- Expert Answers (5)
Ken Patel1 weeks ago
35 Random Tips:
David Martin1 weeks ago
- Have a family member cut your hair or cut your own hair. I have been cutting my own hair since I was 16.
- Buy clothes at Marshall's, TJ Max, or other such discount stores. You will get brand clothes for half the price or even less.
- When you buy clothes, choose according to your style and not according to the popular trend. If it's according to your style, then it’s guaranteed that you will wear it later as well, not only while the trend is hot. I have clothes that I bought two decades ago and I still have them and wear them.
- Buy things you need after holidays. Most of them will be on sale.
- If you have favorite or valuable clothes, don’t dry it in a dryer. Just hang it and let it dry. Hanging cloths makes them last longer.
- Try to save up money for a decent used car. Buy it for cash, take care of it, get regular checkups, oil change and so forth, and use it until you can. It might last you 10–15 years and you already saved big buying it used.
- Cook and prepare your own food. Not only you will save money, but you will know exactly what went in to your food. You can even make everything super healthy. So many benefits for you.
- When you are invited eat out with friends and you know where you are going, check the menu and choose ahead of time. This way you can choose something you like and at the same time fit your budget.
- Some people like to use coupons for groceries and other household items. It might be a great way to save money.
- Use Groupon for your weekend programs. If you are flexible, you will find great deals on so many things.
- Use low budget airlines. You might even fly to Europe for only a couple of hundred dollars.
- Use couch surfing when you are traveling. Offer your couch as well for other travelers, and then take advantage of this amazing opportunity vice versa.
- Buy things that you need, not what you want.
- If you have small kids, buy always a size or couple of size bigger clothes and shoes. They grow so fast.
- Always shop around. Sometimes Walmart or your local grocery store has certain items for much cheaper than your local dollar store.
- When you are a subscriber to a service and you are on auto payment, make sure before you get charged again for the next period, check around for a better price elsewhere or ask the same company of any deals. I learnt it the hard way, because most of the times these companies will not let you know about any better pricing. They just automatically renew the service to you and charge your card.
- Check online reviews for products and services. Most times the cheapest product and service will get you a saving in the short term, but in the long term you will be worse off because of the lower quality.
- Before you buy a new appliance or electronics or tech product, try to see if your old one can be fixed or upgraded.
- Before you buy the newest toy, iPhone, etc, ask yourself the questions: Do I really need this newer version? Do I really get that much value and utility from this newest version that it is worth the extra x number of dollars?
- Don’t buy things just to brag, show off or impress others. Nobody gives cares about it after the curiosity dies down.
- If you are addicted to shopping, get used to buy things with cash, Credit cards will make you feel financially more powerful than how you actually are.
- Go shopping towards the end of your paycheck cycle. If you go right after your paycheck you might spend more than you would towards the end of that cycle.
- Carpool with your coworkers or fellow students to work or school.
- Be very firm about the service you want/need. Be careful with employees trying to upsell you stuff you don’t need. Jiffy Lube is “great” at doing this to you. You go for an oil change and then after they check your car they want to have a chat with you away from the other customers. This is when they upsell you all kinds of stuff.
- If you are eating out, choose the place the serves the bigger portion. Eat half and pack the other half to go. It will be a great lunch the next day.
- When you get something done in your house/apt by a pro, stand around, watch and ask question. Sometimes, what they do is a quick trick that costs you quite a few dollars but you could do yourself. For example the first time I locked myself out of our walk-in closet I had to call a locksmith. He opened the closet door with a credit card in two minutes. I watched him how he did it and now I know. It saved us a a few hundred of dollars over the years,
- If you like to drink with your friends in the weekends, then have a couple of drinks at home before you head out. You just saved yourself 20–30 bucks a night. But NEVER DRINK AND DRIVE! Follow this only if you are a passenger or if you take public transportation to the club.
- You need dental work and live in the US or Western Europe? Well, travel to a country where dental work is cheap. You might save some $ and on top of that you might see the world! For example in Hungary a tooth filling costs about 20–25 dollars in a good private place. Compare that with US prices. An off-season round ticket to Budapest from Miami costs about 600 dollars. You do the math.
- If you are a woman, learn to trim and paint your own nails. Money saved, guaranteed!
- This one is for the brave people. Last summer I had a mole removed by a doctor in Budapest, Hungary. he told me to get it removed after 4 weeks. By that time I was already back home, in Florida. I looked at the stitches after the four weeks was up and I got some alcohol pads with a scissor and a tweezer and removed it myself. Couple of hundred dollars saved right there.
