My husband, the love of my life, and a CPA, left the book "Rich Dad, Poor Dad" by Robert T. Kiyosaki, as a subtle way of reminding me to save for our future.
We’re all going through some challenging times and, although I was not entirely interested in listening to my husband of almost 13 years talk about our spending habits, I knew he was making some great points. I highly recommend the book.
I am a big reader, especially "how to" books, and I found myself reading several on how to stay on target with my spending habits now and in the future. The following describes TouchPointe’s Top 10 ways to save money in this market. It would have been great if I had practiced my new found money management skills many years ago, however at least the old saying applies, better late than never.
1. Who are you trying to impress with your spending?
In in his forward for the book, The Theory of the Leisure Class, by Thorstein Velblen, Stuart Chase said: "People above the line of base subsistence, in this age and all earlier ages, do not use the surplus, which society has given them, primarily for useful purposes.
"They do not seek to expand their own lives, to live more wisely, intelligently, understandingly, but to impress other people with the fact that they have a surplus…spending money, time and effort quite uselessly in the pleasurable business of inflating the ego."
He goes on to say if you stop trying to impress, you might save thousands, and maybe millions of dollars.
The book, Your Money or Your life, states, "think how impressed people will be with how much you saved!…People are probably so busy trying to impress that, at best, they won’t notice your efforts. At worst, they will resent you one-upping them. "
2. Know why you are shopping and Shop Ladera, Buy Ladera.
When you’re outside Ladera Ranch, a great way to save is to not shop.
If you don’t go shopping, you won’t impulsively spend money. If you need to buy something, shop for the essential, but a leisure stroll around the mall will only cost you money.
When 34,300 shoppers were asked the reason for their visit, only 25% said they had come in pursuit of a specific item. Shopping is an American pastime and fulfills myriad impulsive but unnecessary needs. Know why you are shopping.
3. Live within your means. There are two sides to the coin of living. The shiny side tells us we can have everything right now. The tarnished side is that you will pay for it over a lifetime.
Buying on time right now, from cars to vacations, often results in paying three times the purchase price. Is going on that vacation worth the extra four additional months of work to pay it off? Wait until you have the money before you buy and you will truly enjoy your new purchase without feeling the overwhelming burden of not really owning it or not really enjoying it.
4. Take care of what you have. What do you have that you want to keep for a long time? Simple care and maintenance will save you lots of money.
And eating what you know agrees with you and your energy level, not your taste buds. My girlfriend Shelly Parker and I laugh when we joke about our closets. If we lost a few pounds, think about what we would fit into – no need to buy a new outfit, just lose some weight and you will find a whole new wardrobe in your closet.
5. Wear out your clothes. I swear my Dad, wore the same old shorts and shoes for two decades. My mother finally lost them somewhere between the hamper and the dryer, thank goodness.
But let’s take a lesson from my Dad – wear out your clothes. He couldn’t understand why my sister and I would buy more than one pair of expensive jeans.
Have you ever bought trendy clothes that only got worn a few times before they went out of style. What if you only bought one pair?
Think about what would happen if you got an extra 20% of wear out of those jeans. Buy one pair and wear it out!
On the other hand, what is old and worn out to us, might be just what your friend is looking for! Unless the two of you work at the same office, who will really know or care where the outfit came from.
My neighbor Jeannie Falino walked up to me at a block party and pointed out how much she loved the skirt she was wearing that I gave her last year – I didn’t even recognize it. Swapping clothes parties are big right now among friends – lots of information can be found online on how everyone at your party can leave with a new outfit.
6. Anticipate your needs. Anticipating eliminates impulse buying. With enough lead time, you will inevitably see the items you want on sale by the time you need them. And be aware of the sale items and seasonal sales like January and August and clearances. Don’t be afraid to bargain. On Christmas Eve, my friend Jim Schmitt went into a shop that sold expensive decorations and asked the manager if she wanted to wait till December 26 to cut the prices in half or sell it to him then. He saved a ton on "after Christmas" sale items that he was able to use them for that holiday.
Read up on how coupons are used or kids-eat-free nights. I know a family that eats out all a lot, but can tell you where kids eat free any day of the week.
7. Get it for less or do it yourself. Comparison shop by phone or online. I found the same item at a different store for a third of the price. Had I purchased on impulse I would have missed out on the savings.
8. Do it yourself. Let’s face it, our generation is shy of DIY men. We have a handyman who fixes things for us. However, to save money we learned to fix things ourselves.
Remember when our parents would cut their own grass, or our hair? We learned basic life skills from our parents in the process of growing up, but conveniently forgot. No longer do we have that convenience and now must learn to do a lot of what we outsourced out on our own.
9. Buy it used. Reexamine your attitude about buying used items. In an article, "I Can Get It for You Resale," Newsweek said, "Secondhand shopping is chic and thrifty…The charge reflects the new national Zeitgeist…Quality and value are more important than flash and cash."
Clothing, kitchenware,
furniture, drapes – all can be found in thrift stores, and you may be surprised at the high quality of many of them. The later you go to garage sales the more eager you will find people ready to get rid of stuff. Quality ends up being the driving force in your shopping.
10. Swap services and goods. Share goods and services with family and friends – cooking, yard work, babysitting. More formal barter systems are popping up all over.
Try the local economic Trading System (LETS), a Canada-based computer barter system that has spread across the country. If you use the system you earn points you can use for another service.