Everyday your money goes down the drain, whether you know it or
not. Simple things like leaving water running or the type of
groceries you buy can waste money.
Everyday your money goes down the drain, whether you know it or not. Simple things like leaving water running or the type of groceries you buy can waste money.
You don’t have to dramatically change the way you live in order to save more money. David Bach, author of The Automatic Millionaire, came up with a great concept called the “latte factor.” He describes this as the money you spend on everyday things such as coffee drinks and eating out. If you saved $10 dollars a day, you’d be a millionaire in 34 years. This might encourage you to drink your coffee at home and bring a packed lunch to work!
Here are 10 simple ways I’ve found to put more money in your pocket.
1. Buy used or secondhand. According to the U.S. Bureau of Labor Statistics Consumer Expenditure Survey, the average consumer spent $1,640 on clothing in 2003. By shopping at secondhand stores and consignment shops, you’re bound to find good deals and get more for your money.
2. Leave your car at home. If you drive to work everyday, you should consider carpooling with a co-worker or even using public transportation.
3. Remember to use coupons. If you get a daily newspaper, it’s hard to miss the coupons every Sunday.
4. Refinance your mortgage. If you own a home, find out if it’s financed at the most advantageous rate. It’s a good idea to check with your lender periodically to stay current on mortgage rates.
5. Entertain yourself at home. Americans spent 33 percent more eating out at restaurants than they did a decade ago. According to the U.S. Bureau of Labor Statistics, the average person spent $2,211 a year on eating out in 2003.
6. Look for online travel deals. If you’re planning a vacation, you should look into online travel sites such as Travelocity, Expedia, Cheap Tickets and Orbitz.com.
7. Become a comparison shopper. It’s easy to find what you’re looking for at the right price if you comparison shop.
8. Buy generic or store brand.
9. Quit smoking. The Campaign for Tobacco Free Kids estimates the average pack of cigarettes sold in the U.S. costs $3.65. For people who smoke a pack a day, they could potentially save $1,300 each year.
10. Don’t be a gambler. The average lottery player nationwide spends $150 a year, according to the 1998 National Survey on Gambling. If you take that $150 a year and put it into a 401(k) or IRA at age 25, you’ll have approximately $16,383 by age 55.
Saving money is easy, but you first need to look at how you’re spending it. If you’re in or near retirement, you want to make sure you have enough money to live comfortably. It’s never too late to start saving. By following tips such as these, you’re bound to have more money in your pocket for those important things in life.
Eric Heckman is president of Heckman Financial & Ins. Contact him at www.WealthCreator.com or 297-9800.
