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10 Money Saving Strategies That Really Work

10 Money Saving Strategies That Really Work

When my family and I found ourselves in a nasty financial situation, we had to dig deep to discover how to take care of the family and still have fun on the cheap. We discovered it was not only possible to live cheaper, we even had fun doing it. We decided to keep doing it when times got better, because it made us feel smarter to save more. If you want to feel smart too, here are 10 money saving strategies that work.

1. Learn to Love the Library

I used to hate the smell of old books and the sounds of silence. When finances caused me to spend more time at our local library, I discovered how many things have changed. Libraries host free events for kids and families. They bring movie nights, magicians and musicians to families of all ages. You can use the internet for free, play online video games, check out movies or music, and, oh yeah, they let you get books for free too. Just remember to return things on time and this place can entertain you in amazing ways. Saving money at the library will become a habit you carry on for years. It’s just that fun.

2. Is It Big Screen Worthy?

If you’re a movie fan like me, you know you can plop down serious amounts of cash by just attending a few flicks a month. So, when you need to save some money it’s time to become a discerning viewer. Most movies make it to DVD within a few short months. They also land on Netflix or Amazon Prime or another venue fairly soon. You can catch that movie later for free or at least cheaper if you are willing to wait and if it’s worth it. The question you have to decide when it first arrives at theaters is this, “Is it big screen worthy?” If you can get just as much enjoyment out of it by watching it at home, then that movie may be worth the wait. You’ll find yourself spending much less money if this becomes your starting question.

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3. Shop at Garage Sales, Thrift Stores, and Consignment Stores

For those who enjoy Biltmore style living, this can be a difficult transition. Many communities, including the well-off ones, have regular garage sales. You might find that someone is moving and needs to unload an almost new vacuum. If that fits your need, you’ll save a hundred dollars and still get a product with great suction. When funds deplete, the mall is just too much of a temptation. It does require more hunting and planning, but garage sales, thrift stores and consignment stores will save you a bundle. As you stroll through the items at these places, you’ll find clothes, furniture and knickknacks that contain character and even make your world more fun. When you save money at these stores, you’ll wonder why you ever shopped elsewhere.

4. Choose Cheap and Save Big on Cell Phones

We know the names of the big cell phone companies but did you know that they make their lines available to other companies too. Walmart’s Straight Talk uses the Sprint network at a fraction of the cost. You pay less for the same phones and less on a month to month basis with no contract. You can also set up a pay-as-you-go system with Straight Talk as if you had a contract, but without the extra fees. Republic Wireless limits their phone choice but cuts the cost incredibly by using a hybrid system of WiFi and 3G or 4G. PC Magazine has recognized these companies in their Reader’s Choice Awards. None of the big companies even got a mention.

5. Learn to Cook

It may sound like something out of the 1920’s but when you cook for yourself, you save a ton of bread. This doesn’t mean you will save big by buying a frozen dinner and warming it at home, though you may save a little. If you learn to cook, you’ll find out how many restaurants and fast service overcharge for what they make. They have to do it because they have a bunch of employees to pay. You don’t. When you buy food and make it, you’ll be able to pack it into lunches or make great dinners. You could even branch out and get creative for breakfast. Not only will you save a bunch, you’ll also probably find yourself getting healthier.

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6. Learn the Difference between a Need and a Want

When you hear about a new gadget that can do 20 different things you never imagined, you may find yourself excited and itching to buy it. Then, ask yourself to consider if you need this item to survive or if you simply want it, because it caught your attention. The more you ponder the difference between the two, the more you’ll realize the things you don’t need to own. And, you’ll save money.

7. Practice Patience

Technology has been improving at an exponential rate. We get the annual iPhone updates and Samsung updates. New laptops come out each year, as do desktops. New software gets developed each year. It’s mind-blowing how much money you could spend if you made certain to purchase each new annual item. But, if you wait, that new product becomes an old one very quickly. Within one to two years prices often drop by almost 50%.This same approach applies to cars that have aged a couple of years. Consider how much you save if you wait for the new item to not be quite as new.

8. Make Your Own Coffee

Starbucks works hard on its product, but also on its environment. They create nice looking places with beautiful lighting and background music. It makes you feel like you’ve entered a fine dining restaurant when it’s actually caffeinated fast food. You plop down a few bucks for your favorite drink and feel absolutely extravagant. What if you could do it? Many people have figured out how to make them at home for less cost and all the joy. Personally, I love this Gingerbread Latte that I can make for myself at a much lower cost.