- Buy frozen meat that is about to expire for much cheaper. Then go home and freeze it. It will last until you keep it there.
- If you want something, write it down and keep it in your wallet for a few days. Then take the note out and see after the week is over if you still “need” it.
- When you go shopping and you find an item that you think could be a perfect item for a loved one or friend, then buy it and store it for his/her next birthday, Christmas or anniversary of some kind.
- When you buy a gift, don’t think buying something expensive will do the trick. Buy something meaningful. Listen to the person what he says when he talks. He might hint things that could give you great ideas.
- Cut any service you don’t use. You don’t watch cable anymore cause you use Netflix? You don’t go to the gym anymore cause you set up a home gym? Save some money deleting these accounts.
These two purchases in your life will be the biggest things that can cause a lot of strain on your finances. Think carefully and wisely about these two big purchases. Choosing wisely will make a big difference in how much you can save or how much you will end up having to pay over the years.
Buying a $200,000 vs a $400,000 house can save you 10 years of payments, plus a lot of interest owed to the bank. The bigger the house, the bigger your expenses. You'll need to buy more furniture to fill the house. Your house maintenance fees will also go up. But your mortgage is going to eat up your saving potential. In the beginning, you will be paying mostly interest and won't even be paying down the actual house.
But aren't homes a great investment? People think that buying a nice home is an investment. It can be if you are buying rental property. Not if you're buying a home to live in. You don't need an expensive house to live in. Most people spend as little as 5 hours a day in their home anyways.
Don't buy expensive cars. People buy expensive luxurious cars thinking it will make them happier. It will only put you further in debt. The value of a car depreciates over the years. There are recurring bills associated with the car. Monthly payments, car insurance, and maintenance costs. The more expensive the car is, the more these other recurring fees will be as well.
Just live below your means. People think expensive things will bring them happiness, it may but they are only temporary. Things that bring true happiness usually are free. Find out what those things are and do more of those things in your life.Yao Zhang
To save well you need to understand some things.
I would like to keep these lessons simple and understandable:
- Assets - are those holdings which will increase your net worth and will mostly add to your net worth through passive income like bonuses, inherent appreciation. E.g. Real estate, Stocks holdings, Bank deposits. Create assets.
- Liabilities - opposite of #1. Primarily an expense. These will decrease your net worth like a car or house. Of course house could be an asset you're building however they are still a liability. Minimize liabilities.
- Savings = Income - Expense. Do not strive to save what is left after spending. Save first before you spend. Don't make this mistake of saving leftover.
- Expense = Income - Savings. Corollary to #3. You should try to spend whatever is left after saving. Strive for it.
- Good debt - when you leverage debt to expand your income. Money took as loan from bank to increase your capital to have more revenues. Use cautiously.
- Bad debt - when you take debt to inflate your lifestyle. Buying something out of your reach through credit card. That's a bad debt. Avoid it.
- Insurance - A tool that you use to hedge against the future medical costs that are huge but paying an annual premium in small chunks. Use it and buy it as soon as possible. Early purchase means low premiums annually.
- Taxes - a way for government to collect its share/bounty for providing infrastructure. Debatable but a truth. Learn taxes so that you can maximize your earnings and minimize paying taxes. Mostly ignored by people. They don't want to learn. Learn taxes. You can save a lot, especially if you have a business. Get taxed after your expenses, not before!
- Use cash instead of a credit card. It’s difficult to really comprehend virtual money at first.
- Learn to save. Take out 10 or 20% from your monthly salary, and put it away.
- Learn that debt is bad and compound interest is good when you are receiving it, not paying it.
- Begin to develop a good grasp of the financial market. Look into stocks, penny stocks, and foreign exchange. Understand the risks, its volatility, weigh the pros and cons, experiment.
- Here is one main con in penny stocks. Alert, fraudulent price manipulation. Scammers trade the stocks back and forth among their groups to artificially pump up the price. Then dump the shares on their naive investors to receive profit.
- If you earn 30k per year, you can’t spend as if your income is 100k per year. So, spend according to your abilities. Have a pragmatic approach.
- According to Warren Buffet, “The best investment you’ll ever make is in yourself.”
- Here is another great quote I read from Ernest Hemingway, “First you borrow, then you beg.”
Save 15-30% of every single paycheck you take home.
Do these two things:
1. Create a separate savings account and call it your "Investment Account."
2. Discipline yourself to never touch that money, ever.
You will keep saving into this account for several years. During that time, study all the different investment options available. Then choose one way and when you have enough money saved in your Investment Account, use it to earn passive income. This is how you will retire early.