Reasons to Spend Less and Save More
Cheap home living becomes more rewarding when the savings obtained from watching our expenses adds up to money in the bank. There are a number of reasons why starting early with cheap living and a frugal lifestyle will pay greater rewards over time.
Conspicuous consumption and spending today generally doesn’t buy long term contentment. Before anyone spends money or borrows money, they should spend some time contemplating the cost and rewards and whether the money spent will provide commensurate pleasure.
Saving regularly can give us peace of mind. If we knew were living within our means, we are more likely to feel financially content even when it means we are not eating out once a week.
The earlier we start saving, the easier the savings is and the greater the benefits of compound returns. Even for small sums of money compound returns add up significantly given enough time.
By starting saving sooner, there is a greater probability that the money saved will get a larger boost in return from the financial markets. Market average returns are higher when measured over long time periods unless, of course, specific short term high return periods are used.
Saving is a bargain compared with spending, especially if the savings is placed in a 401K or IRA. Every dollar we earn and spend will be taxed so we may end up with 60 or 70 cents worth of merchandise that eventually depreciates to nothing or close to it. Every dollar that is saved and invested in a 401 k plan or retirement plan grows tax differed. Any matching contribution a saver may get from their employer just increases the return substantially.
The tax code is definitely stacked in favor of savers. A slew of tax favored accounts exist 401k plans, Roth IRAs, 529 college savings plans, and more. Investors that invest through a regular taxable account can also take advantage of the low federal tax rate on qualified dividends and long term capital gains.
Becoming a big saver doesn’t take huge sacrifices. Often increasing savings requires a little attention to where the money goes and attention to where the best purchases for products and services can be made. Less waste can often be the simplest path to quick and easy savings.
In the long run, diligent savers will need smaller retirement nest eggs. A good life of maximizing resources while avoiding waste will help build a bigger savings portfolio and generally need less money to retire because they are accustomed to living less expensively.
Common Reasons Why People Fail to Save
There are always a number of reasons why people fail to save money. The causes will be as varied as the different financial position people will be in at any point in time, but some of the reasons for failure have a common component for a number of consumers.
The most common reason for failure to save is the inability to establish a plan and work on savings goals. Just to be aware of the need to save is hardly going to put a dent in a savings plan. Awareness is a first step, but success in saving money and resources requires attention to detail to some degree. For some consumers, attention to detail may be quite refined while for others it may entail a budget with a range of options. In either case, the lack of a plan almost always results in failure to execute a behavioral change that leads to savings.
Along with the clear lack of a savings plan, procrastination and the lack of follow through fall close behind. The longer someone waits, the less time they have to take advantage of debt reduction opportunities, savings on expenses and compounding returns on financial savings. Follow through also involves developing a winning attitude. The foresight to see that a plan in motion is established to save will work and accomplish a goal is a key element to success.
A third recurring theme in failure to save is the unwise use of credit. Poor use of credit will often lead to high interest charges and costs and can also frequently lead to unnecessary consumption. Managing credit properly is a pillar in saving for financial rewards.
Inadequate emergency preparedness for the unexpected is on the list of barriers to savings. Without the steps towards acquiring adequate reserves, any savings action plan can become severely constrained and can get sidetracked resulting in even greater money troubles.
A final problem with maintaining a savings plan and goal is the inability to fully understand the value of money. Without a full appreciation of the value in compound savings and the rate of return from the accumulation of frequent small savings, it’s difficult to find the right motivation to save and reap the rewards that come with a good savings plan.
Trying to save without a clear plan and assistance makes it a difficult and arduous choir. Savings money and resources doesn’t have to be arduous and to make it easy, consumers should not try and do it alone. The first step is to get involved and become educated regarding the resources that are available to help save and enjoy what is available whether your net worth is way up on top or just struggling to stay positive.
Savings involves financial rewards and psychological rewards. Psychological benefits may entail living a better life with less conspicuous consumption or saving by reducing the impact on the environment. Whatever the objective, obtaining and developing a plan is a good start.
Composting Saves Money and Resources
Composting is a great way to save some money while helping the environment. The biggest savings with composting is the saving it does for the environment, but composting also helps save on fertilizer costs for outdoor gardening and indoor plants as well as saves on the cost of removal or disposal of organic waste. By reducing food waste that is carted off to the local landfill, consumers can to help the environment and save money.