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9. Exercise Outdoors

Before our finances took a dive I belonged to our local gym. It cost me several dollars each month to ride a stationary bike or walk on a treadmill. When I started seeking to save money, it occurred to me that I could do those things outside on my own. You can too. Many communities provide opportunities to play basketball, run, walk or ride a bike. You can get outside and move rather than pay to remain indoors. Once you start doing it you may never go back to the gym even if you’ve got plenty of money to spend.

10. Learn to Be Content

Often we find ourselves driven to feel happy, happy, happy. Unfortunately, we look to people who make millions of dollars and believe they’ve found it. We want more and more stuff. It’s like we assume that the more things we buy, the better our lives will be. If you’ve read the news lately, you probably also know that people with money have their own dreams dashed to pieces, too. Even people who have got tons of cash still want more.

Maybe we’re hunting for the wrong thing. Instead of seeking happiness, maybe we need to find a deep and complete sense of contentment. There are people who are content with their lives. They appreciate each day because of its innate beauty,not because of what it gives them. Those people value themselves and their lives even without fancy vacations or expensive technology.

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The Bible makes a reference to a man who had people try to kill him several times. He had to run from towns and got placed in jail regularly. This same man stated that he had learned to be content in any and every situation. I’ve discovered how valuable contentment really is. It helps me to not need many of the things that cost a fortune and deplete my bankbook. If you seek to learn the secret of being content, you could find yourself saving too.

Featured photo credit: One and Two Half Dollars/Eric Gjerde via flickr.com

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Last Updated on March 4, 2019

How to Use Credit Cards While Staying Out of Debt

How to Use Credit Cards While Staying Out of Debt

Many people will suggest that the best thing to do with your credit cards during these tough economic times is to cut them up with a pair of scissors. Indeed, if you are already in huge debt, you probably should stop using them and begin a payback strategy immediately. However, if you are not currently in trouble with your credit cards, there are wise ways to use them.

I happen to really love my credit cards so I will share with you my approach to how I use mine without getting into deep financial trouble.

Ever since about 1983 when I got my first Visa card, I continue to charge as many of my purchases as possible on credit. Everything from gas, groceries and monthly payments for services like my cable and home security monitoring are charged on credit. Despite my heavy usage, I have maintained the joy of never paying any interest fees at all on any of my credit cards.

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Here are some tips on how best to use your credit cards without falling into the trap of paying those nasty double-digit interest fees.

Do Not Treat Credit Cards as Your Funding Sources

Too many people treat their credit cards as funding sources for major purchases. Do not do this if you want to stay out of trouble. I use my credit cards as convenient financial instruments so I do not have to carry around much cash. In fact, I hate carrying cash, especially coins. When you buy things on credit, the purchases are clean and you will not get annoying coins back as change.

I do not rely on my Visa, MasterCard or American Express to fund any of my purchases, large or small. This brings me to my golden rule when it comes to whether I will pull out any of my credit cards either at a retail or online store.

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I never purchase anything with my credit cards if I do not have the actual cash on hand in my bank account.

If I really cannot pay for the item or service with cash that I already have at the bank, then I simply will not make the purchase. Remember, my credit cards are not used as funding sources. They are just convenient alternatives to actual cash in my pocket.

Make Sure to Always Pay Off Balances in Full Each Month

The next very important part of my overall strategy is to make absolutely sure that I pay the balances in full each and every month no matter how large they are. This should never be a problem if the cash has been budgeted for my purchases and secured in the bank. I have always paid my full balances each month ever since my very first credit card and this is why I never pay interest charges.

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Using Credit Cards with Rewards

Most of my credit cards are of the “no annual fees” type, including one MasterCard on a separate account I keep at home as a spare in case I lose my wallet or incur any fraudulent charges. However, I do use a main Visa card which does have an annual fee because all purchases on that card reward me with airline frequent flyer points. For me, the annual fee is worth it since I do travel and I get enough points to redeem many free flights.

You have to decide for yourself if you will charge enough purchases on credit each year without paying interest charges to warrant a credit card that rewards you with airline points (or other rewards). In my case, the answer is “yes” but that might not be the case for you.

I occasionally use a MasterCard or American Express card on small purchases just to keep those accounts active. Also, I have been to the odd retailer that accepted only a certain type of credit card, so I find that having one from each major company is quite handy. Aside from my main Visa card which earns the airline points, the rest of my cards are of the “no annual fees” variety.

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So this is how I use my credit cards without getting into any financial trouble with them. This strategy is recommended only if you are not in debt, of course. In fact, it is worth keeping in mind once you’re out of debt so that you can keep your credit cards active and treat them responsibly.

What are your credit card usage strategies? Let me know in the comments — I’d love to hear what methods you use.

Featured photo credit: Artem Bali via unsplash.com

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