Never spend your money before you have it. Thomas Jefferson
One thing that many self made millionaires understand is that "every penny counts." While the poor and working class tend to waste money on things that don't matter in the long run, the frugal millionaire does not. Last year, I noticed that $10 was missing out of my bank account. I was charged for some fee that I didn't even realize existed. I immediately contacted the bank, and asked them to refund the ten dollars. I explained to them that I had been a customer for a few years, and I maintained a substantial balance.
The lady immediately refunded the money, placing it back in my account. Every penny counts and I don't allow myself to be hit with small fees. Neither should you. Your bank account and assets should be viewed as a tank of water. While small punctures may seem insignificant at first, all the water will eventually drain out. Your bank account(s) are much the same. Learn how to plug the leaks, and don't even allow small amounts to come out. Here are 100 tips:
Tip 1: Always Shop with a List and Calculator when buying groceries.
If you can, you will quickly find that the greatest rate of return you will earn is on your own personal spending. Being a smart shopper is the first step to getting rich. - Mark Cuban
Many people shop for food on impulse. When they get hungry, they either run to the nearest fast food joint, or they go to the store and buy whatever they like off the shelves. When they get to the checkout, they realize that they have placed too much food into their cart. It is this lack of planning which causes so many people to end up spending hundreds of dollars per month on food.
NEVER GO SHOPPING FOR FOOD WITHOUT A LIST. Plan your food purchases in advance. Know what you're going to buy "before" you get to the store, and make sure you stick with it. Sit down and decide how many times you want to eat out each month. When you shop with a list and stick to it, you will ALWAYS save more. A calculator is also a handy tool, because you can calculate exactly how much you’re going to pay at the checkout line. This will keep you securely within your budget. While other people make guesses about how much they will spend, you will always know the exact amount and save money in the process.
Tip 2: Don't use ATMs that charge fees
While $2.50 per withdrawal may not sound like a lot, as I said earlier, "every penny counts." Think about how much you spend on ATM fees if you make 30 withdrawals within the course of a year. At $2.50 per withdrawal the grand total comes to $75. This is money that should be in your bank account. Always make it a habit to use ATMs offered by your own bank. They tend to be free. If they are not, you are with the wrong bank and need to immediately move your money elsewhere.
Tip 3: Don't use banks that charge high fees. Never let your account overdraft!
Banks make millions on various fees from low account balances to client overdrafts. Of course, the rich don't have low account balances therefore never pay “monthly maintenance fees” and rarely ever overdraft. The banks are targeting you and slowly siphoning away your money.. If you don't have more than $5,000 sitting in any of your bank accounts, you may notice that you are frequently being charged fees. While these fees may not seem large, the bank makes millions of dollars each year just from these charges, and over time, they can turn into large amounts. If your bank can't offer you an account that is free of frivolous fees, just switch to a bank that does immediately. Additionally, monitor your account closely and don't let it go into an overdraft situation. Typically banks will charge $35 per overdraft and let your account get overdraft numerous times before stopping transactions. This cycle could lead to hundreds wasted each year or month!
Tip 4: Pay off your credit card balance...and then only use it for emergencies!
I only have one credit card, and it has a zero balance. I only use it for emergencies. I strongly advise you to follow the same strategy. An entire chapter of this book will be dedicated to debt consolidation, and I will offer some powerful advice to people who are already in debt, and who are looking to get out.
Tip 5: If you already have a large credit card balance, transfer it to a card with a lower interest rate
There are many credit cards that offer a zero interest rate on balances. While this rate may only be offered for a short period of time, it allows you to focus on paying the"principal" instead of just the "interest." These are the credit cards you will want to look for. If you are unable to pay the balance off within the specified time that the new card offers a zero percent interest rate, make sure the new rate will not be more than your current rate.
Tip 6: Contact your insurance company to see if they have lower premiums
More often than not, many insurance companies may be able to reduce your monthly premiums. This is not heavily advertised, so it is up to you to contact them to find out. You may also be able to switch to a company that offers a lower rate. Check for all types of specials that your insurance company may have. For example with your auto insurance there is often reductions for a good driving record, owning multiple cars or having a locater device installed in the vehicle.
Tip 7: If you have private mortgage insurance, and you've built up 20 percent equity or more, you can get rid of it.
If you are a homeowner, equity is extremely valuable. The insurance company won't voluntarily tell you this information, so it is something you'll need to request yourself. This one strategy can literally save you hundreds of dollars each year.
Tip 8: If you're only going to use an item a few times, find out if you can rent it.
One of the biggest mistakes people make is buying things they will only use a few times. It is an enormous waste of money. Rent anything you don't plan on using frequently. Do you enjoy boating, but only do it once or twice a year? Even if you have enough money to buy a boat, renting the boat is a much smarter course of action and will save you thousands of dollars. There are thousands of companies offering nearly everything to rent from high end digital cameras to all types of furniture.
Tip 9: Use garage sales, Craigslist and/or Ebay to get rid of stuff you hardly ever use.
