By Katherine Hegemann
Here are some adjectives used to describe saving money: cool, smart, easy, difficult, necessary. Do you know anyone who doesn’t want to save money?
Although people want to save money, it can be difficult to know where to begin. The challenge is to find some specific things you can easily do.
1. Are you really saving money?
A small calculator is cheap and can save you a lot of money. For most people, it is the only way to figure out if some price is fair and competitive.
A special in the grocery store is for dehydrated noodle soup; two for $3.27. The cost for each is $1.64. But looking at other similar products, you see that the cost of a different flavor of the same brand is $1.50. This is a simple example, but the point is that unless you calculate the actual cost for one and compare the prices, you won’t know.
A second example is the size of two items. You see tomato juice in the 48-ounce and 64-ounce size. The smaller one is $3.85 and the larger is $7.50. Which is the cheapest? With your handy calculator, divide the price by the ounces for each size. What did each cost? The 48-ounce juice costs $.08 per ounce and the 64-ounce size costs $.11 per ounce. You won’t save any money. The calculator helped.
Sometimes you just don’t save any money unless you use your brain. Store brands are generally cheaper, but are they a good deal?
One example is paper towels. The store brand is $1.29 and the name brand is $2.63. The store brand looks the same size or larger than the name brand. But when you pick up the store brand and squeeze, you notice there is a big difference. The store brand is lighter. When you squeeze the roll, it’s squishy. What’s up? Some store brands roll the paper very loosely and use a lighter weight paper. In this case you might not be saving money at all.
Flannel pajama bottoms are on your need-to-buy list. You need to see if buying the whole pajama set is the same, or more or less than just the bottoms. During an Amazon search for the least expensive, women’s flannel pajamas were priced at $12.99 and just the bottoms were priced at $16.99. However, men’s flannel pajamas were $20.00 and the bottoms were $12.99.
Comparison shopping takes a little time and thought, but you can save money.
2. Make a list and hurry up.
Do not go shopping without a list, and stick to the list. There might be items you see that you forgot to put on your list. That’s fine, but those chocolate donuts near the checkout definitely aren’t.
Start by keeping a record of how long it takes you to buy everything on your list. When you go shopping (especially groceries), set up a time schedule. Cut the amount of time by 15 minutes and stick to it. You are less likely to buy items you really don’t need or have on your list if you are in a hurry. You can’t determine how long it will take to check out, but you can determine how long you take to pick up items on your list.
3. I just have to have it.
Don’t impulse buy. There are occasions when you just really want to buy an item. Budget for that but keep the amount you spend less than $10.
Rule of thumb 1: Do you need it or just want it? Be realistic with your answer.
Rule of thumb 2: If it costs between $20 and $50, think about it for a few days to a week. Many times you’ll decide that this isn’t something you either want or need.
Rule of thumb 3: If it costs over $50, give yourself at least a month to decide if this is a good use of your money.
Rule of thumb 4: Unless it’s an emergency, like your refrigerator quits and can’t be repaired, give yourself six months or more to decide. Keep checking prices from different sources and look for sales. Perhaps you can save enough money to pay cash. Does a source have a layaway program? Layaway is much better that than a credit card with a high interest rate. You can save yourself a lot of money by taking time to find the best price and different ways to pay for the item.
4. Turn it off.
The price of electricity is going to go up. In the US, the main source of electricity generation is coal, which is a fossil fuel and finite. Corporate leaders demand higher profits. Coal fired power plants are aging and require expensive maintenance. Can you do much about those reasons for the cost of power rising? No, but you can determine how many kilowatts you use per billing period.
Tactic 1: Turn off lights in vacant rooms. Make it a habit.
Tactic 2: Turn off the electric water heater when you finish with hot water for the day. You want it to be on long enough to re-heat after you finish using hot water later in the day, but then turn it off. Whoever gets up first has to turn it on the next morning.
Tactic 3: Are you running a radio in an empty room? You know what to do; turn it off. The same goes for the TV or a gaming machine.
Tactic 4: Call or go by Mountain Electric or visit the website. They have ways for you to cut down on your power use. (Mountain Electric, 604 South Shady Street, Mountain City, TN; 727-1800; mountainelectric.com)
5. Can I borrow it, buy it used, or rent it?
Books and magazines are a wonderful resource and many people enjoy reading. However,
One option you can consider is looking for discounted books. Discount retail stores, as well as some grocery stores, have a discount table. Books are often one third to one half or more the retail prices.
Another option is to buy used books. They don’t have the look, feel or smell of a new one, but you can sure save a lot of money. The public library has a book sale at least once a year where you can pick up a good read. Most of the major bookstores now have websites where you can buy used and discounted items. Some examples are Books-A-Million (www.booksamillion.com), Barnes & Noble (www.barnesandnoble.com), and Borders (www.borders.com). One of the extensive online resources for new and used books is Amazon (www.amazon.com). Amazon has contracted with thousands of used booksellers and posts their inventories online. Used books can be bought for a fraction of the full retail price.
Going to the movies has become quite pricy. Tickets in this area average $7.00 for a child, $7.50 for an adult, and $6.50 for a senior (http://www.fandango.com/37683_movietimes?srce=1). Add at least $20.00 for popcorn and drinks, and you see where this is going. The total can be $35.00 or more for two adults to see one movie.
Alternatively, you can sign up for a DVD rental membership. There are several stores in Mountain City which have movie rentals, with usually two to three days until the movie must be returned.
Blockbuster (www.blockbuster.com) and Netflix (www.netflix.com) have membership services, too. These memberships include rentals sent by mail and on demand; you can watch by connecting to the company website.
Blockbuster also has local stores, and the membership for movies, including their mail service, begins at $11.99 a month for one movie at a time. Blockbuster has on-demand movies you can watch via special devices like your computer, mobile device, and electronic devices like game consoles. Their On Demand service includes some free movies; however, most of these have a fee. The rates are $2.99 or less and $3.00 or more per movie.
Netflix membership starts at $9.99 a month for one movie at a time. Netflix also has Watch Instantly movies you can access similarly to the way you can at Blockbuster. Netflix has a limited number of Watch Instantly but there is no extra charge for the ones they offer. The company has stated that it is in the process of expanding this part of their service.
You can cancel your membership with either company at any time. Both services are money savers compared to going to a theater to see a movie.
As the TV commercial says, “It’s your money.” What you do with it is your choice. There are many different reasons people want to save money. A rainy day? Fixed income? Low income? Frugality? Just love a good deal? The ones given here are just a few. If you take a long look at your wallet and how you spend your money, you should be able to find many ways to save a little here and a little there. It all adds up.
For more information:
Moneycentral:10 Easy Ways To Stash Away Thousands.aspx
Dumb Little Man: 30 Easy Ways To Save Money
The Digital Life: Best Ways To Save Money
© 2011, Katherine B. Hegemann
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