PT Money » How To Save Money

Discover Bank’s IRA CD

PT — Tue, 17 Aug 2010 04:11:34 +0000

Discover Bank is offering a 12-month IRA CD for 1.50% APY and a 10-year IRA CD for 3.50%.

A great retirement investing alternative that not many people have heard about is the IRA CD. That would be a CD inside of a Roth or Traditional IRA. With this approach, you get the security of a CD with the tax-advantages of an IRA. As a reminder, an IRA is a tax-advantaged retirement account which you use to hold investments, like a stock, bond, or in this case, a CD. A CD is, of course, a certificate of deposit, which is a deposit product with a fixed term and rate. They are also FDIC insured.

Discover Bank is currently the only bank that I know of offering an IRA CD. Their IRA CDs range anywhere from 3 months to 10 years. Click below see current rates:

So, who should consider an IRA CD? Ultimately, you need to be making your investment decisions. There is no one-size fits all investment plan. But generally speaking, here’s who should consider an IRA CD:

CD investors that want to pay less in taxes.
Retirement investors who want an alternative to their MMF to meet their cash asset-class requirements.
Beginning investors who want to start an IRA but don’t know about other investment asset classes.

I have faith in the American business for the long-term. For this reason, and being the young guy that I am, I stay with domestic stocks for a large percentage of my portfolio.

But with the economy still on shaky ground, and some discussing another possible market crash, some investors may be looking for a safe, secure place to continue investing for retirement. This approach makes sense for a lot of people. If you’re looking to preserve capital (i.e. keep your retirement money safe), the typical places to turn include a money market fund within your retirement account, or a simple CD or savings account.

MMFs don’t have FDIC Insurance or a return on your money, and CDs outside of an IRA aren’t able to achieve extra tax savings. The IRA CD brings them both together. Learn more about IRA CDs by visiting www.DiscoverBank.com.

Discover Bank’s IRA CD is a post from: PT Money: Personal Finance by PT.

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What’s Your Best Way to Save Money?

PT — Fri, 13 Aug 2010 22:49:52 +0000

Back when I posted my list of 104 Ways to Save Extra Money, I received quite a few emails with more ideas for saving. One of the better emails, from a reader named Amy, contained 7 more ways to save extra money. I thought it was a pretty solid list, so I thought I would share it here for you guys and invite you to list your best way to save money in the comments below.

1. Pay your bills on time. You’ll avoid late fees and finance charges and a better credit score means you’ll be offered better rates on other things.

What makes your piggy bank smile?

2. Make gifts. Utilize an existing skill, learn a new one, or compile your own gift baskets. The person who has everything still needs tasty food.

3. Cancel subscriptions. Read newspaper or magazines for free online or at the library.

4. Buy generic or store brands. Sometimes we end up paying more just for the label.

5. Lower the thermostat. Your family probably won’t notice if you turn down the heat by one degree (unless you tell them what you did).

6. Shop thrift stores. Inexpensive dishes, utensils, pots, pans, glassware, picture frames, tools, books, furniture……I could go on.

7. DIY cleaning supplies. Find recipes online to make your own glass cleaner and tub scrub using simple, cheap ingredients like white vinegar, baking soda, and dish soap.

So what are your ideas? How are you saving extra money right now?

photo by alancleaver_2000

What’s Your Best Way to Save Money? is a post from: PT Money: Personal Finance by PT.

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Do You Remember the Passbook Savings Account?

Guest — Tue, 03 Aug 2010 14:37:57 +0000

The advent of the Internet has changed the way we do many a thing; banking is just one of them. From the passbook savings account that were and still are limited by geographical location, we’ve graduated to online savings accounts that offer various benefits that are missing from the passbook savings account. However, not everything is better in the virtual world; both passbook and online accounts have their virtues and faults, and some things have been lost in the move away from the old passbook savings account.

Passbook Savings Account

This account is a simple savings (deposit) account with a bank, where traditionally, instead of being connected to a checking account and getting a bank statement, you keep your own records. To keep the record of your savings, you were given a passbook, a little book (small enough to fit in your shirt pocket) where you can physically record the deposits and withdrawals. Some banks still offer this type of account.

Editor’s note: the passbook savings account was my first experience into the banking world. My parents helped me open up the account and I used the account throughout high school to save money from my summer jobs.

Passbook Savings Account Benefits

The very fact that access is restricted to them allows you to save your money instead of being tempted to spend it indiscriminately.
No statements means more security for some customers who don’t want their information sent by mail.
The availability of a number of physical branches allows you to make deposits easily – this means you avoid holding on to large sums of cash, not just for safety reasons, but also because you could so easily end up spending all of it without realizing the fact.
You don’t incur hidden and recurring fees that are associated with some online accounts – like annual fees for ATM and debit cards and special fees for using your card to withdraw money from another bank’s ATM.
The simplicity and manual nature of the account, makes it perfect for teaching kids about saving money.

Modern Day Passbook Savings Account in Korea

Online Savings Account Benefits

Now we have statement savings as well as online savings as savings options. Here are some of the benefits of online savings accounts.

