Saving Money - Ideas?

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Forums › Finance and wealth management › Saving Money - Ideas?

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807 posts

Ultimate Geek
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#928899 7-Nov-2013 16:30

Insurance ( health, life, car, home, income protection ) - Ditch health and life. If you are really poor, ditch all except contents and cars.

Gas & Electricity - Check on consumers site for pricing. BUT also check their Customer Service ranking list too, try and get the cheapest with the best service.
Investment property expenses. - Sell it
Groceries - avoid supermarkets. Buy in bulk for things like meat. Buy milk powder, it's a $1 a litre. Washing powder $8.50 for 5kg, fruit and veges, grow as much as you can, stick to the vege shops for the rest.
lifestyle - Really? That depends on what change is left after all the rest.

lchiu7

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#929037 7-Nov-2013 19:34

Just a couple of points that have not been mentioned.

I don't do anything of these for budget reasons but the savings come along anyway.

1. Shop in the farmer's market. I shop once a week in the local farmer's market (in Wellington there are a few) and get the week's vegetables and fruit all at once. That saves a bundle over the supermarket. The reason I do it is because they offer a variety of vegetables not available in the supermarket.

2. Give up meat! That's a bit radical but I went on a vegan diet for an experiment (a challenge really with my brothers and sister) and after 5 months now I am still basically on it. The money I save on meat/dairy is significant - vegetables are so much cheaper than meat. But I would admit that's a bit hard for most people.

As for the budget side, all savings are worthwhile as I face my daughter's annual US college tuition fees of US$50K(!) excluding food and lodging. And unlike here no interest free student loans available, even for US citizens which she is.

Staying in Wellington. Check out my AirBnB in the Wellington CBD. https://www.airbnb.co.nz/h/wellycbd PM me and mention GZ to get a 15% discount and no AirBnB charges.

JimmyH

2886 posts

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#929055 7-Nov-2013 20:11

Some good suggestions here. My thoughts:

1. Smoking is a big cost, give it away if you do.

2. If you buy lunch every day, try making it 3-4 days a week, it saves a surprising amount.

3. Alcohol can be a big item, cut back if you are spending a lot. But (as per below) don't necessarily cut it out entirely.

4. Avoid HP deals, always pay cash and wait until you can, and always clear your credit card in the interest free period if you use it.

5. Having friends around for dinner or a BBQ in summer (esp if you say bring a plate and something to drink) can be a much cheaper option for all concerned than going out to the Pub etc, and just as much fun.

6. Don't go nuts. If a plan is too spartan you won't stick to it long term. A realistic long-term liveable plan will last and save more than a crazy "cut everything" savings drive. You still need to allow for fun, such as going out for Dinner and a movie, and the odd beer etc. A collection of small improvements (1-2 beers instead of 3-4, a cheaper eatery, making sandwiches) all add up, and over a decent period of time mount up to a decent saving.

Aredwood

3885 posts

Uber Geek

#929156 7-Nov-2013 22:36

Check your insurance excess amounts. And consider increasing them to the max the insurance company will allow. This will reduce your premiums while still leaving you covered for major events.

Also go to an insurance broker. Mine saved me $400 per year compared with bank policies. Despite staying with the same insurance company.

mattwnz

20164 posts

Uber Geek

#929160 7-Nov-2013 22:46

Buy good cuts of meat, and have less of it. It's quality and not quantity.
Also buy stuff in bulk, and from wholesalers like Moore Wilsons, not from super markets. You can save huge amounts doing that. Although sometimes supermarkets do have loss leaders, so take advantages of those. Shop in places like pack in save, which do tend to be cheaper, but use countdowns app to compare pricing.
Only buy what you can afford, don't buy consumables on credit.

Aredwood

3885 posts

Uber Geek

#929162 7-Nov-2013 22:49

Learn how to do car servicing and repairs. Things like oil changes and brake pad replacements are easy and saves heaps on mechanics fees.

Don't spend more that 5K approx on a car. If you choose carefully a 5K car will be just as reliable as a 15K car. And you won't be loosing heaps due to deprecation.

If you can drive manual cars don't buy an automatic. Autos use more fuel, have less power output, (compared to the manual version of the same car) Cost more to service, And are very expensive to repair. (An auto gearbox rebuild can easily cost 2.5K) Also due to the higher power output of manual cars you can generally buy one with a smaller engine than what you would otherwise have. Therefore even bigger fuel savings. (Get a 2L instead of a 2.5, Get a 1.6 instead of a 1.8 ect)

If you can't drive manual get a trusted friend to teach you.

alasta

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#929194 7-Nov-2013 23:49

Aredwood: Don't spend more that 5K approx on a car. If you choose carefully a 5K car will be just as reliable as a 15K car. And you won't be loosing heaps due to deprecation.

An old second hand car with worn parts, outdated engine technology, no warranty or roadside assistance, and an unknown history would cost a fortune to run. All you're doing is shuffling between depreciation and operating costs, not to mention gambling on safety.

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insane

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#929204 8-Nov-2013 01:04

Aredwood: ......Also go to an insurance broker. Mine saved me $400 per year compared with bank policies. Despite staying with the same insurance company.

Read through the whole thread to see if someone was going to suggest this, its great advice!

As for some of the suggestions I've seen thus far, if I followed them I'd have little will to live. You can still maintain a comfortable lifestyle while simply saying no to a few luxuries a month to save $$.

Buying the latest iDevices for example is a great way to waste money, keeping up to date is a loosing battle so don't bother if trying to save.

Last comment to save $$ / have more each month, invest in yourself, up skill , train whatever you need to do but don't stagnate in your career.

mattwnz

20164 posts

Uber Geek

#929205 8-Nov-2013 01:12

alasta:
Aredwood: Don't spend more that 5K approx on a car. If you choose carefully a 5K car will be just as reliable as a 15K car. And you won't be loosing heaps due to deprecation.

