Steve Says

DECLINE THE UPGRADE: I just got back from a week out of town.  During my vacation I drove from Boston to Vermont- and back-  a good number of miles would be logged (about 600 round trip).  The clerk at the rental counter said- it's my lucky day!  I had been upgraded from the small compact car I reserved to a full size SUV!  I immediately said- NO THANKS!  Due to the great distance I would drive, I was looking for a fuel efficient car.  I needed to look past their shinny luxury upgrade to my own bottom line.  When I declined the upgrade I was told- that's all they had.  I opted to wait for a more fuel efficient car to be returned- while this meant waiting longer at the rental counter for them to locate a more fuel efficient vehicle, I saved money on gas. (an amount more valuable than the extra time I had to wait)

EATING OUT: It was a Monday night and I asked a couple of friends if they'd like to grab a bite to eat- something light on calories and on budget.  Immediately one suggested a restaurant where the grilled chicken salad I was planning on would have cost me upwards of 15 bucks!  YIKES!  I had already told the other friend that I was in savings mode and our dinner plans changed to something more affordable- yes, kind of awkward, but not as bad as having no money at the end of the week would been.  When inviting friends to dinner, I suggest selecting a restaurant that you can afford comfortably, and asking them  to join you there.  This way you can enjoy the  meal without worrying about how it's blowing your budget.  I often find that when I offer that I am trying to mind my money, my guests often admit that they too are in savings mode.  Another tactic I use to enjoy a meal out without breaking the bank is going out to breakfast or lunch (when menu prices are more affordable) instead of dinner when prices are more expensive.  

SAVE THOSE ATM RECEIPTS: My credit union doesn't charge me when I use another bank's ATM, but the other bank does.  I save my ATM receipts and turn them in to my credit union who credits me back the fees that other banks charge.  It saves me AT LEAST 20 bucks a month!  

CASH IN YOUR CHANGE JAR: I avoid the coin machines at my grocery store which charges me a fee to turn my loose change into folding money.  Instead I bring it to my credit union OR I take advantage of the program that the change kiosks often offer which waives the fee if I turn my money into a gift card for the grocery store I am using.  I figure you gotta buy groceries, right? The gift card will never go to waste.  

CONSOLIDATING DEBT: It's been a year of unexpected expenses, and yes, even I can get off track.  I have a few thousand dollar balance on my credit card.  Instead of taking ALL OF my extra money each month and throwing it at the balance (to pay it off quickly), I went on line to find a 0% interest credit card offer which is good for 12 months.  I transferred the balance to the new card and set up an automatic payment every month from my bank account to the card (enough to pay it off in full BEFORE THE rate adjustment after 12 months).  The new payment is less than the payment I had been making because I am now (with no threat of interest for the next 12 months) allowing myself more time to pay off the debt.  I take the "extra" money I now have each month and put it in an interest earning savings account so that I have it to use for unexpected expenses.  Now that I'm not spending every last cent I can find on my debt- I am less likely to run up new charges on a credit card.   

PAYING MYSELF FIRST: There are some absolutes that I MUST pay- these are non-negotiable.  Mortgage, HOA, Taxes, Agent Fees, Car Payment, Gym Membership (ok, maybe not a MUST, but I look at it as savings in the long run as it cuts down on potential health costs).  How do I make sure  the money is always there?  I have 6 bank accounts at my credit union.    - First my paycheck gets direct deposited into my first checking account- (I call it my "Bill Pay" account).  IMMEDIATELY every pay day, my account is set up to transfer money as soon as it is deposited.     - Then I pay myself- money is transferred into my "everyday" account- this is my set budget for spending money to live on- it has to last for two weeks until my next check comes.    - Next, money for my gym membership and for my HOA payment is sent to a savings account- so that it is there ready to go every time a bill comes.    - Money for savings and for my property taxes is sent to another savings account (which I have under a different member number so that I can't "see" it when I check my balance).    - Every time there is 2-thousand dollars in that account for my taxes, I open up a money market account to earn extra interest on that money.  At the end of the year when tax time comes (and yes, I pay my taxes by December 31st so that I can deduct them on that year's income taxes) I don't write a check from that account to Dallas County, instead I pay my taxes with my VISA card which offers me cash back rewards.  I then write a check to VISA instead.  Since I have been saving the money all year, the balance is paid off immediately.  I then use the "cash back" award to pad my tax savings account for the next year.  It may sound like a lot of work, but it only took a few minutes to set up on line- and it is all automatic.

What are YOU doing today to save?