N – Z
Let’s get back to our alphabetized list of money-saving ideas. None of these are groundbreaking revelations, as you likely deduced from the first 13, but they should all be considered with the exception of 1 or 2 that I threw in there for flavor. Hope some of these speak to you and move you to act.
(A – M can be found in the April 8 blog post saving is easy. sacrifice is hard.)
N: Never assume your kids will somehow pick up on financial stewardship and “figure it out” like you have. That’s assuming, of course, you’ve figured it out. And if you haven’t figured it out, how will they? Unfortunately, financial stewardship doesn’t just happen on its own as some things do. Being a good steward is modeled behavior. Conversely, you don’t have to be shown why you shouldn’t pick up a rattlesnake. Now do you. Most above the age of 2 get this principle almost instinctively. Picking up a rattlesnake = a trip to the ER. Financial slavery is different. It doesn’t look a rattlesnake. Nope. It looks like a Mercedes C Class when you have a Camry’s salary. It’s a 5300 square foot house when you can afford half that. It’s a swipe of the card here, and a swipe there. And unlike a rattlesnake, it doesn’t rattle when you’re getting too close to it. No, rather it calls to you like the Sirens of old, “Enjoy now, pay later.” I don’t have it figured out either, though. I’m definitely a work in progress. And my goal is for my kids to learn from my mistakes, not their own. It’s much less expensive that way. Impress upon your kids at an early age the need for them to be good stewards of all they’ve been entrusted with. Good habits start now – as do bad ones. And don’t wait until you have it figured out, start the discussion now. Stay tuned for more on this very subject. Grade: A+
O: Opt for water and fruit rather than a Coke and fries. Sure, I’ve lost half of you with this one and we still have 11 letters to go. But here’s the deal. You’ll be hard pressed to find anyone who’ll deny the health benefits of water and fruit, right?
Q: What stays in your pocket when you drink more water?
A: Your co-pay.
And as a bonus, you’ll likely go the bathroom more often thereby allowing you to ensure your lights are turned off along the way. See? It’s a trickle-down effect – no pun intended. And I could throw in the absence of medication expenses and insurance premiums here as well, but you get the point. This one’s not easy, but do it now while it’s still a choice. One day it may not be. Grade: B
P: Pay more toward your credit card balance than is asked of you. Your credit card company would love to have you pay only the minimum. I’m sure they’re nice folks, but get rid of that debt and give yourself an immediate raise. Keep the card, though. Grade: A
Q: Qwedit scores are important. Improving this score can save thousands. What a higher score means for you: a better chance of being accepted for a home mortgage, a lower interest rate on said mortgage, a lower interest rate on your credit card, your car loan, and even lower premiums on your car insurance. Sold? Then read on. Check your credit score for accuracy. If there are errors on the report, dispute them with the reporting agency and credit bureau. Pay your bills, pay them on time, and reduce your debt balances. Not telling you to stop using the card – just manage its use. Totally worth doing but the debt reduction could prove a challenge. Grade: B
R: Reduce your car insurance premiums by taking collision off of your policy. Collision insurance pays for the damage to your car – not to be confused with liability which pays for others’. Does your 98 Honda really need collision? Is bondo that expensive to replace? I’m talking to myself here. “No”, was my answer, and it put a few dollars back into my pocket – just in time to pull them back out to pay for my 15 year olds’ coverage – hooray. (He thinks I’m going to keep paying it once he’s 16. That’s a negative, ghost rider. I rode a bicycle to school – so can he. Of course, I was 8 at the time. We’ll cross that bridge when we get to it.) Grade: B
S: Shop online. Retailers often have coupons, discounts and promos available for online shoppers. Even if you don’t purchase online, do the research and find the price that fits your budget. This one’s easy. Thanks to Al Gore for creating the internet. Some of his best work. Grade: Easy A
