101 Ways to Save Money

Since the cost of, well, everything, seems to be rising exponentially these days, here are a bunch of ways to save a little money on your usual expenses:

1. Mint Mobile has a great price for cell service at only $15 a month (prepaid for a year). Here's an even better deal for the first few months of service.
2. An over-the-air antenna works great in many areas.  You simply buy the antenna for about $20, scan for local stations, and enjoy 50+ stations for free.  We cut cable TV years ago since we get so many stations for free.
   
3. Check and recheck prices for internet.  Every year I check the price on our internet service in order to get the best deal.  The last time, instead of calling in and talking to someone, I simply went online to my account and saw that they offered a bunch of heavily discounted plans I could choose from (I got basically the same service for about half the price I had been paying for a year).
4. Check and see if you can sign up for property tax exemptions from your county assessor's office.  Example here.
5. Call around every year to see if you can get a better deal on insurance.  Often you can bundle home and auto insurance and get an even better deal.  People who are sourcing health insurance should check their state ACA insurance portal annually because these plans can change to include people who previously didn't qualify for subsidized plans.  FWIW, I recently changes home and auto insurance to a plan through Costco and it saved me a few hundred dollars a year.
6. Pay your bills annually if this saves you money.  In our case, discounts for paying our auto insurance bi annually and our sewer bill annually saves a great deal of money over paying these bills monthly.
7. Consider moving.  Obviously this a a pretty drastic step but I just don't understand people who don't want to leave a place like California, for example, with mediocre paying jobs and exorbitant housing prices when they can choose a state with a lower tax burden and much better housing prices vs average salaries.
8. If you do decide to move, look at all of the variables.  Depending on your situation, things like states with no state income tax, states with better weather, states with lower property tax, states that welcome people who work from home, and even states that offer money for you to move there might be a good option.
9. Buy your home instead of renting if possible. Not everyone wants to do this but by buying a home you get a basically fixed payment (get a fixed interest rate not an ARM!) instead of being at the mercy of landlords (some landlords in my city are raising rents by several hundred dollars per month even for long-term tenants due to the crazy rental market this year).  You also enjoy a generally appreciating asset and have the freedom to do what you want with your property.  
10. Learn how to fix things yourself.  When you have a house, things are going to break.  When something breaks, calling a professional may be the most expedient thing to do but this is also the most expensive way to fix things.  There are YouTube videos and online resources to fix nearly everything so consider DIY fixes before calling a professional (obviously you don't want to DIY things that could kill you like fixing a broken garage spring or replacing a gas water heater, etc).
11. If you do have a problem that requires a large expenditure of money, get several written estimates and ask friend for referrals for service providers.  Going the cheapest route with a fly-by-night company is a good way to waste your money and have to pay for a repair service to repair the service you already paid for.
    
12. To save money on utility bills, there are dozens of ways to keep more money in your pocket by simply conserving and efficiently using things like gas, water, and electricity.
13. Speaking of utilities, check your utility company's websites and see what goodies they offer.  We have received things like free home winterization kits, free low-flow faucets, and rebates when buying new appliances from our local utility companies.
14. Sign up for a library card if you don't have one already.  Our library offers so many free things it's hard to list all of them.  From free music and movie downloads to free e-books for my Kindle, free movies and music events around the community, free classes on a range of topics, and some libraries even offer free passes that you can "check out" to visit local museums and local attractions.
15. Have an emergency fund.  This can save you money in the long run if you have an emergency as opposed to "fixing" your emergency by putting the cost on a credit card (high interest) or worse, getting a payday loan (extortionate interest).
16. Choose your vehicle wisely.  The type of car you buy can impact everything from overall price to maintenance cost (cough BMW cough) to registration and annual fee prices to insurance costs.
17. Keep your vehicle properly maintained to avoid costly repairs later on.  Changing the oil and air filters and keeping the proper level of air in your tires are simple ways to keep your car running for a long time.
18. Speaking of cars, consider from going from three cars to two cars or even from two cars to one car.  Each car costs a significant amount for registration, insurance, and maintenance.
19. Save even more money on transportation by walking or bicycling to do errands, group your errands to lessen the amount of driving you do, working from home if possible, etc.
20. Use preventive maintenance to extend the life span of, well, everything.  Get your teeth cleaned regularly and fix small dental problems before they become emergencies.  Do annual maintenance on your HVAC system and hot water tank to extend the lives of these appliances.  Have regular medical check ups instead of waiting for an emergency to happen.  You get the idea.
    
21. Save money on kids.  There's a bajillion mommy bloggers who share tips on how to raise kids from birth to grad school on the cheap.  By simply googling things like 'how to save money on diapers' to 'making your own baby food' you will find thousands and thousands of pages of tips on how to do these and many other things the cheapest, most creative ways possible.
22. Look for free or cheap entertainment options in your community.  Local news sources, local bloggers, local FB/IG pages, etc. all post notices of free/cheap community events and entertainment options that can save you a lot of money over paying for top-tier entertainment.
23. Consider bartering.  You can barter a lot of everyday skills from plumbing service to day care for the kiddos to food to furniture and appliance, etc.  This is a great way to save money, get what you need, get other people what they need, and make connections in the bartering community.
24. Also consider things like dumpster diving, trash picking, thrifting, garage saleing, etc. to get the things you need.  I've done all of these things with varying degrees of success.  I will gladly stop to pick up something sitting along the roadside if it is something I need, something that can be resold, or something that can be given to someone else.
25. Get out of debt.  This is a tried and true way to save money as any debt you have usually has interest payments attached to it.  Get "gazelle intense", work several jobs, and throw any extra money you have at your debts and you will be surprised at how quickly you can get rid of your debt for good.
26. Get rid of any memberships/recurring charges that you don't need.  Do you really need Nextflix/Disney +/Apple TV+?  Do you NEED a gym membership or can you do some calisthenics at home then take a walk around your neighborhood every day?  Do you have recurring charges for things like apps you don't use anymore, magazine subscriptions that you can get for free from the library, etc?
27. Stop shopping!  Some people use shopping in place of therapy, some people go shopping because they are bored, and some people are addicted to online shopping to the point that they are on a first-name basis with every Amazon/FedEx/UPS driver assigned to their area.  Have a shopping list, wait to make purchases, don't frequent online shopping sites, etc.  Do all you can to avoid spending money unnecessarily.
28. If you must shop, can you buy the item you need at the dollar store?  At the thrift store?  Can you find it cheaper online?  Can you wait until the item comes on sale?
    
29. Don't do stupid financial things like co-signing for a loan for someone, buying into a time share, paying rent-to-own prices for your appliances, falling for scams, etc.
30. Never loan money to anyone.  If you can't afford to give the money as a gift with no expectation of getting it back, don't give your money away.
    
31. Consider your technology needs and buy only what you need.  Most people don't need a screaming fast Intel I9 laptop, $350 headphones, and a $1700 cell phone.  Although these things are "nice to have", they are certainly not necessary for the vast majority of people.  Simplifying your tech needs and buying mid-range instead of high-range will save you a ton of money.  Also, being a "late adapter" instead of an "early adapter" will allow you to buy high quality tech after all of the bugs have been worked out and the price has dropped significantly.
32. Control your money so it doesn't control you.  Have a written budget (go cash-only if necessary), make saving money a priority, choose no-fee ATMs, never overdraft your account, pay your bills on time and in full so you don't incur late charges, etc.
33. If you don't know where your money is going, write down every penny you spend for a month or two.  This can be an eye-opening experience to see in black and white that a good chunk of your money is going to wasteful spending (cough Starbucks cough).
34. Avoid any entanglements with the legal system.  Divorce, child support, drunk driving, shady business dealings, committing crimes...any time you end up dealing with the legal system it usually means your money will be going to fines, fees, and legal representation.
35. Avoid any entanglements with the medical system.  The medical system is nearly as shady as the legal system so the more you can avoid being old, sick, fat, or injured, the better off you will be physically and financially.
36. If you do end up needing expensive medical care be sure to: ask for a cash discount, ask for an itemized bill, ask about charity care programs which could reduce your medical bills significantly, consider medical tourism or alternative care option (like dental work at a university teaching program which is usually much cheaper than regular dental clinics). 
37. Don't forget to shop around for cheaper prescriptions if needed.  Costco and Walmart pharmacies are often cheaper than other pharmacies (you don't need to be a Costco member to use Costco pharmacies), use apps like Good Rx, and look into other prescription assistance programs you can use.
38. Sign up for any money-saving programs you qualify for.  Depending on your income you may qualify for free or reduced school meals for your kids, Medicaid, WIC, food stamps, etc.
    
