Do you want to save money? Do you want to really save money? Well, MoneyCentral has a post on seven radical ways to save money. All of them may not be for you, but there are likely one or two that can help you save a bundle over the next year. (Note: if you do them all, you could save $12,000!!) Here are their suggestions:
Hold the mother of all garage sales. Cast a critical eye on the stuff at the way back of your closets. If you haven't used it in six months, chances are you can do without. Potential savings: $1,000.
Quit smoking. Pack-a-day habit? Quit and save $1,800 a year (plus savings on insurance and health care). (Note: I've written on this here, here, and here.)
Tame your driving addiction. Carpool or use public transportation. Savings estimate: $1,141.
Buy used clothing. The average consumer spends about $1,750 a year on clothing and its upkeep, according to the U.S. Bureau of Labor Statistics' most recent Consumer Expenditure Survey. You can potentially cut that in half by shopping at consignment shops and auctions, though the life of the goods may be less than buying new. Savings: $437.
Become a homebody. Curb your entertainment and eating out spending. Annual savings: More than $1,900.
Cut your housing expenses. Consider renting out a room. Annual savings of more than $4,000 before any income taxes.
Cut up your credit cards. Build an emergency fund first to handle most unexpected expenses. Interest savings: $1,100 a year.
Yes, these are fairly radical (for some). But here's the bottom line impact:
If you're really ambitious and follow all the above tips, you could be looking at savings of nearly $12,000 a year. Figuring you can invest it at the historical
rate of return at 10% your savings will start to compound nicely -- and rapidly.
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