You’re not tied down by physical location – you can make withdrawals through ATMs and transfer money to various accounts and towards different payments.
The interest rate is a little higher than that offered by passbook savings accounts.
You don’t have to maintain records in your passbook and carry it with you every time you need to make a deposit or withdrawal from your account.
Although depositing money is a little tedious, all online banks allow direct deposits (for paychecks and other forms of income). Probably the only hitch comes when you’re trying to deposit a check – if your bank has no physical branches, you may have to deposit the check into another account and do an online transfer.
Most online accounts don’t set a minimum balance, so you avoid the fees that come when you violate such limitations.

Common benefits offered by both kinds of accounts include insurance by the FDIC for your money – depending on the account, $100,000 to $250,000 of your money is insured. And although both offer relatively low interest rates when compared to riskier investments, they’re liquid assets and can be cashed in at any time unlike stocks or bonds that cannot be instantly liquidated.

If you want an account that allows you to save money, go with a passbook account; but if you want one that allows easy access to your money, settle for the online option – the choice is as simple as that. Shop around for the best interest rates and make your decision accordingly.

This guest post is contributed by Anna Miller, who writes on the topic of online degrees . She welcomes your comments at her email id: anna.miller009@gmail.com
Photo by jgmarcelino

Do You Remember the Passbook Savings Account? is a post from: PT Money: Personal Finance by PT.

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We Never See the Money, So We Don’t Miss It

PT — Fri, 23 Jul 2010 17:27:13 +0000

That’s exactly what William and Cynthia Foust of Mount, North Carolina had to say about their automated savings. According to a recent Money magazine profile, they’ve been able to save over $800,000 for their retirement. Granted they saved at a rate of 35% of their income, which is no small feat.

But a bigger feat these days seems to be remaining consistent with your savings. Life just gets in the way. One month you have excess funds and the end of the month and you can dump some money into savings. The next month, you fall short and have to reach into savings to help you out.

That’s why I love automated savings. As long as you stay at the same job, there’s nothing to get you off track. You set it up once, and you forget about it. Notice that the Fousts didn’t just do it with 401Ks though. They also used the Roth IRA, an online broker, and an online savings account to supplement their effort. Great move. They are my saving heroes.

Keep in mind if you decide to do this, you need a little more discipline to make the automation work. Instead of a direct deposit (like your 401K), you’ll likely need to set up an automated withdrawal from your checking account. Start small and set the transfers to occur the day or two after your paycheck arrives. Once you get comfortable with the move you can increase your contributions.

To see more inspiring money profiles, visit my list of Millionaires in the Making.

We Never See the Money, So We Don’t Miss It is a post from: PT Money: Personal Finance by PT.

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Internet Savings: What it Is and Why it Will Dominate the Future of Personal Savings

PT — Tue, 13 Jul 2010 20:38:57 +0000

At the risk of being Captain Obvious here, I thought I’d spout my two cents on the future of online banking. Particularly, saving money in an internet-based savings account.

What is Internet Savings?

Internet savings is simply a bank savings account that’s based at an internet-only bank. Some people call it online savings, or high-interest online savings. The internet bank generally offers the exact same features as a traditional savings account. They just don’t have physical branches, and supposedly, because of this they can offer a higher rate of interest on your savings. They are regulated by the Federal Reserve Board just like traditional savings account, where under Regulation D, your withdrawals or transfers are limited to 6 per month.

The Current State of Internet Savings

These days, the most common internet savings accounts are offered up by ING Direct, Discover Bank, FNBO Direct, Ally Bank, Everbank (actually a Money Market Account), WT Direct, SmartyPig, and even Sallie Mae. Most of these banks also offer checking accounts and other financial products. Just no physical branches.

Internet savings interest rates are way down from their glory days. Thus, the savings accounts don’t have the huge appeal they once had. Some people have turned to other products, like high-interest checking or peer-to-peer lending, to get their liquid returns. Some may see this trend and think that internet savings has lost it’s luster. I say the rate is only one part of the appeal though, and in the future, most everyone will have an online savings account versus a savings account attached to a traditional bank.

To give you an idea of the current state of online savings, I reached out to ING DIRECT, likely the biggest online bank. They shared that since their “inception in 2000, more than 7.6 million Americans have entrusted their savings with ING DIRECT.” Using my guess-o-meter, knowing what I know of the industry, I’d say that anywhere between 30-60 million Americans (only 10-20% of all Americans) have an online savings account. So at this point I guess they’re a long ways from dominating personal savings. But I still think they’ll get there.

Why Internet Savings Will Dominate

Not now, Mom! I'm watching my internet savings grow.

Internet savings, online savings, whatever you want to call it, will likely dominate our personal savings future. If you don’t already have one of these accounts, you soon will. Here’s why:

FDIC Increases – 99% of these internet savings accounts have FDIC insurance. This now covers deposits up to $250,000 (temporarily up from the previous limit of $100K). I’m going to make the assumption that this limit won’t go back down to $100K. As more and more people learn that online savings has just as much FDIC protection as their brick and mortar counterpart, the deposits at internet savings accounts will grow.

Only Getting Safer – Traditionally, the biggest barrier to banking online has been the perceived risk of online financial services. People have a healthy fear of sharing information online. Identity theft is huge. However, online banking is only getting safer as new technologies allow for increased protection, and as online banks strengthen their own system security. In addition, younger generations are far more accepting of banking online. As their savings grows, so will the deposits at online banks.

