers promo codes, discounts or coupons. Particularly if you have a big purchase planned, make sure to search the internet for deals before buying.
8. Get cash back: If you have good credit, there are a number of cash back credit cards that pay up to 5 percent on purchases. The key is to use the card for monthly bills and everyday expenses, not to charge things you don't need. Put monthly bills that accept credit cards on automatic payment, and use the card for everyday purchases such as groceries and gas. And as an extra precaution against overspending, pay the credit card bill in full several times throughout the month. It's easy to do online, and it prevents any surprises at the end of the month.
Slow down your internet service. I went to the slower internet service option with my cable company and saved $15 per month. And I haven't noticed a difference when surfing the Net.
Send away for and follow up on rebates. After you buy a product with a rebate, send in the form that day. Then mark your calendar to remind yourself to follow up with the rebate company if the check hasn't show up.
Buy a refurbished Mac: It is a great way to buy not only computers, but iPods and iPhones as well.
Convert to a gas water heater. They are more efficient and will save you money in the long run.
Request a reduction in the interest rate for your home equity line of credit. I did and my mortgage company agreed to reduce the rate by more than 0.50%.
Request a reduction in the interest rate on your credit cards. As with home equity loans, credit card companies sometimes are willing to reduce the interest rate. It can't hurt to ask. If your credit card company won't help you, switch to a low interest credit card or a one of several 0% APR credit cards.
Refinance you mortgage. If you can reduce your interest rate by one percent or more, it is often beneficial to refinance. This is particularly true for those with high rates due to less than stellar credit scores. If your score has improved, you may qualify for a better rate. I would start by asking your current mortgage lender about lower rates. Here's a table of refinance rates that is updated daily.
Get rid of Private Mortgage Insurance. If your down payment was less than 20%, you are probably paying PMI. Once you have a 20% cushion through reducing your debt and home appreciation (yes, prices do go up from time to time), contact your mortgage company to start the process of removing the PMI.
Get your books from the library. I love books and read every day. While I buy some of the books I read, most come from the library. Simply put, it's hard to beat free.
Get DVDs from the library. Many libraries now have movies and music on DVD's that can be checked out. If your library offers this service, it sure beats paying Blockbuster or Netflix.
Read magazines and newspapers at the library or online. Too many magazines can cost a fortune. And how many times have you bought a magazine based on the cover and been disappointed by the lack of substance. At the library you can read magazines for free. And many magazines now offer their content for free online.
Subscribe to magazines that are must reads. If you must have a certain magazine each month, subscribe. Subscriptions offer substantial savings over the cost at the newsstand. Update: Amazon offers some great deals on personal finance magazines.
Buy your car over the internet: Search the internet for information on the car you want and then send e-mail requests to dealers for the best price. Even if the dealer is located in another state, the cost to have the car delivered may still be worth it. I paid $500 to have a Honda Odyssey shipped 500 miles and still saved $1,000 over the best local price available.
Request a discount on trash service. For some reason this is a highly competitive business. If you get a better offer in the mail for trash service, call your current trash company and ask them to beat the offer. My trash service has reduced its rates twice in six months to match competing offers.
Never pay checking account fees. I hate bank fees. With so many free checking account plans available, there's no reason to pay a fee. And if the bank happens to charge you one, ask them to reverse the fee or take your business to another bank.
Get a rewards card. There are many reward cards that pay out in cash or points that can be redeemed for travel or products. Many of these cards don't have an annual fee..
Don't pay interest on credit cards. This is obvious, but I soon as you fail to pay off the credit card in full, the high interest payments start to eat away at your monthly budget. If the temptation to spend more than you can pay on a credit card is to great, get rid of the credit card (and ignore the previous tip!).
Take advantage of 0% credit card offers. I've saved thousands of dollars using 0% balance transfer credit cards. Again, as long as the cards won't cause you to spend more, they can offer substantial savings. Make sure, however, that you keep an eye on the balance transfer fee, which can wipe out your savings.
Replace incandescent bulbs with compact fluorescent light (CFLs) bulbs. These bulbs use 75% less energy and last 10 times longer. They do take some getting used to, and they won't work in every light fixture. But use them where it makes sense and save energy and money.
Drive your car longer. The buy new versus used debate often overlooks the most important factor-how long you own your car. Drive it as long as you safely can for substantial savings.
Purchase a used car for very little Many ministries across the United States get cars and boats donated. These can be bought through one agency in California that has dealers all across the United States that sells these cars for very little for information call us at 770 603-0372.
Pay your life insurance annually. Insurance companies charge you more if you pay monthly, quarterly or semi-annually. Pay once a year and you'll pay less.
Pay car insurance semi-annually. At least with my car insurance, they offer quarterly and semi-annual payment options. It costs more to pay quarterly, and twice a year is more convenient anyway.
