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I have a friend who lets her kids have an allowance bonus based on how many coupons they find for household items and subsequently save. They get really into it and it’s cute. Plus it gives them some ownership over household finances.
1) shop at value stores (Walmart, Aldi) instead of Target, Whole foods, Trader Joe's
2) even better, shop at wholesale big box stores like Costco
3) plan expensive purchases like electronic, jewelry etc till holiday season (4th July, Black Friday sale etc)
4) use cash back on credit cards
5) consolidate Mobile bills and check if you need higher data plans (given there WiFi in so many places or your hotspot device you carry)- switch to Lower plans
5.1) don’t upgrade your phone to the next shiny thing that is released.. just make your current one run longer
6) cut the cable and landline - not relevant anymore
6.1) consolidate online streaming subscriptions .. have either Netflix or Hulu
7) think if you really take advantage of Amazon Prime and discontinue if not
8) plan vacations ahead of time .. like 4-5 months ahead of time and start saving miles and points towards them
9) consciously avoid all impulse purchases
10) refinance your mortgage and student loans (if it makes sense)
11) review your gifting practices (for SO/kids etc.) and see if how much you end up spending annually
12) ditto for eating out
Hope this helps!
Not sure if second-order — but getting the kids involved in home-cooking, etc. and also prioritizing buying second-hand clothing where possible were two huge drivers for cost-control in my house. Also, using “cost” opportunities instead as “teaching opportunities” — teaching kids to change oil, change brake pads, do basic plumbing saves money and also teaches them skills.
Limit the number of Bday parties you allow your kids to go to for only close friends. The new norm is to go to every single classmates party. That’s 20-30 kids each year with 30ish per bday present. If you have multiple children or a big family in addition to this... we are talking thousands of dollars each year.
People often “outsource” a lot of what could be done by members of the household: lawn maintenance, snow shoveling, cooking and eating homemade meals , interior painting and other simple home and auto maintenance- all of which you can teach yourself by conducting a little research.
Take a really hard look at your recurring charges. Lower your budget on car/house/travel. Set up a recurring transfer to a real savings account and don't think about pulling from it
How much money needs to be saved? I’d say it’s different methods depending on goals
I love having Digit run in the background. It’s saved me over $1000 in just 6 months and I haven’t missed a cent. It’s a really cool service.
Generate passive income?
Saving on you rent/mortgage and transportation costs will give the most bang for your buck...
Fantastic stuff. Thanks guys!!
Do work on side. I’ve always had bandwidth for outside projects in my career.
Bcg2 what kind of side projects do you do ?
Write articles, consult on side for startups, whatever I can find. Always looking
How do you find that stuff?
Yeah BCG2: how do you find those? Nerdhour or whatever the new name for that is?
@Bcg2: why so silent? We all want to hear from you 😊