Getting Into the Habit of Saving Money

Introduction

Human beings are creatures of habit. Too often we establish bad habits and don’t put the effort into developing good habits. This is true for eating, exercising, sleeping or financial matters. With a few simple strategies, however, you can actually get into the habit of saving money. There are lots of ways to save money. Like any good habit, learning to save a little money every day can add up to big benefits in the long run.

Consumer products

On most products there is an 800 number for the manufacturer. Call it, give your opinion on the product you have purchased, tell the manufacturer how much you enjoy their products, then ask if they have any manufacturer promotions on other products they offer. You can get substantial discounts, special offers and/or coupons.

Shop around

After you have decided on a particular purchase, shop around for the best deal. (A deal is a combination of purchase price, delivery and shipping charges if applicable, service and maintenance agreements, etc.) Use the Internet to check on availability. The more effort you put into the purchase at the beginning, the better a deal you’ll get.

Gasoline

If you own a car, check your owner’s manual for the lowest octane level recommended. Then check out all the gas stations within a few miles’ radius of where you live to find the lowest price. Find out if the stations have promotions such as a day when every grade of gasoline costs a few cents less. Most gas stations charge extra for full service; pump the gas yourself instead.

Checking accounts

There is often no reason to pay fees for a checking account. Inquire of banks in your area if there is a minimum balance or other requirement you can meet that will waive any monthly fees. Be sure the bank knows that paychecks are deposited electronically; banks often drop or lower checking fees for direct deposits.

Prescription Drugs

Name brand pharmaceuticals are usually more expensive than their generic equivalents. When filling a prescription, ask your physician and/or pharmacist if there is a generic version that’s appropriate.

In fact, different pharmacies charge different prices for the same medicine. It pays to shop around in this case too. If you are taking a drug over a long period, contact mail-order or online pharmacies, which often charge less for the same medication and the same dosage.

In General, Make a List

When considering how to reduce expenses or when making a purchase, make a list. One way to save money is to reduce your expenses but most of us can’t say offhand how much money we spend every month on various items and which of those items are absolutely necessary. Making a list helps. First list all of the fundamental expenses you have each month. Then list any annual charges prorated for the year. Then list discretionary spending. Once you see it written down in black and white, finding ways to save money is easier.

List making is important for making purchases as well. Even when grocery shopping, you will spend less if you make a list because you’ll be focused on what you need and will reduce your temptation for impulse buying. And remember, just because an item is on display at the end of the aisle doesn’t mean it’s on sale.

When comparison shopping for large purchases, a list will help. Make columns for each important factor and write down what each store/vendor/dealer offers for those factors. In buying a new car, for example, make sure you know about the model’s gasoline mileage and estimated standard maintenance costs and what each dealer offers concerning price, required down payment, and interest rate (if relevant).

Source: Omni Financial®