Entries Tagged 'frugality' ↓

There are a bewildering array of financial products on offer. Each one will help to improve our financial situation. But, some will be much more helpful than others. These are some suggestions about how to approach the market for personal finance.

Don’t Buy Under Pressure

Always be wary of being sold financial products and deals under pressure. The quick sale is one of the easiest ways to get a consumer to buy a product before he realises there are better deals on the market. Any significant decision about investment or taking a loan will benefit from being left for a day or two. This means you won’t be pressured into buying something you later regret.

Listen to Recommendations of Friends not pushy salesmen

When making any decision about financial products or buying goods it is advisable to take advice. The key issue is who do we take advice from? It is important to evaluate how trust worthy / independent a person’s advice is. If someone has an ulterior motive for suggesting a product we need to be cautious. Find someone who is knowledgeable about the field of finance and products and who can offer independent advice.

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Children are expensive. The cost of kids is estimated to be between $125,000 and $25,000. (see: Economics of Raising children) Clearly if you want to make savings in life, it is worth thinking about how much you spend on children - bearing in mind, that money is no guarantee of giving children a better start in life.

Some tips for saving Money:

Avoid Impulse Buying.

Children can be quite demanding about receiving new presents, especially when they know that their parents usually give in to their demands. If kids always get their way and receive things they want, you will spend too much, and they will become spoilt. It is much better to be strict and keep presents for special occasions like Christmas and birthdays. If kids really want something, help them to save so they can appreciate the value of money. If you are in the habit of buying what they want for a bit of ‘peace and quiet’, it is an expensive mistake.

Pocket Money and Work

It is a good idea to give only a small amount of pocket money, but, give the option of earning more through doing tasks. If it cost you $8 to have your car cleaned, offer to pay them $6 or $7 dollars. You get to save a dollar are your child will appreciate the value of work.

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There is a lot to be said for loyalty. Loyalty to friends, even loyalty to your boss; but, when it comes to loyalty to companies selling you goods and services you face the prospect of losing a lot of money. Companies are keen to retain our loyalty because they know it is the loyal customers who provide the bulk of their profits.

How Loyalty Can Cost You Money

Threatening to Cancel.

If you threaten to cancel your own internet / telephone services you will invariably be offered a discount to stay with the company. All this requires is a quick phone call to your phone / internet / mortgage company saying that you are thinking of leaving. Their first offer may not always be the best that they can give, therefore, hold out for the best deal; you don’t need to change services or arrange a new contract. The threat of leaving is sufficient to gain a better monthly deal.

Renegotiating.

When renewing insurance, firms usually have different deals for ‘new’ customers and existing customers who are renewing. The reason is quite simple, new customers are much more sensitive to price; therefore, to attract new customers the insurance firm has to offer the best deal. However, existing customers who are renewing are much less sensitive to price. Quite a high % may not even bother to check the price but just renew out of habit. Therefore, the firm can make higher profits. The best thing to do is to use a price comparison site to search through all the insurance quotes. Firms treat these inquiries as new firms. Many customers are surprised to find that their own company may offer them a lower price when they do this. Continue reading →

I have to admit the idea of haggling for a lower price doesn’t come easy. I have inherited a certain reserve often found in English people. But, haggling can save a lot of money, and there’s no reason why the big multinational company deserve the money more than you. Although haggling can involve a little effort, it is much easier than working for your money.

These are some tips for getting a better deal from shops.

1. Asking for Extra.

This is a good introduction to bartering. You don’t have to ask for a lower price, but just ask for an optional extra. For example, when buying a bike, why not try asking whether they would be able to offer a free lock to go with the bike. A shop is often more willing to give goods in kind rather than a cut in price. This is because it costs them less. Supermarkets are often offering 3 for the price of 2, so why not use this principle in getting some free extras when making a big purchase.

2. Create A Good Impression.

Good Haggling isn’t aggressive or competitive. The most successful way to get a good deal is to develop a good relationship with the shop owner. Perhaps you could offer praise for his shop and indicate that you would like to become a loyal consumer. When you have developed this relationship try asking for a discount. Be polite, but firm and avoid putting undue pressure on the shop assistant. This increases the chances of the shop being sympathetic to your request.

3. Pick Your Moment.

When bartering be sympathetic to the pressures of a shop. The best time to ask for discounts is when the shop is empty and quiet. If you try bartering when the shop is very busy, you are likely to get short shrift. Also the shop manager may be reluctant to give a discount if many other potential customers can hear. - they will fear getting requests from everybody.

4. Speak to the right person.

A new part time shop assistant is unlikely to be able to offer a discount. If possible try to speak to an assistant manager or supervisor who will be in a better position to offer discounts.