Online Checking is Improving – Another barrier to using online savings accounts has been the fact that checking wasn’t as practical of an online activity. Now, with the onset of digital check deposits (by phone or scanner), online checking is far more practical. Not every bank has this feature yet. But in a few years they all will, and we’ll all be making online checking deposits. And when people start checking exclusively online, it only makes sense that they will have an attached savings account.

No Strings Attached and No Overhead – Without the need to have a building and all the overhead that comes along with a physical branch, online banks can offer up a really sweet deal. Higher interest, no minimums, no deposit requirements, no fees. They crush traditional savings accounts in just about every aspect.

People Have More Success with It – Finally, internet savings will dominate because it works better at helping you save. They naturally help you save more. Online savings accounts give you a special, separate place to put your hard earned money. And because of the online funds transfer timing issue, they also create a small time barrier between you and your money. People who struggle saving eventually get around to asking people who can save how they do it. More often than not they’ll be telling them about internet savings.

photo by @cdharrison

Internet Savings: What it Is and Why it Will Dominate the Future of Personal Savings is a post from: PT Money: Personal Finance by PT.

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Get 5% Cash Back from the PerkStreet Financial(SM) Visa® Debit Card

PT — Wed, 23 Jun 2010 19:09:13 +0000

PerkStreet, who I currently use as my personal spending account, just made their offer a bit sweeter. They are offering 5% cash back in certain spending categories.

As you know, I signed up with PerkStreet a couple of months ago and have been enjoying their promotional 2% cash back on every non-pin purchase.

In a move to please their current customers and attract even more, they are bringing out the 5% rotating categories. Similar to the Chase Freedom® Visa – $50 Bonus Cash Back credit card, or the Discover More credit card. Here’s the bonus categories for June and July:

5% Cash Back on Gas Purchased at the Pump
5% Cash Back Home Improvement from Lowes, Home Depot, and Menards
5% Cash Back at the Apple Store (June 24-27 Only) – Can you say “iPhone 4 at 5% Off”?
And more…

I will definitely be using my PerkStreet Financial(SM) Visa® Debit Card to pay for my gas purchases in June and July. And Mrs. PT has her eye on the iPhone 4, which comes out tomorrow, June 24th. An extra 5% off that price would be nice.

Get 2% Cash Back on Everything Else

The old “2% on everything” offer is set to expire 6 months from when I signed up. Well, in a very nice move, PerkStreet is planning to continue the 2% offer as long as I keep a balance of $5,000 in my account.

This is a fantastic deal. No credit card on the market today is giving 2% cash back on all purchases. Sign up with PerkStreet to take advantage of this deal.

See my full review of PerkStreet to learn more about what they have to offer. You also might want to see how they stack up against other online checking accounts.

Get 5% Cash Back from the PerkStreet Financial(SM) Visa® Debit Card is a post from: PT Money: Personal Finance by PT.

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SmartyPig Savings Now Alligned with Compass Bank

PT — Thu, 10 Jun 2010 19:05:43 +0000

If you are a current SmartyPig customer, see the information below about authorizing your new BBVA Compass savings account.

SmartyPig just joined forces with Compass Bank. They are going to move all their accounts from West Bank to Compass Bank, their new bank services provider.

If you are not familiar with SmartyPig, they are an online savings tool that allows you to create specific savings goals and automatically save for those goals in an FDIC insured account. With SmartyPig it’s not about just stashing your money away once and forgetting about it. It’s more of an active savings tool for those trying to save more. See my full review of SmartyPig.

With this new alliance, SmartyPig is hinting at being able to provide more banking services. From their blog… “we’ve got lots of new ideas, features, and functions that we’ll be rolling out this year”. I’m assuming this will be things like full-scale checking and savings accounts with debit and ATM cards, CDs, and possibly investment products??? But with as creative as the SmartyPig folks are, I’m probably being short-sighted there.

Good news. From the comments on the blog I was able to determine that there won’t be any new fees to the account. Nor do they expect the alliance to affect the interest rate.

As you know SmartyPig currently tops the list of the best online savings account rates at 2.15%. It will definitely make them more attractive in my eyes if they can become more like a standard online savings account.

Here’s the press release from SmartyPig about the change and what’s required of current customers:

On August 1, 2010, with your permission, SmartyPig and West Bank will securely transfer your customer data and funds on deposit in your SmartyPig savings account from West Bank, our current bank services provider, to BBVA Compass. In order to keep your SmartyPig account active and your savings goals current, you must log into your account and authorize this transfer of funds and the opening of a BBVA Compass savings account. Please note that your funds will remain FDIC insured at all times to the fullest extent provided by law. All things being equal, aside from authorizing your new BBVA Compass savings account, you’ll likely never notice a difference…

If you would like to contact SmartyPig, please login to your secure SmartyPig account and click the Contact Support link or call SmartyPig customer service at 888-567-6278 and we would be happy to assist you in any way.

Read more about the alliance on the SmartyPig Blog.

Not a customer yet? Start achieving your savings goals with SmartyPig and start earning an industry leading 2.15% on your savings.

SmartyPig Savings Now Alligned with Compass Bank is a post from: PT Money: Personal Finance by PT.

