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75 Painless Money-Saving Tips
Updated: At the bottom of the post, check out the additional money-saving tips sent in by readers and bloggers. And don't risk missing a tip that could save you money, get your free subscription to The Dough Roller by clicking here.
Last week I wrote about ways to develop the habit of spending less than you make. To continue that topic, here are some practical and painless money saving tips to help you save some cash each month. I'd like to get the number of tips to at least 101, so if you have some money-saving suggestions, please leave a comment or send me an e-mail (dr [AT] doughroller [DOT] net). Also, be sure to read to the bottom of this post, as tip #51 is bound to spark some discussion and debate.
- Combine your cable, internet and telephone service. Companies now offer combined services that not only cost less, but offer the convenience of a single bill.
- Slow down your internet service. I went to the slower internet service option with my cable company and saved $15 per month. And I haven't noticed a difference when surfing the Net.
- Send away for and follow up on rebates. After you buy a product with a rebate, send in the form that day. Then mark your calendar to remind yourself to follow up with the rebate company if the check hasn't show up.
- Buy a refurbished Mac: I've written about this before because it is a great way to buy not only computers, but iPods and iPhones as well. You can check out the details on how to buy a refurbished iPhone here.
- Convert to a gas water heater. They are more efficient and will save you money in the long run.
- Request a reduction in the interest rate for your home equity line of credit. I did and my mortgage company agreed to reduce the rate by more than 0.50%. And if you are looking for a home equity loan, is a great place to check out available options.
- Request a reduction in the interest rate on your credit cards. As with home equity loans, credit card companies sometimes are willing to reduce the interest rate. It can't hurt to ask.
- Refinance you mortgage. If you can reduce your interest rate by one percent or more, it is often beneficial to refinance. This is particularly true for those with high rates due to less than stellar credit scores. If your score has improved, you may qualify for a better rate. I would start by asking your current mortgage lender about lower rates. Here's a refinance calculator to help you determine if refinancing is right for you.
- Get rid of Private Mortgage Insurance. If your down payment was less than 20%, you are probably paying PMI. Once you have a 20% cushion through reducing your debt and home appreciation (yes, prices do go up from time to time), contact your mortgage company to start the process of removing the PMI.
- Get your books from the library. I love books and read every day. While I buy some of the books I read, most come from the library. Simply put, it's hard to beat free.
- Get DVDs from the library. Many libraries now have movies on DVD that can be checked out. If your library offers this service, it sure beats paying Blockbuster or Netflix.
- Get DVDs from Red Box. If your library doesn't offer DVDs, get your moves from Red Box. It costs just one dollar per night. You find Red Box locations here. Netflix is also a great, low cost and convenient alternative.
- Read magazines at the library or online. Too many magazines can cost a fortune. And how many times have you bought a magazine based on the cover and been disappointed by the lack of substance. At the library you can read magazines for free. And many magazines now offer their content for free online.
- Subscribe to magazines that are must reads. If you must have a certain magazine each month, subscribe. Subscriptions offer substantial savings over the cost at the newsstand. Update: Amazon offers some great deals on personal finance magazines
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- Buy your car over the internet: Search the internet for information on the car you want and then send e-mail requests to dealers for the best price. Even if the dealer is located in another state, the cost to have the car delivered may still be worth it. I paid $500 to have a Honda Odyssey shipped 500 miles and still saved $1,000 over the best local price available.
- Request a discount on trash service. For some reason this is a highly competitive business. If you get a better offer in the mail for trash service, call your current trash company and ask them to beat the offer. My trash service has reduced its rates twice in six months to match competing offers.
- Never pay checking account fees. I hate bank fees. With so many free checking account plans available, there's no reason to pay a fee. And if the bank happens to charge you one, ask them to reverse the fee or take your business to another bank.
- Get a rewards card. There are many reward cards that pay out in cash or points that can be redeemed for travel or products. Many of these cards don't have an annual fee. I recently traveled to my college reunion for free using points earned from a credit card. My favorite rewards card is American Express Gold Card. It does have an annual fee, although follow this link (American Express) to apply and the first year fee is waived. You can also check out my review of several travel reward credit cards.