39. Consider the associated costs that come with your purchases.  Nearly everything you buy comes with extra costs.  The bigger your home, the more it costs to heat/air condition/furnish/insure/etc.  Buying a house with a pool?  That will mean higher costs for insurance/maintenance/electricity to heat the thing/replacement parts/etc.  Buy a horse/boat/RV/plane...the costs for maintenance and upkeep can be astronomical.
40. Always ask for discounts.  Military discounts, senior discounts, locals discounts, kid discounts...all will save you money just for the asking.  And don't forget about freebies like these and these.
41. Become a minimalist.  Minimalism is becoming a pretty big movement these days as people realize they don't need as much crap as advertisers try to convince them they need.  Need less, buy less, spend less.
    
42. Aside from being a minimalist, keeping a clean, organized house can actually save you money.  If you have a spot for everything and everything is in it's spot, you won't have to keep buying items that have been misplaced.
    
43. When you do buy things, buy quality, buy these "must have" items at a discount, and buy it for life.  I'd much rather buy $150 shoes (on sale, of course) over buying several pairs of cheaper shoes that won't last nearly as long.
44. Speaking of growing movements, the zero waste movement will also save you money on many things.  This includes things like using rags and towels instead of paper products, using a bidet to save on toilet paper, carrying a reusable water bottle instead of going through several individual bottles of water per day, etc.
45. Consider making household products from scratch instead of relying on the chemical-industrial complex.  These will usually save money as well as your health.
    
46. Google around for assistance based on your demographic if needed.  Veteran's services, tribal services, disabled services, minority-owned business services, homeless services, immigrant services, scholarships based on your demographic...there are lots of programs designed specifically for certain groups of people, you just need to find them.
47. Shop for food on sale, buy loss leaders, and use apps/coupons.  Then plan your meals around what is on sale.
48. Source your food from many places: grocery stores, ethnic stores, farmer's markets, discounters like Aldis, etc.  As long as these stores are within a reasonable distance, shopping multiple stores with multiple sales can save money on your overall grocery bill.
49. Grow your own food.  While the start-up costs can be high, if this is something you enjoy doing, growing a garden can get cheaper over time, especially if you save your own seeds.
50. Cook and bake from scratch.  This is usually cheaper as well as healthier than buying processed, pre-packaged food.
51. Do the food processing yourself.  Have you ever seen Lunchables?  For much less than the cost of this type of pre-packaged food, you can slice your own meats and cheeses.  Ditto pre-cut fruit and vegetables that you find in grocery stores.
    
52. Keep an organized pantry/refrigerator/freezer and be sure to rotate your food as you purchase it.  This eliminates food waste from old food being forgotten in the back of the fridge/pantry.
53. Go to extremes to save money on food like fasting, intermittent fasting, $1/$3 a day meal challenges, only eating two meals a day instead of three, etc.  Obviously if this will negatively impact your health (ie: you are diabetic, etc) don't do this!
    
54. Speaking of being organized, consider making a price book for groceries and household supplies to ensure you are getting the best prices.  These days it seems like lots of products are shrinking yet prices are increasing while the packaging remains the same in order to make you think you are getting more product than you actually are (this is a particular problem at dollar stores where people get carried away with buying cheap items and only realize later that the item isn't as big as it would be in a regular store like half-size cake mixes).
    
55. Consider preserving food yourself.  Freezing, canning, drying, making pickles or sauerkraut, etc. are all ways to preserve bulk food that you grow or find on sale.
56. Have useful food-related hobbies.  Hunting, fishing, clamming, mushroom hunting, foraging for wild edibles, etc. are all inexpensive ways to provide food for yourself and your family.
57. Consider buying cooperatively with others in order to buy in bulk and save money.  You can split the cost of a 50 pound bag of rice with a friend which would be cheaper than buying a small bag of rice for yourself.  You can go in with a family member to buy a whole cow and fill both of your freezers.
58. If you must eat out, do so strategically: eat out for lunch instead of dinner which is usually more expensive, split restaurant meals with your SO (most meals are huge and include way more calories than a single person needs), order water instead of soda and skip dessert, hit up ethnic restaurants which are often cheaper and a more adventurous way to eat, etc. 
59. Cook in bulk and freeze the leftovers.  It's easy to order out if you are tired and come home from work with no time/desire to cook anything.  With meals already cooked and sitting in the freezer it is easy to hit defrost and cook on the microwave and have a good meal ready in minutes.
    
60. Pay attention to your taxes.  Make sure your withholdings are adequate (don't withhold to much or too little) and have your taxes prepared professionally if they are particularly complicated to ensure you get all of the deductions you are entitled to.
    
61. Buy annual passes to save money on activities you will do often.  Things like annual National Parks Passes, state parks passes, children's museum passes, zoo passes, etc. can save you a lot of money over paying for each entry if you will visit these places often.
62. Save on postage.  Our postal service is kind of a hot mess anyway these days but by paying your bills online and emailing gifts (gift cards and/or direct delivery of things you buy online for someone) you can save significantly on postage costs.
63. Go for low-cost vacation options.  Visit friends or family so you will have free/cheap lodging, take the family camping instead of to a pricey resort, calculate the costs of flying versus driving, do a "staycation" instead of traveling far away, maybe use a house swap service, etc.  
64. Be aware of the cost of pets before you get them.  A recent study shows that pets can cost more than children!
65. If you can't afford to have a pet, consider taking taking the kids to volunteer at a local animal shelter--they get to walk dogs and socialize cats with none of the expense of owning a pet.
    
66. Consider doing your own (or your SO's/friend's) personal services.  This can include haircuts, manicures, pedicures, hair coloring, facials, etc.  There are plenty of how-to videos online and with a little practice you can get really good at doing these things as well as save a lot of money over the cost of going to a salon.
67. Pick up inexpensive hobbies.  Instead of golf, sailing, or horseback riding, consider hiking/walking, HAM radio, or these cheap hobbies.
68. If you have expensive habits, figure out how to reduce the costs of imbibing.  Making your own coffee instead of hitting up the coffee shop, brew your own beer, roll your on cigarettes, etc.
69. If you have bad habits, consider quitting them all together.  Gambling, drinking, smoking, drug use, etc. aren't good for you anyway so by quitting these habits you will save money and quite likely your life!
70. Volunteer!  Depending on what kind of volunteer work you do, you may get free meals, free training, free gear or supplies, etc.
71. Try a variety of challenges to save money. No Spend November, low spend week or month, no eating out for a month, etc.
72. Take advantage of benefits your employer provides like matches for your 401k, employer-funded education, a cheap or free employee cafeteria, etc.
    
73. Create good children.  With good parenting and an emphasis on education/good behavior/etc. your kids can save you money by not getting involved in legal trouble, not getting pregnant before they are fully educated and have a job, qualify for scholarships and even participate in simultaneous high school/free junior college programs, etc.
74. Plan money-saving family events.  Taco night, family movie night at home, potlucks with friends, etc. are all ways to save money while still having fun with the family and friends.
75. Rent or borrow tools and equipment you don't need to use very often.  If you have a big yard, it makes sense to buy a lawn mower but if you only need to power wash your deck once a year, renting or borrowing a power washer makes more sense.
76. Take a part-time job just for the benefits.  People work part time at Starbucks just to get cheap health insurance, college students may work in restaurants because they get pay plus free meals, people even work at colleges so they or their children can get a free or discounted education.
77. See if you are owed money.  There are class action rebates you may qualify for as well as several programs to help you find unclaimed money.
78. Stay focused on saving money so you don't get off track.  Listen to Dave Ramsey until your ears bleed, read frugal blogs, participate in frugal discussion boards, etc.
79. Reduce your use of consumer items.  Instead of a full cup of laundry detergent, I use half that amount.  Instead of a big glob of toothpaste like you see on commercials, I use only a small glob.  Instead of a whole paper towel, I cut down through the middle of the roll so I only use a half piece of a paper towel instead of a full piece.  Advertisers want you to use a lot of their product so you will keep buying more but you seldom need to use as much as they say.
80. Cancel credit cards with annual fees or high interest rates and go with fee-free, low interest cards.  If your bank charges a monthly fee, see if you can get a fee-free account through a local credit union.  Refinance your mortgage if you can get a lower interest rate.  Drop PMI insurance as soon as possible. Use fee-free ATMs or withdraw extra cash from your debit card when paying for your groceries.
81. Instead of paying big bucks for name-brand software, check out free options for nearly every software program on the market.
    
82. Check out your local Craigslist, Facebook page, Offer Up, and Freecycle page to pick up all kinds of things (clothes, furniture, etc) for free.
    
