toml
Apr 6th, 2005, 10:14 PM
I've always wondered about those people that use credit unwisely and end up living from paycheck to paycheck.
I'm sure some of them seriously don't make enough money to survive, but some of these people are making 50K+ and they're still struggling.
For those people, I think it has to mainly do with their spending habits. Aside from the extravagant houses and cars and other big-time purchases, I think they also spend money frivolously on the smaller stuff.
Anyway, here are some of the things (in no particular order) that I've done to help reduce my expenses (and increase my savings).
1. I got rid of my cable TV. That's an annual $720 saving!
2. I only drink water now (well, I try to :). I gave up all the soft drinks, starbucks coffee, liquor, juices, etc. Not only am I healthier but that's an annual $2000+ saving (ok, ok, sometimes I will indulge in it, but I've been pretty good at limiting it. Oh, and I drink tap water, not that $1.50 a bottle stuff!).
3. I stopped smoking--annual savings around $1500.
4. I changed all my light bulbs into those 5+ year compact fluorescent bulbs. I'm not actually sure how much I actually save, but I've been told it's around $100 or more a year.
5. I signed up the Citi Dividend Platinum Select (https://www.accountonline.com/ACQ/Chooser/LearnMore?siteId=CB&CARD_KEYS=4T4Z5F04-M). You can earn 5% cash back on purchases at supermarkets, drug stores and gas stations, plus 1% on all other purchases up to $300 per year
* the link may not work. If not, go to http://www.citi.com and search for the Citi Dividend Platinum Card.
6. I singed up at ING Direct (http://www.ingdirect.com/) for my primary savings account. They recently upped their interest rate to 3%!
(Of course I also contribute to my 401k and stuff like that. If you have the time, I recommend getting this book The Only Investment Guide You'll Ever Need (Only Investment Guide You'll Ever Need) by Andrew Tobias (http://www.amazon.com/exec/obidos/tg/detail/-/0156029634/qid=1112835714/sr=8-1/ref=pd_csp_1/103-0991864-6035859?v=glance&s=books&n=507846)
*and on that note, I'll usually check my local library before I purchase any books)
7. I found an appropriate phone plan at http://www.saveonphone.com/ (I use Total Call International.)
I mainly use it to call Taiwan. I know there are calling cards out there but those usually have expiration dates and sometimes connection fees. I would have liked to get rid of my land line but I need it because my community's gate requires a land line to let guests in (how stupid!) and also because I have DSL.
Recently I've been using http://www.skype.com/ to talk overseas and the connection for me is crystal clear. Skype also has the SkypeOut functionality where you can purchase minutes and thus use your computer to call a land line. I haven't tried it yet, but I might soon.
That's all that I can think of for now. If anyone else has any tips, please share :)
I'm sure some of them seriously don't make enough money to survive, but some of these people are making 50K+ and they're still struggling.
For those people, I think it has to mainly do with their spending habits. Aside from the extravagant houses and cars and other big-time purchases, I think they also spend money frivolously on the smaller stuff.
Anyway, here are some of the things (in no particular order) that I've done to help reduce my expenses (and increase my savings).
1. I got rid of my cable TV. That's an annual $720 saving!
2. I only drink water now (well, I try to :). I gave up all the soft drinks, starbucks coffee, liquor, juices, etc. Not only am I healthier but that's an annual $2000+ saving (ok, ok, sometimes I will indulge in it, but I've been pretty good at limiting it. Oh, and I drink tap water, not that $1.50 a bottle stuff!).
3. I stopped smoking--annual savings around $1500.
4. I changed all my light bulbs into those 5+ year compact fluorescent bulbs. I'm not actually sure how much I actually save, but I've been told it's around $100 or more a year.
5. I signed up the Citi Dividend Platinum Select (https://www.accountonline.com/ACQ/Chooser/LearnMore?siteId=CB&CARD_KEYS=4T4Z5F04-M). You can earn 5% cash back on purchases at supermarkets, drug stores and gas stations, plus 1% on all other purchases up to $300 per year
* the link may not work. If not, go to http://www.citi.com and search for the Citi Dividend Platinum Card.
6. I singed up at ING Direct (http://www.ingdirect.com/) for my primary savings account. They recently upped their interest rate to 3%!
(Of course I also contribute to my 401k and stuff like that. If you have the time, I recommend getting this book The Only Investment Guide You'll Ever Need (Only Investment Guide You'll Ever Need) by Andrew Tobias (http://www.amazon.com/exec/obidos/tg/detail/-/0156029634/qid=1112835714/sr=8-1/ref=pd_csp_1/103-0991864-6035859?v=glance&s=books&n=507846)
*and on that note, I'll usually check my local library before I purchase any books)
7. I found an appropriate phone plan at http://www.saveonphone.com/ (I use Total Call International.)
I mainly use it to call Taiwan. I know there are calling cards out there but those usually have expiration dates and sometimes connection fees. I would have liked to get rid of my land line but I need it because my community's gate requires a land line to let guests in (how stupid!) and also because I have DSL.
Recently I've been using http://www.skype.com/ to talk overseas and the connection for me is crystal clear. Skype also has the SkypeOut functionality where you can purchase minutes and thus use your computer to call a land line. I haven't tried it yet, but I might soon.
That's all that I can think of for now. If anyone else has any tips, please share :)