- Don't pay interest on credit cards. This is obvious, but I soon as you fail to pay off the credit card in full, the high interest payments start to eat away at your monthly budget. If the temptation to spend more than you can pay on a credit card is to great, get rid of the credit card (and ignore the previous tip!).
- Take advantage of 0% credit card offers. I've saved thousands of dollars using 0% balance transfer credit cards. Again, as long as the cards won't cause you to spend more, they can offer substantial savings. Make sure, however, that you keep an eye on the balance transfer fee, which can wipe out your savings.
- Replace incandescent bulbs with compact fluorescent light (CFLs) bulbs. These bulbs use 75% less energy and last 10 times longer. They do take some getting used to, and they won't work in every light fixture. But use them where it makes sense and save energy and money.
- Drive your car longer. The buy new versus used debate often overlooks the most important factor--how long you own your car. Drive it as long as you safely can for substantial savings.
- Pay your life insurance annually. Insurance companies charge you more if you pay monthly, quarterly or semi-annually. Pay once a year and you'll pay less.
- Pay car insurance semi-annually. At least with my car insurance, they offer quarterly and semi-annual payment options. It costs more to pay quarterly, and twice a year is more convenient anyway.
- Increase insurance deductibles. Most of us don't need to be insured for all losses over $100 on our car, for example. Although we wouldn't want to pay a $250 or even $500 deductible, we could. If that's you, find out how much you'd save from raising your deductible. I've raised my deductibles on my auto insurance and home owner's insurance and saved a considerable amount.
- Think before submitting an insurance claim. My rule of thumb is that I won't submit a claim on a loss that is less than twice my deductible. So for a $250 deductible on an auto loss, I'll pay out of pocket any loss up to $500. Why? The $250 I'd receive from my insurance company is not worth the increased premiums I'm likely to pay. You may want to call your insurance agent to find out how a claim will impact your premiums before filing the claim.
- Get rid of your home telephone. This is a great way to save money. Many don't do it because of the 911 service, and that's understandable. But if you're comfortable relying on a cell phone, there's no reason to keep a land line. If you do, consider reducing your service to the minimum and only use the phone in an emergency.
- Consider VOiP telephone service. We use Internet phone service and have saved substantial money over Verizon service. The phone service has been very reliable, and you'd never even know the signal was being carried over the Internet. Phone Power is a great option for internet telephone service, which costs as little as $9.95 a month. Note that the Phone Power sign-up page will have an entry for a promo code. I've talked to the good folks at Phone Power, and they tell me there are no promo codes; they offer the best price to everybody!
- Shut vents in unused rooms. This isn't advisable if you have forced air heating, but shutting vents in unused rooms can save on your heating and cooling bill.
- Eliminate some cable service. Note that I'm not recommending getting rid of cable completely, although that's certainly a way to save money. If you must have cable, take a look at all the charges on your cable bill and consider getting rid of some of the service. Try it for a month and see if you really miss those last 500 channels.
- Agree to limit gift giving. At Christmas our extended family and we go overboard when it comes to gift giving. Agree in advance to limit the gifts and save everybody some money.
- Get healthy. Your health will directly impact the cost of life insurance and, in some cases, can reduce the cost of your health insurance.
- Cancel the health club membership. Seems to contradict the previous tip, but evaluate how much you really use your health club. Less expensive options may include a gym at your work or a gym at your local parks and recreation center. Some offer pay as you go options rather than monthly fees, which can be great for those of us who aren't as consistent in our routines as we'd like to be.
- Pass on extended warranties. A $129 two year extension on a $300 product is just not worth it. Warranties are insurance, and we rarely need to insure such a small amount.
- Take your lunch to work one more day a week than you do now. Eating out at lunch is fun, so I wouldn't eliminate it completely. But taking lunch just one more day a week will keep money in your pocket.
- Buy low cost mutual funds. This is easy to miss because the money doesn't come out of your pocket each month. But keep an eye on the cost of the mutual funds in your 401(k) and other investments. My rule of thumb is that no fund should cost more than 1% and the combined cost for all your funds should be less than 0.50%. If you don't believe that even a half percent can make a big difference, read this.