If you have a collection of stuff that has some value, but you rarely use it, sell it. A garage sale, Craigslist and/or Ebay are exceptional ways to get rid of these items and put some money in your pocket at the same time.
Tip 10: Get rid of overpriced phone services. Switch to a company that is cheaper.
With the age of the mobile phone, there is no need in most instances for a home phone line. Don't be a victim to overpriced phone services. The Internet has dramatically reduced the cost of communications, and the telecommunications giants are suffering from the increased competition. If you want to talk to a friend or relative who lives in a distant area, instant messaging or Voip such as www.skype.com, will save you hundreds of dollars each year. Also, don't sign two year contracts with cell phone companies. If their service is poor, or they charge you too much, you may be stuck with them. Read your terms of service carefully. Phone companies also love to charge additional money for services such as call waiting. If you find that you're not using these services, why don't you just get rid of them? You'll save a lot of money in the long term.
Tip 11: Don't buy bottled water.
Bottled water is a a ripoff. To show you how much of a ripoff it is, bottled water from a vending machine works out to about 5 cents an once. Most municipal water costs less than one cent per gallon. Additionally, gasoline costs 2 cents per once. This is why there is no shortage of businesses trying to tap this 50-100 billion dollar per year businesses. They are after your hard earned money.
Bottled water is also no healthier than tap water. Don't let these companies fool you with their mountain spring waters and crystal clear streams. Municipal water is well regulated and the Environmental Protection Agency regularly inspects water for bacteria and toxic chemicals. Lastly, there is very little empirical evidence which suggests bottled water is any cleaner or better for you than its tap equivalent. Many families spend hundreds and thousands each year on bottled water when there is an equivalent for free. Simply buy a Brita water filter or use the filter on your refrigerator and you will save a tremendous amount of money.
Tip 12: If you frequently dine out on your lunch breaks, dine in.
Many people don't realize just how expensive fast food is when you are frequently dining out.
You could easily spend over $200 per month if you frequently eat out on just lunch. Therefore, this
doesn't even include the costs of your groceries. Prepare your lunch in advance and eat it at work instead of going out. Believe it or not, this one tip can save you hundreds possibly thousands of dollars each year. Resist the urge to dine out.
Tip 13: Instead of going to the movies, rent a video.
The cost of movie tickets gets igher and higher. In major cities such as New York and Los Angeles, it isn't uncommon for people to pay more than $10 just to see a movie, and this doesn't even include the cost of concessions. Renting a movie can allow you to stay at home, and you can purchase popcorn from the store which is much cheaper than what you will pay at the movie theater. Whereas a typical night at the movie theater can run $40, a movie at home with snacks can be achieved for under $7.
Tip 14: Get rid of magazine subscriptions that you hardly ever read.
The Internet has largely destroyed the need to purchase magazine subscriptions, since you can generally find all of the articles and information you need online, often for free. If you're still paying for a magazine subscription each month, my advice to you is to get rid of it.
Tip 15: Try public transportation or carpools to commute to work.
While many people look down on public transportation as being for "people who are too poor to afford a car," this is a complete fallacy. Don't be too proud to use public transportation. It can save you thousands of dollars per year. Setting up a carpool with your colleagues is another great way to save money and talk about the latest events at your job at the same time.
Tip 16: If you need to fly somewhere, always purchase the tickets in advance.
Try to avoid traveling during peak tourist times or holidays. The cost of your flight will be much cheaper. The high cost of airline tickets is another thing I don't care for. Like shopping for food, when you don't prepare for your flight in advance, you always pay more. Unless you have to, avoid flying during peak tourist times or holidays. Both the flight and hotel costs will shoot through the roof.
Tip 17: Get rid of that expensive gym membership. Use "free methods to exercise."
I am an avid athlete and highly encourage keeping your body physically fit however I never understood why some people pay for expensive gym memberships or home equipment. There are numerous gym chains such as 24 hour fitness and Bally's where you can get a membership for less than $30 month. As an alternative to the gym, you can perform many exercises at home such as running through the community or doing push ups and sit ups. A bike is another cheap way to stay in shape. Corporations have sold us on the idea that you have to have an expensive gym membership or the latest home exercise product in order to become physically fit. What a joke. Do you think Alexander the Great or Hannibal used gym memberships or home equipment to get their soldiers ready for battle? No one should have to spend hundreds or thousands of dollars each year just to become physically fit.
Tip 18: When you shop for clothes, always buy on clearance or sales.
Never pay full retail price for clothes. In most cases, the items you want can be found on a clearance rack or sale rack upon searching for them. Even the major Department stores have many name brand items on sale. Stores such as Marshalls, TJ Maxx and Ross also have many high quality fashions at wholesale and clearance prices. This tip will also save you hundreds if not thousands each year.
Tip 19: Avoid purchasing foods from convenience stores. They are "conveniently" expensive.
When you buy food from a convenience store, you will always spend more than you would pay at a regular grocery store. I would advise you to avoid spending your money at these places at all costs. Next time you are in one of these stores such as 7/11 or Circle K, compare the prices to the established Grocery Store. The dollars add up quick.