Composting is an effective way to reduce waste and recycle organic matter. Creating compost involves the natural process of decomposing plant remains and other once living or organic material. Compost is simply an assortment of organic matter that is commonly used for fertilizer since it very high in nutrients needed for plant growth. Decomposition occurs naturally anywhere plants grow but is not terribly efficient or effective in landfills with organic waste created by us.
Composting is a natural form of recycling. Compost is produced by a process in which microbes decompose the organic matter such as food scraps and plants into an organic fertilizer. Naturally occurring microbes are the primary agents for degradation of organic material that results in compost whether the compost is happening naturally on the forest floor on in a backyard compost bin. The compost can be used to enrich soil, provide plant nutrients, or help with natural erosion similar to mulch use.
By creating compost at home, consumers are making their own natural fertilizer and mulch and help alleviate the stuffed landfills. Yard trimmings along with some residual food waste can be thrown into a compost bin and this very same material accounts for roughly 25 percent of the solid waste we dispose of.
Composting can takes many different forms, from simple and inexpensive backyard composting methods to more expensive and high tech methods of composting. All organic material will eventually decompose. The speed at which it decomposes can depend on the temperature, moisture content, oxygen content, surface area and the mix of carbon and nitrogen in the material. Composting can vary in its complexity on how the material is manged and controlled as well as in the range of organic materials that can be recovered.
Here is a simple list of some of the items that can be placed in a compost bin:
Yard trimmings, wood chips, tea bags, leaves, houseplants, hair and fur, fruits and vegetables, coffee grounds and filters, eggshells, nut shells, sawdust, grass clippings, fireplace ashes, shredded newspaper, cotton rags, hay and straw.
Here is a list of some of the items that should not be placed in a compost bin:
Pet wastes, dairy products, fats, grease, lard, or oils, meat or fish bones and scraps ( mostly because they attract pests ), yard waste that is treated with chemical pesticides, diseased or insect-ridden plants.
There are a number of options for making and containing compost. Some people go with a simple binless compost pile on the ground, some people build compost bins from lumber or barrels and more and more consumers are buying commercial compost bins because of their ascetics and added features.
Finished compost can be applied to lawns and gardens to help condition the soil and replenish nutrients. Depending on the contents of the compost, the compost may or may not be used as potting soil for houseplants because of the possible presence of weed and grass seeds.
There are several different reasons why composting is a great, cheap environmentally friendly activity. Yard and food wastes contribute to the waste stream in landfills. The waste that is sent to landfills cost money to transport and dispose of can often be useful and environmentally beneficial compost instead. Composting therefor offers the benefits of resource efficiency as well as creating a useful product from organic waste that would otherwise have been wasted and is absolutely free to create. Cheap home living that saves money and helps the environment, another win – win.
Family Activities for Cheap Home Living
Choosing entertaining and fun activities doesn’t have to cost tons of money. One of the greatest benefits of cheap home living is dedicating more time to friends and family and less time chasing activities that involve conspicuous consumption and unnecessary financial expenditures.
It can be very rewarding to spend more time with friends and families with inexpensive activities that involve more interaction. In order to be prepared for short term outings and activities it is helpful to have some ideas in advance so when the time comes you can be ready to engage your family and / or friends. When preparing a list of low cost activities and entertainment it is good idea to get helpful ideas from family members too.
Some great ways to enjoy time together without spending large sums of money can include:
Visit the local library to see their selections of videos, books, and programs. With the number of new libraries that has been constructed recently, the services and selections will surprise many visitors regarding books, movies and activities that take place at the library.
Visit the local museums on free days or days with reduced rates. Many big city museums and zoos have reduced rates or free admission on select days. In Chicago, the Art Institute is free on Thursday afternoons and the Zoo is free on Thursdays during certain times of the year. The kids love both outings and since the price is right we don’t feel obligated to stay and see all the attractions in one visit.
Cook a family barbecue or family dinner together. Have fun, make something special or creative. When possible, add a little science and education to the process to help show how various ingredients react during the cooking process. When cooking and especially when experimenting with cooking at home, failure can be as much fun as a gourmet meal.
Play outdoor games that involve the whole family. Or, take indoor games out. My children like chess, Pass the Bomb, Stratego and other games that we often play indoors and out. It always appears as though the outdoor version is more entertaining. So entertaining in fact, that we often play chess well into the fall bundled up on the deck.
Read the local newspapers to see what activities in the community are available. Activities that may include planned community events, educational seminars or plays. With some educational seminars, my wife and I have sometimes bribed the children with a promise of ice cream or some other treat after the event. With the use of coupons, the treats are relatively inexpensive, the family learns together and just to help the project along we will get material on the subject of the seminar in advance to help prepare for what we are going to experience.
