How to Save Money in a Recession

Difficulty: Easy

Instructions

Things You'll Need:

nothing!...saving money is FREE!

Step 1

BILL-RELATED SAVINGS

a. Granted that there's nothing one can do about the price of water or other common city services, you should simply rethink your bills. Although opting for "bill-less" or web-based bill notification is more hassle-free, realize that it also promotes less awareness, and therefore increased opportunity to be out of touch with what you spend. You may not realize that you're spending what you are on certain bills. For example, an exorbitant electric bill one month prompted a friend to search her home for all energy-leaks. Upon entering her attic, my friend found that one of her furnace ducts was severed, causing her uninsulated attic to be heated. This leak cost my friend $200 EXTRA in one month! By comparing and scrutinizing your bills from month to month, you will be able to quickly catch variances.

b. Also, try comparing your bills with their counterparts from last year. Are your expenditures justified? Factor in lifestyle changes into any cost variances. If lifestyle changes don't account for a cost difference, then question the reason for that difference. You may find that by caulking your door threshold you'll save a significant amount of money each year in heating and cooling costs.
Step 2

c. Be a more informed consumer. Do you have "bundled" services? Rethink them! Bundling isn't always the cheapest method with cable, internet, phone, and cell phone providers. Do you really need a home phone if you predominately use your cell phone? Does the cell phone minutes allotment that you signed up for years ago still fit your needs? If you have insurance on your cell phone, re-evaluate whether or not you really need it. (If you have functioning older cell phone models than in theory you really don't need cell phone insurance.)

Contact your cable company to re-evaluate your bill. Further, has the cable company's channel offerings changed lately? If so, you may be paying extra to have a higher priced package for channels you never watch, when in fact the channels you prefer are now available in the more basic package.

By questioning why my cable/phone/internet service company, Time Warner Cable) offers new customers much better rates than what I, a loyal customer for 3 years receives, I found that the customer service rep was more than willing to help me save. I was informed that I could reduce my monthly bundle by $50 if I signed a 2-year commitment. For some, this caveat is not worth the savings, however for my finances, needs and lifestyle, this option was worth my doing. And, because I signed the two year commitment, I am now saving $600 more a year! Even if your carrier does not offer a 2-year commitment, calling them to ask them to help you save each for ways on which you may save will most likely pay off for you. For example, Verizon reps are authorized to discretely reduce customers' costs for DSL.

Companies should not expect us to be thankful for their service, rather they should thank us for choosing them. Do not assume that your service provider has a monopoly in your area without any competition. Find out who the competition is and shop around...ask probing and direct questions. Research your options and make your service providers work to earn and keep your business.
Step 3

BILL-RELATED SAVINGS, continued...

d. Question the government. Well, that goes without saying; but when it pertains to your property taxes, you may want to consider appealing your property tax assessment. Determine whether or not you even have a reasonable case by comparing the most recent assessment done on your home versus the most recent appraisal. Ensure that the assessment and the appraisal information both offer comparable factors, and that of those variables are aligned. Meaning, you need to ensure that the appraisal's square footage of your home matches what the tax assessor states is your home's square footage. Ensure all such factors are equal. Then, research what your county defines as "assessed value" of real estate. Assessed value is very different from market value, and the best thing you can do to determine whether or not you have a case is to ensure that you understand the difference between assessed and market values. Based on learning what the difference of those two values are, you may find that your home's tax assessed value is high. If so, creating a well researched and professional letter stating why you believe your property to be worth less than the county presumes may save you hundreds of dollars a year. Keep your letter brief and to the point, possibly using bullet points within. Enclose a copy of your most recent appraisal if necessary. Contact your county's tax assessment office for the appropriate appeal forms and stipulations on filing appeals. (Please know that even though some counties offer the information online, the actual appeal forms are only available by calling and requesting them.)

e. Do your own taxes. The IRS and State governments offer enough resources to help the average tax payer in completing their taxes without professional help. Tax documents are available online (www.irs.gov) and in your local library. Find your local library here: To find a US library near to you, visit this page: http://www.publiclibraries.com/) If you are confused when filing your taxes, call the IRS directly. The number for individuals (not businesses) with questions is 1-800-829-1040 (operational from 7am to 10pm).