Tip 20: Do you notice that your cable television bill is getting higher and higher? Cancel it and use the Internet instead.
Much like the telecommunications industry, the cable TV industry is slowly being squeezed by the Internet. This trend is likely to continue. I know many people that do not have cable television, and have no intention of ever paying for it. Much of the programming that comes on TV these days is of no value besides baseless entertainment. You would be much better off reading a book or using the Internet. Additionally, many programmers are providing their television programs on the Internet free of charge. See www.hulu.com as well as the major television networks websites. This one strategy can also save you hundreds of dollars each year.
Tip 21: Get rid of the "brand name" mentality. Learn to buy and be proud of generic products.
Broke people always make excuses for why they buy brand name products. They will usually tell you that it tastes better, or it feels better, or it is more durable. Most of the time, these people have simply been brainwashed by big corporations. They have been told that their products are superior, and they should pay more for it. Buying generic can allow you to save a tremendous amount of money over the course of your lifetime. It is a strategy you may want to consider, if you have value having wealth tomorrow over brand name products today. As the generic products market continues to expand, you can nearly find a generic product for anything from food to lotion.
Tip 22: Never pay more money for extended warranties. The basic warranty offered by the manufacturer is more than sufficient.
This will happen a lot when you buy electronics or vehicles. The sales person will try to sucker you into paying more by telling you how much you'll pay if something happens to the products, and you want to have it repaired. As with the insurance companies, this is a scare tactic. Please decline these offers. These companies would not be making these offers if they were not making millions of dollars from them at your expense. Remember these corporations are not in business to help you, they are in business to make money from you.
Tip 23: When you get ready to make a sizeable purchase, always use the Internet for comparison shopping.
The Internet has made saving money easier than ever before. No matter what you want to buy, you can compare prices by simply surfing to different websites. Make the Internet your chief tool in saving money for future investment. Websites like www.amazon.com are exceptional for comparison shopping.
Tip 24: Never gamble. The chances of you becoming wealthy by saving and investing are much higher.
I have a friend who made a large amount of money doing subprime lending. Even he knew this market would not last. He built his way up from nothing, by saving then investing. He came crashing down from gambling. He would spend tens of thousands of dollars and never really win, though every time you asked him he was up one hundred thousand dollars. I was never impressed by this. It is guys like this that end up becoming bankrupt and he nearly is. What amounted to millions in gambling losses could have been used as capital to start another business. Never waste time or money gambling. You will regret it. Also, don't marvel at the idiots that spend thousands of dollars at casinos. Their days are numbered.
Tip 25: If you have spare change sitting around your home, put it in a container.
Every penny counts. Don't discount even small amounts of change. They can turn into large amounts of money one day. The poor and broke look down on such small amounts. The wealthy simply see it as small streams that will add to their large fortunes.
Tip 26: When you go shopping, always double check your receipts. The cashier isn't perfect.
Mistakes sometimes happen when you shop for products. Sometimes, these "mistakes" aren't mistakes at all. Always compare your receipt with your bank transaction to make sure it is correct. If it isn't, contact the bank and let them know. They will often be more than happy to refund these small amounts.
Tip 27: Always make use of coupons and / or sale items.
While some people look down on coupons, you should ignore this view. Anything that allows you to save money, even in small amounts, is highly valuable, especially over the long term. Coupons can be very beneficial for you. Additionally, many stores have items that are on sale.
Tip 28: Always buy in bulk.
Purchasing in bulk is a classic way to save money. While it may seem that you're spending a lot of money up front, in the end, you will save more, and if you purchased in bulk on sale, the savings will be substantial.
Tip 29: If you get a raise from your job, save or invest most of it.
When you get a bonus or raise from your job, it is easy to blow the money on stuff you don't need. Saving and investing the money is much more valuable, and will lead to greater wealth and investment opportunity later on. Continue to live on the same amount you were living on prior to the raise and save the new money or invest it.
Tip 30: During the winter, try putting on more clothes instead of turning up the heater.
While many see the winter as being a "season for giving," for the power companies, it is a "season for taking." The cost for power will shoot through the roof, and the power company CEOs won't have a problem buying Christmas presents for their children. While you may be tempted to turn on the heater, putting on some extra clothes will leave you with extra money that can be spent on the holidays.
Tip 31: Spend more time at home, and less time traveling.
Unless your job requires you to travel on a frequent basis, you should spend much of your time at home. When you're at home, it is harder for you to spend money, and you tend to save more. After all, your rent or mortgage payment is probably the most expensive bill you'll pay each month. However, you will want to get out every so often and saving will be the way to do it.
Tip 32: Are you thinking about going to an expensive concert or sports event? Setting up a picnic in a park is much cheaper.
Some of the best forms are recreation are those that can be done for free. While there is nothing wrong with going to a concert every so often, many people spend too much money attending these events. Take the time to enjoy some free outdoors activities like parks and beaches. They can be more fun than you imagine, especially if you bring your friends or family along.
Tip 33: If you want to buy a car, always pay with cash. Never lease an automobile.
