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Financial freedom. What a cool concept.
However, getting there is not an easy task. It is never easy to increase your own personal wealth, except when you already a considerable amount of money.
There are multiple ways of “increasing one’s wealth”. You can look at it using a simple math formula:
In – out = availlable
That means that you can:
- Increase the amount of money that comes in; and
- Decrease the amount of money that goes out by using some money saving ideas.
Decreasing one’s spending
Have you ever wondered where all the money on your paycheck is going each month?
If you have answered yes, it’s time that you start looking at your spending! You might be surprise at the amount of “unnecessary” money you might be pouring in some area of your life and the potential amount of money you could be saving.
The first step would be for you to identify where you are ACTUALLY spending your money, and be honest with yourself! Don’t try to hide that Soda bottle your buy each day!
Here is a list of potential “non-essential” spending that I have compiled with friends and from which you could easily be saving money.
Work Cafeteria/lunch and daily snacks
At lunch time, I always joke that you can see who makes the highest salaries by looking around the table who always eat out from the cafeteria.
Why?
Because these take outs are always more expensive then a lunch you would have prepared yourself at home.
At an average of 10$ a day, not even at a downtown restaurant, working close to 250 days a year, how much does it cost, how much money saving would it be?
I have done the math for you and the total is…
2500$!
That value is not including any tip that you will leave at a restaurant! Imagine that kind of money directed toward your retirement (compounding interest anyone?) or simply toward a family vacation!
Also, there is an added value to motivate yourself to prepare your lunch everyday, not only will you be saving A LOT of money, but you will also be healthier. Let’s face it, restaurant and catering services are not here to make you healthy, they only want your money. You, on the other hand can make the difference.
Coffee breaks
Coffee is the lifeblood of engineering.
That’s a saying that is very frequent here at the office, and for a good reason!
According to a survey conducted by Staples, 84% of workers drink coffee every day and feel like their day has not started until they have had their first cup.
I know that I can’t skip my morning coffee routine, and I am sure you can’t either!
However, ask yourself:
Do I really need that super expensive Latte or Mocha that cost me close to 5$?
Now, if you do that twice a day…
This time, you do the math, so that you can appreciate the amount of money you could be saving.
All in all, you would be better spending that money on good coffee beans and coffee making equipment, in the long run you will be saving money:
As such, you will be able to bring your own proudly made, delicious coffee in a reusable thermos everyday, saving money and helping save the our little planet Earth, one cup at a time.
Another consideration when it’s Break Time: Be wary of buying snacks… They might only cost a few bucks, but it does add up pretty quickly. Imagine the scenario: 5$ for the coffee and 2$ for a snack, 5 days a week, 50 weeks per year…
500$
Again, most snacks are not very healthy… so leave them alone and keep that cash in your pocket!
Energy budget charge
Energy is probably the single highest monthly charge that you probably have.
Even if you are as lucky as I am, living in location where electricity is suppose to be the cheapest in north america, energy still it’s a significant part of my budget.
And it’s for a good reason.
In our modern world, most would say electricity is the life blood of their online world and their comfort. Still, there are some actions you can take to lower that bill by a not insignificant amount to make you saving tons of money.
Hot and Cold
Keeping heating or cooling 1 degree higher or lower will, save you quite some money. If you are into drastic solution, this one might sound expensive, but if you are thinking of staying in your home for a while it is totally worth it:
- Updating that old heater or A/C to a new low power heat pump.
This will save you up to 25% on you heating/AC bill! Imagine all the money saving you will do!
This is really an investment, it will repay itself nicely over a couple of years, then that money saving goes directly in your pockets.
Also, Installing a smart thermostat, such as the Ecobee or Nest, for your central heating will allow you to customize the energy consumption specially when you are away from home. If you do not have central heating, then you still can use some intelligent thermostats to control your baseboard heating.
Lighting
Changing your lights with LED Bulbs or even smart bulbs, is a good investment as it will save on your lighting electricity consumption and will repay for themselves in the nick of time.
Other
Covering your water heater with some kind of insulation will prevent it to lose heat to the outside environment.
The heating elements will not be on as often, lowering your water heating bill. Also, this work for gas heated water tank. Turning your water heat a few degrees lower, directly from the water heater, will, again, prevent your elements to turn on often.
Unplugging your electrical devices will prevent a non negligible phantom charge from eating up your electricity. You might even want to use some smart plugs or smart power bars to cut the power, specially at night, and save!
Home automation might be the ultimate key into power saving! You would be able to control all of your light, heating and other energy consumption from the tip of your hand. However, you might be in for a hefty upfront cost for all the gadget and technology required to do that. But in the long run, it might be a good idea
The Smart Phone Expense
In our high technology, connected world, most people cannot go without their cellphone.
However, the real question is not if you can or cannot go without it, but what is your real usage of that great piece of technology, specially those, like us in Quebec, who do not have access to low cost “All unlimited packages”.
Sometimes lowering your data consumption to a more realistic level might give you saving 10 to 20$ a month. This leads to more then a 100$ of money saving at the end of the year.
You can also try to negotiate a discount by shopping around and letting your cell phone provider that you are actively looking for a better deal somewhere else.
Another trick a friend of mine has, is to simply buy a low cost phone online, such as this one, or any other older Iphone or Android phone and then looking for “bring your own phone” offers.
