Terrific book for those in their 20s and 30s. Really discourages 'less spending' on things you love as those strategies tend to be short lived. Advocates optimizing your credit cards and automating you savings amongst other things.
ps. Anyone know why I have a @#$%^@#$ Oilers logo at the top of my post?
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I like to quote myself - scotty2hotty
Last edited by scotty2hotty; 03-20-2011 at 12:04 PM.
Put together a cashflow budget for 3 months and live by it. Account for every dollar you earn, and where it goes. Be sure to build in any goals you have, like saving for a new car.
You'll be amazed at how you become aware of the little things you waste money on. You definitely become more disciplined, that's for sure.
I was getting into a nasty habit of stopping at Tims or McDonalds for breakfast lately. 6 or 7 bucks a day for breakfast is ######ed. It's such a cheap and easy meal to do at home, it's silly to pay so much for it elsewhere.
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I purchased a Keurig coffee maker last summer, yes it was expensive compared to the alternatives. Over $100 for the one I purchased, compared to $20 for a generic coffee maker. However I've owned the generic ones before, even decent ones, and I never seemed to get into the habit of using them, they never seemed to make a good cup of coffee (albeit part of that was the coffee I was using), and I hated cleaning out the filters. I have the reusable filter with my Keurig and I use it every day. Where I used to go to Tim Hortons 2-3 time a day (check my twitter account and you can see when I was home for break how often I purchased coffee) compared to almost never unless travelling as I can brew it at home for about $0.01 a cup.
Sometimes you have to spend money to save money.
I also have a tendency to purchase no-name stuff at the supermarket, to me bacon is bacon why pay an extra $3 for the band name stuff?
I also use loyalty cards, I've been slowly collecting Shoppers Optimum Points for about 10 years now, I never put anything major on the card it's litterally just picking up soap here, and maybe a bag of chips there. But over time I've collected enough to get $85 off my next purchase (I'm waiting until I hit the $150 plateau before cashing them in). I do the same with PC Points, Petro-Points, and Aeroplan. If I can save a few dollars here and there for doing no extra work, why wouldn't I?
__________________ "Calgary Flames is the best team in all the land" - My Brainwashed Son
Cut back on drinking. Easier said than done, but it's a massive expense.
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A few weeks after crashing head-first into the boards (denting his helmet and being unable to move for a little while) following a hit from behind by Bob Errey, the Calgary Flames player explains:
"I was like Christ, lying on my back, with my arms outstretched, crucified"
-- Frank Musil - Early January 1994
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Put together a cashflow budget for 3 months and live by it.
While I think it's great to know these things, I'm not a big fan of budgets, as they are too much work to follow and people never really live by them.
As Fotze mentioned, I think it's much better to take the money you need for savings/investments/etc. out of your paycheck automatically every month before you even have a chance to waste it on dumb crap. The rest of it? Do with as you wish, even buy stupid things, as you're already taking care to not spend more than you need to.
One of things I like to do is buy everything on a credit card that gives me 2-3% cashback. It adds up to a few hundred dollars a year I wouldnt have otherwise, all my expenses are organized and recorded, and it builds my credit.
Also Ive started asking for "small", whenever the serving size option comes up with food/drinks. It's helped to save money and to lose a little weight. Most of the serving sizes these days are so massive, that the Small serving size is just right.
It is all about budgeting. When you really look at the money you spend, and where it goes you realize that you are pissing a ton of money away all the time.
My wife started watching that show, "Till Debt Do Us Part", and a lot of the stuff Gail says on it makes sense. We recently started a cash only budget like how she does on the show, using jars. Her website has some good tools and articles to figure out budgets etc. Also, if you google "Envelope Budgeting", you will get several websites that explain a similar thing.
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"Wake up, Luigi! The only time plumbers sleep on the job is when we're working by the hour."
how to save money... pretty simple - spend less than you make
some people need to make a budget becuz they have a hard time saving, others (like my wife and i) are 'natural savers' and find no problem living within our means.
- probably one of the biggest ways we save $ is that we rarely go out to eat. i love to cook and can throw together a great meal for probably 20% of the cost of going out.
- neither of us drink or smoke so that's a huge savings.
- we own both of our vehicles and maintain them.
- buy want you need, not what you want
- consolidate your debt! if you have a hard time paying off your credit cards, go to a bank, get a loan, pay off your cards (then cut them up). i'm pretty sure you can get a bank loan for well under 18% interest
- don't be worried about 'keeping up with the jones'... as an example, last year my one neighbour spent over $1000 on a stupid purse!!!! i couldn't believe it - for a purse!
one piece of advice my dad gave me years ago - shortly after i started my business... we were talking about something i needed for my biz and i exclaimed, 'business expense!!' to which he quickly reminded me that it's still an expense and needs to be paid for.
__________________ "...and there goes Finger up the middle on Luongo!" - Jim Hughson, Av's vs. 'Nucks
Drink water when you go out to eat. Rather than pay $2.50 for a pop or a coffee. Yes, I know, sometimes you just need to have a beer with that food. But when three beer cost $15+ it adds up.
one piece of advice my dad gave me years ago - shortly after i started my business... we were talking about something i needed for my biz and i exclaimed, 'business expense!!' to which he quickly reminded me that it's still an expense and needs to be paid for.
My wife always says "Just write it off" and I have to explain the fact that I still have to pay for it.
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I'll probably get flamed by someone for this one...
Credit cards with benefits. Absolutely everything that can goes on my credit cards. For purchases you're making anyways, why not get points or cash back for it? Assuming $3000 a month in purchases/bills, a 2% cash back card will get you $720 back at the end of the year. Using airmiles for products instead of trips is great too.
The only rule: Pay it off every month. If you carry over ever go back to cash only.
The other nice benefit is that at the end of the month you have a nice detailed statement of all of your spending, without having to log it yourself.
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The "Ways To Save Money" Thread