I already touched on this in previous chapters, but it is so important that I wanted to mention it again. When you lease a car, you're the loser, and the car dealer is the winner. Always pay for your cars in cash.
Tip 34: Never pay retail for electronic goods. Always pay wholesale.
As I said in previous chapters, electronics always depreciate in value. Therefore, it doesn't make much sense to buy a brand new $3,000 plasma television today that won't be worth anything in five years.
Tip 35: Only live in apartments that have the least number of utilities.
Since the cost of renting an apartment can be high, it doesn't make much sense to pay additional money for power, water, or electricity. Try to avoid living in these places, as it will be harder to save. Always try to find apartments where utilities are included.
Tip 36: When you dine at restaurants, use cash if they charge debit card fees.
Many fast food restaurants have started charging people to use their debit cards. This is absolutely ridiculous, and it reminds me of the ATM fees. Always use cash at these places.
Tip 37: Always scan your bank account frequently for unauthorized transactions.
I scan my accounts frequently, and every so often I will run across a transaction that is unauthorized. This is a common occurrence in a world where electronic transactions are made. Some of these charges are so small that you may be too busy to notice them. Never let these charges stick. Find out where they came from and get them reversed immediately.
Tip 38: Learn to hate conspicuous consumption.
Society has been instrumental in trying to make us think that "bigger toys" equals wealthy. They are quick to tell us how much a celebrity has paid for a home, boat, or car. Do not be fooled by such garbage. This is not reality, and if you think it is, you will live a life full of financial pain. Learn to see money as being a tool for freedom and security, not a tool that is simply used to buy goods that don't matter. If you come across something you can't afford, learn to despise it. This will make you powerful.
Tip 39: Always make purchases with cash, not credit.
If you want something that you can't afford to pay for in cash, but you have enough to buy it on credit, I urge you to avoid it. You are setting yourself up for a trap that will be hard to escape from. If you can't afford it, you don't need it. Also if you buy it on credit you will be paying far more than the actual value anyway. You have to pay for the price of the item and then pay the company that let you borrow that money to buy the item.
Tip 40: Corporate America is not in place to help you. Learn to outsmart them.
Many people are broke because they think banks and corporate America exists to help them. Corporate America doesn't care about you. They only care about selling you worthless goods and stripping you of your hard earned money. Most importantly, they have developed a number of psychological marketing tools to make this process much easier. Stop buying the junk that this system tries to sell you.
Tip 41: If you buy gas frequently, you can save hundreds of dollars each year by using the lowest octane found in the manual that came with your car.
You can also save by pumping gas yourself and comparing prices. Check your car's manual and make sure that you are using the lowest octane that your car is advised of running on. Always compare prices on gasoline as well as the dealer across the street you may save ten cents per gallon on. These are some little known tips that can allow you to save big on gas. Use them frequently.
Tip 42: You can save hundreds of dollars on electricity each year by purchasing appliances that are energy compliant and efficient.
This is very important for heaters and air conditioners. Federal law requires energy manufacturers to put information on their products which show details on energy compliance. It is called the Energy Guide Label. When you shop for appliances, read it.
Tip 43: Many electric companies have load management programs. Enroll in them.
Your electric company won't tell you about this, so you will want to bring it to their attention. You could save as much as $100 per year.
Tip 44: Ask your power company to perform an energy audit of your home.
This is important, because it can allow you to identify the sources which cause your power bill to be so high. Having an energy audit can save you hundreds of dollars in the course of a single year.
Tip 45: Always purchase the items that have a low cost per unit.
When you buy food from the store, you can save hundreds of dollars in the course of a year by analyzing the price per unit cost for each product. Each product is required to have the price per unit cost. The lower the cost per unit, the more value and product you will be getting. This is a little known secret that most people fail to pay attention to.
Tip 46: When you need to purchase medicine, compare the prices among pharmacies and always buy generic brands.
Pharmacies will always compete for your business, and some will sell medications for lower prices. You will want to compare prices and save. Additionally, generic drugs are just as effective as the brand name drugs at a significant discount.
Tip 47: If you're a senior citizen, look for apartments that give seniors reduced rates.
Many seniors don't realize that many apartments will offer them greatly reduced rates for their monthly rent. Seniors have a tendency to be excellent tenants, and they tend to be much quieter than their younger counterparts. I have seen nice apartments going for as low as $295 per month or less!
Tip 48: If you wish to attend college, make use of grants, scholarships, and financial aid rather than loans.
While most college advisors will try to talk you into taking out student loans, ignore this and focus on scholarships and grants.
Tip 49: When you shop for an apartment, avoid limiting yourself to classified ads.
Find a building in a neighborhood you're interested in and find out if rooms are open for rent. You would be surprised by the number of people who are renting out rooms or apartments, but who don't want to pay the cost of a classified ad. These are some of the best deals available.
Tip 50: Always pay your bills on time, especially those which have late fees. Never incur overdraft fees.