- Take advantage of employer 401(k) matches. If your employer matches 401(k) contributions, do everything you can to take full advantage of that match.
- Use flexible spending accounts. FSAs allow you to pay certain medical, dental and child care expenses using pre-tax dollars. If your not taking advantage of these accounts, you're wasting money. Enrollment at many companies is occurring now, so check with your HR department if you have any questions about FSAs.
- Get tires from Costco or other wholesale clubs. Simply put, they cost a lot less than buying them at the dealer or even a chain tire store.
- Keep tires properly inflated. It keeps you safe and costs less on gas.
- Stop smoking. Need I say more?
- Drink less alcohol. It costs money and ads calories.
- Buy term life insurance. Any other life insurance product is just not worth the extra cost.
- Buy generic over-the-counter medicines. They are exactly the same as their branded counterparts and cost less.
- Get organized and avoid missed payments. I've missed a payment or two because the bill got buried beneath a stack of papers. Get organized and avoid those late payment penalties. If you do miss a payment, call your creditor and ask to have the penalty removed. They'll usually accommodate the request, at least the first time.
- Buy online when it saves you money. I've used Amazon to buy more than just books. It sells just about anything and sometimes at substantial savings.
- Consider MythTV PVR in replace of TiVo type services. I just ran across MythTV and am still investigating it. I pay $15 a month to my cable company for a DVR box and would love to save the money. If you've used MythTV, let us know how well it works. You can get more information about MythTV here.
- Use Open Source software when possible. I use GIMP instead of Photoshop. GIMP is free; Photoshop ain't.
- Check the insulation in your home. Extra insulation can easily pay for itself in one or two years, and it helps save the environment, too.
- Buy energy efficient appliances. Look for the Energy Star on appliances and consider the annual energy cost before buying. More efficient appliances cost more, but you make up the extra cost and then some over the life of the product.
- Stay married. Yes, I did say 51 "painless" money-saving tips. Yes, I know that some marriages end because of abuse and other extreme circumstances. "Isn't marriage about love", you ask. Sometimes. "You don't know my situation", you say. True. But I lived through the emotional and financial pain of two divorces as a child, and I've been married to the same women for more than 19 years, so I know plenty. Am I telling you not to get a divorce? Of course not. I am telling you that divorce will wreck your finances and your spouse's finances.
Check out the other great money saving tips in the comments below. And do you know some painless money-saving tips not listed here? Our goal is at least 101 painless money-saving tips, so please leave a comment or send an e-mail with your ideas.
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I work for a “tire chain” and I have to say that although I agree with the theory of the tires being cheaper, in the long run they’re not. For instance my store offers Nitrogen inflation for free, as well as other incentives that save you money. My recommendation for “chain stores” is HAGGLE HAGGLE HAGGLE when a customer comes to me if they’re polite, I have the power to negotiate. On a 150 dollar tire I can sell it for 60 dollars. That is your savings.
If your trying to save money but would like a new family pet, go to your local SPCA or look in the free section or your news paper, instead of buying from a breeder.
Ok i am a stay@home mom, so some of these ideas might not sit well with career minded people. Ok here it goes, I use the plastic bags i get from stores for cat litter,doggie poo pick up,trash liners for bathrooms,pick up vomit,(i know but ihappens), Take em on vacation to carry all your winnings at the amusement park. I recycle water bottles, i use em for putting milk in to fit in the camper fride, i refill them for kids, my girls make bowling pins outta them, we reuse zip lock bags, i wash em out, reuse em for sandwiches, snacks, etc, I empty the ceral boxes in a container and use the wax paper inside for opening up on my kitchen counter and making dough on it for dinner or making biscuts, I also use it for wrapping stuff up, save those bread bags also, you can store stuff in them, for camping, for the freezer, for extra dounuts left over. I wash out all my ketchup bottles and mustard bottle and etc, for girls to play with in bath tub or pool, save all shampoo bottles also for that fun,, I cut my milk containers inhalf and use as a water bowl for pets, or a catch all in the kitchen,for scraps to throw in my garden. Yes don’t for get those peelings for your garden and egg shells also,,
Thank You Bonnie! Im a stay at home Grandma at 38 years old! All the money I can save is crucial, as my husband and I are raising our Grandson!!!!! Any more tips you could give would be greatly appreciated! You sound alot like me, cutting corners when possible! Keep it comin’ girl!!!!!!!!!!
