Saving money

[pinchi22]

Use your credit card wisely. Never charge any more than you can FULLY pay at the end of the month. You will otherwise be stuck in a viscious cycle of more debt and more interest on that debt.

 

[VMan]

Originally Posted by pinchi22

Use your credit card wisely. Never charge any more than you can FULLY pay at the end of the month. You will otherwise be stuck in a viscious cycle of more debt and more interest on that debt.

I don't know if this was directed at me or in general, but I always pay off my balance in full at the end of the month. I have never accrued any interest on my card. I know people who are still paying off purchases they made a year ago, and it seems foolish to me.

 

[sho'nuff]

i do all my spending on one of my platinum cards that gives me a 20 dollar gift cert for that dept store (providing that card) every $1000 i spend ANYWHERE: at the dept store, or gas, groceries, etc anywhere (except cash advances, which i never do) this card i pay off in full at end of the month.
it is a low apr in first place ,but i dont care as i never see any interest on it.
it is better than cash in that respect. also i have a better monitor on what is being spent on a monthly basis, while with cash there is no protection.

also, i have a few cards: that offer 0% interest for 6-12 months where i pay a convenient amount each month until paid off before term ends. these i have used for certain large purchases earlier right after i married and still paying for, but not hit one cent in interest from these as of yet. cool.
i get offers every month for 0% no fees and such i read them carefully and if there are no transfer fee, i transfer them to the next 0% card and continue pay my small amount ....no interest. yup cool.
for my tax payment, every once in awhile my bank gives me a free balance transfer for very low apr like 1.9% then i do a transfer and pay off slowly , then next year another and so forth.

 

[acidboy]

Originally Posted by aybojs

I don't get this anti-credit card sentiment. I actually go out of my way to pay for every single possible transaction using my credit card because: a) it gives me an easily traceable record of my spending that can be cross referenced by keeping an archive of old receipts and b) I have a rewards card that gives me an (admittedly small, but still worthwhile) amount of cash back for every purchase I make with the card. Paying cash regularly would make it much more difficult to keep tabs on my spending and would cause me to miss out on the various rewards a good incentive-laden credit card can offer. I've had a credit card since age 18 and have never made a single late payment nor paid any balance in less than the full amount in my 5-6 years of usage, so all that APR/interest/debt/whatever junk is irrelevant for me.

It's true that the misuse of a credit card can create or exacerbate financial problems, but if someone's in that situation, it's not the fault of the credit card, it's that the person is an irresponsible idiot who needs to get his stuff together.

Unfortunately, intelligence nor discipline are not prerequisites for owning a credit card. And for some people the idea of paying later what you can't afford today is very very attractive. I myself, though prudent with my expenses, have fallen for this more than once. What I'm saying is, if you're seriously trying to save money, leaving your credit card at home when stepping out is a good way to stop unnecessary spending if the temptation arises.

 

[johnapril]

Don't get addicted to home renovation.

 

[JetBlast]

Set aside a small amount of your paycheck when you receive it. I put aside $20 every 2 weeks for a fund I'll use when I finally take that trip to Italy I've always wanted.

JB

 

[pinchi22]

Originally Posted by VMan

I don't know if this was directed at me or in general, but I always pay off my balance in full at the end of the month. I have never accrued any interest on my card. I know people who are still paying off purchases they made a year ago, and it seems foolish to me.

Vman, I didn´t direct that at you in particular. I work in finance, and it´s no secret that banks make huge amounts of money on credit card interest. A huge number of people pay the minimum monthly payment, fall for introductory teaser rates, etc. There´s a sucker born every minute.

So, if you want to subsidize banks and fall into a deep hole, charge more than you can repay. If you want to get out of the trap, don´t charge more than you can pay at the end of the month. It´s that simple.

 

[aybojs]

Originally Posted by acidicboy

Unfortunately, intelligence nor discipline are not prerequisites for owning a credit card. And for some people the idea of paying later what you can't afford today is very very attractive. I myself, though prudent with my expenses, have fallen for this more than once. What I'm saying is, if you're seriously trying to save money, leaving your credit card at home when stepping out is a good way to stop unnecessary spending if the temptation arises.

Oh, I understand how rationality can go out the window and prove dangerous with credit cards. The thing is, even when trying to be realistic, it makes far more sense for someone to try to attack the root of the issue, a lack of financial discipline, than it does to paint credit cards as a sort of bogeyman (when they actually are very useful). If you (not referring to you or any of the posters in this thread) are of such temperment that you'd put yourself into instant credit card debt at the sight of a shiny new toy in a window display, I'd question your ability to perform such other basic financial tasks as drawing up and sticking to a reasonable budget. In other words, being able to resist temptation and deal with spending and budgeting in a stoic manner should always be the absolute #1 priority before worrying about other details.