Being irresponsible can cause you to lose a lot of money. Stop procrastinating and pay your bills on time. You're already paying enough money as it is. Why pay more? Overdraft fees can add up very quickly. Bank of America charges $35 per overdraft and will happily place an unlimited amount of overdrafts on your account. Do not let your account get charged with overdraft fees. Banks make many millions from overdraft fees and these fees come from the very people that cannot afford them.
Save a little money each month and at the end of the year you'll be surprised at how little you have. - Ernest Haskins
In chapter six, I showed you 50 strategies you can use to begin saving from $500 to $1,000 per month or more. In this chapter I want to show you 50 additional ways to do this. With these 100 strategies total, there is absolutely no reason why you shouldn't be saving a large percentage of your income. Most people don't save enough money to lay a solid foundation for wealth and investing. In this chapter, I will start where I ended in chapter six, and I will provide you with more powerful strategies which will allow you to become a master saving money. Below are some additional strategies to continue your saving:
Tip 51: Before you purchase a new computer, upgrade your existing computer as much as possible.
Despite the fact that more people are using computers today, few of them are savvy. After a couple of years, many people run out and buy a new model, and abandon their old one, not realizing they can upgrade it. Most desktop computers allow you to upgrade the video card, RAM, hard drive, and processor. The cost of upgrading a computer may be much cheaper than buying a brand new model. Max out the upgrades for your current computer before buying a new one. This will allow you to save money and maximize the capabilities of your existing model.
Tip 52: Don't lose money on car repairs that are not needed. Find a mechanic you can trust.
Each year, consumers lose billions of dollars in car repairs they don't need. Most mechanics are not trustworthy. They love to prey on people who don't know much about automobiles. The last thing you want is to pay for repairs that you don't need, or repairs which are poorly done. Find a mechanic you can trust, someone who is certified. Get recommendations from your friends or family.
Tip 53: You can save hundreds of dollars per year by researching car insurance companies carefully.
Look for licensed insurance companies that have low prices. You can call the insurance department for your state to get the standard prices that are charged by insurance companies. If you already have insurance, ask your agent if they can increase the deductible on comprehensive coverage to $500 or more. If your car is used, you can also ask to drop the coverage and just have state law minimum liability insurance. This step can allow you to save hundreds of dollars annually.
Tip 54: If you choose to buy universal life insurance, you will need to hold it for about 15 years. If you don't the cost of your insurance can double.
The insurance industry can be tricky and expensive, so you will want to be cautious in the options you choose. Making the wrong insurance choices can cost you a lot over the long term.
Tip 55: Before you open an investment account via a bank, make sure they are FDIC or NCUA insured.
In a day and age where corporate corruption is common place, it is important to make sure your investments are secured. While the basic accounts offered by banks will be FDIC insured, their investment accounts may not be, and you could be set to lose a great deal of money if something goes wrong. Before you open a investment or savings account, make sure it is insured.
Tip 56: Compare bank fees on investment products to make sure they are a good deal.
While the bank may advertise a high interest rate on their investment products, you may be hit with additional fees that may erode your interest earnings over the long term. Compare different banks to see which one has the lowest fees. This will allow you to maximize your interest earned.
Tip 57: Be wary of home equity loans. They can destroy you financially.
I would advise you to avoid using equity loans. If you sell your home, the equity is the value you will be given once you've paid off a mortgage. I personally feel that equity loans are a scam. Over time, if you take care of your home, it tends to gain value. When you take out an equity loan, you are basically borrowing against the equity you've built up. If you can't make your payments, the bank can and often will take your home.
Tip 58: When you buy a home, use a broker who works for you rather than the seller.
Many people are tricked by brokers and mortgage companies when they get ready to buy a home. If the broker works with a firm that lists properties, there could easily be a conflict of interest. When the broker shows you a house, make sure it isn't one that is sold by a company they're affiliated with. You will always get a better deal.
Tip 59: If you choose a contractor for home improvement work, make sure their certified and established.
Millions of dollars are lost each year on botched home repair jobs. When you hire a contractor, focus on their quality rather than prices. Make sure they have a documented work history, and they should also be certified and established. Never sign a contract that requires the payment up front, before any work has been done.
Tip 60: Before you purchase an appliance, check the consumer reports to evaluate them.
When most people want a new appliance, they just go to the store and buy the first thing they see on the shelf. If you want to begin saving money, and getting the most out of it, check the consumer reports to research appliances before you find them. You will find that there is great difference in price and quality among products.
Tip 61: Before you buy an appliance, call all the stores in your area to find out who has the lowest price and always check the internet.
This sounds like common sense, but you would be surprised by the number of people who don't do it. Before you purchase an appliance, make a few calls to stores in your area to find out who has the lowest price. Make sure to ask them if this is the lowest price they offer. When you do this, studies have shown that you can save $100 on the purchase of appliances. This strategy is especially useful for large purchases.
Tip 62: Don't purchase phone plans that require one year contracts.
I've seen many phone plans which require you to maintain the service for one to two years after signing up. Try to stay away from these companies as it shows that these companies have no confidence in their service. When you sign these contracts, the company is guaranteed a set amount of money, and if you cancel, you may have to pay penalty fees as large as $250. If you sign the agreement, and you don't like the company's service, you may be stuck with them.