83. Get a college-level education for free.  Obviously you will need an actual college education if you want to go to med school or law school but if you are a business owner and want to learn about business accounting or if you want to learn programmer or IT skills, open courseware is the place to go.
84. Go places on discount days or at discount times.  Matinee movies instead of evening movies can save you money, visit national parks on free-entrance days, and check out local pools/skating rinks/museums for discount times/days (our local Mob Museum offers free entry to the museum if people attend their monthly community safety forum which is also free to attend).
85. Use free points for purchases.  Casinos give players free "comps" based on their play which can then be used for free meals, hotel stays, etc.  Credit cards often give cash back on purchases.  Using airline credit cards can accrue points you can use for free flights, etc.
86. Keep control of your entertainment dollars by only bringing the cash you want to spend with you.  This applies to gambling, nightclubs, strip clubs, bars, and anywhere else you may be tempted to spend more than you planned.
87. Spend money to save money.  If you will be drinking, take an Uber to and from the bar instead of driving and hoping you will be responsible enough to order an Uber for the ride home.  Buy in bulk if you know you will use the item and the cost is significantly lower than buying smaller quantities.  Pay more to live in a safer neighborhood.
88. Live below your means.  This is fairly straight-forward but live in a place you can afford, buy an engagement ring you can afford, go on vacations you can afford, buy a car you can afford...living lavishly when you can't afford to is a sure path towards bankruptcy.
    
89. Pick a good partner.  Find a SO who has similar values, similar frugal tendencies, and isn't someone you "need to fix" or has serious mental health/addiction/legal/financial issues.
    
90. Pay attention to what is going on.  When you hear rumblings of shortages, stock up before the national news picks up on this and scares everyone into hoarding.  Buy at the bottom of the housing market, not when prices are topping out.  If a hurricane is days away, stock up on food and get gas as soon as this becomes a possibility not the day before the hurricane is set to hit.
    
91. Go extreme: join the military for everything from free-ish college and medical care to a retiree pension starting at the ripe old age of 40.
92. Go extreme: go to a foreign country for a free college education.
93. Go extreme: live with little to no money.  Examples here, here, and here. 
94. Go extreme: become a vegan.  Veganism is much cheaper than eating meat/dairy/processed foods and it makes you way more healthier too.
    
95. Go extreme: sell yourself.  Not in the classic sense of the word, of course, but you can sell your hair, sell your blood, sell your sperm/eggs, etc.
96. Go extreme: don't have children.  Kids are expensive!
97. Go extreme: let someone else cover your costs.  Become a live-in nanny, a live-in caretaker, participate in medical trials, etc.
98. Go extreme: live off-grid.  Build a tiny house, drill a well, install solar, install a septic tank, process your own trash, etc.
99. Go extreme: rent out your vehicle on Turo, rent an extra room on Air BnB, take in roommates to save money on your rent/mortgage, etc.
100. Go extreme: become an extreme couponer.
     
101. Look for even more ways to save money simply by Googling 'how to save money', 'extreme money saving tips', etc.
     

10 End of the Year Financial Tasks

If you have a little down time in the next week or so, here are some financial tasks to consider undertaking:

1. Pull your free credit reports and make sure there are no errors on it.
2. Go through all of your monthly bills/subscriptions/fees/etc and see if #1, you still need this service, and #2 if there is any way to reduce the price of each bill.
3. Take photos or videos of all of your worldly possessions.  Everyone should do this once a year at least in order to have a record of everything you own for insurance purposes.
4. Create a budget for next year.
5. Make sure you are adequately insured.  Life, health, auto, home, long term care, etc. all of these insurances should be regularly reviewed to ensure they meet your current needs.
6. Make any of the recommended tax moves your financial adviser recommends (funding your Roth IRA, making charitable contributions, rebalancing your portfolio, etc).
7. Review your will, living will, and medical power of attorney to ensure all of the information is correct and up to date.
8. Plan any major financial expenditures for the coming year (vacations, kid's tuition, etc).
9. If you have debt, figure out how to pay it off ASAP (get a second job, do some extra gigs, etc).
10. Set up a financial calendar (list birthdays, bill due dates unless they are on auto pay, pay days, vacations, and anything other thing that impacts your finances). 

Some Financial Doom and Gloom News

First thing this morning I saw that Japan picked the kanji for 'disaster' to represent the year of 2018.  It does seem to have been a pretty meh year.  Next up on my news feed were articles about Trump shutting down the government in a couple weeks.  And to top it off there were several articles about a coming recession in 2020 (here, here, and here).

Needless to say it shouldn't take an economic crisis to get people in the mood to pay down debt and build up savings but then again, judging by the evening news just before a hurricane is set to strike, it often does take a disaster to make people think that gee, next time they should be better prepared.

So today's warning is to pay off debt as quickly as possible, don't fall for sub-prime lending of any sort, and get your financial ducks in a row.

10 Looming Financial Disasters

In no particular order...

1. Wages are not keeping up with the cost of housing in the US.  Or Australia for that matter.  This is a simple math equation, the answer to which can spell disaster for a large swath of Americans.
2. In fact there are number of issues with housing that could impact all levels of society.
3. Pensions are going bankrupt and so is the pension insurance program.  Another math equation only this one looks more like a Ponzi scheme which is about to topple.
4. Layoffs and "streamlining" businesses is the order of the day (examples here and here).
5. You can look forward to more interest rate hikes.
6. US jobs are moving overseas even faster than before.
7. Meanwhile Americans are carrying more debt (didn't they learn anything from the last recession??).
8. Many states are in deep financial crisis (examples here and here).
9. Trade issues are also a thing since politics and trade are deeply intertwined.
10. And don't forget the potential economic impact of climate change.

Plan now to protect yourself to the best of your ability for these potential financial disasters.

Are You Ready for the Next Recession?

According to this article, "the next recession is going to suck."  How eloquent.  Of course people won't care about eloquence, or much else for that matter, if they are given very little in the way of unemployment benefits.  I am seriously concerned about the state of our nation should a massive recession/depression hit.  People are still up to their ears in debt, jobs are paying less than ever, benefits are practically non-existent in many cases, and so many businesses are doing the financial gymnastics to "hire" employees but not really as a side company is actually the employer while the main company gets to use the employees but doesn't have any actual responsibility towards them...the list of negatives about the current world of work is long and getting longer.

At the risk of sounding like a broken record, here are the basics for preparing for the next recession:

• Get out of debt!  House, car, student loans, credit cards.  Try not to owe anyone anything.  If you do this, you only bills will be utilities, food, gas, etc.
• Downsize if possible (can you go from three cars to two? from a 3000 sq ft house to a 2000 sq ft house?).
• Have multiple streams of income.
• Bulk up your savings.
• Diversify your investments.
• Live simply and below your means.
• Vote for those who will represent you well (these politicians and politicians like them should be voted out).
• Be as self-sufficient as possible.
• Develop a wide range of sale-able skills.
• Look for opportunities (opportunities for other sources of income, opportunities to help others, opportunities to network with others, etc).
• Stockpile the things you use the most (food, toiletries, etc).

In the Financial Markets Today...

...the Dow had its largest single point drop ever.  And then there is Bitcoin at around $7k today (it was $20k around Christmas).

If you are into preparedness, these blips probably won't worry you.  If you are a speculator, take a deep breath or something.

The thing with the financial markets is that there are ALWAYS ups and downs.  People may get an "in" on something, like Bitcoin, then going out and mortgage their house in order to "invest" in this new (unbacked, unregulated) currency.  Those people aren't going to survive long if that is the extent of their financial planning.

A prepper, on the other hand...

• is debt free, including credit cards, student loans, the car, and the house
• has a significant (liquid!) rainy day fund which could see them through a year or more of unemployment
• pays their bills on time
• has multiple sources of income
• has their investments spread over a wide range of products (a Roth IRA, a 401k, real estate, mutual funds, some gold and silver, maybe an early buy-in to Bitcoin)
• never buys when the price of something (stocks, Bitcoin, house, gold) is rallying at the top of the market
• won't bet the house (literally or figuratively) on a "sure thing"
• understands the foolishness of day-trading and opts for a buy-and-hold strategy with their well-researched, well-understood investments (timing the market is for idiots and AI computers)

In other words, if you have your financial preparedness planning under control you can glance at the latest financial headlines without having to take a Xanax.  The price of most things is cyclical and depending on the product can be quite volatile but with a well thought out plan and no panic buying/selling you will live to enjoy a comfortable future.