 

[Condor]

Those are all good ideas.

I disagree with the idea of getting regular instead of premium though
(you should get the gas your car is designed for, it says in your
owners manual, as well as on the gas door).

Modern cars have anti knock sensors. When you put in less octane
gas, the car knows this, and compensates for it, thus using more fuel.
So, the fuel is cheaper, but you use more of it. I'm not 100% sure but
I think you run some risk of damaging your emissions control systems.
On a modern car this can actually be an 'economic total', and at
the very least, very expensive.

You can save at the pump by keeping your tires exactly inflated, even
1-2 pounds over, and not accelerating heavily. I've raised my mpg
by over 4 lately, just on driving style.

I did hear recently NYC has the best drinking (tap) water in the US.

Get a library card. There is good stuff there. They (here) have an
outstanding selection of books on tape (for driving).

 

[EL72]

Originally Posted by Ambulance Chaser

I'm trying to cut back on living expenses to pay for home renovations, and am interested in suggestions you have to save money. I'm interested in any and all thoughts, from "Get rid of your landline" to "only drink Bud Light when going out" to "buy cereal by the truckload at Costco." I've already gone cold turkey on clothing and shoe purchases, so no need to mention that obvious one.

Stay away from Costco! That place is a money-sucking pit. I am trying to avoid it because you cannot leave that place without spending $300 even if you're just going in for diapers or cereal. There are much cheaper places to shop for groceries than Costco.

That said, having done 3 major renos in the past 18 months, I hate to break it to you but saving a few bucks here and there on other expenses is like pissing in the wind. I don't know the extent or scale of your renos but there is usually far more money to be saved in the renovations themselves than on other expenses. Small changes can result in thousands of dollars in savings (or in increased spending) so when I'm spending so much on tiles or I have to replace some pipes unexpectedly costing $$$, you can be damn sure I'll be eating out whenever I feel like it because it's hardly going to make a difference in the end.

 

[thinman]

Originally Posted by JetBlast

Set aside a small amount of your paycheck when you receive it. I put aside $20 every 2 weeks for a fund I'll use when I finally take that trip to Italy I've always wanted.

JB

Excellent! Pay yourself first (i.e. deposit a set amount into savings from each paycheck), don't touch the savings, and scrimp on other things.

Others have hinted at this without saying it explicitly, but pay off your credit card debt. In fact, it's usually wise to carry no debt other than your mortgage (I say usually because many years ago, I qualified for govt. guaranteed student loans at 3-5%, when a passbook account was paying close to 8%. It was a no-brainer.).

 

[T4phage]

Originally Posted by Ambulance Chaser

I'm trying to cut back on living expenses to pay for home renovations, and am interested in suggestions you have to save money. I'm interested in any and all thoughts, from "Get rid of your landline" to "only drink Bud Light when going out" to "buy cereal by the truckload at Costco." I've already gone cold turkey on clothing and shoe purchases, so no need to mention that obvious one.

Stop reading Styleforum and others! They just give you ideas!

 

[gdl203]

I concur with the advice to set up an automatic savings/deposit on your paycheck. You can generally ask your employer's payroll department to do that - or you can set up automatic transfers with your bank.

Get a portion of your paycheck sent to a savings account (high yield, e.g. ING Direct or E-Loan) and make sure you do not have a checkbook or ATM/debit/credit card for that savings account.

Don't monitor the account either - i.e. don't even think of it as part of your liquidity/net worth

This is the best way I've found to save without even thinking about it.

 

[VMan]

Shop at Aldi. Some of their food is avoidable, but every time I go in there, I am surprised at the quality (for the prices) of the majority of the food. Their produce is always very inexpensive. I am fond of their prosciutto, andouille sausage, and granola, among other things.

I don't shop there for everything, but when I had less money I'd go there before hitting the regular grocery store. Really, their prices are unbeatable. $1.50 for a jar of salsa vs. $3.50-$4 at a regular grocery store, etc. They have a very efficient business model which allows them to charge low prices.

 

[aportnoy]

Originally Posted by johnapril

Don't get addicted to home renovation.

Originally Posted by T4phage

Stop reading Styleforum and others! They just give you ideas!

Better advice you will not get, on both accounts.