In January, we asked you for your tips about living within your means and keeping to your budget, with the chance to win a db clay wallet. You gave us 144 responses in total – some of which had excellent advice.
Here’s our round-up of the best tips and tricks for budgeting:
1. Don’t spend more money than you have.
2. Stick to your grocery lists – compile them based on an itemized overview of your household needs and never stray too far from it.
3. In a similar vein, never go grocery shopping hungry!
4. Keep your receipts, or write your own – at the end of each day, list your expenditures. At the end of the month, group those expenditures to create a simple overview of where you’re spending too much or even too little.
5. Pack a brown bag lunch each day. Save hundreds, or even thousands, of dollars each year.
6. Develop a distaste for Starbucks.
7. Talk yourself out of purchases. Ask yourself, do I need this? Think of various ways you can avoid a purchase that seems necessary through innovative MacGyvering.
8. You don’t need the $100 shirt from the pricey store when there’s a $10 equivalent at the thrift store. You don’t need a room-sized plasma TV when your old CRT still works.
9. Remind yourself frequently of your financial goals, especially when you’re at the mall: paying off a big debt, retiring early, the Macbook Air. Remind yourself that by living frugally, you’re at least in some small way helping the environment.
10. Use cash. Take money out of your account and use real cash from a real wallet to pay for your daily expenses. When you run out of bills, you run out of money to spend.
11. Use credit. Run your finances on credit cards so that you don’t lose big money over the course of the year in spare change spent on coke and McDonalds. Always repay within 48 hours.
12. Never watch commercials. Get a PVR.
13. Sleep on your purchases. Give yourself a night to consider and rationalize before buying a new toy, and if you rationally decide you need it, you can go back and get it. Mac users may need to take longer – much longer.
14. Review your budget and spreadsheets regularly. Keep your financial situation constantly fresh in your mind. This helps to curb your desire to spend, spend, spend, ensures you know how much you actually have to spend if you need to, and motivates you to pay off debt and save more.
15. Use spreadsheets instead of expensive apps like Quicken – use Google Docs for spreadsheets and you can even save on overpriced office software.
16. Use every last scrap of every last thing you purchase. Don’t waste anything. Don’t leave taps running, don’t throw out the quarter of a plate of dinner you didn’t eat.
17. Become a power Nazi. Switch off lights and appliances at every opportunity, and tweak your computer’s power settings to give you the optimum balance between power savings and practicality.
18. Think about money philosophically – consider your spending behavior as a reflection of who you are. If you would not like to be defined by your purchases of cigarettes, hard liquor and pork rinds, reconsider and make better purchases that reflect the person you’d like to be.
19. Respect money like you do your family heirloom; that which you respect, can’t be hastily thrown away. It’s not about how much you make, but how much you save.
20. Exercise in the great outdoors, or use your own body weight – forget expensive gym memberships and personal trainers.
21. Diligently organize rebates and send them in on time, every time.
22. Do extensive research before all purchases, especially impulse purchases. Find the best price online or off, even if it’s “almost new” from eBay.
23. Do extensive research not only on price, but on durability and quality; buying everything from Crazy Clark’s is a bad decision as far as your long term savings go.
24. Don’t fall for the vicious technology upgrade cycle. Your laptop is still fine until there’s something actually wrong with it; performance is all in the software you run. Do you need to be running Vista or Leopard or the latest version of Photoshop? For most people, probably not. Wishing for more drains what you have.
25. If you come under your budget, save the excess. There is no legal obligation to spend it!
26. Pay yourself first. Take 10% or so off the top of your income and save it before you even start paying bills.
27. Base your meals on cheap, but nutritious, food sources instead of fresh produce that goes off quickly all the time. They might be a better food source, but if you want to pinch pennies go to grains, lentils, legumes and beans.
28. Preventing an impulse purchase with this motivation hack: simply think about how many hours it took you to earn that amount.
29. When keeping track of credit card purchases, put them into your checkbook as soon as the transaction occurs. That way the checkbook will always have as much money as you actually have, letting you freely pay off your credit card when the time comes.
30. Don’t keep credit cards in your wallet, or near any of your computers with an Internet connection.
31. Water is cheap (for the time being) and can easily replace most other beverages, such as soda – just not coffee.
32. Borrow books from your library, don’t purchase them. This puts an imperative on you to actually read your books (how often do the ones your purchase just sit on the bookshelf?) and saves huge amounts of money if you read a decent amount.