5 Money Resolutions for Preppers

Of all the things you can do to prepare for a disaster, preparing financially is right at the top of the list.  There are very few disasters that money can't fix or significantly improve.  Here are five financial resolutions all preppers should make this year:

1. Have a mini emergency fund of $1000 to $2000 on hand at all times.  You may want to carry some of these funds in your wallet, some hidden in your car, and some hidden in your home.  This small amount of money will be useful should all of the power go out for an extended time and you can't withdraw funds from the ATM, if you have an emergency that requires immediate cash (like you run out of gas and a strangers drops some off to you and you want to give them a $20 or something), or the grocery store credit card machine goes down and you need to pay cash for your groceries.
2. Have a major emergency fund.  This fund should cover six to nine months (preferably a year) of household expenses should you become seriously ill or injured and can't work for an extended period of time.  This fund is also useful if you suddenly get fired or laid off and it takes a while to find a new job.
3. Be debt free.  If you have no debt--no mortgage, no student loan debt, no car loan, no credit card debt--how good would you feel every day?  You would definitely feel wealthier if you are't worrying where the next car payment is coming from.  Plus if you are debt free, your major emergency fund (#2 above) would be much smaller than if you have thousands of dollars of debt to cover each month.
4. Be insured.  These days very few people can self-insure against a health disaster, a car wreck, or a house fire.  Liability claims, in particular, tend to be sky high these days.  Thus the need to be insured.  At minimum you should have health insurance, car insurance, and property insurance (either homeowner or renter's insurance).  Additionally, if you have people who depend on your income, you should consider life insurance and for a long-term debilitating illness or injury, long-term-care insurance.
5. You should have multiple sources of income.  If you have one job at one place and thus one source of income and you show up to work one day and the doors are padlocked shut, you will be screwed.  Having several sources of income helps you stay financially solvent should one source of income suddenly dry up.

What's the Fiscal State of Your State?

If you live in one of several states--I'm looking at you Connecticut, Pennsylvania, Illinois, and these others--and you rely on the state in any way (for your income, pension, medical care services, payments to your business, etc), well, things aren't looking so good.  These states are on the brink of bankruptcy (kind of, states can't actually file for bankruptcy but that doesn't mean they are financially solvent...they are basically out of money and in the hole so far no one in their right mind would loan them money/buy their bonds).

What does that mean to you?  If you live in one of these states--or are just looking far enough ahead to see your own state meandering in the same direction--it means several things.  The most annoying would probably be potholes that don't get fixed.  The most financially threatening could be many-fold--a dramatic increase in taxes (state income tax and property tax, maybe even sales tax), businesses and jobs high-tailing it out of your state, a decrease in services (cuts to state Medicaid programs, cuts to school budgets, cuts to state and local programs, etc), if you hold bonds they may end up not even being worth the paper they are written on, and more fees for everything (road tolls, cost of licenses and permits increasing).  The worst thing, for those who have a state pension, could mean huge cuts to the monthly pension you receive (can you imagine being old, no longer working or really employable, and having the small pension you rely on cut in half??).

Several cities have already gone bankrupt or are on the verge of doing so, and the thought of entire states heading this direction is pretty scary.  It becomes a no-win circle of doom when jobs leave, which means people can't pay their mortgage, which means foreclosures and a drop in home prices, which means less property tax and income tax, which means less money for government, which means government can't pay their workers...

So how can you prepare for impending financial doom compliments of your state?  There are several things...

• Get out of debt ASAP and entirely (home, car, student loans, credit cards, etc).
• Diversify your financial holdings (the entirety of your savings, investments, and retirement pension shouldn't be in one monetary device--like a state pension and state bonds.  If you currently have a state pension, fine, but you also need money in a 401k, mutual funds, Roth IRA, etc,  Spread your money around so if one investment goes toes up, you won't lose everything).
• Diversify your income.  This means you have multiple sources of income, in unrelated industries, so that if one source of income (your pay from being a teacher, for example) suddenly evaporates, you will still have other income coming in.
• Do for yourself as much as possible.  The less you rely on the government, the better off you will be.
• Be prepared for sudden increases in taxes and fees.  Your emergency fund should be fairly substantial in order to handle any sudden increases in property taxes, the cost to renew your driver's license, etc.
• Live lean.  Having easily survived with only what I could carry on my back for a couple of years, I know that I can actually live quite comfortably with very little.  I know several people, however, who couldn't even think of living with less than four vehicles (for two drivers in the household!), a five bedroom home full of crap--bought at full retail, and a huge salary.  The more weighted down you are by your lifestyle, the more difficult it is to respond to major changes.

To find more (unsettling) information on the current fiscal state of America check here, here, and here.

Government Insolvency and You (Or How to Prep for a Financial SHTF Situation)

In case the 2008 financial crisis wasn't enough of a wake-up call, there have been several fiscal disasters (or near disasters) impacting governments at all levels.  The problem is that many of these seem "far away" like Venezuela or more recently Puerto Rico, and while many state governments are in a dire sort or financial limbo (I'm looking at you Connecticut, New Jersey, and Illinois), unless you have been directly impacted (like Detroit pensioners), you may think that government insolvency will have no bearing on you.  Ah but it will.  When one part of the financial market crumbles (as we saw with the housing crisis in 2008) it has a domino effect on everyone (example here).
So it would behoove everyone--whether you are a Connecticut teacher relying on your state pension or a small business person in a fiscally solvent state with a nice set of investments--to prepare ASAP for whatever coming fiscal apocalypse that may occur.  Here's how:

• Be debt free.  No debt including credit cards, student loans, the car, the house...plus just think of what you can spend your weekly paycheck on if you have zero debts to pay besides utilities each month.
• Take care of your health (it's looking less and less likely that the government will do this for you).
• Have multiple streams of income.  Whether you are a well-paid tech guy or a federal retiree, never rely on just one source of income.  Have side gigs, have multiple diversified investments...make sure that if one income stream dries up (yep, even your state or federal pension) that you will still have other sources of income coming in each month.
• Be as self sufficient as possible (if you live on land you own with a huge, productive garden with a good well, good septic system, a stockpile of food/supplies/weapons, and wind/solar power you will be miles ahead of the general population when it comes to basic debt-free living AND preparedness).
• Diversify your investments.  You should never have all of your eggs in one sort of investment basket.  Having a government pension, money in a ROTH IRA, mutual funds, land, some gold, a small business, foreign currency, etc. is a good way to spread your wealth around and not end up losing all to one bad investment.
• Have barterable skills and barterable items.  When the economy is blasted back to the stone age, this is one of the only ways you will be able to survive.
• Have a wide-ranging, diverse set of skills.  You should be able to do nearly everything short of surgery for yourself.  The more things you can do for yourself, the less reliant you are on others for survival (ie; if you rely solely on the government for everything--feed your kids, make repairs in your apartment, pay for your bus pass, etc--you are screwed).
• On the other hand it is a good idea to cultivate friends and relatives who you can rely on during dire times (and vice versa).  No man is an island and all that so know ahead of time who can help you out (and who you can help out) when disaster strikes.
• Be prepared to bail.  As a last resort you may have to move on to greener pastures.  Always have a passport, cash, a go bag, etc. at the ready.  

For further reading on the topic check here, here, and here.

30 Ways to Save--And Stretch--Your Money

There are A LOT of ways to save money.  Here's 30 interesting ways to stretch your hard-earned money:

1. See if you qualify for a class action rebate.
2. Check Deal News regularly.
3. Check out the Reddit Deals subreddit.
4. And the Freebies subreddit.
5. If you are a senior citizen, take advantage of these discounts.
6. Also check out these deals for seniors.
7. Sign up for a bunch of birthday freebies.
8. If you are a current or retired military member check out these discounts.
9. Get a discount when you visit our National Parks.
10. If you visit  your state parks often, see if they offer discount passes as well.
11. See if you qualify for any of your county tax exemption programs.
12. Participate in a free land program.
13. Try out extreme couponing.
14. Get your tax return prepared for free.
15. If you are going to have credit cards, make sure to get some extra rewards.
16. Low income folks can often get utility discounts from their county or state.
17. Check out PPARX for free and low cost medications.
18. Buy an OTA antenna and cut cable.
19. Get your free annual credit report and contest any incorrect information.
20. Choose free banking account options.
21. Determine if a warehouse club membership will save you money.
22. Point your kids towards free university options.
23. American students can also take advantage of free and cheap universities around the world.
24. Challenge your property tax assessment if you think you have a case.
25. Check out your local library for free books, music, e books, performances, etc.
26. If you tend to eat out a lot, pick up an Entertainment Book (these are also good for vacation destinations too).
27. For purchases you are going to make anyway, buy discounted gift cards to save even more.
28. Learn how to get store discounts.
29. Ask for discounts on your insurance.
30. Use special buying programs like True Car to get a discount on your next vehicle purchase.