In the same vine, not upgrading your phone with every contract, WILL SAVE you a considerable amount of money, not only on the upfront cost for your phone, but you might also be able to deal yourself a better offer because you are now “bringing your own phone”.
Cableco, are you realy watching all those chanels?
Are you the kind of person that watch TV while you are also watching YouTube or even Netflix?
Or are you paying for channel you barely watch, just in case?
Maybe it’s time you re-evaluate your cable TV needs… I’m not telling you to cancel it right away! But you are probably paying WAYYYYY to much for what you really need.
The first step is to evaluate your need and then choose the proper number of channel you really need. You will then be able to select an amount of channel that will increase your money saving.
If you are more into drastic solution…
CANCEL YOUR CABLE TV SUBSCRIPTION RIGHT NOW!
There are plenty other legal online solution that you can use such as Netflix, HBOGO and HULU.
However, depending on your region it might not offer all the TV shows you want, so make sure to check the content before making any decision you might regret.
It’s also good to note that there is a new player in the arena: Amazon. The Prime membership includes access to Prime Video an On Demand service with popular movies and TV Shows.
If you are not a member, you can try Amazon Prime 30-Day Free Trial.
Into the Closet’s Depth
This is to you ladies and gents that love buying new clothes and shoes, not because you need them but because you want them.
Maybe this will sound harsh to you but you are here to understand that you can save money.
You probably do not need all those clothes!
You probably have enough for a while!
Again, start by evaluating your NEEDS and what you currently have in stock. I’m not telling you to live with a single pant and a t shirt, but you do not need all of that wardrobe filled. Once you have decided on what you really, need you can make money with the rest.
Now, you should be able to see the amount of money you pour into clothing each month. A good solution would be to buy less clothing but higher quality ones, they will last much longer and will save you money in the long run.
Magazine subscription
This time, I will need to listen to my own advice…
It is not the first time that I subscribe to a magazine, read the first few I receive but then… Everything seems to become more important…
And so, they are left on a shelve, gathering dust.
Isn’t that a feeling that you know too?
If that is the case, then it is time to cut the subscription!
Considering that most magazine subscription are actually cheap, you might not save a whole lot of money, but you still will be saving some money.
Where it might save you more, is if you have subscriptions to multiple magazines that you do not have the time to read.
If you still want to read magazines, a good solution would be to subscribe to Amazon Prime, they have a good selection of popular magazines that you can read. They also offer a lot of other freebies!
You might want to take a look!
Gym/crossfit subscription
Do you really go to the gym or to your Crossfit training?
If you do, that is perfect! Keep it up! If you have bought a subcrisption and you are not or barely using it, there are 2 choices for you:
- Kick yourself in the butt and go to the gym; or
- Cancel your subscription.
If you are like me and have an unpredictable schedule, but absolutely want to go, you might want to select a gym/club that gives you more flexibility.
The cross-fit center where I go, offer different membership options and they offer different membership based on the number of days or type of training you need. You might be able to find a membership that is not too expensive and will still allow you to do your workout! That’s a good money saving / health combo!
Fuel consumption
Fuel price are, almost, on a rising curve, that’s another monthly charge that can easily sky rocket in some area. Here are some quick tips on how to reduce, or at least maintain, your fuel consumption level.
- Keep your tire inflated! It will reduce the contact surface with the ground , reducing friction thus lowering your fuel consumption. Use a digital tire pressure gauge and a pump to keep them correctly inflated;
- Drive calmly, sudden change in speed and heading requires a rapid energy need, which translate into more fuel burned; and
- Slow acceleration: similar to the previous point, slower acceleration will reduce the amount of fuel that is required to accelerate and will reduce the stress on your engine, which will also reduce your maintenance cost and your money savings.
Restaurants
This one might not be easy.
May it be because we are in a hurry or because we forgot/did not have the time to do the groceries, there are plenty of reasons why we end up in restaurant, or even worst, a take-out.
I do not know how is it in your area, but here it seems that even for regular, nothing fancy, main dish, will be over 15$ per person. If you do that 2 to 3 times a week, it can sum up to 4680$ for the whole year!
Don’t get me wrong, I am not telling you to stop going out! But if you reduce the number of time per week, to let’s say 1, you can save up to 3120$!
The best recommendation would be to simply plan and/or cook your meal for the whole week over the weekend. Or for a whole month (why not)!
I know… It is not an easy commitment and it’s hard for everyone but you will be saving tons of money!
Also, Amazon (yes, them again!) could make your life that much easier for that by offering you unlimited delivery for a fixed monthly fee, no need to go to the grocery! You definitely should try out AmazonFresh!
There are plenty of resources online and offline where you can find good and quick recipes for which the ingredients cost only a fraction of the price of a single restaurant meal and that you can prepare even with you kids. You should try it out at least for a few months. I’m sure your wallet will see the difference.
Lesson learned
If you follow the above 10 tips, there is no doubt that you will save money!
How much? You ask.
It will depend on the amount of effort you want to put in this money saving adventure, but it could be on the order of several thousands of dollars!
Don’t forget that the first thing you need to do is to assess what are your REAL need, not your imagined one…
For this to work, you need to stay the course for a whole year, or even more, before saying it is impossible.
Don’t forget: Keep the dream alive!
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