Here's a guest post from Lesley Scorgie’s Rich by Thirty: A Young Adult's Guide to Financial Success, copyright 2007 by and reprinted by permission of Key Porter Books.
“Spend your money wisely.” How many times have you heard that phrase? Was the person saying it a generation or two older than you? Don’t let that fact change your opinion. Despite what you may want to believe, the phrase does have a lot of value. My friend Erin is the queen of frugal living. Over the years, she has given some great advice on being frugal (even to me), and some great tips on saving money. Together, we’ve developed a list of tips and tricks to help you live the frugal life:
- Be Ruthless. Before you plunk down your hard-earned cash, ask yourself whether you really need the item in question, or if you just want it. If you don’t need yet another pair of strappy sandals, or a new set of speakers for your stereo, then you might want to reconsider its priority on your shopping list. Having trouble sorting it out? Try waiting twenty-four hours before buying. Often, you’ll change your mind.
- Cut the credit. If your credit card is getting you into trouble, hide it! Get it out of your wallet. Give it to a parent or trusted adult to hold, or stick it in a resealable bag, fill the bag with water, and put the whole package in the freezer. By the time your cards have thawed, you’ll have had a chance to think twice about making that “must have” purchase—and don’t bother trying to hammer the ice; that will just wreck the cards.
- Wheel and deal. Everything is negotiable. If you feel your credit- card interest rate is too high, call and talk about it with a customer service representative. Negotiate better rates on your debt, on your cell phone bill, on your Internet service. Remember, if you don’t ask, you don’t get.
- Pare down. While you’re in that wheeling-and-dealing mode, why not take a closer look at your various plans? Do you really need all those cable channels, or that many hours of Internet access each month? Do you need text messaging and voice mail on your cell phone? Think hard, and get rid of anything you don’t need.
- Become a bargain hunter. Look for sales and discounts when you shop. Check out eBay, auctions, garage sales, and estate sales. I’ve done it and had great success. My dining-room table cost $50, my TV stand was $8, my stove was $60, and my two beautiful leather couches cost a total of $500! My grand total was $618. Had I purchased these items new, I would have paid nearly $3,500. You can also check out vintage stores for cool clothes, jewelry, and accessories.
- Entertain yourself on the cheap. Don’t forget to apply the bargain-hunter rules to other areas of your life. If you enjoy going out for dinner and to the movies, keep your eyes open for coupons or two-for-one nights, or get to know the discount theatres in your neighborhood. Better yet, why not host a potluck and video night for your friends? Did you know most public libraries have a great collection of videos and DVDs? Yes, renting is cheaper than going to the movie theatre, but borrowing is free! (Hint: they loan CDs as well!)
- Think about your food habits. We spend a ton of money on food, whether we live with our parents or on our own. Here are a few ideas for everyone to keep in mind:
- If you live at home, eat at home—or pack a lunch! Fast food is a budget killer and can add up to over $100,000 throughout your lifetime.
- Stop drinking soda. You’ll have more money and you’ll be healthier.
- Try cutting back on meat (vegetarian dishes are often cheaper to prepare).
- Buy your food in bulk (the more you buy, the cheaper it gets).
- And finally, trade in your “designer” coffee for a less expensive cup! (Better yet, buy a travel mug and bring your own hot beverage wherever you’re going.)
- Get healthy. A healthy lifestyle can be remarkably affordable. Just think about it: if you drink or smoke, cutting down can put dollars back into your pocket and add years to your life. Walking or biking, instead of driving or taking public transit, will leave you feeling fit both physically and financially. Why not give it a try for a week and see what a difference it makes?
lol... I like that one about putting the credit card in the freezer, I just got a mental picture of someone trying to "jailbreak" their card out of the ice :)
Posted by: J in FL | March 28, 2008 at 02:55 PM
I'd also add: Don't automatically order an alcoholic beverage when you go out to dinner. You'll save $7 to $10 per drink, when you include tax and tip (more if you go to trendy restaurants!). Check with yourself first ... maybe water is OK? Or even a soda or iced tea will save you a few bucks. It's worth skipping a glass of wine if the savings will put gas in your car all week!
Posted by: Cheap Like Me | March 31, 2008 at 01:14 PM