Financial Planning for Your Later Years

An important part of preparedness is being prepared for all of the financial problems that can arise as you go along.  You are never too young to start planning, and while much of this post is about financial prep for us oldsters, everyone should keep these topics in the back of their minds (or the forefront, depending).  Note that I am not a financial planner and this is NOT financial advice, this is just the stuff that I am doing.  For information related to your specific needs, please see a qualified, local financial planner...blah blah blah.

• Emergency fund.  Everyone, no matter their age, should have one of these.  You should have enough liquid assets (cash, money in the bank, etc) to see you through six or more months of living expenses in case you lose your job, become ill or injured and require a long recovery period, etc.  We have this, it hangs out in a savings account not doing much but waiting for an emergency to happen.  Note that when you have no debt and have cut your living expenses drastically this fund doesn't have to be that big.
• Cash on hand.  Everyone, no matter their age, should have a couple hundred dollars on hand.  This is useful if the ATM is out, the restaurant won't take your credit card, etc. and you need immediate money.  I don't go anywhere without cash.  I don't use it much but it is nice to know it is always there if needed.
• Car insurance.  If you own or drive a car you need to be insured.  Full coverage is best if you have a newer, more valuable car and don't have the money to replace it should it get wrecked.  Liability only is OK if the car is older, worth less, and you can easily cover the value out of your emergency fund.  We have one old vehicle so we only keep liability insurance on it.  If it gets wrecked we can easily buy a new car but so far this baby is 16 years old and still going strong.  Note that when you don't equate your ego to your vehicle you can drive a good running car pretty much forever.
• Health insurance.  Everyone needs this as well.  If you get seriously ill or injured you can be bankrupted by one visit to the ER these days.  Getting the right health insurance takes some research and thought, especially when things get complicated (ie: transitioning from an employer's policy to Medicare, trying to figure out Medicare which is a nightmare in itself, etc).  Although I am well covered by insurance, I'm eagerly waiting for single payer healthcare insurance because our current health-insurance-dominated healthcare industry is a freakin mess.
• House insurance.  This is another necessity.  If you are a renter, get renter's insurance.  This is another area where you need to do your research as you need to figure out how to cover your costs (liability, home replacement costs, content replacement costs) without going overboard.  Note that you should annually review your house insurance policy as many seem to have automatic increases so shopping around if yours seems to be getting too expensive may save you money on this.
• Life insurance.  You may or may not need this.  Everyone should have enough money to cover the cost of burying themselves and paying off their debts.  If you have no debt, no one dependent on your income, and have plenty of money in your emergency fund, you may not need life insurance.  If you have debts, no savings, and a wife and six kids depending on your income you NEED life insurance.  Term life insurance (IMHO) is your best bet.
• Long term care insurance.  As people live longer and sicker than they ever have before AND as fewer and fewer families see it as their duty to take care of their elderly loved ones, this type of insurance is more and more important.  How will you pay for your care (nursing home, assisted care facility, etc) when you are old and sick?
• Debt.  You should have none.  I am very anti-debt even though so many others rave about "low easy payments", "super low interest rates", and all that garbage.  Basically if you never carry debt, pay cash for your vehicles, and pay off your house ASAP you will be miles ahead of most people.  You will also need a smaller emergency fund, can easily get by an a low monthly income, and will be pretty stress free when it comes to your money.
• Savings.  You should have lots.  It is not that hard to save money if you do it consistently and over a long period of time (and resist unnecessary shopping, spending on things you can't afford, etc).  You should have a variety of savings accounts (emergency fund, vacation fund, gift fund, retirement savings like a Roth IRA, etc).
• Income.  Whether you are young and just getting started or old and retired, you need to have income, of course.  I am a fan of multiple sources of income.  The more money I have coming in each month from a variety of sources, the happier I am.  If I was only relying on Social Security...well that would be a bad thing.  When you are young, your job is to have as many pots in the fire as you can handle with the goal of building a solid skill set and long-term income.  When you are old, you need to be set up financially to the point that you will still have multiple sources of income including Social Security, a pension, income from retirement savings and retirement investments, maybe some rental property income, royalties are nice, and the occasional part-time job or hobby income is good as well.  Note that as you get older it is a good idea to know all of the financial rules that govern such things as when to take Social Security, how earned income will affect your Social Security, when you must take retirement savings disbursements, etc.
• Passive income.  The very best kind of income source is to have money come not from your daily work but from an investment you have made of your time or money which is now paying dividends.  The income on your savings is a form of passive income (a dismal source but still it shows how your money can be making money for you).  Royalties from previous projects (music, books, acting, etc) means you are getting paid for something you have done a while ago but it is still generating income.  Investing is a huge whole topic unto itself but suffice it to say, if you put your money into something that will (hopefully) make it grow like stocks, bonds, mutual funds, etc. you will have a continuous source of money.  Note that investing is hardly passive at first as it takes some bit of work to know what you are doing in the field AND, depending on the investment it can be kind of secure or not secure at all--either way you could lose everything.
• Retirement income.  There is a special sort of passive income for retirees that will keep the money coming in long after you have stopped working.  These include Social Security (it's nice but not nearly enough to live on if that is the only income you have), a pension (these are also nice but there is no guarantee that it won't implode like Enron so don't plan to live on only your pension for the rest of your life), retirement savings as noted above, your 401k, etc.  Whatever you do, don't look into these things when you are 65.  You need to focus on building these from your very earliest years of working so there will be enough to see you into a comfortable retirement.
• Buying stuff to sell now or later.  Another source of income has to do with buying things you hope will appreciate in value so you can sell them off in the future and collect a tidy sum.  This can range from buying antiques or guns, flipping houses, building up a business, buying jewelry or foreign currency...all of these things require your money/time/effort now but will hopefully bring a profit when it comes time to sell. 
• Wills, trusts, power of attorney, etc.  These official documents direct how you want things to go after you die.  You NEED these things.  I've seen it happen way too often when someone says "we know grandpa wanted..." but grandpa is dead and the evil aunt sweeps in and takes everything she can get her greedy hands on because it wasn't written down.  Similarly, inheritance laws vary a great deal by jurisdiction--you don't want to leave your kid a nest egg only to have half of it sucked up by inheritance taxes.  The creation and planning of these documents take legal and financial expertise that is well worth paying for.
• The intangibles.  I say these are intangible but they are just as important as all of the above.  Keeping yourself as healthy as possible, making financial planning your new vocation on a (very) regular basis, keeping up great relationships with your family and friends, keeping up to date in your field even if you are retired...all of these things will add extra security to your old age.

As you can see by this (very) long post, being financially prepared--especially being prepared for the point that you will no longer be able to work and create an income, is of paramount importance.  Start now to plan for any and all scenarios you can conceive of: what if you die long before your spouse, when if the spouse dies long before you do, what if you are ill for a long time before death, how will you transfer money to your kids, do you want to transfer money to your kids, how long will you keep the family farm before the amount of work and upkeep it takes isn't worth it...there are a lot of things to consider here.

Are You Prepared for These Unexpected Financial Emergencies?

Aside from being a very busy summer, I also ran into quite a few unexpected situations where my emergency fund did/may in the future come in handy.  Many of these things are situations that I hadn't even considered or planned for:

• My brother, after years of hard living, ended up in the hospital multiple times this summer.  While I am glad that he appears to be on the mend now, a thought that hadn't previously crossed my mind is “what would happen if he were to die?”  Obviously an unpleasant thought which I hope doesn't happen for quite a while but it dawned on me that he never has two nickels to rub together (ditto for all of my siblings and relatives on that side of the family) so it would probably fall to me to pay for his funeral/burial/cremation/etc.  If your immediate family member (parent, sibling, child, etc) were to suddenly die would they be able to afford the cost of a funeral/burial or would this responsibility fall on you and your emergency fund?
• If you or your spouse were to die suddenly, do you have enough money in your emergency fund to cover the cost of funeral/burial expenses?  This though quickly went through my mind as I was sliding over a boulder at Blood Mountain on the AT wondering if I was going to careen over the edge and die or just break some important part of my anatomy.  Fortunately neither happened.
• If you were suddenly to become injured, could your emergency fund support you through recuperation and rehab in case you couldn't work?  I am hoping you have disability insurance but many people don’t and with more and more people working hourly jobs that don’t even pay sick leave or annual leave, one broken limb or extended illness could sink one into destitution.  This thought crossed my mind as my hiking buddy was covering a particularly treacherous stretch of trail and I realized he would be starting a new contract job the following week and wasn't covered by any sort of sick leave.  No work would equal no pay which is when a person would be mighty glad to have an emergency fund to fall back on.  Fortunately this possible tragedy didn't happen either.
• What happens if travel plans change?  Whether you travel for work or pleasure, on a family vacation or for a family emergency, it is always possible that travel plans can change and with many tickets (air/train/hotel/bus) being non-refundable these days, do you have the extra cash in your emergency fund to cover such contingencies?  This thought came to mind when I had the great idea to take a Greyhound bus thorough the South in order to see the sights (bad idea on a number of levels) and was looking at spending the night in the downtown Atlanta bus station due to a delayed bus (again, a bad idea on a number of levels).  Fortunately I had left padding in my budget for this trip that would have allowed me to take a cab to the airport and fly to my final destination and even if I hadn't done this I would still have had an emergency fund to fall back on which many other stranded passengers apparently didn't have.  Again, things worked out in the end but it was nice to have the reassurance that money could have bought me out of a tight situation.
• When a weather disaster happens, do you have the emergency funds to see you through the crisis?  There have been all kinds of weather challenges this summer from storms to flooding (lots of flooding) to heatwaves that knock out power—and thus cooling—for days.  Many people simply suffer in silence when these things happen and depend on the Red Cross for particularly serious situations.  However, with a fat and fluffy emergency fund, you can, again, buy your way into, if not a full recovery, at least a more comfortable existence while you wait to get back on track (like a hotel stay instead of camping in your yard, a nice restaurant meal instead of what you can scrounge at the local 7-11, a portable air conditioner while yours is shut down, etc).
• What happens if your exquisitely planned and tightly budgeted epic adventure of a lifetime doesn't work out as expected?  When you hike by Neels Gap on the Appalachian Trail you will see boots and more boots hanging from trees in front of the hostel/store.  The reason?  According to the guys who work at the store, this is about the point in the trail when thru hikers (who usually start their 2000+ mile walk in April) start tossing gear and rebuying stuff to replace everything they had carried since the start of the trail that didn't work.  So the folks who barely have enough funds to cover the entire trip are left to suffer with heavy , useless gear while those with emergency funds can easily (but not cheaply—have you seen the price of new gear these days???) replace what doesn't work with items that do and be on their way again.
• And then there is Mexico.  I spent a bit of the summer in Mexico and didn't even need to bribe anyone this time which was nice.  Of course, as an American, you are going to end up paying more than the locals for many things but that’s just how it is.  More importantly (and not only pertaining to Mexico) is the fact that an emergency fund is almost a necessity in countries where bribery, corruption, and serious legal problems are the rule instead of the exception.  Money talks and penniless tourists usually get the short end of the stick when things get complicated.
• How’s your food stockpile?  I haven’t shopped for regular groceries in months but as soon as we got back home it was time to hit the stores.  And the prices on everything from dairy products to meat and even dry goods has indeed increased in only a few months, some exponentially so.  While I am hoping your usual food budget will stretch to cover the increase in food prices, having an emergency fund can come in handy when a food item that you usually eat comes up as a loss leader or at a great sale price at which time it just makes sense to spend the extra money and stockpile as much as you can reasonably store and eat in the foreseeable future.

20 Financial Tips...

...based on our move to Las Vegas a year ago.
Here's 20 ways the spouse and I have been able to shift from a large, work-till-you-drop-full-time-business-owner income, to a meager retiree income and still come out seeming like we have more money than ever before:

1. We paid cash for the one car that we drive and now, and as it has got older, only carry liability insurance on it.  This by itself saves more than $15k a year over what we used to pay when we had two or three new cars in the driveway.  Also, I found that the county offers a discount on property tax to seniors which pays for the complete cost of our car tax each year (Google is awesome).
2. We skipped the cable TV and got an over the air antenna for $30 which saves us over $100 a month and still provides more than 40 free channels to watch.
3. Our high speed internet service is $27 a month (at least for a year at which time I will call again and threaten to drop service at which time they will offer me another great promo price to remain a customer).
4. We each have pre-paid cell phones from Walmart.  Yes, you have to pay the full cost of your cell phone up front (either from Walmart or Amazon) but it is much cheaper than getting a discounted phone from a cell phone carrier...along with a high-priced two-year contract.  Our monthly cell service with talk, text, and internet costs $30 each per month.
5. We bought a house in a place where houses cost a lot less than where we used to live (ie: our house payment is 1/4 what it was in Seattle for nearly the same size house).
6. We moved to a place where the cost of living is lower (unfortunately you have to forget about getting a good job here as they don't seem to exist but if you have a retirement or otherwise location-independent income you would do well in such a place).  Gas is $2.85 a gallon, utilities are much cheaper than in Seattle, and the weather is great nine months out of the year so we barely require heating or cooling during that time.
7. We cook at home most of the time.  And food seems to cost less here with great bargains to be had at the 99 cent store and the Asian and Mexican supermarkets in town.
8. There are A LOT of free activities here.  You can choose from literally a half dozen free, interesting activities each day in Las Vegas ranging from concerts and shows to conventions and community events (thus the free hiking each week that I do).
9. You can pick and choose your hobbies to keep you occupied but not in debt.  My hobbies used to range from the expensive (shooting) to the expensiver (luxury travel).  Now I am happy to do day hiking, walk with the local volksmarch club, genealogy research, and volunteer with a couple of community organizations.
10. We buy ALL of our clothes at the Goodwill (on senior half off Wednesdays, no less).  I haven't stepped foot in a mall or Macy's/Saks/Bloomingdales for a few years and I quite like it that way.  Now that I know about shopping at the Goodwill, I will never shop retail again for clothes (shoes I still buy retail on on clearance or a deep discount sale).  As I sit typing this I am wearing a pair of Levi's, a Hollister t shirt, and a Land's End fleece jacket all bought at the Goodwill for a total of $5.
11. We don't buy crap.  For decades (mostly when the kids were growing up) we spent our free time shopping and ended up buying SO MUCH UNNECESSARY CRAP that it is embarrassing to look back on it (the point of which is quickly driven home when you go to sell all of this junk at a garage sale and it is worth only pennies on the dollar).
12. We travel.  Cheaply.  Mega bus, off season cruises, discounted airline tickets, staying with friends and family...there are a number of ways to be able to travel yet cut the cost (our next adventure may be Couchsurfing and hosteling!).
13. We don't work.  Which on the surface seems like not a very good financial move, but with a retirement income as well as some freelance income, we actually save a lot of money over the cost of working when you figure how much we used to spend on work wardrobes, commuting, an extra necessary car and insurance, meals out, coffee at Starbucks on the way to work, office gifts, etc.
14. We conserve everything.  Water, electricity, gas...you name it and if there is a way to lower the bill we do it (to the point of recording our daily electricity usage in order to keep us striving to lower the bill even more).  Note that free low-flow shower heads and faucets are often available from the local utility as well as other freebies (rebates, etc) to encourage savings on utility costs.
15. We save gas by staying home a couple of days a week and not driving, grouping errands and trips together, and looking for other ways to cut costs on fuel expenses (ie: day trips closer to home rather than long driving trips, etc).
16. We do the usual money saving things: using the library for free books, movies, and ebooks, shopping loss leaders at the grocery store and stockpiling them, etc.
17. Medical costs are paid for courtesy of Uncle Sam (which saves a TON of money).  
18. I use the web to keep abreast of even more ways to save money such as here and here.
19. By traveling for more than a year with only what we could carry in a backpack, we realized that we don't need stuff.  We do need good health and good friends and a good marriage so we spend our money accordingly.
20. We still do many things ourselves: our wills, our taxes, installing a new faucet or shower door in the house, minimal landscaping, etc.