Tip 63: If you need to make a long distance call, check the rates for prepaid cards to find out which one can save you the most money. Also use programs like Skype or other online VOIP providers.
Phone cards are the best way to call long distance, especially if you want to save money. The Internet has made shopping around much easier. Additionally, websites like www.skype.com provide exceptional rates on log distance and local calls. These services come with all the features including video conferencing, call waiting, voicemail and others for free.
Tip 64: If you need to use a car rental, be sure to ask about additional charges and fees. Read the fine print.
Car rental companies are notorious for charging additional fees. Many of these fees are hidden, and you won't know about them unless you read the contract carefully and ask questions. Some of these companies may charge you more money if you drive outside a designated area.
Tip 65: A thrift store is an oasis for someone who enjoys saving money. Use them as much as possible.
Are you thinking of buying a new couch, table, or chair? Before you run down to your local department store or mall, you might want to stop by a thrift store. Also, check online source like www.amazon.com, www.ebay.com and www.craigslist.com. The products sold in thrift stores and the aforementioned websites tend to be much lower than department stores, and they can be of equal quality. In addition to furniture, you can find just about anything on these websites and at thrift stores as well.
Tip 66: If you have roommates, pool your resources to buy food in bulk.
This is a strategy I've used, and it can allow you to save a great deal of money on food each month. Instead of everyone buying their food separately, pool your resources together to buy a large sum of food, and share it with everyone. If you're not greedy, this one strategy can save you hundreds of dollars per year on the cost of groceries.
Tip 67: If you make your credit card payments on time each month, ask the companies to lower your interest rate.
Many credit card companies will reduce your interest rates if you make your payments on time. However, they won't advertise this, so you will need to contact them to request it. If you have a large credit card balance, this can save you hundreds, if not thousands of dollars in interest payments.
Tip 68: If you have a large credit card balance, find out if your company offers credit payment protection insurance.
Many banks are now offering insurance plans to help their customers pay off their balances in the event they lose their jobs. If you have a credit card balance, and you should lose your source of income, this insurance can save you hundreds of dollars, and the monthly premiums are exceptionally low.
Tip 69: When you file your taxes, do them yourself instead of hiring a tax preparation service.
Tax preparation services make millions of dollars per year by acting as middle men. They prey on the fact that most people don't know how to do their own taxes. This year I paid $192 just to have my taxes prepared. Software programs like Turbo Tax have made it easier to do your own taxes, and you can save thousands of dollars over the course of your lifetime by doing your taxes without a tax preparation service.
Tip 70: If your house is paid off, sell it and move into a smaller one.
This advice is good for seniors who are living alone in a large home. By selling the home, you could put thousands of dollars in your pocket quickly, and a portion of this could be used to move into a smaller home. This will give you the ability to have cash for investment purposes as well.
Tip 71: Instead of paying someone to wash your car, do it yourself.
Whether you normally like to pay an automated car wash or a live person, washing your car yourself can allow you to save a substantial amount of money over the course of a year.
Tip 72: If you normally pay someone to cut your hair, do it yourself.
The standard price for a haircut will run you from $15 to $20. If you're a female, getting your hair done can be in excess of $30. Learning how to do your own hair can save you a bundle of cash.
Tip 73: If you have a dog or cat, cook them home made foods instead of buying them from the store.
Dog and cat food can become very expensive quickly. When you prepare the dog food at home, you can save money and ensure it’s getting a healthy meal.
Tip 74: Make use of free and open sourced software programs.
Many people spend hundreds of dollars on software when many companies offer software free of charge. Before you spend money on a new software program, search online to see if you can find open sourced software. This one strategy can save you hundreds or thousands of dollars. A good example of this is www.openoffice.org which is open source software similar to Microsoft Office. It will serve as your Word Processor, Excel program and others and is completely compatible with Microsoft Office.
Tip 75: If you have an extra room in your house that you don't use, rent it out.
This can allow you to save thousands of dollars per year, and you will essentially become a landlord. As always, you will want to screen potential tenants carefully to make sure they are not criminals or dead beats. Also, make sure you have them sign a contractual agreement.
Tip 76: If you have young children that are few ages apart, have the younger children wear the clothes of the older children as the older children grow out of them.
This can allow you to save a great deal of money. Instead of buying clothes for all your children, you can simply buy clothes for the oldest, and then pass down their clothes to their younger siblings.
Tip 77: Before you make a large purchase, find out if you can barter with someone.
The Internet has made barter easier than ever before. There are many online communities that specialize in trading goods and services, and barter is a great way to avoid spending money. You may need something specific and have a TV that you are not using that could be swapped out. Someone is probably looking for something you have and don't use and this person may have what you want and not be using it.
Tip 78: When you go to a restaurant, bring your own drinks or simply drink water rather than ordering them with your meal.
Many restaurants charge additional money for drinks and these drinks tend to be much more expensive than what you would pay if you got them in a store. When you go to a restaurant, either bring your own drink, or ask for water.
