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Yesterday Adam at Lifehacker unearthed a Bankrate article in which extreme savers share their secrets. While the tips profiled in this story aren’t as radical as some I’ve shared, they’re much more applicable to average people like you and me. Author Elaine Appleman Grant writes:
These days, as the cost of food and gas skyrockets, credit becomes more difficult to get and consumer confidence reaches an all-time low, saving has become a must…There’s a whole group of people who are passionate about saving without living a Spartan life.
Grant profiles a wide range of savings techniques, from the simple to the elaborate. In exploring ways to save on retail, she draws lessons from Michele Carter, a CPA who always claims price match and price protection guarantees from the stores she frequents. (You can track price drops online using PriceProtectr.)
Many of the savvy savers make use of services like:
- Freecycle, for giving away stuff you no longer need (and taking free stuff from people who no longer need it)
- Craigslist, for all sorts of free and inexpensive stuff
- PaperBackSwap, for trading books online
- SwapaCD and SwapaDVD, for trading your other media online
Other suggestions include buying meat in bulk, joining a food co-op, shopping smart when buying a car, and obtaining a home energy audit. Some of those surveyed prefer to focus on the big things, like looking for ways to save on their home mortgage. (This approach echoes the one promoted by Elizabeth Warren in her book, All Your Worth.)
Grant’s article is a treasure-trove of ideas and resources. It demonstrates that you can find new ways to save money if you’re willing to think creatively and then take action.
[Bankrate: Extreme savers share their secrets, via Lifehacker]
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April 17th, 2008 at 5:48 am
I just heard you got voted most inspirational money blog (and this post was next in my RSS reader) so I thought I’d say congradulations!
April 17th, 2008 at 6:31 am
Don’t forget using the library to ‘test drive’ books before buying! I saved at least $200 last year (not buying as many books was my 2007 New Year’s Resolution) by making friends with my local library.
Craigslist is an amazing resource, even if you’re just trying to figure out the going rate for a particular used item.
April 17th, 2008 at 6:48 am
Great resources as always, J.D. I find that buying our beef in bulk saves considerably over the cost of natural or organic in the store. A great resource for local, natural meats and dairy is the EatWild site. See what’s near you and support your local economy!
April 17th, 2008 at 7:06 am
I recently started commuting one way home from work via bicycle in an effort to trim my transportation budget and my waistline. The budget is much improved, but the waistline is still a work-in-progress.
April 17th, 2008 at 7:30 am
my wife and I spend $300 per month on gas and insurance. That’s 3,600 per year.
The cost of gas will increase every year, meaning that those who don’t drive will save more and more. The more bikers save, the greater advantage they have in the future economy.
Remember, this 3,600 + gas adjustments each year doesn’t take into account the amount of money you are *already putting towards retirement*!! Plug your household gas and insurance bills into your spreadsheet and try it!
JD– would it be worthwhile to develop a “money you’d save if you stopped driving” calculator for you calculator project? (when’s that coming up anyways?)
zach
pennywise-poundfoolish.typepad.com
April 17th, 2008 at 7:38 am
Very good post. I clip coupons and combine shopping trips. When it’s cheaper, I buy generic brands. This year I bought an Entertainment Book in an effort to save on our very rare night out. As for the home, I’ve switched out light bulbs in favor of compact fluorescents and either installed or upgraded ceiling fans throughout the house (they help in the winter and summer).
Hopefully soon I’ll work up the nerve to bike to work a few times a week. Speaking of a calculator as suggested by Zach… check out: http://carfreediet.com/
Thanks for such a wonderful blog. You’ve got yourself a new visitor here. :o)
- Eddie
April 17th, 2008 at 7:45 am
I agree with Zach. I always think it is interesting that frugality recommendations don’t mention giving up cars altogether. Moving closer to where you work and vice versa can be one of the biggest money savers of all. I realize some can’t make that immediate switch, but getting it in people’s minds is important too. You want them to remember it the next time they move. Being a biker is a lot easier when it is 10 miles versus 40 miles round trip.
April 17th, 2008 at 7:59 am
My grandparents planted the seed of frugality in me. I’m not as experienced as them, of course, but I’m trying to learn more. I think Grandma bought a roll of plastic wrap 10 years ago and washes each piece she tears off, then sticks it back onto the roll in the cupboard.
I wear ratty jackets that should long be recycled, but they still keep me warm in spring/fall so I keep them. Where have I seen that for my almost 31 years on this Earth? Yep, I learned from my good ole Grandparents.
Excuse me, I’ve got something in my eye…
April 17th, 2008 at 8:10 am
Finally Frugal: I just rediscovered the library! Seriously, haven’t been since I graduated many years ago. I felt like a kid in a candy store with all the videos and music they now lend out. Ohh, and I stocked up on books! Seriously, the library is awesome.
I also ride my bike everywhere. Don’t own a car. Eat lots of veggies. Being frugal is pretty simple really.
April 17th, 2008 at 8:17 am
@Zach
I agree - it seems that Americans (myself included) spend so much money on vehicle related expenses - insurance, fuel, maintenance, interest and of course depreciation… Just by focusing on minimizing these expenses people can save quite a bit of dough
April 17th, 2008 at 8:17 am
In general, I think that any monthly bill is a good place to look for savings.
Just yesterday I signed up for a cheaper cell phone plan — not a great savings, but if only I’d done it sooner… Of course, we’ve only had cell phones for a few years, and we did manage without them for years, but as we began to see fewer and fewer pay phones in the outside world, it began to look prudent to have a cell phone…
April 17th, 2008 at 9:39 am
Elizabeth Warren, whose book you mention in your post, is a lawyer specializing in commercial law and a professor at Harvard. She has an interesting lecture you can see here about spending habits of the American middle class (that would be most of us) from 1970 to now. It’s really eye-opening, especially if you are wondering where it is you really need to cut back. She found that people are not really spending more crazily than in 1970, except on housing, medical expenses and cars.