10 Unusual Ways I Save Money (So I Can Spend My Cash on More Important Things)

People tend to have a lot of habits that they waste their money on.  These may not be very expensive habits--you may not be buying a new car every year or gambling away your retirement fund--but a slow drain on your wallet will have the same result, namely all of your money going to things you can't even remember meanwhile, you miss out on the opportunity to spend your hard-earned cash on things that can make a positive impact on your future (or at least help you face TEOTWAYKI with a whole host of cool gear).  Here's ten unusual ways I save money each month:

1. I don't have cable TV.  I bought a $20 digital antenna from Walmart, plugged it into my TV, and I receive about 20 stations free over the air.  That's more than enough TV for me.
2. I don't have a smart phone.  I had one for a while but got tired of always being connected (and got tired of the big monthly fee for a combo call/text/data plan).  Now I pay $30 a month and have a basic cell phone which still allows me to access the internet if necessary (albeit very slowly compared to the warp speed of my old smart phone).
3. I don't have a home phone.  My cell phone works just fine.
4. I don't subscribe to Netflix or other movie services.  I go to the library and check out a dozen movies at a time which, again, is plenty of entertainment (and most of the movies are new too!).
5. I don't have internet at home.  Actually the place we live currently has an iffy community wifi signal but I tend to do most of my work at a coffee shop or at the library, both of which provide free internet.  Since the internet was invented, I have been "connected" 24/7 but after traveling for a year and a half, I realized that I enjoy not being so connected.  I do, however, enjoy reading and doing shop projects which I now have plenty of time for.
6. We have one vehicle, bought new, paid for with cash, and we will drive it until it dies. Literally.  This saves money on interest, the cost of continuous monthly payment, and as the vehicle gets older, registration and insurance costs drop dramatically.
7. Since my wardrobe is no longer business professional but tends more towards hippy traveler, I tend to shop at the Goodwill and Walmart.  I haven't been to a mall in a couple of years and don't miss it at all.
8. We eat at home almost all the time.  Aside from the occasional meal out, we tend to cook from scratch and eat nearly all of our meals at home--a much healthier and cheaper alternative to the daily drive-thru.
9. I don't do subscriptions. No newspaper subscription (read it online), magazine subscription (ditto), gym membership (go outside for a walk)...basically anything that was a recurring payment besides necessities (like electricity) got the ax.
10. We've ratcheted the lifestyle way back.  When we shed our house, cars, and nearly everything we owed more than a year ago so we could travel for a year or two, we shed our entire lifestyle.  No longer do we shop for entertainment, gatherings are potluck instead of me footing an extravagant restaurant bill, gift giving has been scaled back, and we have gone minimalist in almost all areas of our lives (note that if we hadn't spent so much money on consumer crap over the past few decades I would have more than a million dollars in the bank).

Now there are a bunch of things I do like to splurge on--travel, firearms, educational opportunities, etc--but at least now I am in control of my money instead of just spending like "everyone else" so I could "keep up with the Joneses".  Most importantly, I don't miss the things listed above, things that "everyone" considers a basic necessity.  And of course, your expenses may vary depending on a number of factors, but the more control you have over your finances, the more opportunities you can create for yourself.

The Limiting Factor is Debt

When I was listening to Ron Paul speak a couple of days ago he said something that caught my attention and hasn't left my thoughts since.  He was talking about the US debt crises and he pointed out that the limiting factor (for anything that the US government wants to do) is debt.  Want to go to war?  How are you going to do that when the US is buried in debt? Want to fund a whole bunch of new jobs? How you going to do that when the US is buried in debt?  Want to improve infrastructure so that the people of our country will have safe bridges to cross and safe water to drink?  How you gonna do that when the US is buried in debt?  Although he didn't use these examples--these are mine--he made an excellent point.  A point that applies to the US economy as a whole as well as to your individual financial life--no matter what you want to do, you are limited by the amount of debt you have.
Now in the example of the US economy, our government continues to print money and borrow to fund their high flying spending...we know this isn't going to end well.  But for your own personal economy, there is hope.
Do you want to tell your boss what he can do with your employee review?  Your ability to do so is limited by how much debt you have.  If you have a giant mortgage, two car payments, and a handful of credit card bills, you won't be able to say jack...you have bills (debts) that need to be paid.  If you have zero debt and a big, fat savings account, you will be in a much better position to say "take this job and shove it" if the situation necessitates such action.
While there isn't much we can do about the national debt (aside from electing people who will actually DO something about it instead of lamenting the spiraling debt as they continue to spend like drunken sailors that just hit port), we can adjust this limiting factor in our own lives simply by getting out of debt.
I'm not talking pay off your credit cards and your horizons suddenly expand but pay off every single debt you have (house, car, credit cards, personal loans, student loans, et al).  Can you imagine what your life would be like if your only bills each month were for utilities?  When you get to this point, your opportunities will then truly be limitless.  Kind of a nice thought...

100 Ways to Live Below Your Means

Right after the debt crisis was averted, the talking heads on the news pointed out that we still weren't out of the woods (they probably continued with this train of thought right after the US lost it's AAA status).  When asked by a reporter what the average American could do to avert financial disaster, one of the talking heads said his main piece of advice was to 'live within your means'.  I believe he intended that comment for average Americans as well as the American government.  This was my grandfather's advice many decades ago too and it is unfortunate that it is taking near financial collapse to reinforce the idea that people cannot live on credit forever. So here are 100 ways to live below your means (and save some money in the process):

1. Stop acquiring debt.
2. Pay off debt.
3. Tithe 10% each month.
4. Save 10% each month.
5. Live on 80% of your income.
6. Reduce your housing costs.
7. Stop eating out on a regular basis.
8. Cook most of your meals at home (it's cheaper and healthier).
9. Cook from scratch.
10. Simplify your diet.
11. Eat fresh food, in season.
12. Hunt and fish for your meat.
13. Grow a garden.
14. Preserve your own food.
15. Cut cable (a digital converter box is a much cheaper option).
16. Look for the cheapest options when buying a product (CraigsList, garage sales, pawn shops, etc).
17. Skip going out to the movies and rent a $1 video (or get videos free from the library).
18. Take public transportation if possible.
19. Walk or bike to do your errands.
20. Use the library--it's free!
21. Volunteer (you can develop job skills this way and give back at the same time).
22. Buy local.
23. Look for free activities in the community to keep yourself entertained.
24. Do it yourself--home repairs, car repairs, yard maintenance, etc.
25. Make a monthly budget and stick to it.
26. Get a side job or side business and save the income for large purchases (vacation, car, Christmas, etc).
27. Reduce.
28. Reuse.
29. Recycle.
30. Don't buy the latest gadgets (let them work out the bugs and drop the price first).
31. Reduce the number of pets you have.
32. Make your kids work for what they want (ie: you pay half and let them earn half for items they want).
33. Reduce temptation (cruising the mall, Costco, or the shopping channel will do nothing but make you want to buy).
34. Develop useful hobbies (fishing is a good one, for example).
35. Plan your purchases (use a shopping list).
36. Sleep on large purchases.
37. Always carry cash (in case you stumble upon a great deal on something you absolutely need).
38. Borrow instead of buying.
39. Develop a neighborhood sharing network (for tools, yard maintenance items, etc).
40. Go line by line through your monthly budget and figure out how to lower or even get rid of each line.
41. Have insurance but shop around for the best prices.
42. Look for/ask for discounts (senior discounts, military discounts, coupons, etc).
43. Live in an area with a lower cost of living.
44. Learn how to reload ammo.
45. Consider being a one-car family.
46. Develop a social network (everything from dinner potlucks to sharing babysitting chores to an emergency response team can be developed this way).
47. Barter skills, services, and materials.
48. Ask for a raise (be sure you can show how you deserve it).
49. Stay out of trouble (fines and bail are expensive).
50. Don't overindulge your kids.
51. Stop addictions immediately (alcohol, smoking, drugs--all are a waste of money and brain cells).
52. Practice preventive maintenance (on your home, car, and your health).
53. Live a healthy lifestyle (exercise, eat right, floss your teeth, etc).
54. Invest in items that hold their value (guns, tools, gold, etc).
55. Drop the gym and exercise at home (walk, garden, etc).
56. Skip your daily run to Starbucks or your local bar.
57. Always have an emergency fund (a credit card doesn't count).
58. Beware of fees (credit car annual fees, bank fees, etc).
59. Minimize your possessions (it will cost less to maintain, insure, protect, etc).
60. Increase your income by selling things at garage sales, CraigsList, eBay, etc.
61. Look into carpooling if you and your coworkers regularly travel to meetings or to and from the same places.
62. Never buy a new car (they depreciate like a rock as soon as you drive them off the lot).
63. Make sure your mortgage/rent payment is no more than 25% of your income.
64. Conserve (water, gas, electricity, etc).
65. Don't use your cash to boost your ego (this is an extremely temporary--and expensive--fix).
66. Vacation on the cheap--stay with relatives and friends, go camping, be a caretaker, etc.
67. Use the sun--to dry your clothes, preserve your food, and heat your home.
68. Consider using a wood stove and getting a permit to chop your own wood.
69. Consider cutting internet if possible (there's lots of free sources such as the library, the mall, coffee shops, and even the random unsecured wifi network).
70. Drop the land line and get a cheap, pre-paid cell phone (mine is $30 a month for 1500 minutes of talk and text plus 2 gb of internet).
71. Take safety seriously (smoke detectors, bicycle helmets, seat belts all save money in the long run).
72. Speak up (ie: challenge a higher than necessary tax bill, if a product doesn't meet your expectations ask for a refund or replacement, ask for discounts for poor service, etc).
73. Hold a clothes swap with other families before school starts (cuts down on the amount of school clothes you will need to buy).
74. Make your own treats (recipes for everything from frapuccinos to Girl Scout cookies to Cinnabon cinnamon rolls can be found online).
75. When in doubt, google (everything from obscure replacement parts to advice on appliance repair to free college classes to alternative medical treatments can be found simply by googling your problem).
76. Ask for help when needed (stop by the parent's house for a free meal, ask your sister to babysit, ask a neighbor for a hand with a repair, etc).
77. Make use of public aid if you are in dire straits (welfare, food stamps, medical coupons, food banks, etc).
78. Don't go into debt for a college education (it can be done!).
79. See what benefits you are entitled to (as a military vet, as a tribal member, as a AAA member, as a senior, etc).
80. Entertain yourself at home instead of paying for entertainment in the community.
81. Pick a good spouse/SO (one with a similar attitude towards money as yours).
82. Dumpster dive (or "go pickin" as they say) for goods you can use or resell.
83. Give experiences instead of gifts (take your friend fishing instead of springing for an expensive gift).
84. Develop useful skills instead of wasting time in front of the TV.
85. Get a second opinion (on everything from medical issues to car repairs).
86. Drink water or tea with each meal instead of soda pop.
87. Reduce the number of teams/organizations/fundraisers/etc you are on.
88. Take drastic action if necessary (one guy got rid of everything and lived in his truck in order to get out of debt and save money).
89. Instill good values (including good financial values) in your children and grandchildren.
90. Don't be a burden to anyone or to the government.
91. Reduce stress (this causes all types of medical and social problems).
92. Be proactive--if you see a problem, fix it, if you see an opportunity, take it.
93. When your income increases, don't increase your lifestyle; bank the increase for your future.
94. Don't try to time the market, day trade, get in on shady deals, etc.  If it seems too good to be true it usually is.
95. No matter where you go, always take food and water/coffee with you (saves the cost of restaurants and vending machines).
96. Make your home safe and secure (increases peace of mind and decreases insurance claims).
97. Work from home and home school your kids (this saves all kinds of money from transportation and clothing costs to the financial impact of peer pressure and interpersonal issues).
98. Try new things (if you have never shopped at an ethnic store you may be surprised at the savings, for example).
99. Ask your oldest living relative or friend about their frugal tricks--some ideas might surprise you (and save you a lot of money!).
100. Look for peace and fulfillment within yourself instead of of the bottom of a bottle or at the end of a shopping spree.