f. Refrain from unnecessarily doubling up services. For example, don't buy AAA road side service if your auto insurance already has you covered with road side service.
Step 4

FOOD-RELATED SAVINGS

a. Eating out, or going to a restaurant for a food of any kind (including a cup of coffee!) is a bad idea when attempting to save money. The majority of all entrees, meals, and foods served at restaurants are cheaper to duplicate at home. If you crave the particular flavor, texture or taste of a meal at your favorite bistro, jot down the main ingredients from memory, and research recipes online in attempts to recreate the meal. Recipezaar (http://www.recipezaar.com/) is a website that offers millions of free recipes. Additionally Copykat.com offers hundreds of "copycat" recipes that divulge the secrets of many popular restaurants such as PF Chang's, Mimi's Cafe, Marie Callender's, Cheesecake Factory, Chili's, TGIFridays, Applebees, etc. Copykat.com and Cooks.com both offer many recipes for your grocery store favorites, such as Oreos, Twinkies, many Keebler cracker types, canned soups, frozen meals, etc. RESEARCHING is the key...look around online and find how to make at home whatever your tastebuds desire.

b. Do not indulge in "stocking up" by buying multiples of the same product. Unless you have twins or a small army to feed, spending extra money on buying multiples of anything is a poor use of your hard earned cash. By buying multiples that will just sit in your pantry untouched, you are in essence, investing with ZERO return. Instead, use your extra freezer space to hold ***homemade*** frozen lunches. (Research recipes that are freezer friendly on any of this section's previously mentioned recipe banks...you will find many options that will satisfy innumerable tastes.)

c. Do not purchase individually packaged food items. For example, it is significantly cheaper to transfer a small portion of Ritz Bitz into a baggie than to purchase the pre-packaged lunch-sized alternatives. Sure, this example seems obvious, but take this concept and allow it to bleed into your thinking. You'll be surprised at how many things you buy can be economized by saving what you don't use for later. If you live alone and don't use an entire loaf of bread prior to its molding, start freezing 1/2 the loaf immediately after purchase in a freezer baggie (ensure that you remove as much air as possible from the bag prior to sealing to deter freezer burn).
Step 5

FOOD-RELATED SAVINGS, continued...

d. Pack lunches the night before! Packing lunches the night before ensures that you're not rushed into selecting smart meals that promote good health. Additionally, you will also have more time to pack food that will meet your needs, which will prevent you from being tempted the next day into stopping for that afternoon frappucino or french fry snack. Know that an extra $4 here and an extra $2 there DOES make a difference.

e. Don't throw unused portions of ANYTHING away; instead, freeze it! Tomato paste, for example may easily be frozen. So can most dairy such as butter, cream cheese, and any other cheeses. Canned items including soups and broths also may be frozen for later use. Being more efficient within your kitchen and while cooking will easily save you change...if not cash!

f. On the same note, don't allow your produce to go unused. For example, whole tomatoes may be washed and immediately frozen for later use. Did you know that celery leaves (the top of the stalks) may be frozen for use in making stocks at a later date? The two keys to successful freezing are (1) immediately transferring food products to the freezer (to diminish the chance of bacterial growth), and (2) removing as much air from container as possible prior to freezing (to prevent freezer burn). Wash and dry all produce prior to freezing.

Other fruits that freeze well: chopped apples, carrots, potatoes, turnips, rhubarb, celery leaves (great for making broths & stocks), mushroom stems (great for making broths & stocks)

NOTE: This is where reusing leftover cottage cheese or sour cream containers come in very handy, as they easily hold tomatoes.
Step 6

VEHICLE-RELATED SAVINGS

a. Gasoline is a necessary evil. We need it, but it often costs more than we wish to pay. But as we cannot get our gas for free, the next best option is knowing in an instant where to buy gasoline in your specific area for the cheapest price per gallon. To do so, visit www.gasbuddy.com. About.com offers info on how to search for the cheapest gas in your area by zip code searches: http://singleparents.about.com/od/cuttingcosts/qt/CheapGas.htm

b. Consider carpooling or biking to work. Further, try to combine trips by involving a neighbor or another friend who lives close to you when running errands or making trips to the grocery store. This will save you gas money; but more importantly you will be on a time limit for completing your purchases swiftly so that you aren't holding up your neighbor/friend.
Step 7