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5 Things Every College Grad Must Do in June

Austin — Sun, 30 May 2010 11:01:30 +0000

Congratulations Class of 2010! You’ve worked your butt off for over 15 years and now it’s time to put your skills to work and help out planet Earth. But one hiccup that prevents new grads from truly chasing their dreams is being behind on a bad money situation. You can’t go after the dream job or work the extra internship if you’re swimming in credit card debt or spending $800 a month at the bar.

Here are 5 things every college grad must do around graduation time.

Start Paying Off Credit Card Debt

Your greatest gift to your wallet will be starting to pay off any high-interest credit card debt you accumulated while in school. You’ll always be fighting an uphill battle with your finances if you carry a credit card balance every month.

With interest rates as high as 20%, paying your credit cards off will be the best return you’ll get on your money. If you’re 22 or 23 this should be your first financial priority when you graduate – don’t even look at investing if you’re carrying a balance with an interest rate over 10%.

Further reading: 10 Tips to Help You Reduce Your Credit Card Debt

Open a Roth IRA and Contribute Money for 2010

If you’re free of credit card debt, investing for retirement should be in your near future. Just out of college you have about 40-50 working years ahead of you to let your money grow. This means every year you make less than $105,000 you can put $5,000 in a Roth IRA.

If you do that for 45 years and get an 8% return on your investment, you’ll retire at 67 with $2.1 million in your Roth – and $1.9 million of that will have been return on investment because you started investing right out of college. The numbers don’t lie so open your Roth ASAP.

Further reading: Opening a Roth IRA for the First Time

Automatically Save a % of Every Paycheck

2010 grads are young and savvy. Make yourself money savvy and open an online savings account.

These accounts pay higher interest, have great web interfaces, and are absolutely free. Once you open an online savings account, link it to your checking account and set up an automatic transfer from your checking to savings to automatically save a % of every paycheck.

Start by saving 15% and over the next couple of months see if you can bump that up to 25%. These automatic transfers make saving money easy and before you know it you’ll have a huge chunk of cash in your savings account without even clicking a button.

Further reading: Save More Money: Automate and Separate Your Savings

Keep Your Expenses as Low as Possible

The month or two after graduation is hectic. Moving, new jobs, new life, no school, different friends, new setting. Your life is completely different than it was a month ago.

The best thing you can do for your wallet during this expensive time is keep your expenses low. You may have to buy a car, start paying rent, or buy some grown-up clothes for your new job. To cut costs move in with a roommate, go out to dinner once a week, and stop buying movies and music on iTunes.

The money will go fast with all of the start-up costs that accompany the first couple months out of college, but it’ll help you a lot if you keep some extra cash in your account by keeping your spending low.

Further reading: Are You Throwing Money Away? Unused Expenses and Untapped Discounts

Celebrate and Take a Breath

You’re done with school. Let that hit you for a second. If you’re going into the real world, the next year will be an interesting one so take some time to yourself and relax. Visit a friend you haven’t seen in a while, hit up the golf course, go to the beach, host a party.

Live your life.

It’s important to celebrate this transition to the next stage in your life and it’s important to take some time to yourself to reflect.

If you don’t have a job lined up, that’s ok. Live with your parents if you can and keep your expenses down. Take this time to really think about which direction you want your life to go. We often put this pressure on ourselves to continue down a path (I sure know I did) but this path isn’t real. No one loses points if they don’t transition from graduation on Saturday to a full-time job on Monday.

Life’s pretty interesting so grab control of your money at a young age so you can take advantage of the every opportunity that comes your way.

Photo by Beverly & Pack

5 Things Every College Grad Must Do in June is a post from: PT Money: Personal Finance by PT.

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Stop the Money Leak or Divert the Flow?

PT — Tue, 25 May 2010 15:58:04 +0000

With the oil spill in the Gulf getting out of control, I thought I’d share a quick list of some of the most common budget leaks, along with a strategy for stopping the leaks and diverting your money elsewhere.

Pretend that last month you sat down and prepared a budget. You set up spending categories and assigned a dollar figure to each one. Now we are at the end of that one month period and you’re reviewing your spending against your budget. How did you do? What are the areas that you found to be the most challenging? Where are the leaks in your budget? Even if you don’t do a budget, where would you guess the leaks would be?

Common Money Leaks

Areas that I see getting out of control for me from month to month include:

Dining Out – This has been the hardest area for me to control. When I do try and budget this, I almost always undershoot it. And with as many restaurants as there are around us it’s super easy to just head our for dinner. Throw in drinks beforehand and the bill can get pretty high quickly.
Convenience Items – I’m not a coffee drinker. I like coke (soda) instead. When I’m headed out to work for the day, I’ll make a stop at the convenience store for a fountain drink. That’s a $1.50 charge that I could simply use to buy cokes for the house. Coffee drinkers have the same conundrum: coffee at home or the $1-$5 on coffee at Starbucks or 7-11. By the end of the month, you’re looking at $25 to $75 dollars in extra spending.