Economic Panic is Just Around the Corner...And 10 Ways to Get Ready

How's your financial life these days?  If you are like many people, it was a Hell of a lot better five years ago.  So while the economy teeters on collapse (or should I say upheaval?), have you put yourself in a position to survive the coming turmoil? 
Nearly eight months ago, we embarked on a grand experiment.  The idea was to sell the house, sell basically everything we owned, "retire" so to speak, and travel.  From this we have learned a number of lessons:

• We were fortunate to sell our house while the equity was still there.  Since we sold it, the value has dropped another $20,000. Yikes.
• We are debt free.  I can't stress this enough--if you have absolutely zero debt you can survive just about anything.  If you are saddled with tens of thousands of dollars of debt you will be in a poor position to ride out any sort of economic storm.
• We don't own a home.  So besides being debt free, we have no other bills either (no water bill, cable bill, electric bill, etc).  Our only bills at this point is for a small storage shed for the things we kept, an annual health insurance premium, and monthly pre-paid cell phones.
• We have money in savings.  We occasionally dip into savings for some things but we never let our emergency fund dip below a certain amount.  In other words, our spending habits have totally changed and we no longer look at spending as something we can do without thought. 
• Traveling is one way to limit what you buy.  Since we only buy what we can add to our backpacks, the number of things we buy is severely limited.  Basically this reduces our shopping to food and the occasional coffee shop visit.
• Traveling also cuts down on many other expenses: since we don't go to work, there is no need for a work wardrobe, since we aren't around our social group there is no peer pressure to but the latest designer items or a boat to keep up with our friends.  We no longer eat out daily, there are no gift pools to contribute to, our taxes will be so low this year we will probably be audited because it is so drastically lower than any year in the previous few decades, and our gas expense are significantly reduced as well (the people we have stayed with have all had extra cars for us to borrow but we still pay for gas).
• As we have been traveling, we have been staying with friends and relatives.  Fortunately that means our expenses for lodging have been zero (for nearly eight months!).  We buy food, we offer our services to the people we stay with in a variety of ways (the spouse usually cooks every day which really helps out people who would otherwise eat out like we used to do when we had busy working lives and I've done taxes, home repairs, computer repair, and other odd jobs to help out the people we have been staying with) and we have otherwise been pleasant house guests.
• We have learned a lot doing this: communal living is a great way to share expenses (communal living can also be pleasant or horrible depending on your temperment and the temperment of the people you are staying with so a good fit is necessary).  Sharing cooking, food, and housework is also a great way to save expenses and the amount of work you have to do by yourself.  
• Our experiment has had the unintended side affect of causing nearly everyone we have stayed with to reevaluate their financial position, if not their entire lifestyle.  Most have decided that downsizing significantly in the near future is now in their plans.

So...the ten rules for surviving financial disaster are:

1. BE DEBT FREE!!!
2. Have an emergency fund.
3. Stop spending!  Always look for free ways to get what you need.  If something you need can't be found for free consider Dollar Stores, thrift stores, CraigsList, garage sales, and generic store brands.  I haven't paid retail in ages and hope never to do so again. 
4. Reduce your living expenses to the bare minimum.  Obviously most families can't simply sell their house and move in with relatives but many people can downsize considerably.  One lady we stayed with had a 5000 square foot house, three cars, and over five hundred pairs of shoes, all for one person!  NOBODY needs that much stuff!!!  I would rather own a travel trailer on 1/5th of an acre than have a huge house with a huge mortgage and giant bills each month for water/sewer/garbage/heating/air conditioning/etc.
5. Have multiple sources of income.  As the debt ceiling talks continue, I could have been in a very precarious position of relying on a military pension and Social Security.  Fortunately I have a half dozen other sources of income as well (all small but steady income streams) which, due to the fact that our living expenses are so extremely low, that should my main sources of income stop, we won't end up truly destitute (but I will certainly miss being able to bank all of that extra cash!).
6. Have a stockpile of critical items that could come in handy in the future.  Gold is nice to have, firearms and ammo are also good to have.  If you have a family, a fairly good stockpile of food is important, tools can also be useful to you and can be used for barter items as well.
7. Learn all you can.  Some people lose their job, sit home, get depressed, and stare at the TV or computer all day.  What a waste of time.  The person who will survive an economic or social catastrophe is the person who has the widest range of skills.  Your spare time, aside for hustling for work, should be spent learning.  The library and internet are excellent sources of free information and can be used to teach you everything from how to glean wild edibles to how to snare, dress out, and cook a rabbit--skills which will make it so you won't starve if worse comes to worst.
8. Make radical changes.  At the end of last year, my largest client went under.  Now I could have panicked, started searching for other clients to make up the short fall, or otherwise kept going on with my cushy life until things totally fell apart or I could make a radical change.  Radical change is scary.  It is also socially weird to all of your friends and family.  Fortunately, having been inspired by other people who had also made radical changes in their lives (one family sold everything and biked from the North Pole to the southern-most tip of South America, another man sold everything, moved across the country with $3000 in his pocket, and started an online business from scratch which now nets him thousands a month) we decided to be radical and give it a shot (the spouse at first though I had lost my mind but is now rather taken with our new lifestyle).
9. An attitude change is required as well.  Even though money and emotional problems are what most people cite as being the result of our current economic situation, the largest problem standing in your way in changing circumstance is often your attitude.  The attitude of "I hate this because this is different/worse than what I am used to" or the attitude of "I used to be a six figure earner and now I can't even get an interview so I am worthless" are a waste of time.  As my grandmother (who weathered everything from the Depression to the sudden death of her husband when she was 17 years old and had a newborn baby) used to say, "this is the situation you have to work with, stop thinking about what you had before and stop feeling sorry for yourself. Now get out there and get busy!"  Needless to say, if we ever told grandma that we were bored, pitiful, or otherwise unhappy, her cure was work..it usually involved a hoe or an ax or a lawnmower.
10. Finally, know that this too will pass.  The Revolutionary War was a dark time for our country but we rebounded, the Civil War was similarly horrible depending on where you were, the Depression was certainly challenging for most, and World War II was no picnic either but after each of these challenges came renewal and better days.