Identify 10 new ways for me to save money.

I was driving through Olean yesterday and saw one of those guys who hold up signs when a store is closing advertising percentages off. I didn’t even know Penney’s was closing, and thought I could use some new pillows. I turned the car around and went to the mall. They didn’t have any pillows left, but I did find some bargains.

I got two $15 packages of briefs for $4.50 each. I got a $36 pair of pants for $10.80, a $40 pair for $12.00, and a $44 pair of jeans for $13.20. Plus I bought two $14 CD/DVDs for $1.40 each.

So according to my receipt my $49.82 spent saved me $130.17. Now sure I spent money, but other than the CDs, it was all on things that I need or will use. So my tip is to look for surprise bargains when they happen, including going through the clearance aisles because you never know when you might find something that’s a real bargain that you actually need.

Yesterday I decided it was time to follow my #8 advice again “Negotiate”. I contacted three of my credit cards (Chase Visa, Citibank Mastercard, Sears Card). For Chase I had to be transferred to another department from the group that answered the phone. Then I requested a lower APR and they agreed to lower it 1.75%. Not bad, but not good in my book. They said I can call again in a few months to request it be lowered again.

Citibank was very helpful and after I requested a lower interest rate there, they not only gave me one that was 6% lower, but also gave me a years worth of upgrade on ThankYou Points so that I’m getting 5 times as many points when I use my card at grocery stores, pharmacies, and gas stations.

Sears Card (which has been taken over by Citibank) was the only one that didn’t change my rate when I requested it. I was told “we don’t do that here”. I said to the girl, “what motivation do I have to use my Sears card when it’s at such a high APR compared to my other credit cards?” She didn’t have a response. She also didn’t have any answers as to if there were other departments that I could talk to about my Sears card APR. I’m going to check their website and see if I can find someone to contact that way. Since I pay off my purchases on that card when I get the bill, it’s not a big deal. I just like the challenge.

Next up, I’ll be contacting Chase again in a month or two and saying I’ve got an offer here from Capital One and another one from Discover that are offering me this rate. Can you match their rate or come close to keep me as a customer?

When you get a raise, increase your 401k withholdings so that you don’t get that extra money and it’s saved for your future. You’re already living okay on what you’re making so you don’t need that extra income.

When you get a bonus or your tax refund, put it in your rainy day fund right away. You should have an account (saving or IRA) that you just put money into and don’t touch. Sure if there’s a hardship you can fall back upon these savings, but instead of tempting yourself with the extra cash, sock it right away and you’ll never miss it.

Drop all your loose change into a pickle jar. You don’t spend it anyway. Once the jar is full, take it to the bank and find out how much money you collected. Then stick that in your money market account or some other fund that will earn you interest. Every month I count my loose change and find I’ve usually collected between $10 and $20. That’s over $100 a year that could have been earning me interest.

Use direct deposit when you can, or a free online bill payment. By not having to go to the bank, you save on time and money. By paying online, you save yourself the cost of a stamp. These things add up over a year. Most banks will allow you to set up a certain number of automatic transfers each month for free. You just have to ask.

If your brother is a mechanic, ask him to take a look at the ping in your car instead of taking it to the shop. If he does his own oil changes on his vehicles, ask if he’d do yours if you bought the oil and filters. Even if you paid him an extra $5 for his time, you’d still be saving money.

Make plans to visit your parents and let them either cook for you or buy when you go out. You can help them save money too by suggesting a less expensive restaurant when you do go out. Instead of that pricy lobster place, remark on how much you enjoyed going as a kid to the hot dog stand followed by the dairy isle afterwards. You and your parents can relive the memory and save some money too.

Instead of going out to eat with friends, make a rotation plan where each of your friends and you cook for the gang. If there’s four of you that get together, that’s three free meals for you compared to the one you have to make. You’ll have just as fun conversation at each other’s houses as you would at the restaurant and won’t get the glares from the other patrons.

Work out a trade with a friend. If she’s great at painting, have her paint your kitchen while you in turn remove that pesky virus from her computer and intall the new anti-virus software.

Get tips from your grandparents or other relatives who lived during the depression… or the 70s gas crisis. Find out what they did to conserve (like patching the shower curtain instead of buying a new one, or fixing the toilet themselves instead of calling a plumber) and take it to heart.