5. Timing of Sales.

The chance of a successful bartering depends on the life cycle of the product. If it is new and in season, it will be much harder to get a discount. However, if you see goods on sale or past their ‘high season’ you have a much better chance of getting a discount. When goods are on sale, it is often a sign that shops want to sell things quick and create space. This provides an excellent opportunity to get an extra discount. Try: “Could I help you get rid of this sale good?”
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Note today’s Post is by: Heather Johnson

In these tough economic times, being able to save some extra cash can really go a long way. There’s no perfect way to save extra cash, and everyone will have their own ideas and opinions on the best avenues to pursue. However, I’ve come up with 10 solid tips that can help you have additional money in your pocket.

1. Drive Less – Gas has been rising steadily recently. Many experts predict that prices will hit over $4.00 a gallon this summer. Keeping that in mind, gas will suck down many people’s budgets. A very good way to save money is to simply drive less. This can be achieved through car-pooling, public transportation, and simply being more efficient with fuel. The best way to be more efficient with fuel is to avoid extra trips by getting things like shopping done on the way home from work, or while you’re running other errands. Also, staying under the speed limit can also help. Going 75 Miles-Per-Hour burns much more gas than going 55.

2. Eat Cheaply – Eating cheaply doesn’t mean one has to eat badly. There are a lot of ways to save some serious money by cooking meals, and going grocery shopping with saving money as a focus. One problem many people have is that in their hectic lives, they can’t find the time to cook, and end up going out to eat more often than not. Not only does going to restaurants cost significantly more for the food itself, but you also are using gas to go to the restaurant. Looking for cheaper ways to make good meals is also helpful. For example, one of the cheapest things to make is pasta. I’ve found that making pasta with a variety of sauces, and maybe even some inexpensive chicken is a great, cheap meal.

3. Pay Credit Card Bills In Full – One of the biggest mistakes people make is racking up huge credit card debt, and only making the minimum monthly payments. If you are trying to save money, this is ultimately a bad idea because the rates will eventually catch up to you. The best move is to pay the credit card off in full, and then continue to do so in coming months. Paying only minimum payments is not a good way to save money in the long run, because the benefits are only short-term. Credit card companies want you to carry a balance on your credit card; don’t give them what they want!

4. Turn Off The Lights, TV, Etc – Did your dad ever constantly bug you to turn off the lights when you left the house? I know my father did. Turns out that parents complaining about leaving lights on actually have a point. The amount of money that can be saved by simply closing windows and doors, turning off lights and other electronic appliances, and simply watching electricity usage can really ad up. Continue reading →

It is often the case that a frugal lifestyle can make a big difference to also helping the environment.

These are some tips which will help you save money and the environment

1. Moderate Heaters and Air Conditioners.

To heat the house an extra 2 degrees becomes relatively more expensive and contributes to increased carbon emissions. Try getting used to having the thermostat a little lower and the air con a little higher. Just by wearing an extra jumper you can make a big difference to your bills and the environment

2. Maximise Insulation

You can save heating bills by maximising the insulation for your house. This can involve investing in upgrades such as loft insulation, double glazing and cavity wall insulation. Check to see whether the government or agencies may be able to subsidise this. My local council (Oxford) provided cavity wall insulation for free!. The above will pay off in the long run. But, you can also make immediate savings by cutting out drafts, closing windows and using thick insulated curtains.

3. Only Boil What You Need.

To Make a cup of tea, my lodger used to boil a full kettle, enough for 12 cups! Not only does this take longer, but it uses energy unnecessarily. Eventually, I got round to asking him to only boil minimum and it will make a difference to saving money and energy. Similarly when boiling vegetables don’t have the pan boiling for 30mins, there’s nothing worse than overcooked brussel sprouts!

4. Cycle and Walk.

Nearly 50% of all car journeys are less than 3 miles. All of these journeys could be completed by walking or cycling. Both of these types of transport are much cheaper than other filling up with petrol (gas). This is especially important with the price of oil being so high. As an added benefit it will also help you get fit!

5. Turn it Off.

Everyone know we should turn lights off when not in the room, but less well known is the cost of leaving electrical appliances on standby. If you leave your TV permanently on standby you will unnecessarily use electricity and energy.

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We work to be able to earn money, but, if we are not careful, work can be a place to unnecessarily spend alot of our hard earned cash. These are some tips to make sure that we keep more of what we earn rather than wasting it unnecessarily.

1. Drink Tap Water

Water from a subway station or canteen can easily cost £1 ($2) If we take our own tap water, we can make significant savings over the week. It only takes a little preparation, but in the long run it is no more time consuming than having to queue up and buy it in a shop. If you use filtered tap water, the quality will be just as good as bottled water; it is also good for the environment saving plastic and unnecessary transport.