An old second hand car with worn parts, outdated engine technology, no warranty or roadside assistance, and an unknown history would cost a fortune to run. All you're doing is shuffling between depreciation and operating costs, not to mention gambling on safety.

+1. I would buy a safe car, that is also reliable. Something like a toyota. I wouuld also pay more to get ESP, as that is one of the one safety features that can save your life, as well as good airbags, and a good safety rating. Buying a cheap car can often be false economy, especially if it isn't that safe, as you can't put a price on heath and safety.

michaelmurfy

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#929209 8-Nov-2013 02:45

With losing my job etc I've had to find some ways to really cut down costs, this has worked for me:

1) With bills etc, pay weekly, it doesn't matter if the accounts go into credit as it just means the next month if you use more power or make a few toll calls you won't be forking out extra for the next bill, work it out as your average bill x4.
2) Work out things non-essential to you, cut back on the Alcohol, quit smoking, if you've got Sky ditch it for Freeview etc.
3) Instead of buying meat at the supermarket go to your local butcher, you'll find most of the time you'll get better meat for cheaper. Supermarkets have become a convenience now and most of the time meat is actually not cheaper here, plus it's a good feeling supporting local business.
4) Grab an AA Smartfuel card and fill up at BP, I find that the savings you get from this is more than what you will get from your supermarket. I've worked out I've saved $400 a year off this alone. If you do it right and just fill up $40 each time, accumulate the savings and fill up a full tank when it's near the end of the month. Rince and repeat. They also have offers such as double savings etc.
5) If you don't need to drive just walk, fresh air can be sometimes awesome.
6) never skimp out on your broadband, don't join an ISP that's the cheapest, this is an expense you're needing to stay sane, it's alright to spend a bit extra here since you're going to need fast broadband to download movies, TV shows etc for when you ditch Sky ;)

Michael Murphy | https://murfy.nz
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Jas777

838 posts

Ultimate Geek

#929243 8-Nov-2013 08:45

Like it was said above don't cut out all the fun stuff as it may affect your health and friendships. I always see people say give up SKY but the money you save on SKY sometimes goes on other things.

Some suggestions the odd one may sound silly but it did work.

Get a GF/BF or spouse who works at a restaurant, they get free meals and also bring home food. This was by good luck not good design.

Don't use the dishwasher.

Drink more at home.

Don't have long phone calls which don't actually achieve anything. Stop sending 1 word texts. This would be in conjuction with going to prepay.

Get books from local library.

If possible share rides to work.

Make 2 or 3 meals from food.

Cut back on using the inside of the oven.

Control your body so as to only do no 2 at work and use their loo paper.

geek4me

843 posts

Ultimate Geek

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#929300 8-Nov-2013 11:01

Don't Smoke. Drink less alcohol. Don't party too much, exercise instead. Now we've already improved your health and your bank balance. Cancel Sky subscription and watch Freeview. If you can afford a house or car you can afford insuring them - compare prices. Buy plain food brands and only whats on a shopping list. Shop around for the best Internet and power pricing plans which are all available on the internet.

Don't buy things on credit, or pay of the full credit card amount to avoid paying interest. A car or house or investment property may be an exception. Regarding lifestyle, simplify your life by doing less expensive things and more free things like walking. My 2c worth.

Klipspringer

2385 posts

Uber Geek
Inactive user

#929313 8-Nov-2013 11:25

Jas777: Like it was said above don't cut out all the fun stuff as it may affect your health and friendships. I always see people say give up SKY but the money you save on SKY sometimes goes on other things.

Some suggestions the odd one may sound silly but it did work.

Get a GF/BF or spouse who works at a restaurant, they get free meals and also bring home food. This was by good luck not good design.

Don't use the dishwasher.

Drink more at home.

Don't have long phone calls which don't actually achieve anything. Stop sending 1 word texts. This would be in conjuction with going to prepay.

Get books from local library.

If possible share rides to work.

Make 2 or 3 meals from food.

Cut back on using the inside of the oven.

Control your body so as to only do no 2 at work and use their loo paper.

This sounds to me more like a set of instructions on how to be a tight b*******

This thread is actually starting to crack me up. I cant believe some of the comments here.

hangon

397 posts

Ultimate Geek

#929332 8-Nov-2013 11:58

jpoc:
I arrived at the checkout with 5 18 roll packs of loo roll, six bottles of sauce and ten packs of chillies.

The checkout operator looked at this and commented:

"Wow, you must really like spicy food."

"Yes," I replied, "That's why I need all the toilet paper!"

lol nice one.

be frugal, not cheap. quality > quantity.

insurance - take the risks you can manage, and insure those you can't. income protection might be overlooked by most, you maybe the most important (income generating) asset in your household.

make reasonable budget and stick with it (and treat yourself for it), review n adjust. make MORE money.

diy and shop online/overseas when it makes a big difference.
AA service quoted me some $800 to replace ignition coils n wires, 2 hr labour. I ordered parts from rockauto for under $100 inc postage and did it in 15 min.

TinyTim

1042 posts

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#929540 8-Nov-2013 15:53

BinaryLimited: Hi Everyone

Currently on a mission to re-evaluate all of my expense.
I'm interested to hear how you guys are saving money.

Looking at the following things :

Insurance ( health, life, car, home, income protection )
Internet - Considering Orcon
Gas & Electricity
Investment property expenses.
Groceries
lifestyle

I am open to more ideas and new service providers.

You haven't said if you have a mortgage or not, but if you do, sell your investment property and pay off your mortgage.

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