HOME-RELATED SAVINGS

a. Your appliances may be energy saps. If so, consider replacing those appliances that are energy hogs for more efficient appliances. Consider the difference in cost between electric versus gas-run appliances. If gas is cheaper than electric in your area, buy gas-run appliances. Before purchasing any appliances, shop around online to compare features, prices and post-sale options (warranties, delivery, etc.) Not only will your computer-based shopping trips save you time, physical labor (no endless walking!), and gasoline, you'll also avoid the bias of any salespeople that you'd otherwise encounter in person. Helpful tools for online shopping are resources like www.amazon.com, www.consumerreports.org, and home improvement stores websites (such as Lowe's & Home Depot). Understanding what certain features and amenities are will also ensure that you appropriately match the most accurate model appliance to your personal lifestyle. For example, is the $50 difference between a dishwasher that offers plate heating really that necessary for your lifestyle? ...when would you use the feature; and therefore how often would it be relevant to you? If you are asking yourself these kinds of questions and honestly answering, you will invariably save money.

b. Think "outside the box" for all your cleaning. Start thinking more independent from company's marketing companies would have you, and cut/scrimp where you see fit. Question cleaning products' instructions...try using less fabric softer, for example. Did you know that you can rip a dryer sheet in 1/2 if you're drying a small load of laundry? Additionally, dryer sheets aren't recommended for use on towels according to some experts because they prevent absorption! When washing a load of clothes, do not use too much detergent for three reasons: (1)most are simply too expensive to waste; (2) over-soaping causes the need for extra rinses (which costs you more on your water bill); and, (3) over-soaping is horrible for your environment.
Step 8

HOME-RELATED SAVINGS, continued...

c. Begin cleaning with the basics that our great-grandmother's used: baking soda, white distilled vinegar (only buy the kind that is plant-based and NOT chemical-based), bleach, dish soap, ammonia, etc. Modern cleaning products are not only horrible for your environment, but they're overpriced when compared to an equally powerful "home remedy" cleanser. For example, to make your own Softscrub, or non-abrasive cleanser, sprinkle baking soda around sink (or whatever you're cleaning) and polish/rub with a water saturated sponge. Disinfect the sink after you've rinsed it of all baking soda by lightly spraying it with white distilled vinegar. (Vinegar is an acid, which therefore kills bacteria.) For complete disinfecting, pour about a 1/4-cup of bleach into a spray bottle, and fill the remainder up with water. Spray diluted bleach around sinks, toilets, etc. to keep them germ-free. Lightly spray diluted bleach onto a rag so that the rag is dampened, and begin disinfecting door knobs, banisters, countertops, etc.

* Glass-cleaner (Windex) recipe: http://www.recipezaar.com/Homemade-Windex-73104

* Make homemade cleansers of any sort for your home and car. The recipes are here: http://www.sideroad.com/Budgeting/homemade-cleaners.html

* Make homemade detergents by referring to the recipes on this page: http://tipnut.com/10-homemade-laundry-soap-detergent-recipes/

d. Don't use warm water when cleaning. Instead, rinse sinks and tubs with cold water. Use cold water for all laundering cycles. The savings may seem insignificant, but your diminished energy consumption also helps Mother Earth. A related point is that oftentimes opting for more Earth-friendly options are also cheaper for your bottom line.
Step 9

MISCELLANEOUS SAVINGS

a. Stop hanging out at places that are conducive to your spending money. Prevention is half the cure for overspending, thus simply reducing your exposure to opportunities to spend money will quickly aid your checkbook. For example, do not go to the mall as a family hang out, or as a climate friendly walking place. Don't take walks that would have you pass stores that tempt you.

b. Don't buy organizing containers when you may unknowingly already have them. These items may be in your trash can (or recycling bin). Plastic and glass containers, in addition to many other "trash" items may be recycled into additional uses. These items are very handy with organizing the garage, home office, planting shed, and kitchen. Refer to my other article, "How to Organize your Home with Recyclables".

c. Make homemade hairspray. The recipe is here: http://www.ehow.com/how_4905289_make-homemade-hairspray.html

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