Other leaks…

Entertainment – This isn’t as tough for me. I’m pretty content with my internet connection and the occasional Redbox rental. But I know it’s a big leak for many.
Holidays and Gifts – It’s not usually an issue every month, but for the big holiday season, this can put a big dent in your budget. Possibly even leave you with some debt to cover the shortfall.
Fuel – I don’t drive as efficiently or as smart as I should. I take too many short trips, and I’m always racing to get there on time so I spend more in fuel than I should.
Energy Costs – I’m in a constant battle with my A/C. Comfort vs. savings. But I also use too much energy by leaving too many lights on, or I let the water run too long.

Stop the Leaks

So how do you stop these leaks? Well, you can start by planning your budget a little better. Add in some padding for the hard to control areas. Leave room for the unexpected or miscellaneous expenses. Then you can implement tricks to help you spend less. The carry only cash method works for some. You can find ways to do the things above for less (i.e. Restaurant.com coupons for dining out). In general, you can hyper-focus your efforts on controlling the poor spending in these leaky areas.

Divert Your Money

Instead of trying to shut off the flow of money in your spending, why not do what BP is trying to do with the oil in the Gulf. Divert it. Take pressure off of the spending control and send money to your savings account first (i.e. pay yourself first). Then there won’t be as much money in the spending reserve (your checking account), and you can worry less about leaks robbing you of all your money.

Use Both Strategies

The most effective strategy, I believe, is to spend your energy in both places. Divert a good percentage of your money to safe places like your separate savings account and tax-advantaged retirement accounts. Then, let the rest flow out of your spending with an honest attempt at controlling things using budgeting tools and frugal practices.

What do you think? Is it more important to control the spending or divert the flow of your money into save havens?

Stop the Money Leak or Divert the Flow? is a post from: PT Money: Personal Finance by PT.

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104 Ways to Save Extra Money

PT — Wed, 19 May 2010 16:18:02 +0000

Let’s save some money! Here are 104 ways to save extra money. Why save money? Well, so you can afford your future. So you won’t have to rely on credit to get you by. So you can do some fun things. There are lots of reasons to do it.

Why 104? Because it’s double my other list, 52 Ways to Make Extra Money and I like a challenge. Okay, let’s get started with the savings…