2. Take Packed Lunch To Work

Lunch can be expensive, especially if you get in the habit of eating out. In some places, even a simple sandwich and pastry can add upto over £4 ($8). By making your own lunch, you can save money and get to eat what you want. If you are always rushed in the morning, prepare food the night before. You could also plan ahead and make enough for a few days and freeze it. Although it takes some time in preparation, it can also be very time consuming to queue up during your lunch break. Through taking your own food, you will not only save money, but, also have more of your lunch hour to yourself.

3. Walk or Cycle to Work

Driving to work can be very expensive, with both petrol and parking costs. In addition there are hidden costs such as running repairs, insurance and MOT. Driving can also be a stressful experience because of heavy congestion. If possible walk or cycle to work; this has the added bonus of being good for the environment and good for your health. Don’t be frightened by the dangers of cycling; after trying you will find it is not so bad as you might expect. If you do need to use public transport, make sure you take advantage of any season tickets which can save significant sums in the long run.

4. Avoid Shopping in Your Lunch Hour

From personal experience, I know how easy it is to spend your lunch hour, browsing shops aimlessly. The result is invariably that we will end up spending more than we intended. Rather than wasting time looking through shops, try to do something useful and use your lunch hour productively; if you have something specific to do, you will not get sucked into comfort shopping. It is better to only go shopping when you have a clear purpose of what we need. To save money, we need to be careful with our environment; if we spend time around shops we will tend to part with money. Instead, see a lunch hour as a great opportunity to learn some new skill or relax from the commercial pressures of work.

5. Give Up One Bad Habit

We all have one expensive habit. If we can give it up, we will make cumulative savings. Smoking is the most expensive habit and can easily cost £30 a week. If we are clear about how much we spend, then it is a great motivation to change a habit that also harms our health. As an added incentive we should use the savings to make a specific investment. For example, if we are going to save £30 a week because we stop smoking; why not set up a direct debt savings account of £30 a week. At the end of the year, the savings account will have grown giving us an even more significant return on our initial savings. With £2,000 extra in a savings account at the end of the year, we will really appreciate our decision and we can use it to buy something of real long term value. If you are not a smoker, perhaps you could give up your addiction to starbucks.
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1. Making your own food for lunch and long train journeys can save a lot of money. It will probably taste much better than the stale cheese sandwiches which pass for food on British Rail.
2. You could save money on holiday by taking part in holiday exchange CouchSurfing.com Also enables you to experience the real local culture rather than a sanitized hotel experience
3. Try to get travel insurance as part of a bank account. By upgrading my Halifax bank account they were willing to offer free travel insurance. Travel insurance is highly recommended given how expensive foreign medical treatment could be.
4. For the regular commuter it will be advisable to get a season ticket which will offer big savings. Note it is possible to get a loan specifically for a season ticket. It will still be cheaper even with interest payments.
5. The bike is the cheapest and most efficient mode of transport, especially for short journeys, you can also avoid parking charges and park wherever you want (within reason of course)
6. Look at The Beauty in Your Own country. My fellow countrymen always seem keen to fly off to distant parts of the world. But, they often ignore the chance to visit beautiful places in their own country. True, we might have just a little bit more rain in England, the weather isn’t quite as hot as the Caribbean; but, you will be saving money on your airfares
7. Look to share car journeys with others. Splitting the cost will make a big saving given the price of petrol. Continue reading →

With the price of oil rising above $100 and more increases predicted in the coming year, it is worth considering how we can save money from driving and buying petrol.

Do I need the Car?

50% of journeys take less than 1-2 miles. Rather than get the car out, why not cycle or walk. Often for city centre journeys it is just as quick. On short journeys car engines are at their most inefficient and use a corresponding higher % of petrol. Reducing these short trips can save alot of money, you may even get fit as an added bonus.

Car Sharing

Many cities are offering incentives for people who share cars. For example, car sharing lanes. The reason is that it makes sense from both a congestion and economical point of view. For journeys that you make consider how you can share the journey and petrol costs with other people.

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Despite slight falls in house prices, most first time buyers still face a mammoth task in saving for a deposit. Nevertheless, the break in rising house prices, at least, gives young aspiring homeowners the opportunity to try and save sufficient funds for their first mortgage deposit. These are some suggestions to save money for a deposit, some more painful than others.

Live with parents / relatives.

This may not sound very appealing, but, it can potentially save significant sums on your monthly rent. As this can be the biggest % of your monthly outgoings, it makes sense to look closely whether you can reduce your monthly rent. If moving in with your parents is not an options, look carefully to see if you could find somewhere cheaper to rent. Even a 10% reduction in rent, can save £100 a month. Don’t move to a place where you would be unhappy, but, cheaper doesn’t necessarily mean worse.

Make Saving A Priority

Rather than spending money and saving what is left over. Make it a priority to put aside a certain amount each month. This could be the first priority after receiving your paycheck. By making saving a priority it is possible to make real savings each month.

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