Money Management and Learning

A great way to save money in a time of recession is to simplify your life. This can mean a lot of different things, and believe me they aren’t nearly as painful as you might expect!

For example, one good way to save money is by cutting out cable television. This is actually getting more and more popular, as different alternatives come out every year. One example is getting a subscription to Netflix. This allows you to get regular DVDs in the mail, as well as stream unlimited movies online! You can even stream them to your TV if you have an Xbox360, Nintendo Wii, or a number of other devices. You can also use Hulu, or a piece of software that allows you to watch TV over the internet. Depending on what type of cable TV plan you have right now, these can help you save anywhere from $30 to $100 a month.

Another great way to save money on utilities is investing in energy efficient devices. For example, use compact fluorescent lamps instead of the older style bulbs. These will generally last for years, and can save you $50 or more per light bulb! Use Energy Star appliances to save on water, electricity and natural gas consumed. Install low-flow shower heads.

Another way to save money on utilities is to just plan their usage. Don’t just let the water run while brushing your teeth. Have shades drawn in the summer to block out the sun, and keep them open in the winter so the sun can heat up your house. Turn the air conditioning down to 78 degrees or higher in the summer, and in the winter don’t heat up the house to be warmer than 68 degrees.

Although these may seem like very minor ways to save money, they can save most families hundreds or thousands of dollars a year.

Do you do your own yard work or house cleaning, or do you have someone else come in and do it for you? While it does make sense for some families to have someone else do this, a great way to save money is to do it yourself. In fact, the only time when you should not be doing this yourself is if you work very long hours and earn more money than you have to pay someone to do it for you. For example, if you make $30 an hour and it costs a neighbor $10 an hour to mow the yard, it makes a lot of sense to have him do it for you.

You think you might have anything around the house that you don’t need anymore? Be honest with yourself. Most American families have thousands if not tens of thousands worth of “stuff” that they never use. Books, movies, old cars, clothes, workout equipment, toys, and just about anything else you can think of can be sold for some extra cash. In fact, this is probably the very easiest way to make a quick buck anytime you need it. Just rummage through your old stuff, find what you don’t want or need anymore, and sell it!

Do you or your children do a lot of extracurricular activities on the side? I understand that these are nice, but face it- they cost a lot of money. You’re paying for gas to get to the activity. You pay for equipment, clothes, or instruments. You usually pay for the instructor’s time, or just being able to be in the program. There is an opportunity cost of not being able to work and earn more money.

If your finances are really struggling, don’t sign up for these programs! There are a lot of great ways to do things as a family without having to spend this type of money. To learn music, buy a book, get free lessons online or from a friend. Head to a park or a church intramural league for sports. Take up reading or playing board games with the kids. Instead of going out to the movies and paying $40, get one for $1 at a Redbox nearby and watch one at home!

Being frugal doesn’t mean having a boring life- it just means spending your money better!

by Brandon Lamb