Take care of the nickels and dimes and the dollars will take care of themselves.
Benjamin Franklin

Spend Less Eating Out

Try writing down all the money that you spend on food, coffee, snacks, etc., for one month; you may be shocked at what you learn. Eating out is one of the largest expenses in many people’s budgets. While eating at home is the best way to save money on food, you can still go out and cut your food expenses.

• Have two people share an entrée and an appetizer rather than ordering two entrées. Most main courses are too large for one person anyway.

• Limit alcoholic drinks, beverages, appetizers, and/or desserts at restaurants; if you eat out once a week and drink water instead of soda, you’ll save $100 to $200 a year depending on the prices where you live. Skipping an appetizer or dessert could save you up to $500 each year.

• Order a salad or appetizer and soup instead of a main course.

• Take advantage of special offers, such as mid-week deals, lunch specials, and early dinner specials.

• Go out for breakfast or lunch instead of dinner.

• Ask for a to-go container at the start of the meal, and immediately pack half of your food for the next day. (It’s a good way to save on calories too.)

• Prepare lunches for the week on Sunday.

• At work, take turns with colleagues bringing in food to share for lunches and/or snacks.

• Bring food (e.g., bread, lettuce, and turkey) from home or a supermarket near work and make your lunch at work.

• Keep frozen and canned meals at work.

Savvy Shopping

• Always check online for coupons before shopping in stores or on the Internet. Type the name of the store and the word coupon in your favorite search engine.

• Save receipts: you never know when you might need to return something; also, receipts make it easier to keep track of spending.

• It’s okay to bargain in more situations than you may realize, especially on big-ticket items. Many retailers are particularly willing to negotiate a discount these days, especially if you are buying more than one item.

• Shop off-season. Buying clothing, holiday decorations, greeting cards, etc., after the season has ended can save you a lot of money.

• Have all your family members’ sizes written on a card in your wallet or purse in case you happen to find a great deal on a needed item.

• When shopping online, compare prices; remember to check auction sites such as Ebay. (Online auctions can be seductive, though, so don’t spend more than you intended just to outbid someone.) When comparing prices, remember to include taxes and shipping and handling.

• Do research before you buy, especially on big-ticket purchases. Many online retailers include consumer reviews; although there may be conflicting opinions, you often can see a theme in frequently occurring complaints or compliments. Also review other sources, such as Consumer Reports Online (some information is available free, and other reports require a paid subscription).

• Many online retailers offer a selection of deeply discounted items, which may be on a separate part of the site. Look for sections called “Clearance” or “Overstocks.”

• Always note return policies and shipping/handling fees, and whether or not return shipping is free. Generous return policies can be very attractive when making purchases such as shoes or clothing where fit and comfort are important. However, you should also be realistic about how likely you are to actually go to the post office to ship something back!

• Find out about frequent buyer programs and join them. But be careful; merchants use these programs to find out about your preferences and may start sending you emails designed especially to tempt you into spending more money.

• For holiday shopping, make a list and plan carefully to avoid over-spending. If you are concerned about running up your credit cards, use cash and stick to your list. Avoid stopping in stores that are not on your list to limit your exposure to too many “shoppertunities.”

• Carry a gift list year-round and buy items when you find good sales (stick strictly to your list to avoid over-buying). You never know when you will see “just the right thing” for someone at a good price. Keep track of your purchases so you know who gets what.

• Even if you see a great sale, don’t buy anything you can’t afford. A great bargain is no bargain at all if you end up paying loads of interest on the purchase.

Using Credit Cards Wisely

• Pay your bill on time and, ideally, in full every month to avoid late fees and interest.

• Carefully evaluate introductory offers; many switch to very high rates after a time or if you are late with a payment.

• Call your credit card companies and ask for a lower interest rate; for example, if you get a low-rate offer in the mail, ask your existing credit card company to match it. This does not always work, but it works often enough to make it worth a call.

• If something unusual happens and you get hit with a fee—say you miss a payment because you were out of town—call the company and ask for the fee to be taken off. It doesn’t always work, but it often does.

• If you carry a balance, pay careful attention to interest rates and other fees as they are subject to change.

• Pay off cards with highest rates first.

• Keep track of how much money you spend, especially if you share a checking account, credit card, and/or debit card with someone else. Knowledge is power.

• Ask your credit card companies to bill you at a time of the month that is best in terms of your cash flow.

• Avoid opening too many credit card accounts. This includes store accounts; the one-time 10% to 15% discount is not worth the potential for excess debt, interest, and fees.

• Find a card with rewards points that can be redeemed for cash, airline miles, or retailer gift cards. Some people maximize their reward points by using their credit cards to pay for all their purchases and expenses, but this is only a good approach if you pay your credit card bill in full every month!

• If you are concerned about paying off debt and controlling your spending habits, avoid using credit at all. Most people are more disciplined with cash because it feels more real to spend it. Some people don’t even carry a credit card.

Energy and Fuel Efficiency

• Adjust your personal “thermometer” to allow you to keep your home a bit cooler in the winter—in other words, like grandma always used to say, “put on a sweater!”

• Also keep your home a bit warmer in the summer; the higher temperature you set your air conditioner for, the more money you save.

• Choose energy-efficient appliances, and even consider replacing appliances that are still operating, but are not energy efficient. Energy efficient technology has improved a lot in the last few years.

• Keep your car tires correctly inflated for better gas mileage.

• Have regular grease jobs and oil changes to make your car run better and longer.

• Plan all your family’s errands so that you can take the fewest car trips possible.

Save, Save, Save!

• At the end of the day, put all of your change in a jar. Periodically, wrap up your coins and take them to the bank. (Some banks will count coins for free without your even having to wrap them up!) Then deposit the money into your savings account or buy a savings bond.

• Have automatic deposits to a savings account set up either from your paycheck or your checking account.

Don’t try to do everything at once. Make a few changes; when they become habit, make the next few changes. And remember that you’re not doing all of this to deprive yourself today—you’re doing it to take care of yourself tomorrow.

© Harris, Rothenberg International, Inc.

Reviewed 05/10