Tip 6: Go On A Shopping..."Anti-Spree"

Spree is an indulgence of your impulses. For the next year, take a break from your impulses-stop shopping. I am on month 3 of my "anti-spree," and feel completely liberated. In June, the month before swearing off shopping, I would look in my closet a swear that I had nothing to wear. Within 3 weeks after beginning my newest experiment, I began to see possibilities.

How creative do you think that you could be on the same wardrobe for a year?

Tip 5: Free Fun

Try an experiment: go one week without spending any money on fun.

In just one week, you will begin to think outside of the box. Entertainment will become an adventure. The time the you spend with your family and friends will be more meaningful. You will also save a lot of money.

Now, expand that experiment beyond a week...maybe a month, or even a year. The traditional formula for entertainment (dinner and a movie) can be replaced with free concerts at the park, picnics, hikes, bike rides, floats down the river, game nights with friends...

To get more free fun ideas, visit myfreefun101.blogspot.com. You can also find free activities in the event calendar published in your local newspaper. Or, look for calendars in free magazines or newspapers. You can normally find them near the front door at your local grocer. Other great resources are your local library and community center.


----------------Cost Analysis----------------

Average Entertainment Cost:
$225 per month, or $2698 per year

Free Fun:
$0 per month, or $0 per year


********TOTAL SAVINGS: $2698!********

Tip 4: Cut Cell Phone Expenses

Cell phone expenses are likely one of your biggest unnecessary expenses. They fancier your phone, the more it costs you every month. Remember, saving money is more than being thrifty; it's like you are earning more at work. Don't you deserve a raise?

In an effort to cut costs, I ended my contract with a nationwide carrier and found more affordable options. I first tried MetroPCS. The cost was right, but the reception was terrible in my area. I then found out about Straight Talk from Clark Howard on Talk 650 KSTE. Straight Talk uses the Verizon band which gives customers exceptional coverage. Phones can be purchased for less at WalMart than they can through the Straight Talk. 4website. They have two calling plans: $30 for 1000 texts, 1000 minutes, 30 MB of web access, and free 411 or $45 for unlimited calls, texts and web access, and free 411. The only complaint that I have is that it took a couple of weeks to port my number over. They "lost" my phone number and had to make a request to get it back.

I recommend beginning with the $30 plan. You may be surprised how far 1000 minutes stretch; I'm big talker and I've never run out of minutes. Also, since Straight Talk is prepaid, you can always upgrade your service the day before you expect to run out of minutes.



----------------Cost Analysis----------------

Average Cell Phone Cost:
$73 per month, or $876 per year

Straight Talk cost:
$30 per month, or $360 per year


********TOTAL SAVINGS: $516!********








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Tip 3: Chose a Bank that will Pay You!

Step 3 is one of the easiest steps that will give you immediate rewards. As much as I have loved my bank of 6 years, I realized through research that my bank was not paying me enough to be a member. I did not choose to close my account; I simply opened a couple of additional accounts that payed me back.

The first account that I opened was through Ally.com. I chose Ally because they have excellent interest rates on both their savings accounts and certificate of deposits. To chose your own bank, visit BankRate.com. You can compare rates and banks based on user ratings and find the best fit for you. When I opened my account with Ally, I also realized that having a savings account that is separate of my checking account makes saving easier. I can transfer money to my checking account, but it takes a few days. Those few days of wait is a huge spending deterrent.

The second account that I opened was through Chase. This decision was based on their current cash incentive. I chose to use my Chase account as my grocery shopping account. That way, I meet the 5 debit transactions required to avoid monthly charges. Also, you must keep the account open for 6 months. The receive a cash incentive coupon and open your own account in order to earn $100, you can visit Chase.com.



----------------Cost Analysis----------------

Traditional Bank Rewards=$0
Average Interest Rate on Savings at Local Bank=.25%, or $2.50 per year on $1000

Chase Reward=$100
Ally Interest Rate on Savings=1.29%, or $12.90 per year on $1000


********TOTAL SAVINGS: $110.40!********




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Tip 2: Highlight Needs and Wants

Now that you've itemized your expenses, highlight your needs in green and your wants in red. This step will help you find spending areas that can be cut or reduced. Remember to keep an open mind. You are not going to need to cut out all of your wants. I'm just going to give you some cost-saving substitutions that may or may not work for you situation.

Tip 1: Itemize

The goal in saving money is not to go without; it is to substitute. Spending money fulfills a need. Simply vowing never to waste money again will never bring you closer to your goals. Instead, find less expensive options that fulfill the same need.

In order to do that, itemize your monthly spending. I used Microsoft Excel to itemize my spending. Writing everything down in categories also works. Although this step is boring (yawn), it is crucial to the next steps that I am going to share. Without knowing what you spend every month (at least an approximate) you cannot begin to know where to save money.

REMEMBER: Every dollar that you save is a raise at work! If you save $20 by eating at home one night, you just got a $20 raise!

If you know Microsoft Excel well, you can try out my expenses template. I uploaded it onto Google document.

Become a Millionaire!

All of us dream about being a millionaire but how many of us begin to live accordingly?

What is the first step to being rich some day? Begin living thriftily. Every time that you pass on eating out or choose to brew your own coffee instead of stopping in at Starbucks gives you a raise.

What else can you do to give yourself a raise?

In this blog, I will be sharing all that I have done and will do in order to give myself a raise so that you can do the same thing with less research. Go into this with the plan to live with more: more money, more adventures, more quality time with friends and family, and more freedom. Over the next year, I will share all of the money saving tips that I find. Remember: thriftiness brings you one step closer to being a millionaire!