by Lori DescheneYou’d think people who make more money would save more money, but research shows that’s not true.
HSBC reports that Americans with more than $250,000 in household income—who represent 1.5% of US households—also struggle with saving. That’s because most of us take on as many expenses as we can afford and oftentimes live beyond our means.
I’m not in that top 1.5% or even close, but I am excellent saver. I always get cheap airfare. I find high-quality generic products like it’s an extreme sport. The guy at Marshall’s knows me by name. This allows me to “pay myself” a chunk from every check. I’m ready to share my secrets.
10. Take advantage of trial offers and return incentives.
Here’s what I did recently to finance my expensive yoga addiction: I found 3 Bikram studios within a 30-mile radius of my house. Each offers the first 30 days for $30. One of them extends a follow-up deal: two months for the price of one ($115). That means I got five months for $205. Had I not done it this way I would have spent $490 on those five months. The best part? The other studios I tried send me discounts as incentives to return. It pays to shop around!
9. Buy clothes on the off-season, on eBay, and at off-price retailers like Marshalls.
In the winter I hit the clearance racks for tank tops. In the summer I look for winter coats. I shop at
Marshalls for almost everything else. The retailer sells brand name clothing at 20–60% off, and they even have a clearance section. Then I check out
eBay. A lot of my friends avoid this because of the potential for used or knock-off items. Not a problem for me. I search for auctions that are about the end, and only bid on the amazing deals. A Coach bag for $20? Who cares if it’s a fake at the price?
8. Use your checkbook.
I am part of a dying breed. I enter every purchase manually into my checkbook—even when I’ve used my debit card—so I always know exactly what I’ve spent. I then use that knowledge to make decisions throughout the month. If this isn’t your style, you can
track your expenses via text message or using
online software, like Mint.
7. Get and use club cards at grocery stores.
I’ve read some articles that call these cards a scam, implying the marked-down cost is actually the suggested retail price, and the savings are an illusion. My experience indicates this isn’t true. I’ve used my Safeway card for the past 3 years. I’ve purchased items for $2 that one week prior cost $4. On average, I save about 30% every trip because I only buy items on sale. Afraid of going generic when your brands have served you well? Check out
Smart Money’s Top 5 Products to Buy Generic.
6. Use flight aggregator services.
I know a lot of people who travel exclusively with one airline, but I think this is a mistake. Whenever I fly, I check out
Kayak,
Farechase,
Sidestep,
Farecast,
Travelocity,
Orbitz,
Expedia,
Cheaptickets,
Hotwire,
Priceline,
Mobissimo, and
Trabber. When possible I search with flexible travel dates to get the lowest fare. Of course this limits the SkyMiles you’ll acquire with any one provider, but you can offset this by booking your flights with a credit card that has a strong rewards program.
5. Become the social planner.
If I wait for my friends to make the plans I am at the mercy of their expensive tastes. If I do the leg-work myself, however, I can find the best bang for our bucks—free movies in the park, happy hour specials at restaurants, plays that offer free tickets when they have too many extra seats (look on
Craigslist in the free section).
4. Fight your bills.
Have you ever gotten an insane mobile phone bill because you went a little text-crazy or went over your minutes? You don’t have to take it! One time I ran up $350 in overage charges. I called and asked to speak to a manager. I said, “I misunderstood my plan. I know you have the authority to adjust my bill, even if just once. That’s what it’s going to take to keep me as a customer.” He cut the bill in half. Here’s another example: my Comcast Internet service cut out for an hour last week. I called and complained, and they took $15 off my bill. Never hand over money you can keep with a little persuasion.
3. Make money off your things.
2. Buy high-quality used furniture.
If I shopped for furniture on my budget I’d spend a lot of time in Target. I’m not a big fan of futons and Oak basics, so I look on
Craigslist. This year I paid $100 for a microfiber couch that originally sold for $800. The same man sold me 3 sturdy slate tables for $200—far less than they would sell for in a store and in near-perfect condition. I also got him to deliver them for free. I can’t really tell you how I did that one; just a gift, I guess!
1. Get your company to pay for things.
Do you use your Internet and cell phone for work-related communication? Expense it. Interested in taking a class? Check out Monster’s guide,
Get Your Company to Pay for Your Learning. Want to join the gym? Check with HR. Many larger companies offer discounts on gym memberships. Looking for a new apartment? See if your company uses a broker; your company may even pay the fee. Granted times are tight right now so it may be a little harder to enjoy these perks, but nothing ventured is nothing gained.
Those are my two cents. Now I want them back. I warned you—I’m really cheap! But that means I can roll with the punches when times are tough. Can you?