Monday, August 9, 2010

Article- 10 tips to save $1000 by Christmas and the reality...

Yahoo Finance has an article up called:  10 Tips to Help You Save $1,000 By Christmas, which sounds great, but if you already live a frugal lifestyle, none of these tips are helpful.  Let's break it down, some of these tips aren't too great, or may not apply to the already frugal-liver.  These amounts of "savings" are pretty generous, IMHO.

1. Lower your cell phone bill. Potential savings: $100. I agree that it is a good idea to go over your plan and if your needs aren't being met, change the plan. If you have a pay as you go phone, this option may not be available.

2. Lose your land line. Potential savings: $140. If you want to do this- GREAT.  If you have the internet via your phone, either via dialup or DSL, you have to have a landline.   If you can't do without the house phone, consider doing only the Universal Life Line.  It's usually less than $10/month and it allows you to make phone calls within your area code only and of course 911.

3. Staycation instead of vacation. Potential savings: $1,000+. I have never spent $1000 on a vacation EVER.  Most Frugalistas don't.  If you stay at home instead of having the big fancy vacation that you usually plan, then you'll save some money, otherwise.. no money saved.

4. Raise your insurance deductibles. Potential savings: $250. Once again, most Frugal livers have already gone over their insurance to make sure they are getting the most bang for your buck.  If you haven't done this in a while, contact your Insurance agent and do a complete insurance check up with them.  You may find yourself grossly underinsured.  Once again, with this check up, you may not save any money, but in the long run, you will protect yourself against financial ruin by having the insurance appropriate you your life situation.

5. Drop the gym. Potential savings: $150. If you are like me, you bought your gym membership at Costco- 3 years for $299, so it's already paid for and you can't cancel it.  Buying a package at Costco can save you upwards of $100/year. If your place of employment offers a discount, take advantage of it.  If you go to the gym and use your membership, don't get rid of it to "save money".  You may end up sitting around and gaining more weight, and that won't save you any money (new clothes, increased frequency of Doctor's appointments).

6. Drop premium cable channels -- or drop cable altogether. Potential savings: $50 - $600. If you don't have cable, this won't apply to you.  If you go to the gym and you can't live without your favorite shows, hit the gym when they are on and do cardio while the show is on- watch it on the TV at the gym!!  Otherwise there is Hulu and YouTube.  We haven't had cable in 6 years and I'm just fine.

7. Sell Stuff. Potential earnings: $400+ This is the one I have the biggest beef with.  Ebay isn't a good place to sell stuff. Competition is fierce, shipping is expensive, and the likelihood that you'll get a deadbeat bidder is high, also selling stuff on Ebay COSTS MONEY!! Garage sales are a great bet, or if you live in a condo or apartment, go to the local swapmeet or flea market.  You may not make $400, but you'll get rid of some junk you don't need and make some bucks.

8. Save on Food. Potential savings: $300+ I would hope if you read this website that you already use coupons.  In addition to coupons and taking advantage of sales, shop from a list, eat your leftovers, and bring your lunch from home.  Also- kick that 'Bucks habit and make coffee at home.  That'll save you an extra $200 or so.

9. Haggle. Potential savings: $500+ Haggling in my mind is tacky, and some companies don't budge (would you go to Nordstroms and try to talk them down?).  Instead, try comparison shopping to save money.  Or better yet: Do you actually NEED the item?  Are you replacing the item because the old one is no longer functional?  Or do you WANT this item?  If you find something that you WANT but don't NEED, hold off on buying it for 7-10 days and then go back.  Do you still have a case of "gotta have its"?

10. Carry only cash: Potential savings: $250+. Most of us already do this.  If this isn't feasible for you, then create a budget and stick with it.  Only have available in your checking account the minimum amount of money you need, and keep the rest in savings.  Select an interest bearing savings account- there is no reason your money shouldn't work for you!

Frugalistas- I want to hear your thoughts.  How can you save $1000 by Christmas or the end of the year? Leave a comment or email me at akeen02037@gmail.com.   I will be posting your comments.  The Frugalista with the best tip or tips will receive a HUGE potluck envelope of coupons.

I'll pick a winner on August 15th!

1 comment:

  1. I'd have to agree that with the recession, a lot of these bases have already been covered. Gym, cable and vacations are actually a bit of a luxury for my present financial situation. One thing that has helped (but will not be a viable option for everyone) is carpooling. I've nearly halved what I was spending on gas. Another is the cell phone bill issue. I switched from contract to Straight Talk's unlimited prepaid plan. I realize this is their top option (I use my phone for business, so unlimited talk, text and web was ideal), but at $45, the saving was still close to $60 a month vs average contract. If you don't call much, I believe you can get a Tracfone plan for around as little as $20 for 3mths(?) There seems to be the perception that prepaid is for low income users, but whatever your situation, prepaid can save a substantial amount towards your $1000 Christmas target.

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