It made me think that it is kind of easy to figure out how to cut back on all the small things (which I’ve been doing over the last year and a half), and on cars (I live in the city and don’t drive), but not so much information is available on how to cut back on those two big things, housing and medical expenses.
April 17th, 2008 at 10:18 am
One of the links above is about saving money on a new car.
truly frugal people do not buy new cars. the author can boast all he wants about how much he saved, but those cars still dropped ~20% in liquid value the minute they were driven off the lot.
April 17th, 2008 at 10:25 am
To Katie re: moving closer to work: If you own your home, the cost of moving (real estate commissions, transfer taxes, moving expenses) likely will far exceed any savings from eliminating a car. Depending on where you live, selling a home and moving can easily cost 8-10% of the price of your home.
April 17th, 2008 at 11:09 am
I don’t swap paperbacks, unless they’re out of print. Otherwise, the authors don’t make money. And most authors don’t make much money. And without support, some of my favorite fiction writers would likely have to curtail their output significantly.
April 17th, 2008 at 11:44 am
Another tip for frugality — go at least semi-vegetarian. Get at least 50% of your protein from beans, eggs, nuts or cheese and cut back on meats by 50%.
It’ll be healthier for you and cheaper.
April 17th, 2008 at 11:49 am
I would recommend BookMooch over PaperBackSwap. It’s the same type of service, but will remain free as it’s supported by people buying books from Amazon through the site’s affiliate program. Plus, it’s design is much cleaner and easier on the eyes. C|net News just put up a new article this morning. (http://www.news.com/8301-10784_3-9920774-7.html?tag=bl)
Edit: And after checking, PBS doesn’t allow international membership. This is a severe limitation in the global economy that we live in. For example, I’ve mooched/given books from places as disparate as Italy and French Polynesia.
April 17th, 2008 at 11:49 am
One of the things we did was get a pay as you go cell phone. We realized we didn’t use the cell phone all that much, so why pay for it?
We have cheap VoIP phone service for every day use, and the pay as you go cell phone for emergencies. Our new combined phone “plan” is saving us close to $800 a year.
It’s amazing how much you can save when you take a second look at costs that you take for granted.
April 17th, 2008 at 12:05 pm
If you can’t bike to work and moving closer to work will cost you more then its worth, then how about asking your work if you can work from home. Even one or two days a week could save you a lot of money - at least in gas, but you would still have to own a car. I realize not everyone can do their job from home, but many can.
April 17th, 2008 at 12:17 pm
Bookmooch.com is another free book exchange website!
April 17th, 2008 at 1:58 pm
Great tips. Watching your services is important, too. If you avoid the “typical” cable, cell phone, Internet, gym packages pushed to many Americans, you can easily save/avoid spending $100 to $150 per month.
April 17th, 2008 at 2:05 pm
I’ve used freecycle to get rid of some stuff and it is also a great way to prevent stuff from going into a landfill.
April 17th, 2008 at 2:35 pm
What wonderful saving ideas! I’ve always looked at saving as something I will be able to do later, maybe when I get a job where I get paid more, or when I finally pay off that big bill.
It’s funny that when I read articles like this I realize that saving really is something that I can do right now if I’m willing to put a little effort into it.
I have used Craigslist before, but now I’m pretty excited to start using the freecycle site!
Thanks so much for always having such wonderful ideas!
April 17th, 2008 at 4:48 pm
I can’t say enough wonderful things about Paperbackswap and their affiliate sites. I’ve saved so much money on books and DVDs since I joined those AND it’s helped me clean out some clutter around the house by finding books I don’t really want anymore good homes. And everything I’ve gotten myself has been surprisingly awesome quality (many that are basically brand new). Such a worthwhile thing to check out, IMO.
April 18th, 2008 at 4:56 am
I plan to start using the library more often. I wish that I could travel to my job on bike because my job is only 4 miles away. Unfortunately, the humidity in Houston would have me soaked before I even got to work.
April 18th, 2008 at 12:52 pm
Living in a small house/condo/etc. saves a ton of cash.
I grew up in a 5500 sqft. house, and know it was a money pit for expenses.
Not to mention taxes - value of the above house has doubled in the last 20 years, but property taxes have increased 4x!
I now live in 1500 sqft. w/ my family of 4.
Plenty of 1950s/1960s families of 6 lived in 1000 sqft. or less
April 18th, 2008 at 3:02 pm
Another thought for savings, for those of us who are omnivorous, consider taking up hunting. There’s a large initial investment for a gun, and each year you have fees for hunting tags and licenses. However, you get to spend time “relaxing” outdoors and not worrying about work or traffic, and the price for the meat is right. Even if you get a local butcher to package the meat for you, it’s still cheaper than buying that hormone ridden stuff that you get at the supermarket (it’s not only cheaper, but healthier for you).
Or if you’re squeamish(and know some hunters), you could still get the tags and license, and let them fill it for you. This might be illegal in your state though, so check the regulations.
April 18th, 2008 at 10:07 pm
Another idea would be to use swaptree.com for swapping books, CDs, and DVDs. Unlike paperbackswap.com and its sister sites, all three can be interchanged and swapped every which way so you can trade your books for DVDs, etc
They also do three-way trades, so you give to person A, person A gives to person B, and person B gives back to you! I love it.