Seven Tips That Will Save You over $4,000 This Year

A post from Heather C., our CMF Finance Coach: 

In today’s economy, if you’re struggling to save money, you’re not alone.  Even if you have a budget, those unexpected expenses have a way of sneaking themselves in every month.  I, for one, did not plan for a grocery budget that would satisfy the caloric requirements for two sumo wrestlers.

To help you cut costs, here are seven savings ideas that don’t require too much sacrifice on your part.  These tips can help you save over $4,000 in the next year.  With an extra four grand, I can’t help but daydream about all the pink flamingos I could afford to put in my yard.

1. Brown-bag it.  Many full-time employees spend an average of $8/ day going out to lunch.  If you or your spouse brings your lunch to work instead, you can save around $160/ month, which equates to $1,920 per year.  Even if you’re a stay-at-home parent, try brown-bagging it everywhere for a month.  You might be surprised at how many times you’re tempted to go to a drive-through, eat at the food court, grab a $4 coffee or take your kids out for pizza.  Resist the urge, plan ahead, and watch your savings grow.

2. Take full advantage of the library.  Most public libraries have an online reservation system where you can reserve not only books, but e-books, CDs and DVDs.  For even more free e-books, check out www.Gutenberg.org or the University of Pennsylvania’s online books page (http://onlinebooks.library.upenn.edu/).  For a family that buys one hardcover book per month, one e-book per month, three CDs per year and two DVDs per year, getting these things free can add up to an annual savings of roughly $435.

3. Plant a garden – this one might seem time-consuming, but get the whole family to help.  You can purchase seed packets at Wal-Mart for $0.20 each.  Plant a few in the ground, water, and enjoy an entire season of virtually free produce.  Just eight weeks of free vegetable and herbs can save you around $250!  That’s a conservative estimate; most summer growing seasons are longer than eight weeks, and many places, you can plant fall and spring gardens too.  The savings can add up quickly!

4. Slash your phone and cable bills.  Are you and your spouse and/ or kids using all your cell phone minutes each month?  If not, reevaluate your plan and consider consolidating your minutes and switching to a joint plan.  You can save around $30 per month, or $360 per year.

Do you have a land line through your cable company or another major provider?  The monthly bill and taxes can run around $40 per month.  First of all, ask yourself if you need a landline at all.  If you’re not ready to get rid of your land line entirely, try switching to a VoIP (Voice over Internet Protocol) plan.  Companies such as Vonage run specials as low as $11 per month, which equates to an annual savings of $348.

How much are you paying for cable?  An average plan, excluding internet can cost over $60 per month.  Why not ditch cable altogether and try watching your favorite shows through such websites as Hulu.com or Crackle.com?  It’s worth a shot to save $720 per year.    

If you’re not quite ready to break-up with your cable provider, keep an eye out for specially advertised rates, and call your company’s customer retention center to ask for the latest promotion (even if it says “new customers only”).  If you don’t ask for it, you definitely won’t get it.

5. Swap it.  Ever notice how much your kid loves someone else’s toy until she owns it herself and then it sits in the corner never to be touched again?  How about trying a temporary toy swap among your parent friends?  This way, you can reduce your own clutter and get your child “new” toys without it costing you a thing.  And when it’s time for your child to get her own toy back, it’s almost a guarantee that her interest in it will be renewed.  You can do the same thing with books or even clothes among your friends.

Another great thing to swap is babysitting.  I don’t know anyone who couldn’t use a night out, but babysitting costs can often make date night a luxury that many people can’t afford.  Instead, how about swapping monthly babysitting with a friend?  Simply include your friend’s child(ren) in your family outing one night every other month, and you’ll get a free night out every other month.  With the cost of babysitters today, six free dates can save you over $200 per year.

6. Shop the dollar store.  From cleaning items to party supplies to stocking stuffers, there are some great deals to be found.  But, this place is worth it for the greeting cards alone.  They’re two for $1.  Between birthdays, holidays and special occasions, an average family can end up buying around 35 cards per year.  At about $3.50 per card, that’s over $122 per year.  Buy all 35 of those greeting cards at the dollar store, and you’ll spend less than $18, thus saving about $105 per year.  Heck, I might even start sending out National Chocolate Éclair Day cards if they’re only 50 cents each.  (Yes, it’s a real holiday, and no, you’re not too late to partake in this year’s festivities.)

7. Find it for free.  Why get it on the cheap when you can get it for free?  Check out Craigslist’s free section, or subscribe to Freecycle.org and score on free items such as furniture, clothing, TVs, toys, moving boxes, firewood, mulch and more.  The cost savings are limitless.

Don’t forget:  the little things really do add up, so be sure to think twice before you spend.  If you made all of the above changes, you would save over $4,300 per year!  Why wait?  The time to cut costs is now.  Happy saving!

Heather Cellini