Cost Savings Strategies

[sk9tingfan]

Thought I would start a list of suggestions that might help in the era of upcoming austerity. I've been perusing all kinds of sources). All helpful suggestions are welcome:

• Track all spending and see where your money goes on a monthly basis
• Turn off all unused lights when you leave the room
• Unplug all unused appliances until you use them
• Try to renegotiate all cable/phone bills. Bundle your cable/internet/phone packages
• Buy generic groceries
• Coupon. Only buy weekly shopping deals if possible.
• Buy generic drugs if possible. Save on co-pays
• Opt for store brand OTC drugs
• Eat at home; cook more
• Take your lunch to work
• Reduce your portion sizes
• Opt for a simpler phone. Subscribe to a cheaper cell phone plan.
• Cancel unused app and magazine subscriptions
• Brew your morning coffee at home
• When eating out, opt for water in lieu of more expensive drinks. Don't order desserts which are relatively expensive
• Use cash instead of credit cards unless you can afford to pay them off at the end the pay period
• Only do full loads of wash. Only full dishwashers
• Don't run the water continuously. Rinse dishes briefly and scrub; then briefly rinse
• Don't use hot water for your washes unless absolutely necessary
• Schedule telemedicine visits whenever possible
• If possible, trade in your gas guzzler for a smaller car with better mileage
• Trade your current car for a hybrid
• Use electronic banking
• Pay off your credit cards
• Refinance your mortgage
• Enroll in cash back program- Stock up on household supplies only on sales
• Wait for Prime Day sales. Reduce impulse purchases.
• Refinance your autoloan
• Get competitive quotes for auto insurance. Bundle home and auto policies.
• Get free debt counseling
• Analyze your HRA strategies and deposits to minimize OOP costs
• Stop smoking or vaping
• Weatherize your home. Opt for a free energy audit from your utility company.
• Double recipes and freeze
• Maintain a 6 month emergency fund
• Automatically und your IRA from your paycheck. For now reduce the riskiness of your plan selections
• Go to your public library. Buy used books.
• Go to consignment or used item stores

 

[Garden Kitty]

One of my friends used to have a "Clothes Trade" party. She'd invite a group of women over for wine and snacks and each woman would bring clothes that no longer fit them or that they didn't wear for whatever reason, and then the women would trade for "new to them" outfits. They all had fun trying on the clothes and making new outfits for no cost.

 

[MacMadame]

Lately, I've been following Ramit Sethi of "I will Teach you to be Rich" fame. I agree with him that budgeting doesn't work for most people and also that trying to save money on little things doesn't make a big difference. Instead, he advocates figuring out what things matter to you and spending on those and stop spending on things that you don't care too much about.

So if your daily Starbucks gives you life, keep getting it. But if it's just a habit and you'd actually enjoy making your own coffee in the morning more, do that. In the meantime, pay yourself first by putting money into retirement and savings automatically so it never even hits your checking account. And pay off your credit cards every month without fail.

I was doing the "pay yourself first" for my last 5 years of working. It really, really works! Now I just have to get the "pay off your credit cards every month" part down.

 

[once_upon]

Just an FYI - because it shocked me. Sometimes the generic drug is not part of your prescription formulary and you are responsible for most of not all of the prescription price.

Breo (brand name) is in the Medicare pharmacy while the generic is not. Our insurance broker could not tell me why that would be

****
Sure little things add up, but honestly I can not see myself unplugging all devices not in use. For example - my TV. Climbing behind the dresser in our bedroom to unplug the TV and Roku devices is an cardio workout. Just to plug them back in 4 hours later, waiting 10 minutes for everything to reset.

Stocking up on household goods - works if you have space. Buying meats or other items that expire in bulk, only works if you have freezer space. Same with double recipes and freeze or refrigerate only works if you have space

 

[sk9tingfan]

More:

• Install reduced water flow equipment on your showers etc. to reduce water consumption
• Take your gently/unused clothing to consignment
• Have a tag sale

Just an FYI - because it shocked me. Sometimes the generic drug is not part of your prescription formulary and you are responsible for most of not all of the prescription price.

Breo (brand name) is in the Medicare pharmacy while the generic is not. Our insurance broker could not tell me why that would be

****
Sure little things add up, but honestly I can not see myself unplugging all devices not in use. For example - my TV. Climbing behind the dresser in our bedroom to unplug the TV and Roku devices is an cardio workout. Just to plug them back in 4 hours later, waiting 10 minutes for everything to reset.