Think before submitting an insurance claim. My rule of thumb is that I won't submit a claim on a loss that is less than twice my deductible. So for a $250 deductible on an auto loss, I'll pay out of pocket any loss up to $500. Why? The $250 I'd receive from my insurance company is not worth the increased premiums I'm likely to pay. You may want to call your insurance agent to find out how a claim will impact your premiums before filing the claim.
Get rid of your home telephone. This is a great way to save money. Many don't do it because of the 911 service, and that's understandable. But if you're comfortable relying on a cell phone, there's no reason to keep a land line. If you do, consider reducing your service to the minimum and only use the phone in an emergency.
Consider VOiP telephone service. We use Internet phone service and have saved substantial money over Verizon service. The phone service has been very reliable, and you'd never even know the signal was being carried over the Internet. Phone Power is a great option for internet telephone service, which costs as little as $9.95 a month.
Shut vents in unused rooms. This isn't advisable if you have forced air heating, but shutting vents in unused rooms can save on your heating and cooling bill.
Agree to limit gift giving. At Christmas our extended family and we go overboard when it comes to gift giving. Agree in advance to limit the gifts and save everybody some money.
Cancel the health club memberships. Evaluate how much you really use your health club. Less expensive options may include a gym at your work or a gym at your local parks and recreation center. Some offer pay as you go options rather than monthly fees, which can be great for those of us who aren't as consistent in our routines as we'd like to be.
Take your lunch to work one more day a week than you do now. Eating out at lunch is fun, so I wouldn't eliminate it completely. But taking lunch just one more day a week will keep money in your pocket.
Take advantage of employer 401(k) matches. If your employer matches 401(k) contributions, do everything you can to take full advantage of that match.
Use flexible spending accounts. FSAs allow you to pay certain medical, dental and child care expenses using pre-tax dollars. If your not taking advantage of these accounts, you're wasting money. Enrollment at many companies is occurring now, so check with your HR department if you have any questions about FSAs.
Get tires from Costco, other wholesale clubs or at Flea markets. Simply put, they cost a lot less than buying them at the dealer or even a chain tire store.
Keep tires properly inflated. It keeps you safe and costs less on gas.
Stop smoking. Need I say more?
Drink less alcohol. It costs money and ads calories.
Buy term life insurance. Any other life insurance product is just not worth the extra cost.
Buy generic over-the-counter medicines. They are exactly the same as their branded counterparts and cost less
See if there is a clinic in your area that you can qualify for. They offer rates that are very affordable and some even provide medication at no charge. If you have financial problems many of the pharmasecuticals will provide their medicine for FREE One of those is Wyeth. I have a prescription that normally costs $125.00 a month. My cost is $0.00.
Get organized and avoid missed payments. I've missed a payment or two because the bill got buried beneath a stack of papers. Get organized and avoid those late payment penalties. If you do miss a payment, call your creditor and ask to have the penalty removed. They'll usually accommodate the request, at least the first time.
Use Open Source software when possible. I use GIMP instead of Photoshop. GIMP is free; Photoshop ain't.
Check the insulation in your home. Extra insulation can easily pay for itself in one or two years, and it helps save the environment, too.
Buy energy efficient appliances. Look for the Energy Star on appliances and consider the annual energy cost before buying. More efficient appliances cost more, but you make up the extra cost and then some over the life of the product.
Stay married. Yes, I know that some marriages end because of abuse and other extreme circumstances. "Isn't marriage about love", you ask. True. But I lived through the emotional and financial pain of two divorces as a child, and I've been married to the same woman for more than 19 years, so I know plenty. Am I telling you not to get a divorce? Of course not. I am telling you that divorce will wreck your finances and your spouse's finances.
If you open a small checking account at the bank where you do your banking, you can avoid any bank fees for returned checks as they will just debit the amount of the bad check from your savings account and save you from $25 - $35 in bank fees.
Be sure to ask for the Senior Menu or Childrens's menu or Specials At restaurants. Further if you purchase in quantity, you can save a lot on groceries. Pay attention to sales and coupons through the Internet. Some times you can get a discount from the store, also a store coupon and an Internet coupon which is 3 times the savings. I saw a program on the news recently where a woman went in and purchased $130.00 of groceries for less than $10.00 from Kroger.
I buy a lot of things from Goodwill that are new and very inexpensive. I just bought two pairs of shoes like new for $4.78 each, and some shirts that were new for under $5.00 each.
There are many non profit ministries and churches that have benevolent funds to help you pay things like: Utility bills: water bills, electricity, gas bills, Food, and Rent. You may qualify for an EBT card for food monthly.
Thank God we live in America. You can call Salvation Army, St Vincent de Paul and United Way for contact numbers in your area.