Work on new craft projects together. Crafts can range from beading necklaces and bracelets to building a bird house. My wife loves bead projects, hers can be expensive, but cheap material is readily available at local craft stores. The children love learning, creating and producing something for themselves.
Plant a small vegetable garden or flower garden outdoors or indoors. Planting indoors can involve a little more work to make sure the plants get enough light and space but plants provide a great deal of beneficial properties when grown indoors. Of course, vegetable gardens have the added benefit of yielding a low cost food source. Using artificial grow lights indoors can be an added fun and educational component but can add costs as well.
Spend some time volunteering or doing charity work. Local housing organizations and shelters can almost always use some extra hands. Charity work may not quite be on the top of the to do list for fun activities but it is cheap to do and psychological rewarding.
Saving Money on Groceries by Comparing Unit Prices
To make sure you save money at the grocery store, comparing unit costs is a fundamental practice that needs to be adhered to. Whether you are buying brand name products or generic grocery items or whether you are buying in bulk or not, the unit price of the goods being purchased is a key measure to ensure you are saving money.
By comparing and saving based on the unit price you can save money even if you don’t have a coupon for select products. While in many instances, buying the larger size may be better or using a manufacturer’s coupon or store coupon appears like a good deal, this is certainly not the case every time.
When products are sold in different quantities or in different packages of the same size but actually holding different quantities it can be difficult to evaluate the best deal. A coupon can actually make the decision more difficult if the larger quantity is measurably cheaper per unit. Don’t be bamboozled by the creative packaging of food manufacturers and distributors either, just because two products appear to be the same size, does not mean that they are.
The unit price is a measure of the product cost f the item per ounce, quart, gallon, pound, or any other unit of measure. The unit price displays the cost of one unit, such as an ounce of that product. The unit price can be found on the product labels or on the shelf under the package display.
Of course it is best to compare the unit cost of products that are the same but if the products are similar substitutes or generic versus a brand name or even one product after a coupon reduction and one without, the unit cost should still be the primary decision making tool. Unit prices can also be used to compare different types of a food product such as dried and canned foods or fresh foods. Preference will clearly play a big role when comparisons like this are made.
Some brands cost less than others but will change their pricing frequently so check brand prices and coupons weekly because prices may change. Choosing the food that has the lowest price per unit costs will save money. By shopping and comparing the unit prices, you can make your purchase decision for the grocery item that offers the greatest value.
Save Money by Saving on Packaging Costs
Choosing products with less packaging can save on costs, storage and waste. By buying items with less packaging you will also reduce the environmental impact produced by disposing of the excess packaging and the cost and waste employed by the manufacturer to create the packaging.
Almost everything we buy seems to come with lots of packaging. Of the million tons of garbage we throw out each year, one of the largest components of waste is the containers and the packaging of the products. By choosing products that use less packaging and recyclable packaging, every one can make a big impact on the environment while cutting costs.
Finding the products you want without all the excess packaging can be difficult especially among food manufacturers who are constantly looking for new ways to persuade you to spend more money on their products with small inviting packages. But these convenient packages use more energy to create the smaller containers that are produced in larger quantities and generate more waste.
Always try to evaluate a product’s packaging, pay attention to the way you use the product and the resources before you purchase the item the way it is presented to you. Choose products with less packaging or recyclable packaging when you can.
Try using reusable shopping bags for grocery shopping. Paper bags and plastic bags are not good for the environment since there production consumes energy and produces waste and any bags not recycled further contribute to waste.
Always reuse packaging when possible. Boxes and packing can often be reused for storage or shipping but containers such as coffee or resealable food bins can be great for storage as well.
One of the best ways to minimize packaging is to buy in bulk. Buy in bulk at stores that specialize in large quantity items and use bulk food stations at grocery stores that offer the service. Wholesale retailers like Costco and Sam’s Club sell products in large quantity packs. These bulk purchases use less packaging and waste and can often be purchased at a significantly reduced per item cost. Purchases of large boxes of your favorite foods or household items can easily be divided into small quantities at home.
When you have the option to choose recyclable packaging and by all means make sure you recycle them.
How you buy products makes a big difference when it comes to reducing waste and greenhouse gas emissions used to make the packaging. How you choose the packaged products to buy will also frequently cuts costs at the same time.
Smarter shopping that saves the environment and saves money.