Get a Piggy Bank – Put up a piggy bank at your home. This creates a visual reminder to capture those little handfuls of change you come home with. At the end of the year, you’ll have a nice little savings fund for a fun purchase, or even to fund a real savings account. You could even start saving with the online savings account by SmartyPig.
Use Open Source Software – Utilize free, open-source software like OpenOffice (like MS Office) and Firefox Internet browser.
Get Cash Back for Your Online Purchases – Use a website like Ebates.com to shop online. They will give you a percentage back on the money you spend online at hundreds of popular stores. Combine that with one of the best cash back credit cards and you’ll really be saving money.
Use CFL Bulbs – Compact florescent lamps (CFLs) cost more on the front-end, but they will save you money and energy in the long-run.
Combine Coupons with Local Sales – Save up coupons and use them in conjunction with sales at local markets. You can end up with items either being free or at a greatly discounted price.
Drive Your Car Until it Dies – No car payments or big cash outlays. Lower car insurance. Plus, you get the satisfaction of knowing you used this depreciating asset to it’s fullest potential.
DIY Greeting Cards – Design and print your own greeting cards. You can design and print a greeting card for around .50/card, which is a good price compared to $3.99 cards.
Use Cash for Better Negotiations – Larger ticket items definitely benefit from you waving around cash. You’re able to negotiate great deals when they see you’re a serious buyer. My wife was able to knock $200 of her recent road bike purchase by showing the money and asking.
Consider the Reviews – Do your research before you buy an expensive item (or even a not so expensive item). Check reviews on Amazon (i.e. Amazon Kindle Reviews
), look up reviews online, check a few forums, look up prices at different stores…you can easily save money and you might even find out the item you thought you wanted isn’t so great. – Free From Broke
Reuse Work Clothes – Reuse clothes that did not get dirty during the day, this cuts my laundry down, water, and electric bill.
Consider a Movie Subscription Service – If you currently spend a lot of money on entertainment at the theater or at the movie rental store from month to month, consider saving time, gas, and money by subscribing to an online movie service like Netflix.
Clip Coupons – Find the best coupons in the Sunday paper every week for grocery and other household items.
Monthly Spending Review – Write down all the expenses you make in a month. Review the list and try to eliminate the unnecessary expenditures. Consider using a budgeting tool like You Need a Budget to take your review efforts to a new level.
Avoid Financing at All Costs – Delaying instant gratification by saving for purchases before buying will hone patience and aid in bringing wealth and piece of mind to all who are exercised thereby. This element of self-discipline may be one of the oldest, simplest, and most base elements of financial success… but regrettably, it has also become a lost art in our common culture. Avoid financing and save for things before you buy them. Period. – Debt Free Adventure
No Restaurant Challenge – Take a week out of the month, or better yet, a month out of the year and commit to dining inside your home only. No dining out. See how much you can save by following this.
Do Free Activities – Find free stuff to do. For example on Sunday mornings go to a big book store and read books in the store without having to pay for them.
Keep Larger Bills – Never break down your large bills. You’ll be less likely to spend it. Smaller bills get spent quicker.
No Second Thoughts – Only buy things that you really need. Avoid buying things that you have second thoughts about or aren’t sure you’ll need.
Dine Out for Special Occasions Only – Only dine out for special occasions. You could get a week’s worth of food at the grocery store for the same amount that you pay for a single dinner out for one person. When you do dine out, use a coupon from Restaurant.com.
Consider Quality – Buy things of high quality even if it costs a bit more up front. Look back at all of the things you skimped on over the years and ended up having to replace earlier than you expected. Suddenly that big sale or off-brand item doesn’t seem like such a good idea. This doesn’t mean everything that is more expensive is better, but use your smarts and know when to spend to find the best bang for your buck instead of looking for the absolute lowest price on something. “You get what you pay for” still holds true for many things. – Generation X Finance
No Credit Cards – Cut up the credit cards and live only on what you make. No interest. No late fees. No problems. If you currently struggle with credit card debt, consider a source like Debt Goal to help you pay it off.
Pack Your Lunch – Don’t go out for lunch everyday; pack lunch instead. This can easily save you $50 a week.
Don’t Pay for Your Kids - If you do dine out during the week, make sure you visit one of the many places that offers “kids eat free” specials. At least you won’t be paying for their meals.
Don’t Forget to Ask – Ask for a discount. We always ask about discounts and have found that many places we wouldn’t have thought of give unadvertised discounts. For example, our preschool offered a discount to pay in full. And our plumber gave us a discount when we asked. As it turns out, many things are negotiable if you ask! – My Dollar Plan
Savings Goal Reminder – Carry a list in your wallet of financial goals that you will see every time you take it out to buy something. Create online savings goals with SmartyPig.
Shopping Plan of Attack – Look at all the sale ads before you grocery shop and go to the store with the most sales. Write down a list before I go to any store and it saves you from buying unnecessary items.
Vacation During No Child Care Days – Plan your vacation days on the days your children have half days of school or teacher in-service days. It yields more time with kids and lower child care costs.
Quit Your Bad Habits – Be they eating out, smoking, or going out partying. Every time you stop yourself from doing it, put the money you would have spent into your savings.
Meat Alternative - Meat is generally the most expensive source of protein. Beans and nuts are pound for pound far more nutritious for your protein dollar, and better for you too. If you can’t stomach the idea of giving up beef, consider ordering your beef online through OmahaSteaks.com – Amateur Asset Allocator
Daily Spending Goal - Set a daily goal for yourself: how much money your going to spend during the day.
Deal of the Day Sites – Groupon.com. This is a fantastic site to get some great group deals from local businesses. The only thing to watch out for is the “I don’t really need that but it’s such a great deal” syndrome. – FiscalGeek.com
Online First, In-store Second – Always do comparison shopping online before going to stores. This will allow you to find the best deal without wasting time and gas driving around town.
Consider a Stay-Cation – No need for a big expensive vacation. Take a week off of work and simply do a bunch of activities in your own home town. Skip the hotel and airfare costs and spend more money on entertainment and dining out for the week.
Wash Your Own Work Clothes – If you need a lot of professional clothes for work, buy the generic equivalent of Woolite and wash your work clothes with it instead of regular harsh detergents. It costs a bit more initially for the detergent but saves your clothes from fading, thinning, or frizzing, so I can wear them a lot longer and not have to buy new things. Also use Dryel instead of dry cleaning my clothes as much as possible.