Tip 79: If you're a college student, use the Internet to buy textbooks rather than the college bookstore.
College bookstores are notorious for charging ridiculous rates for their books. I've seen many math books sale for more than $200 each. When you look at these prices, it is easy to see why so many students are in debt. The Internet can save you hundreds of dollars on the cost of college textbooks.
Tip 80: If you don't make enough money to fully support any children, don't have any.
Research has shown that raising a child from birth to the age of 18 will run you about $200,000. That is just over $11,000 per year. When you're young, and you have children before you're ready, your chances of building wealth decline dramatically. If you don't have the finances to support children, you shouldn't have any.
Tip 81: If you buy a vehicle, get one that doesn't use a lot of gas.
In a day and age where the cost of gas continues to increase, purchasing a gas guzzling vehicle can cost you hundreds of dollars per year in gas payment. If you want to save money, get a vehicle that is gas efficient.
Tip 82: Try to avoid paying full price for anything.
If you look for a bargain, you will usually find it. Resist the urge to pay full price, no matter how much you may want something. The people who do this successfully are the masters of saving money. Use the Internet, thrift stores, sales at stores and other creative measures to find the bargain.
Tip 83: When you go to a movie theater, bring your own food instead of buying food from the theater.
Movie theaters charge an absurd amount of money for their food. When you go to the movie bring your own food and you will save a significant amount of money. Many times concessions for two people at a movie will run $20, however had you brought your own popcorn and soda would have cost you roughly $3.00.
Tip 84: Don't Procrastinate. Start using the strategies in this book today.
For each month that you fail to follow the strategies in this book, you may lose hundreds or thousands of dollars. The earlier you begin saving, the more money you will save over the long term.
Tip 85: If you happen to have any hospital bills, review them for errors. The hospital will reward you.
Hospitals are medical facilities which must maintain a high level of accuracy. They have a vested interest in making sure their billing records are correct.
Tip 86: Always consider higher deductibles on any type of insurance you may have. This can allow you to lower your monthly premiums.
Call your insurance company to ask about higher deductibles. If you can reduce your monthly premiums, you may save hundreds of dollars each year. Insurance is generally a safety net for if something were to go wrong. For most people it never goes wrong and if it does, a higher deductible would have been more than justified.
Tip 87: Avoid shopping on impulse. Always plan your purchases in advance.
Billions are spent to try to get you to the store or online to make a product purchase. Companies know that their chances are much more successful when a consumer makes a purchase on impulse rather than after thinking about the purchase. Whether you're going on vacation or to the grocery store to buy food, always plan ahead. When you do, you will save more and often times will talk yourself out of buying something that you do not actually need.
Tip 88: If you pay a water bill each month, taking a shower instead of bath will allow you to save.
While a lot of people today may use the shower, there are still a lot of people who still take baths. If you pay a water bill each month, this can greatly increase your bill. Additionally make sure that those in your house including yourself are cognizant of the water bill consistently turning off faucets and showers when not in use.
Tip 89: Before you pay the bills, pay yourself first.
Broke people have a tendency to save after they spend. Wealthy people tend to spend after they save. If you can fully appreciate the importance of this statement, you understand the true essence of this book.
Tip 90: Don't pay for car rental insurance, unless you're not covered under either your credit card or standard car insurance.
While some insurance is necessary, much of it is not. Don't waste money on insurance you don't need. Make sure you check to see if you're covered before getting additional insurance.
Tip 91: When you need to change the oil in your vehicle, use a quick change service rather than a full sized garage.
The full garage will charge you a great deal, since they have a larger overhead. Using the quick change service will save you a lot of money.
Tip 92: If you're thinking of getting premium gas for your car, think twice. Most vehicles will run fine with cheaper gas.
You will want to check you vehicle model to make sure you can do this. While most vehicles will run fine without premium gas, there are exceptions.
Tip 93: If you're thinking of refinancing your home, pay close attention to the interest rates.
While most mortgage experts will recommend refinancing your home as a way to save money, you can actually lose if the interest rates are too high. If you're going to refinance, tread carefully, and watch the interest rates closely.
Tip 94: Simplify your life. Avoid living a life full of complications.
There are too many people that complicate their lives on a daily basis. They have so many bills that they can barely keep track of them, and at the end of the day, they are stressed out and broke. Simplicity is the key to both happiness and wealth. If you keep your financial life simple, you will be surprised at how fast you build wealth.
Tip 95: Always buy products "out of season."
John Paul Getty was famous for buying "straw hats in the fall." John Paul Getty had an net worth of what would be valued today at $50 billion dollars. Instead of waiting until it gets cold to buy a jacket, why don't you buy it in the summer? Instead of waiting until fall and winter to shop for Christmas, why not shop during the spring and summer? The prices always go up when products are sold in season. If you buy during this time, you lose. Buy air conditioners during the winter and heaters during the summer.
Tip 96: Always find people who are "desperate to sell."