Stocking up on household goods - works if you have space. Buying meats or other items that expire in bulk, only works if you have freezer space. Same with double recipes and freeze or refrigerate only works if you have space

As a single person, often I can't buy in bulk before it spoils or is outdated, so it's a pick and choose.

BTW. I always unplug my toaster, microwave and lamps whose rooms often do not get used.

 

[sk8pics]

One thing that I started doing was paying attention to prices at my usual supermarkets. So Aldi is way cheaper than Acme on most things, but of course you never know what they’ll have. So I go there first and if they don’t have something I need, I’ll go to Acme, or maybe Target depending on what it is. Target has good prices on the cereals I eat and also on Fancy Feast cat food.

Little things do add up, and can make a big difference. I think when you pay attention to little things it focuses your attention on bigger things you maybe able to do.

 

[sk8pics]

More:

• Install reduced water flow equipment on your showers etc. to reduce water consumption

You have to be careful about this because you can have some leakage inside the walls. I had this problem in my first house, which the builder had used a constrictor or something similar on the shower, and the shower line started leaking inside the wall.

• As a single person, often I can't buy in bulk before it spoils or is outdated, so it's a pick and choose.

 

[Skate Talker]

You have to be careful about this because you can have some leakage inside the walls. I had this problem in my first house, which the builder had used a constrictor or something similar on the shower, and the shower line started leaking inside the wall.

That sounds a bit strange to me. After all, when any tap is turned off the water is completely constricted and the pressure on the pipes inside the walls should be more than when partially opened- no? And one also opens a tap only partially so I'm not sure how that's really different from the flow constrictor. But then perhaps I just don't understand or maybe you are talking about some device inside the wall as opposed to a special shower head or device on the end of the faucet?

 

[once_upon]

BTW. I always unplug my toaster, microwave and lamps whose rooms often do not get used.

This just proves you pick and choose what is doable and what isn't as doable. I can unplug my toaster - that's easy.

Unplugging my microwave? That requires me to climb up on the kitchen counter, take out the contents of the cupboard above the MW, removing the false wall to get to the plug outlet.

Most of our lighting is through the installed light switches. We change light bulbs to more energy efficient. We have room lights that turn on or turn off when entering or leaving a room.

I'm sure there are plenty of small things I could do. I weigh the savings vs what is required for me to accomplish that.

I used to work with a couple of nurses who talked generic vs name brand food savings. They both said, there were 2 products they would always by name brand. Kraft Mac and Cheese was one, Pop Tarts was another one.

I'm sure I'll be looking for cost savings in the next year. We made changes to our Medicare Medi-Gap and our Part D prescription plans. Similar if not equal coverage. Over $1600 savings.

I'm pushing for cashing out our life insurance policies. Which is another chunk of money.

I'm tending to look at the big savings. Putting that money into an investment account.

 

[moebius]

I only buy 2nd hand clothing which is not very often b/c I wear them until it becomes unwearable. I don't care if I don't keep up with the latest fashion. Plus it's good for the environment.

I also buy bargain produce which are past their prime for a fraction of the cost. For example I bought 4 lbs of organic apples for $2.39 (last year it was only 99 cents, but due to inflation prices have gone up). Sometimes the fruits are bruised (still okay to eat as long as it's not mold) and other times they are in pretty good condition. It can be a hit or miss. The best deal I have gotten was 4 lbs of organic avocados for $1.39. Its a great way to buy organic produce for cheap. Plus it's good for the environment b/c instead of getting thrown away, they end up feeding more people.

I also buy 50% off on organic prepared foods which expire on the same day.

 

[sk9tingfan]

This just proves you pick and choose what is doable and what isn't as doable. I can unplug my toaster - that's easy.

Unplugging my microwave? That requires me to climb up on the kitchen counter, take out the contents of the cupboard above the MW, removing the false wall to get to the plug outlet.

Most of our lighting is through the installed light switches. We change light bulbs to more energy efficient. We have room lights that turn on or turn off when entering or leaving a room.

I'm sure there are plenty of small things I could do. I weigh the savings vs what is required for me to accomplish that.

I used to work with a couple of nurses who talked generic vs name brand food savings. They both said, there were 2 products they would always by name brand. Kraft Mac and Cheese was one, Pop Tarts was another one.

I'm sure I'll be looking for cost savings in the next year. We made changes to our Medicare Medi-Gap and our Part D prescription plans. Similar if not equal coverage. Over $1600 savings.

I'm pushing for cashing out our life insurance policies. Which is another chunk of money.

I'm tending to look at the big savings. Putting that money into an investment account.