Do it Right the First Time – If you are working on a car repair or home improvement, consider doing it right the first time. If you try and cut corners it will likely end up costing you more money in the long run. – Money Smart Life
Early to Bed, More in the Bank – Go to bed earlier. Saves light, heat (in the winter) and late night nibbles.
Create a Savings Category on the Budget – Make saving part of your budget and set saving goals. If you monitor your progress toward a goal you are much more likely to succeed in hitting that goal than if you just hoped to save money some day. Monitoring anything makes you more aware of it. Gain more awareness of your goals and progress with You Need a Budget – No Debt Plan
Utilize Free Online Services – Dump the monthly subscriptions and read newspapers and magazines online. Or at least get your magazines for free.
Be Purposely Low in Cash – Do not take a lot money with you when you go out, so even if you have the temptation to buy something you will not, if its really that important you will surely go back home to get the money. If its not, then you just saved yourself from spending money.
Reduce Your Medical Bills – If you have a hospital bill, just call up the billing department and ask if you can get a discount for paying cash, or if you can pay a lower amount. Often they’ll be happy that they’re just collecting a bill, and are willing to cut 10-20% off your amount. We saved several hundred by doing this after my wife was hospitalized last year. If you want to save big on health care, consider a high-deductible health insurance plan. – Bible Money Matters
Lower Your Interest Rates – Call your bank and/or credit card company to negotiate a better interest rate on your loan or outstanding debt. This can save you hundreds in interest payments. Debt Goal has a new calculator that will show you your projected savings from lowering your rates.
Don’t Pay for Your Credit Report – Instead, visit annualcreditreport.com and get your truly free credit report. Get your credit score from the source at MyFICO.com
Kill the Energy Vampire – Connect all of your appliances to surge protectors and shut the switch off when you are finished using them. Most of today’s appliances constantly use electricity when plugged in to the outlet. This $19.99 investment (via TheNerds.net) will save your appliances and save you in energy costs.
Cut the Cable TV – Move all your TV watching to online services like Hulu.com. It’s free and has fewer commercials.
Pay Yourself First – Put money in your saving account every paycheck. Make it the first thing you do and then pay all bill with your remaining funds.
Cancel Your Home Phone Line – Not using your home phone as much? Consider going to your cell phone for most of your calls. Install Skype on your computer for making computer to computer calls or cheap long distance calls. Video is better than voice anyway.
Work Out and Exercise at Home – Skip the monthly gym membership and start working out at home or in your neighborhood. Run or walk around the block. Rent workout DVDs from the library to do at home in front of your own TV.
Fuel Efficient Auto – If you travel a great deal during the week, consider a high fuel efficient vehicle to save on rising gas prices.
Read the Fine Print – Do a thorough review of all your monthly bills. Study the fine print to see exactly what you are being charged for. Cut out any charges for services you aren’t using.
The Savings Trade-Off - Think about saving money in terms of trade-offs – save money here, spend it there. If you’re planning on a vacation this year, keep that in mind as you are looking to save money elsewhere. It’ll give you a sense of accomplishment as you save more towards a particular goal and will motivate you to be more creative. – Bargaineering
Bring Lunch for Errands – Even if you don’t have a day job, when running errands in town, pack a lunch instead of eating out. This is a healthier alternative that saves you time and money while watching your waistline.
Do-it-Yourself Home Repair and Improvement – Most basic home repairs you can do yourself if you take some time to study the manual or look online for video tutorials. And basic improvements, like painting can easily be done cheaper if you use your own labor.
Stretch Your Coffee Beans – Use half of your used coffee beans in the next batch. Repeat this cycle and you’ll only use half the recommended scoop each time. Some coffee drinkers swear by this method. See more coffee related tips in my ultimate guide to saving money on coffee.
Go on a Spend-Free Splurge – Commit to a week without spending new money. Make it a goal to only spend money for the week that you earn from selling old stuff or making returns.
Separate Your Savings - Set up a separate bank account with a bank other than your main bank. Deposit extra money in the account whenever possible. This will create a nice barrier between you and your savings.
Start a Dinner Club – If you miss the social element of dining with friends, start having each other over to your houses and cook for each other. Similarly to eating at home, you can save money by making your own meals instead of buying pre-prepared meals. – Money Smarts Blog
Talk Yourself Out of It – Install a dialog in your head that uses the following questions: “Do I NEED this, or do I just WANT this? If I think I need it, do I have others like it, or will it fulfill a need I can’t meet without it? If I WANT it,will I really enjoy it and appreciate it, or is it just going to make its way to the back of the closet, the bottom of the toolbox, or the one-more-thing-to-dust category?”
Go Cash Only – Avoid using credit cards for a while. Spend only on things you can already afford with cash, or with your debit card. Find a good reward debit card to help you save even more.
Throw Out the “Deals” – Stop looking at deals and sales unless you are really in need of something. This means cancel all the catalog subscriptions and trowing out the junk mail when it arrives.
Invest with a Low Cost Broker – Stop using an expensive broker that charges you an arm and a leg each time you trade. Use one of the best online stock brokers to do your investment trading.
Avoid the Deal Websites – Don’t visit online shopping or deal sites unless you have a plan for buying something you need. Doing so will tempt fate.
Consider a Refinance on Your Loans – With interest rates at historic lows, you may be able to significantly lower your monthly payment and overall interest owed on a loan by refinancing at a low mortgage rate.
Get Social Savings – Use social media, Twitter, Facebook, email etc and follow, fan or subscribe to companies whose products you regularly purchase. You’ll get all sorts of deals and offers that way. You might be better off using a different account or setting up good filtering so you don’t get overwhelmed. – FiscalGeek
Use Only One Car – Get rid of the second car. Just trying to get by on one car may seem like a challenge, but it’s well worth it if you are a two-car family. How does at least $500 in insurance savings sound to you?
Skip the New Bottled Water – Don’t by bottled water to carry around. Simply refill a permanent container.
Grow Your Own Organic Veggies – Organics usually cost more than other veggies. Consider growing some of your own organic vegetables.
Don’t Believe the Price Tag – Realize that price tags are liars. Most locally based retailers are willing to negotiate and therefore their price tags are just the starting points. Even managers at large national retailers will occasionally be willing to negotiate. It all starts with your willingness to ask. – The Wisdom Journal