T: Think twice about that gym membership. Let’s be honest, it really doesn’t have to cost $100.00 per month to exercise does it? No, of course it doesn’t. More than right or wrong, this is a matter of what works for you. Some are more comfortable in gyms with 80s hair-band music and guys wearing ripped up t-shirts and Bobby Labonte hats. I get that. Or maybe you’re the sort who’ll dish out the cash to have someone in your ear for 30 minutes while you battle to maintain consciousness. I’ve fallen into both of these categories at one time or another. But at the end of the day, I’ve found more success working out in my garage and driveway. Once again, Al Gore’s internet is ripe with do-it-yourself exercises that don’t require a visa or a contract. Whether you have to pay for it or not, find what works for you – and your budget – and do it. Get healthy, stay healthy. (Hint: It starts with your diet. If you get that part wrong, then you’re truly wasting your money and your time in the gym.) This is a hard sell for most. Grade: C
U: Underestimate your income and overestimate your expenses. Build yourself some margin. Easy to say, can be hard to do. Grade: C
V: Vacations should be planned in advance. In a moment of clouded judgment, I thought it would be exciting for my wife and I to jump into the car and head south…destination unknown. So off we went throwing caution to the wind. Some cool tunes on the radio. The sunroof open. A Starbucks in my cup holder. And at just the right time, I sprung this question on her: “Okay, quick! Which way, left or right?!” She said, “Left!” And left it was. We headed east toward Charleston instead of right, toward Florida. And 5 hours later, in the dark of night, as we approached Charleston, hungry and with no place to lay our heads, the adventure began. First, the rain. Constant and unrelenting. Then the bridges…lots of bridges. Does the word gephyrophobia mean anything to you? Didn’t to me at the time. Does now. Battling it without medication, thank you very much. Then the search for an open gas station. Then finding a hotel with a vacancy. And when we did find a vacancy, it was obvious why no one wanted it. Let’s just say that the 6 hours we spent in this one room was nearly half the cost of the entire trip. But the coup de grace was eating dinner out of the mini bar. “Exciting” would not be the word I would use to describe that vacation. It’s cheaper to learn from my mistakes than yours, trust me. Plan your trip. Grade: A
W: Wash your car in the rain. Totally works. Get the kids to do it and you get to stay dry and keep your faucet off. Boom! A double whammy. They’ll love it. You’re the parent of adventure, the owner of a clean car and the saver of money. Check that. A triple whammy! Grade: A
X: Xpenses. Track them. For two months, document everything you’ve spent. Upon reflection, you’ll be able to clearly see where your money’s going. Before you can really get to where you’re going, you’ve got to know where you’re starting from, right? Knowing exactly how much is coming in and how much is going out is not only a great start, it’s a must. Keeping up with every expense can be nagging, however. Grade: B-
Y: You must pay yourself first. If you have a 401(k) or another type of retirement account, have a percentage of your check deposited directly into that account. Force yourself to save. Read my post the Sirens are calling for more information on saving for retirement. And once you’ve had that set up, work toward saving money in a savings account or individual investment account, as well, for more liquidity. If you’re young – start now. If you’re old – start now. I’d bet my house [don’t bet] that most retired folks wouldn’t tell you that they saved too much money for retirement. Do it. Do it now. Grade: A
Z: Zero debt. There are two types of people in this world: 1) people who pay interest, and 2) people who earn interest. Be someone who earns interest. Credit cards are not evil. They do provide a service…as does the internet. But with both, there are inherent dangers. The internet usage in your house should not go unchecked and neither should your credit card. If you can use it and pay off the balance each month, and still have margin in your budget, then fine. Have at it. But don’t fall into our culture’s trap that, “You can have whatever you want – NOW – and you won’t have to pay for it until later.” Follow that advice and you’ll pay for it alright. Sounds great until that dinner for 6 looks more like a rehearsal dinner when all’s said and done. Grade: C
These are but a few of the many ways folks can save money. Be creative and create your own list. Take the initiative and be responsible for what you have. Whether they be your time, your talents or your resources – there’s much to gain by using them wisely.