Recently I stopped buying paper towels. I never used them before I met my husband, and also I hated squinting at those tiny “price per 100 feet” labels and trying to figure out if they were accurate (such a difference in the prices, one gets doubtful). More than that, I hated shelling out $9 to $13 or whatever for something that was of questionable value to me in the first place! Now we keep clean rags from the cellar rag container up in a kitchen drawer. We use those to clean up messes off the floor, and throw them away. For other types of clean-ups, I’ll put the rag in the wash and use again.
Kill your television! Seriously, who needs cable tv or satellite dish? Don’t have to do it forever, just till you’re out of debt and back on your feet.
GREAT idea. We can’t get cable or satellite where we live (the mountain is in the way of dish reception), and we haven’t melted or burst into flame without television. Can’t imagine how much money we save.
Thanks for a very good article and thanks to everyone for all the tips.
A good way to save money on cleaning is to use things most people already have on hand, like vinegar, baking soda, rubbing alcohol, and lemons. You can mix your fabric softener with the vingegar to stretch it out and the vinegar also helps get rid of extra soap residue. You can also use a combination of vinegar and baking soda instead of laundry detergent. Look up how to use these things, there are so many household uses for all of them. You will save so much money and be helping the environment.
Bank at a Credit Union. Lower fees, better rates and treat you like a person unlike banks that treat you like another number.
What ever happened to clipping coupons? I thought that would be the first thing on your list. You can also get coupons online. Speaking of online, I use it all the time to find phone numbers. If you don’t have a phone book handy, it is a lot cheaper to go online to get the numbers than to pay to use 411 or 555-1212 information services. For a cheap lunch, try Ramon Noodles. They are really good and come in a lot of different flavors, generally less than $.20 per pack. You might also try picking up things at Auctions. You can usually get a much better price at auctions than at retail stores. Goodwill and Salvation Army are also good places to pick up good used household items as well as clothing, shoes, purses, furniture, exercise equipment, bicycles and just about anything you could want. You could also check at salvage yards for good used auto parts rather than buying new parts for an older car. You might also find good deals on eBay or Craig’s List on just about anything. One of the best deals I have found is buying a (Fund Raising) chocolate candy bar for $1.00 and getting a $2.00 coupon on the wrapper for Pizza Hut. You not only get the satisfaction of a $1.00 donation to a worthwile organization, but you also get the candy bar and $2.00 off on your next pizza. To me, that is a dollar well spent. I could go on and on about ways to save money, but I’ll give other people a chance.
Yes, Goodwill is awesome. I bought my beautiful wedding dress there, and also all my business suits (Talbots, Jones of NY, etc.). I do have a quibble with the Ramen noodles. Four hundred ugly calories in one little serving, plus horrendous amounts of sodium. Pasta would be better . . .?
52.
I took a time share in June I took the whole family it was great we only paid $200 for 2 nights 3 days stay at Myrtle Beach SC we had an Ocean front room. We had to agree to a 90 MIN tour as they call it basically they walked us around this resort and tried to up sell us the resort was nice and I would have got into it but my budget for this year would not allow me I found out about it by googling Myrtle Beach getaways a couple of sites came up like expedia and travelocity but I wanted a time share about half way down the page was a site called vacation bailouts they was great easy to book I was on my way that following week might even be easy to google the name of the company sorry not sure about the URL.
Use your slow cooker. Especially in the summer. It doesn’t heat up my kitchen as much as the stove and oven. I can also use cheaper cuts of meat. They come out very tender and flavorfull. I have been able to turn two chicken breasts into a complete meal for my family of 5. Add a can or two of any “cream of” soup, ( I use the store brand) and 1/2 bag of frozen veggies. When I put the rice on to cook, I take out the chicken and chop or shred it and put it back into the slow cooker. When the rice is done, pour the chicken mixture over the rice and servce. Even my kids love it. Use the leftovers for chicken and rice cassarole the next night. Or freeze for the next week.