I never opted for a built in microwave when my house was built 20 years ago. Also had to replace my heating/cooling system last year and my boiler(phew). Glad i did it last year so my vendor cut me a deal. I am resisting the need to get new windows because they are so expensive. My heating and cooling are probably spewing out my energy-inefficient ones...

 

[once_upon]

Do what you need to do.

 

[Simone411]

Don't use you lamps or lights during the day if you have several windows in your home. Open the curtains and let that natural light in. You'll save on your electric bill. Keep your central heating whether it's gas or electric around 68 degrees.

Also, consider shopping at Dollar General if you have the store where you live. Their name brand products which is Clover Valley are much cheaper, and I've found that I like several of the name brand products. You can also purchase eggs, milk and some vegetables like tomatoes there. They have several products that you would find in grocery stores. They have refrigerated section with several frozen foods, etc. You can also find special sales items every week. If you're on a budget, it definitely helps with that.

 

[manhn]

Pretty much every newly condo building installs a built-in microwave, normally above the oven. I also use the microwave as my clock.

 

[made_in_canada]

Getting a “smart” thermostat has saved us a chunk of money on utility bills.

 

[barbk]

When we were focused on getting our house paid off, we started using YNAB (You Need A Budget). The current version has a lot of mobile support, but I still rely on the web-based version. It does cost, but they have a free trial. Until I started tracking what we were spending, I didn't realize how many things (like unneeded subscriptions) were being auto-billed until I looked at each transaction. It also gave me an incentive to evaluate insurance costs, and rein in our eating out costs. Incorporating a sinking fund for major annual expenses (like taxes, insurance, health insurance deductibles, car maintenance/repairs) also helped me understand that accumulating some of this money each month avoided nasty surprises down the line.

...and from a lot of years working with parents with kids heading to college and wondering how to pay for that...most families have a very poor understanding of what they are actually spending.

 

[sk8pics]

That sounds a bit strange to me. After all, when any tap is turned off the water is completely constricted and the pressure on the pipes inside the walls should be more than when partially opened- no? And one also opens a tap only partially so I'm not sure how that's really different from the flow constrictor. But then perhaps I just don't understand or maybe you are talking about some device inside the wall as opposed to a special shower head or device on the end of the faucet?

Yeah, it leaked inside the wall. Basically, the pipe running up along the shower wall was not all one piece all the way to the shower head. There was a pipe that ran from the shower head down to the piece that came up from the floor. That was not welded or anything. Then a constrictor in the shower head (I forget exactly where it was) caused some higher water pressure than otherwise would have been experienced, and that point where the two pipes met started leaking. The plumber took the constrictor out, maybe put some tape on the connection point though I can’t quite remember if he did, but then I never had another problem.

 

[Aussie Willy]

I only buy 2nd hand clothing which is not very often b/c I wear them until it becomes unwearable. I don't care if I don't keep up with the latest fashion. Plus it's good for the environment.

I do clothing repairs and alterations as a side hustle.

I will spend a lot of money on an item of clothing but I wear it to death.

 

[my little pony]

if we are indeed in the last act of Cabaret, I too want to go like Elsie

 

[once_upon]

I think we can assess our needs for OTC meds.

Sure the cough syrup, the Tylenol, the Advil, the DayQuil or NyQuil, or Benadryl, or Salon Pas make life bearable during illnesses. But it might not be necessary.

I know I've thought about - medications that make some things bearable. But will I truly need to survive?

 

[PRlady]

We save so much money by cooking dinner at home and meeting friends for lunch or coffee. Food prices are high but nice restaurants are ridiculous.

Paid off the car and now have no debt but mortgage (at such a low rate it doesn’t make sense to pay off. ) pay off credit cards every month 90% of the time, got a new Cap One credit card that doubles the points and it’s 5x the points on travel.

Wasted money: airline bookings where either our plans change or something else, like a war, cancels flights. We always book with changeable flights now. And expensive cat food His Cooperness often refuses to eat. My clothing and cosmetics etc cost about 30% of what I spent when I was working.

 

[Colleen]

Best advice I got was to figure out what you were spending money on, then decide what you can cut back on. I had no patience for a budget etc but agreed to a system of envelopes - including one for random purchases and I saved every receipt and stuck them in the appropriate envelope. This was twenty some years ago when online shopping wasn't as prevalent so maybe some sort of virtual system would work better now for most people. The key is to track every penny of spending and categorize it. Then figure out what you can cut. For me it was eating out and impromptu shopping trips where I bought clothes and shoes that I might or might not actually wear and that might or might not go with anything else in my closet, resulting in more purchases. Figuring out a 'pay yourself first' system and putting money into a retirement fund automatically rather than thinking you'll do it some day when you have money.