Since many people lack the discipline to follow much of the advice in this book, they will always be losers in the game of finance. They will buy products when they cost the most, and they will sell them at a loss. This puts you in a prime situation to take advantage of these people. When they're desperate to sell, you buy. You will have them like a puppet on a string, and you will always save lots of money.
Tip 97: Become a member of a warehouse club
Warehouse clubs are special organizations which can allow you to save a great deal of money on their products. One of the best examples is Costco. These organizations are great for those who are frugal.
Tip 98: Reduce your standard of living as much as possible.
By reducing your standard of living, you accomplish a number of things. First, you increase the power of your existing savings against inflation. Second, you're able to save more money and build wealth. Once you've acquired wealth, you can increase your standard of living.
Tip 99: Don't shop at the specialty food stores. Their foods are overpriced.
It is best to shop at regular stores as much as possible. These stores should have everything you need, and the food is much cheaper.
Tip 100: Don't waste money on cheap products that frequently have to be replaced. You will spend more over the long term.
It is this phenomenon which separates the cheap from the frugal. Cheap people purchase poorly made products because they don't have much money. Frugal people purchase products that are well made, but they don't pay retail value.
I've now shown you a total of 100 strategies you can use to save from $500 to $1,000 per month or more. If you can't save any money with all these strategies, you are truly a lost cause. No matter how much you make, there is no reason why you should continue being broke after reading this book. While this book can be useful for anyone, I tailored it towards the middle class and the working poor. While the middle class has remained strong in the United States for most of its history, globalization is weakening their power base. Outsourcing, illegal and legal immigration, as well as trade agreements such as CAFTA have greatly weakened this class, and may eventually destroy it completely. This book is also dedicated to the working poor. Wikipedia defines the working poor as a class that has stable employment, but who remains in poverty due to low levels of pay and expenses which they are dependent on. The working poor share many similarities with the indentured servants of early America. Many people in the working poor category have a negative net worth, and it is very difficult for them to build wealth or become successful. This book is a roadmap for everyone seeking to gain financial independence. I firmly believe that no financial book on the market today can help the middle class and working poor as much as this book can.
Many finance writers, investors and entrepreneurs can't identify with the working poor, since they either come from wealthy or middle class backgrounds. We often hear in other books from esteemed entrepreneurs like Robert Kiyosaki author of Rich Dad, Poor Dad and Donald Trump that we need to invest in business opportunities, but how can we invest if we have no money and do not have the credit or assets to borrow money. Their books are primarily written for people who already have a sizeable amount of money. I wanted to write a book that could be used by people who fall in the upper middle class and below. At all levels of the economic hierarchy there are people who have a fate that is terrifying, to say the least because they simply cannot save money and continually incur expenses. Imagine working dead end jobs for the majority of your life, never being able to save or invest a substantial amount of money. You buy all the junk that this system spoon feeds to you, and you save nothing in the process.
Finally, after living like this for decades, you one day realize that you're old, and you haven't build up any wealth. While other people your age are about to retire, you will have to work until the day you die, if you want to keep a roof over your head. If you should become unable to work, and you don't have children to take care of you, you may be confined to a nursing home until the day you die. If this fate doesn't scare you, it should. This is the fate that many of Americans today will face if they don't gain a financial education.
In the United States, wage slavery is a reality. If you're living paycheck to paycheck just to pay the bills, you are a wage slave. The only people who benefit from your labor are your employers and the people you pay bills to. You don't benefit at all, other than being able to afford the basic expenses you may need. But, when you think about it, your ability to afford these expenses only allows you to continue working efficiently as a wage slave. If you're angered by the last few sentences you just read, you should be. However, your anger should be directed towards improving your financial position, not the author of this book. I wish to open your eyes and show how to escape the vicious cycle that you are in. When you live paycheck to paycheck, you're a cog in the machine, a machine that could care less about you. Once you lose your job, quit, or are too old to work, you will be easily replaced. You are essentially expendable. I grew up in a middle class family that followed the classic American paradigm of go to school, get good grades, go to college and graduate school, incur debt if need be, graduate in debt, get a good job, get a mortgage, car payment and work to pay your debts the rest of your life. I understand what it is like to be in debt and feel as though you can never get out. It's frustrating and at times hopeless. It is for this reason that I gave the book this title. Finance Wars is the most powerful name you can choose for a book of this nature. When you're on the bottom, and you're trying to rise up, it is a war. If you want to become wealthy, you must be prepared for war. The system is your enemy. Corporate America is also your enemy. I urge you to take your rage and frustration, and channel it in a manner that will allow you to master the strategies in this book. You will then be able to fight back in the best way possible: By saving your money rather than giving it to your enemies.
As I said in previous chapters, we have been manipulated into enslaving ourselves. While you can destroy a man or woman in a lot of ways, the best way to do it is economically. Not only can you destroy people on individual level, you can also destroy societies by taking control of their economic system. Indeed, this is exactly what has happened in the United States. Our financial system has been hijacked by powerful global interests that wish to enslave the population of this great land. In the next chapter, I will explain how they're doing it, and I will also explain what you can do about it.