It’s okay to ask for a better rate. I know this is one I struggle with myself. If it’s a price I am okay with, I will pay it or I will walk away. Most hotels, airlines, credit card companies, banks, car dealers, even computer/appliance/electronic stores will all work with you on negotiating a better price or rate. You just have to have the guts to ask.

Don’t be afraid to tell them that you are going to go to their competitor to compare prices. Most big chains will honor other chains prices and some (like Sears) will even give you an additional discount. Just bring proof of the price from another store and see what they are willing to do.

Here’s a link to a good article on negotiating prices.

Is your insurance adequate or is it overboard? Schedule an appointment with your insurance agent and meet with him to discuss your car, home and life insurances. By increasing your deductible, it reduces your premium. Consider switching from Full Tort to Limited Tort and you save money there too. I did this recently and cut my insurance premium by almost $400 a year.

Same goes for other monthly bills. Look at your cable bill. Do you really get your money out of having those premium channels? How many movies have you watched on Showtime this month? If you cut out HBO, that could save you $60-$120 a year depending on your cable company.

Of the magazines that you subscribe to, how many did you actually read? The ones you aren’t reading, don’t renew or even better write them and tell them to cancel your subscription. They’ll send you a check for the remaining balance. Also, like Cathibeth mentioned, subscribe to the ones you do read as you will save money over buying each issue as it comes out.

Do you really need that grande mocha latte every morning or could you downsize to the regular size? Just because super-sizing is cheap doesn’t mean you should spend the money for the extra. Better yet, make your coffee or breakfast at home and save bundles.

Look at your phone bill. It may be cheaper for you to use a calling card instead of paying for long distance. Also, do you really need all those perks? When’s the last time you really needed call waiting or three-way calling?

Check your tax withholdings and right-size them. Yes it’s nice to get a big refund, but you could have had that money throughout the year instead of lending it to the government interest-free.

How much cash do you need on hand? Only take out what you need and stock the rest in your interest-bearing account. Plan ahead too so that you don’t have to use a different bank’s ATM and be assessed fees.

If you enjoy movies in a movie theatre, go during their matinee or on their bargain night. Also, eat before you go or bring your own candy with you. Theatres make their profit from the concession sales, not from the tickets. That’s why the prices are so high. It is not illegal to bring your own food with you, no matter what the theatre employees may say. (I work at two theatres, so trust me on this.)

If it’s a movie that you don’t absolutely have to see in the first few months of release, wait for it to come out on DVD or VHS. Most movies are coming out for rental within six months now, and even the cost of a new rental is cheaper than the cost of a movie ticket.

Also, consider using your local library as most now have movies that they rent and they’re free.

While I do admit that Kraft Cheese and Macaroni does taste better than the cheap store brands, it doesn’t taste as good as making it from scratch.

Where possible, consider buying the generic variety if it is of equal quality. This is especially true of medications. You need to check the label to make sure that the active ingredients are the same in the generic and the name brand product. WalMart and Rite-Aid’s generic Nyquil is the same as each other, but Dollar General’s version is not.

Also consider buying used instead of new. There are lots of bargains that can be found at the Salvation Army or other used goods stores. Websites such as half.com or craigslist can help you find lightly used items for a decent price.

While we’re talking used goods, review the items that you have in your home that you haven’t used in six months and then have a yard sale. You may find that there are lots of things that you have never used since you bought them (or received them as gifts) and you could put a nice price on them at your yard sale with the “never used” statement.

If you smoke, then cut out two cigarettes a day. This is doable, and after ten days you’ve saved yourself the price of a pack of cigs.

If you drink, have one fewer drink a night at the bar.

If you eat out too much, eat in one more time a week.

If you eBay too much, commit to going on one less day a week.

By making a small reduction in your vice, you aren’t going to miss it and you wind up saving yourself money.

For non-perishables, instead of waiting until you’re almost out watch the circulars in the paper and buy items you use only when they are on sale for a good price. Yes, you may wind up with a closet full of extra bathroom supplies or things of that nature, but by buying it now on sale you are saving money later.

For many foods, you can buy in bulk. It’s cheaper by ounce to buy the gallon of milk than it is to buy the quart. It’s cheaper to buy the big bag of bulk cereal than the box. It does cost you more money up front, but you don’t have to buy it as often then.