Yes, the slow cooker is great. You can also use it to make your own beans, garbanzos, all those dried peas and beans, cheaper and better than canned. Just throw them in there, add lots of water, put it on “low”, and go to bed. You can add whole onions, molasses, meat, whatever pleases you, too.
to lower electric bill; go through your house and unplug everything that is currently not being used. Most people leave thing plugged in when not in use; I cut my bill by almost 40% this way. Microwaves are usually left plugged in but really it isn’t hard to plug it ion when you need it.(you only use at a few minutes at a time). only have chargers plugged in when charging things; use your car charger for your cell phone . start washing clothes in cold water and hanging most things up to avoid many dryer bills.
This is a great site i found for coupons, thought I would share.. You can save money shopping at hundreds of sites online and you don’t have to sign up unless you want to.. I love it.
You have provided many great tips. Some of these will work great for my family.
Water Conservation. No bricks in tank. 1 liter bottles full of water capped off helps with old toilets to cut down flushes. Regular 12 or 16oz. bottles filled will work as well and add more until regular waste is fully flushed.
Electrical Conservation. Lower wattage bulbs. One bulb to room vs. multiple bulbs. Solar powered lighting for outdoor usage.
Worst times of utility usage. Hot climates during summer, plan visiting family and friends, work at the office, or even nature walks to refrain running the AC. Cold climates are almost the same. If at home, dark/black drapes or light/white during summer. Flannel bedding. Clothes drying during the coldest times during the winter.
Entertainment. Movie night on regular TV. Date night with no lights, possibly candlelight with $1.00 popcorn and a can of soda to enjoy your movie. With almost everyone with cable and a nice TV, come closer to the one you love with enjoyment of the movie or time.
Food and Water Needs. Water filter or just straight tap can be cheaper than bottled water. Can foods last longer and if the frig goes out not to worry. Frozen pizza over take out.
Everyone can find ways to pinch a penny here or there, these are just someways that I find to save. It takes some time to change a little but I am beginning to enjoy life a little more by enjoying my family and friends a lot more. I am open to other suggestions so email me if something that works for you. Thanks for listening. Michael Anthony
Understand the difference between a need or want. This was my problem….
This is so true, Alison! Big difference between “need” and “want”, isn’t there? We’re fortunate to have such a high standard of living here, but we also start thinking that we have to have this, have to have that, until we run into money problems, and also problems maintaining all our stuff and figuring out where to store it. I’m far from perfect, but I’ve lived my whole life with one rule–I live below my means, always. I’ve never had debt, except a mortgage in the past–no credit card debt, ever. It just isn’t in my personal mental makeup. If others would think this way, their lives would be so much easier.
There is a great new website called ‘Medtipster’ that saves you money on you and your family’s prescription costs. Medtipster allows you to locate low-cost generic prescriptions from reputable pharmacies in your area. Once on Medtipster’s homepage, all you have to do is type in the medication you need, the dosage and your zip code and the site will direct you to the least expensive retailer. It’s easy, quick, and saves you money. Google search “Medtipster” and check out their site.
We turned off the power strips to our entertainment system, which consists of a DLP projector, surround sound, and XBOX360, every night for the last billing cycle for our electric. (Luckily, I saw the meter reader, so I knew when to start.) Just cutting the “stand-by” power on those devices reduced our electric bill by nearly $50 dollars in one month.
I’ve also installed motion sensor light switches in hallways and bathrooms to prevent the kids from leaving the lights on all the time.
As far as television, we dropped satellite TV and opted for Netflix, which has thousands of titles that can be watched instantly over the XBOX360. That dropped our TV expenses from over $100/month to about $8/month.
We’ve also talked to our kids about what to expect (and what not to expect) this Christmas, because it’s better to set those expectations as early as possible.
There are some real easy ways to save money, but you have to be willing to change certain habits and cut some things.
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