The Best Coupon Web Sites
More and more people are hearing about using coupons to cut expenses and save money. There is little debate that coupon clipping in whatever form is a big money saver. Contrary to what the frugal shopper may think, coupon redemptions are used by only a very small segment of the population. That’s right, though we may read about how to save money with coupons, the number of consumers that actually do is surprisingly low.
Although the use of coupons has been around for years and more media attention appears to focus on the value of coupon use, in recent years the number of coupons redeemed has declined by a significant amount. Coupons that are obtained online are easy to use and find and seem like an easy tool to save more money, yet these coupons account for less than 5% of all coupons offered nationwide. Online coupon clippers are increasing in numbers with statistics indicating redemptions climbing but not near the figures one would expect based on the value they present.
While more people, recently are discovering how much they can save on a wide variety of items by using coupons many are not aware of just how much they can save and how easy it can be to find coupons on the Internet. There is a slew of web sites offering coupons as well as online money saving promotions. Unfortunately, it can be a little confusing to separate the good deals from the lemons and those that just waste your time with deals of limited value.
Numerous web sites have popped up that list coupon codes and produce printable coupons. Some of the coupon websites contain different types of coupons from a range of retailers and the coupons can be printed from the website to be used directly at the store check out. Coupon sites include both store coupons and manufacturer’s coupons. The best money savings deals often involve using both the manufacturer’s coupon and a store coupon on the same item and double your savings. Most stores will accept manufacturers’ coupons along with nay store coupon because the company printing the coupons will reimburse them for the discount.
Coupon codes that are displayed on some of these sites should also be considered. The coupon codes or discount codes are more frequently used for larger purchase amounts. These coupon codes are used mostly for online purchases and can be for a single item or based on the total purchase amount. Coupon codes often have more restrictions and therefore should be read carefully before they are used.
Here is a list of some of the best coupon sites on the Internet for the frugal shopper.
Savings.com
Coupons.com
Smartsource.com
Coolsavings
Save.com
Couponcabin.com
Most all of these sites listed, provide effective and efficient means to obtain online coupons and discounts and have well presented information. There are certainly more coupon sites to search but many have limited information or are difficult to navigate. Some of the sites display only grocery store coupons and other sites have coupons and savings for a variety of categories.
Saving Money and Water with Rain Barrels
Saving money and saving the environment is always a good notion. Conserving water with rain barrels is one of those win-win good notions that will save money as well as the environment.
Rain barrels are a great way to collect and store rain runoff from your roof that would otherwise be lost to runoff and diverted to storm drains, streams, rivers, etc… Water captured in rain barrels is a free source of water for watering gardens and lawns and of course has the added advantage of helping the environment.
The model behind the use of rain barrels is quite simple, the more water we are able to conserve the more money we save from municipal water and sewer charges while helping save the environment by not using treated water for our lawns, gardens or other outside uses.
Utilizing the natural water which is free of chemicals such as fluoride, chlorine and other additives found in our household water saves the environment from the treated water and the treatment process and is also healthier for plants and gardens. By collecting rainwater, you can reduce the load on your local water treatment facilities.
Use of rain barrels utilizes a natural process that reduces the burden on our existing infrastructure. Using rain water will reduce your water bill whether you have a municipal water supply that charges by the gallon used or a well that has a pump needed to draw the water. In addition, a number of municipalities have separate sewer charges that are based on the amount of water consumed. For homeowners that have sump pumps in their basement, the rain barrel has another plus since they are collecting water that would normally seep into the ground next to the foundation.
Rain barrels are generally inexpensive and are practical way to save money. Reducing environmental impact is just an added bonus.
Rain barrels can be purchased from many garden catalogs or you can make your own following directions found on a number of web sites. Rain barrels operate pretty much trouble free.
Whether you construct your own rain barrel or you purchase one, make sure it is securely covered, securely set and accessible for cleaning. Most all rain barrels can sit conveniently under any residential gutter down spout. The rain barrels should be installed at or near ground level, on a level surface to prevent tipping when the barrel is full. Don’t position the rain barrel near stairs or structures that would pose a danger for the area.
Make sure the rain barrel has a screen for water collection and the barrel should be slightly elevated off the ground to allow gravity feed when it is in use. The water should be used or drained regularly to reduce the risk of mosquitoes or contamination.
Rain barrels are becoming very popular in rural and urban areas mostly for environmental reasons but the costs savings these products bring should make them even more widely adopted by those who like cheap home living.
Natural Home Cleaners, Safe and Less Expensive
Becoming a green consumer has been a growing trend over the past few years. Fortunately for those who also enjoy cheap home living, going green and saving money can go hand in hand. One such aspect of home life that can be green and inexpensive is household cleaning products.