Mend Your Own Socks – Yes. Repair your own socks. You can make them last three or four times as long as they otherwise would, and it really adds up.
Switch to Bio Fuel – Using bio fuel for vehicles instead of Petrol / Diesel. It is environment friendly too.
Limit the Impulse Buys – Try to limit impulse purchases. A few small items can add up quickly, and a major purchase like a new car can haunt you for years. Have a plan. A marketer’s number one job is to separate you from your money. And there are a lot of good marketers out there. My rule is to never go shopping without a list or a clear idea of what you I am looking for. Otherwise, I’ll end up spending more than I had planned to spend. – Cash Money Life
Diversify Your Investments – Do not put all your eggs in one basket. Invest in stocks, mutual funds, bonds, real estate, etc.
Buy Store Brands – Most of these products come from the exact same factory as the “brand name” equivalent – and you can usually find this on the box – but they cost $1-$3 less.
Line Dry Your Clothes - Cut down on energy costs by drying your clothes on a clothesline. They have clotheslines for inside the home as well now.
Check Your Warranties and Ask for Free Repairs – If something breaks, don’t immediately run out to buy something new. Look to utilize any available warranties or free repair offers you can find. Some manufacturers are so proud of their products that they will repair them for free.
Raise Your Deductible – Raise your car insurance deductible to a higher level. This can cut your premiums by several dollars a month. Just make sure you have the cash saved to cover the deductible in case something happens. This is one of the 20 ways to a more affordable auto insurance policy. – The Dough Roller
Budget for Irregular Expenses – Set up a monthly line item in your savings account for bills that don’t come due every month. For example, car repairs. If you know that you will spend around $600 on car repairs every year, put $50 a month in savings so when the inevitable breakdown happens you don’t have to charge it on a credit card. In the meantime, draw interest rather than having to pay it to someone else because you didn’t plan in advance. Consider You Need a Budget for your budgeting needs.
Get the Kids Involved – Involve your children in the process of saving money. For each coupon they bring home, split the savings with them. For instance, if they give you a fifty cents coupon, give them twenty five cents into their savings account. Thus, saving both for the family and the children.
Car Pool – If you drive a car going to work, ask some office mates who could ride with you so that they can share for gas money.
Wait 2 Days – On purchases over $100, wait 2 days to think it over before you actually make the purchase.
Make a List, Baby – Before buying anything, or even heading to the store, make a list so that you won’t be tempted to buy something more.
Utilize Online Coupon Sites – There are many websites that offer coupons that cannot be found in the Sunday paper. They are free to join and easy to use.
Two is Better Than One, in the Dryer – It might sound crazy, but tear dryer sheets in half for the dryer. A half sheet is just as effective.
Google for Promo Codes – When you get to the shopping cart, you’ll see a space to enter a coupon code or promo code. Instead of just making the purchase, do a quick Google search for your item plus “promo code“. Maybe you’ll find a nice 10% off code to save you money at the last minute.
Buy with Your Reward Points – Don’t spend more than you normally would, but use a reward credit card throughout the year and accumulate reward points for your spending. Then use the rewards for your Christmas gifts or to help with a vacation.
Install a Programmable Thermostat - This awesome invention can help you save 10 to 20% on your energy bill. Makes saving a no-brainer.
Use Your Library More – Instead of buying books and renting movies, use your local library to check out books and movies for free. They also typically have free wifi and computers you can take advantage of.
Sweep the Kitchen – Save money by being a creative cook. Use ingredients on hand, rather than buying ingredients to make a specific dish. Food doesn’t go to waste and you’ll create some new and different salads, casseroles, etc.
Avoid the Bank Fees – Get rid of those monthly checking and savings fees. Move to an online savings account or online checking account and stop paying fees.
Free Eggs – Four chickens on a quarter acre of land provide free eggs, natural insect control, and free fertilizer.
Cure Your Savings – When shopping for over-the-counter medicines compare the labels between the generic and name brand items. Usually they are the same and usually you can get the generic for about 40 percent less than the name brand.
Practice Hypermiling – Drive slower, brake as little as possible, and keep your tires properly inflated. All will help to conserve on fuel expenses.
Truly Save, Not Spend Less – The best way to save money, is to deposit money in any bank as savings deposit for use at a future time. Don’t confuse spending less with true savings.
Bundle Your Savings – Bundle your TV, Internet and phone services. This can typically save you good money each month. At a minimum consider a service like Dish Network for a little while. They will give you a great rate on your initial deal. – DoughRoller.net
Don’t Be a Captive Consumer – Prepare in advance when you might be stuck in a place where the pricing gets marked up because of low competition (e.g. movie theater, airport, zoo, etc.). Bring your own snack, or eat at home just before heading to these places.
Invest in a Deep Freeze – If you have a big family, consider buying a deep freeze so you can buy more in bulk, and do more batch cooking.
Eat Before You’re Entertained – Eat your meals at home before going to theaters, sporting events, etc.
Brew Your Own Coffee - Stop spending upwards of $5.00 per day on a cup of coffee. Make it at home and bring it to work in a thermos.
Turn Off the Lights – Make it a habit to turn off the lights when you are the last person to leave a room.
Clean with the News – Use old newspapers instead of paper towels with an eco-friendly cleaning product to wipe glass surfaces.
Create Your Own Cleaning Rags – Cut up old clothes that have holes or stains and use them around the house for cleaning, dusting, and grease rags. Don’t buy paper towels anymore.
Split the Meal – Portion sizes are huge these days. When dining out, split a nicer meal with your significant other.
Buy Used from Craigslist – When you’re considering a purchase, first look at Craigslist to see if their is a lightly used version of the product you can purchase for a heavily discounted price.
Pay Less in Taxes Next Year – Shelter your money from taxes by putting it in a 401K or traditional IRA.
Get Excited About Saving – Find a passion for saving money. Not because you want to hoard all your cash, but because you want to use it for good. Think about how many lives you could change if you saved more of your money to give it away. Or think about how great your kids future could be if you saved more money for their education and general well being. And don’t forget about your own retirement. Enjoy watching your savings grow knowing that you won’t have to depend on someone else for your future.

104 Ways to Save Extra Money is a post from: PT Money: Personal Finance by PT.

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