As I get older, I buy less and less 'stuff'. Clearing out my parents' stuff after they passed on taught me that it's all just crap to the poor person who has that job. Stuff they thought was treasures went into a donate pile or into a garbage bin as time went on.

I read that they are three phases to life - wanting the things, acquiring the things and getting rid of the things. I wish I had bought less of the things and spent that money on travel. Those memories are gold!

 

[Aussie Willy]

Best advice I got was to figure out what you were spending money on, then decide what you can cut back on. I had no patience for a budget etc but agreed to a system of envelopes - including one for random purchases and I saved every receipt and stuck them in the appropriate envelope. This was twenty some years ago when online shopping wasn't as prevalent so maybe some sort of virtual system would work better now for most people. The key is to track every penny of spending and categorize it. Then figure out what you can cut. For me it was eating out and impromptu shopping trips where I bought clothes and shoes that I might or might not actually wear and that might or might not go with anything else in my closet, resulting in more purchases. Figuring out a 'pay yourself first' system and putting money into a retirement fund automatically rather than thinking you'll do it some day when you have money.

As I get older, I buy less and less 'stuff'. Clearing out my parents' stuff after they passed on taught me that it's all just crap to the poor person who has that job. Stuff they thought was treasures went into a donate pile or into a garbage bin as time went on.

I read that they are three phases to life - wanting the things, acquiring the things and getting rid of the things. I wish I had bought less of the things and spent that money on travel. Those memories are gold!

Great post. Very practical.

 

[Evgeniafan]

Food is the biggest cost now. Eat at home more, when you go out only order what you will eat. I quit the coffee on the way to work years ago and its not just the cost, but the long lines mean you leave for work earlier.

 

[PRlady]

Food is the biggest cost now. Eat at home more, when you go out only order what you will eat. I quit the coffee on the way to work years ago and its not just the cost, but the long lines mean you leave for work earlier.

The last time I worked in an office regularly pre-COVID, lunch was up to $12 a day for a good salad or sandwich. It must be significantly more now in the big cities.

The delivery fees on Door Dash etc are ridiculous, so if you can’t cook at least pick up the food yourself if at all possible.

BTW at least initially you spend more, not less, in retirement. Travel, theater, music, classes - what you save on eating lunch and work clothes goes to doing stuff that costs money.

 

[Private Citizen]

The last time I worked in an office regularly pre-COVID, lunch was up to $12 a day for a good salad or sandwich. It must be significantly more now in the big cities.

When I go to the office in NYC, I need to budget on $20 for lunch from a salad place or similar, and that's without a side or a drink. In San Francisco, same thing. Even a food truck will cost between $15 and $20 for just the meal.

London isn't quite as bad, yet - a lot of the mini-supermarkets still have meal deals for £5-6, although it's typically less food than you'd get in the US. Sandwiches at the likes of Pret have doubled in price, but are still £6 or so. I never brought lunch before the pandemic, but now always do.

BTW at least initially you spend more, not less, in retirement. Travel, theater, music, classes - what you save on eating lunch and work clothes goes to doing stuff that costs money.

"Conventional wisdom" says post-retirement spending is 80% of pre-retirement spending, but actual data says a significant portion of people spend 100% or more for the exactly the reasons you mention. With more time on your hands, you're often spending more money in that time. God bless the people who have hobbies and interests that don't cost money, but that isn't the majority of people.

 

[emason]

The first retirement shock to me was how much more toilet paper I had to buy every week now that I wasn’t in an office all day long. My budget took a hit very quickly.

 

[once_upon]

I look at all the cleaning products in my cleaning cabinets. Most everything could be replaced with vinegar or baking soda or bleach.

 

[LilJen]

Reevaluate your life insurance. If you are married, your kids are grown, and your spouse is gainfully employed and can continue on if you die (or vice versa) you probably don’t need it. Single? Might wanna get a small policy that pays your burial costs. Don’t buy whole life. Buy term plans. Much cheaper and better payout should the worst happen. (Yeah, I work in hospice so I think about death planning more often than most.)

Don’t buy more car than you can afford. Ideally pay cash. Get rid of unnecessarily expensive and huge vehicles that may impress your neighbors but are a huge drain on your budget.

Cooking at home is substantially cheaper. Make enough for leftovers that you can freeze and eat later.

 

[MacMadame]

Don’t buy more car than you can afford. I

Or maybe don't buy one at all. If you WFH a lot, it might be cheaper not to have one and use a combination of ride-share and public transportation depending on where you live. This is especially true if you are part of a couple who both WFH and/or are retired and you can share one car.