Many consumers are trying to help the environment by buying eco-friendly cleaners at the local home improvement store or super market. These household cleaners are generally made with a greater concentration of natural, nontoxic, and biodegradable ingredients. Sales of these natural cleaning products have rapidly rising sales year to year. Unfortunately, these products are unregulated which means their true environmentally friendly value is hard to assess and they are costly.
The best solution to go green with cleaning supplies and save money is to revert back the natural ingredients and make your own cleaning supplies. You will find that even the dirtiest of cleaning tasks can be handled effectively with just baking soda, vinegar, borax, lemon juice and more. The ingredients are far cheaper than premixed or manufactured compounds and they save money and help the environment with a far greater impact.
For many home cleaning tasks, natural cleaners can be made right at home with these easy to find natural ingredients. You can make your own cleaning products right at home on the cheap. And while you will spend a lot less money to make these cleaning supplies you also reduce the waste that is an inherent part of prepackaged goods.
Non toxic and environmentally friendly cleaning compounds are good for the overall health of the environment and are also safer to use in the home. But be somewhat cautious about these ingredients, just because they are natural that does not mean it is automatically safe to use everywhere and on any item or service.
The following is a list of common basic ingredients for making cleaning supplies at home.
Baking Soda – Baking soda has been using as cleaning agent for years. It cleans, absorbs odors and deodorizes, softens water which helps cleaning and is good for scouring. Baking soda is a naturally occurring material but is also produced artificially. It has a slightly alkaline and resembles washing soda. It is inexpensive, environmentally friendly and safe for nearly all surfaces, making it ideal for household use.
Borax – Borax is used for general cleaning, deodorizing, disinfecting and can be used to soften water. Borax is also known as sodium borate or sodium tetraborate and is a naturally occurring alkaline mineral. Borax is gentler than most chemical cleaning compounds and is not particularly toxic but it can cause skin reactions
White Vinegar – Common white vinegar is a versatile cleaner. It is especially useful for dissolving dirt cutting through grease, removing stains, mildew and odors. White vinegar is a mild acid, which makes it gentle enough to use in common household cleaning for most surfaces. Do not use vinegar on marble surfaces.
Washing Soda – Washing soda is good for cutting through grease, removing stains, cleaning wall, tiles, sinks and tubs it can also neutralizes odors in the same way that baking soda does. Washing soda is a crystalline form of sodium carbonate. Washing soda is chemically similar to baking soda but is more strongly alkaline. Do not use it on fiberglass or aluminum.
Lemon – Lemons and lemon juice work as a mild but effective cleaner and deodorizer. Lemons are very acidic. Lemon juice can be used to remove dirt and grime, used as degreaser, dissolve soap scum and hard water deposits as well as fight bacteria.
These basic natural cleaning compounds can be used for a variety of home cleaning tasks and can be used in combinations for more thorough cleaning. The following formulas are combinations of these ingredients to make different, inexpensive and eco-friendly home cleaning products:
General Purpose Cleaner: Start with two quarts of water and mix in 1/2 cup vinegar, 1/4 cup baking soda and a touch of lemon juice. This cleaner can be used for removal of dirt and grease, water deposit stains, cleaning bathroom fixtures, windows, mirrors and similar uses.
General Disinfectant: Start with one quart of water and mix in ¼ cup of borax and approximately 2 tablespoons of vinegar.
Drain Cleaner: Start with 2 cups of water and mix 1/4 cup baking soda and heat the mixture until warm but not boiling and pour down the drain. For added strength a 1/4 cup of vinegar can be added to the mix. After about 20 minutes, pour a quart of boiling water to clear the pipes.
Window Cleaner: Start with one quart of water and mix in 2 teaspoons of white vinegar.
Toilet Bowl Cleaner: Pour 1/4 cup baking soda and a ¼ cup vinegar directly into the toilet bowl and let it set for a few minutes. Clean the bowl with a standard brush or sponge and rinse.
Mold and Mildew Cleaner: Mix white vinegar or lemon juice with very little water and pour into a spray bottle to spray directly on moldy area, let it sit without rinsing. After 30 minutes it can be gently wiped to remove any residue.
These simple combinations of products from your kitchen or grocery store make effective household cleaning solutions. These natural products will not only do a great job but are more environmentally friendly than chemical alternatives. In most all of these combinations, the cleaning product is also far less expensive than the commercial products designed for the same tasks.