Maximize Your Money – II

1. Repair Your Old Clothes

Don’t throw old clothes. If you get to see how people in poorer countries live, you’ll learn to appreciate the clothes that you have. Sew your torn clothes and wear them. Don’t rush out and buy new clothes every other week.

2. Ask for a Rate Reduction

Ask and ye shall receive. At the risk of having NPL’s (Non Performing Loans), banks would rather lower the interest they charge you than to have you default on your debts. So don’t be shy in asking. You wont lose anything by asking. I managed to get a 200 dollar reduction in my monthly mortgage repayment, which actually allowed to me to keep paying my old rates and reduce the principal amount of the loan quicker.

3. Say NO to Starbucks and McDonalds

While the coffee from Starbucks might be slightly better than a regular Java, is it worth the USD8 that you pay for it, compared to the USD2 for a regular Java? The USD6 that you save on a daily basis comes up to USD180, which can reduce your credit card interest charges by a considerable margin. And the Big Mac from McDonalds might send you to the hospital with a cardiac arrest. Say NO to FAT. And while you’re at it, stop smoking and reduce alcohol consumption. All these will add dollars into your pocket and increase your life span.

4. Switch Your Bulbs

Switch all the bulbs in your house into energy saving bulbs. You’ll start reaping your savings within 10 months. And besides, you’re doing your bit for the environment.

5. Swap Books with Friends

Check out Craigslist for people who want to share books. Swap books with them, or friends and family. You’ll end up reading a lot more books for a lot less dollars.

Spend Less

Quickest way to save some money – spend lesser than your earn.

When push comes to shove, cut down on frivolous expenses like cable tv, or movie rentals, start car pooling, dump your Starbucks coffee for regular Java.

These cutbacks are just temporary. Their painful but temporary until you get some extra cash with you.

10 More Ways to Save Money

Here are 10 more ways to save some money. I am not suggesting being a miser, but learn to be frugal.

1. Give personal gifts rather than splurging on an expensive gift. A handwritten card can mean a lot more than an expensive camera.

2.  Entertain wisely, rather than expensively. A quiet dinner at home with friends is much cheaper and more exciting than a $100 dinner at a fancy restaurant.

3. Always ask for a discount. You’ll never know when you might get one.

4. Experiment with “house brands”. Some of them are as good as the original brands, especially those for house cleaning.

5.  Spend paper money. This helps to rein in your expenditure. Spending on plastic is the classic way to kill yourself with un-necessary expenditure.

6.  Use cold water to wash your clothes and lower the temperature on your hot water shower. Your clothes will last longer, the colors wont fade and you’ll save a bit on electricity and heating.

7.  Want to save on long distance phone calls. Learn to use Skype. It’s free and all you need is a computer and an internet line, which you already have if you’re reading this.

8.  Opt for interest free bank accounts. Never go for accounts like HSBC’s Powervantage account which charges you a monthly fee of $10 when your balance goes below $2000.

9. Buy in bulk. Cereals, dish washing fluids, detergents and other house hold items can be bought in bulk from discount stores which add up to quite a bit of savings annually.

10. Switch all the lighting to energy saving bulbs. Energy saving bulbs, while they may be pricier than normal bulbs, will repay your investment after 18 months.

11. Inflate your car tires to their correct pressure and remove unnecessary items from your car booth. This makes your car lighter and consume lesser fuel.

10 More Ways to Save Money

1. Never go to the grocery when you’re hungry. You will always end up buying more than you’ve budgeted for, and more often than not, buy things you dont need. Get something light to eat before going to the super market.

2.  Buy items on Sale or during off season. For example, buy a winter jacket in June.

3.  SLEEP on all your purchases, whether big or small. This avoids impulse buying and helps you to know whether you really do need the purchase.

4. Eat out less often. Eating out daily is an expensive affair. “Take out” is cheaper than eating in a restaurent and “gourmet” frozen food is cheaper than take take-out. Of course, making your own lunch or dinner is the cheapest but if you’re like me and not into cooking, then order some take-out and save some money.

5.  Buy yourself a can of gourmet coffee from your local supermarket and save yourself the daily $3.95 Starbucks coffee. They taste the same, but comes with a cheaper price tag.

6. Use public transport whenever possible. It’s cheaper, environmentally friendlier and you might meet some interesting people. It also allows you to indulge in some music or in a good book.

7.  Buy used. Used items doesnt necessarily mean its bad. People sell things all the time, not only when its malfunctioning. People sell when they move or  when they want to keep up with the trend. Buying used saves you a lot of money. The time and effort spent in finding these offers are well worth it in the long run.

8.  Take a good look at your monthly magazine subscription and cancel any which you dont need. We always subscribe to more magazines than we need.

9.  Invest in quality. Spend the extra money to buy tools that will last a long time.

10. Make use of your local library, its a gem of a place for book worms like you and me.

10 Little Ways to Save Money

Here are some simple ways to save some money.

1. The best way to save is to build a LIST of specific bargains that you find over time. This will save you a lot of TIME and MONEY.

2.  Turn off the power of unused items in your house. Do let let your TV or VCR to lay idle in Sleep mode because their still consuming power. Contrary to what manufacturers say, your TV.VCR, cooker, Hi-fi do not stop consuming power when their idle. They still consume 2/10 of their usual power. Compound this over the whole night of 12 hours and you’re paying for a lot of wasted electricity. So take out the plug from the wall.

3. Drink water instead of soft drinks. Not only is water cheaper but it is also healthier and will not make you FAT.

4.  Learn to trade or share with friends. Borrow a toaster, car pool whenever possible, borrow and lend books – all these little things help save money.

5.  Make your own lunch. While this sounds like a lot of work, making your lunch is cheaper and much healthier.

6. Pay off your credit card debt in full every month. The interest every month on the carry over balance will kill you if you let them compound. Compounding interest is good, when it works for you, not against you.

7.  Look for opportunities to switch credit cards when possible. A 0.25% lower interest can result in hundreds of saved dollars in a year – enough for for a vacation!

8. Switch to debit cards. Then you wont end up over spending.

9. Do not use your credit card. BUT do not cancel them. Having a credit limit but not using it helps build credibility when its time to get a home or car loan.

10.  Cut down on drinking and smoking. I am not asking you to eliminate the habit completely. But cutting down by 10% saves you 10%.