| Here's the thing: I'm a New Yorker. And | | | | you won't be able to tell the difference |
| in New York, it is amazingly difficult | | | | and that can save you $20 a month. |
| NOT to spend a lot of money, just on the | | | | - If you switch to broadband, don't keep |
| basics! As a student of Harv Eker, I am | | | | your dialup (unless you travel often |
| trying to limit my expenses to 50% of my | | | | outside the country or in rural areas). |
| after-tax income, and I have to tell | | | | Also, drop paying for AOL. All AOL |
| you, that is really hard to do. Harv | | | | features are free if you have broadband. |
| isn't the only one to suggest this | | | | Entertainment |
| either: almost every money-management | | | | If you really wanted to be extreme about |
| guru gives the same advice. Simplify | | | | it, you could cut entertainment out |
| your expenses. | | | | altogether. But that's not really |
| The fact is, if you want to become | | | | practical, so here are some ideas. |
| financially free, you must do two | | | | - First, if you think FREE, you may not |
| things: increase your passive income and | | | | get free, but you do end up with |
| decrease your expenses. Once your | | | | "cheap." Cheap doesn't mean less fun, |
| passive income is equal to or greater | | | | either. Sometimes you can have MORE fun. |
| than your expenses, you are financially | | | | - If you live in a city, just try |
| free. The concept is simple enough -- | | | | walking around. In New York, I have |
| and in other articles I address creating | | | | found impromptu concerts by street |
| passive income (the easiest and fastest | | | | musicians or just sat in the park and |
| way to do this would be by renting your | | | | people watched. You'd be amazed how much |
| rooms). But how do you simplify your | | | | fun you can have! |
| expenses? Especially when you look | | | | - Instead of eating out or going to bars |
| around and you don't see a way HOW? Here | | | | with friends, host a potluck at home or |
| are a variety of ways you can still live | | | | just have friends over for drinks. It's |
| a decent life and be a bit more frugal | | | | much cheaper to buy liquor than to buy |
| at the same time. | | | | drinks at the bar. |
| Food & Toiletries | | | | - For movies, go to matinees or the $2 |
| - By far, making lunch at home was one | | | | movie (some communities have them). Yes, |
| of my biggest savings! I made lunch and | | | | those movies are second-run, but hey, |
| snacks and bought them to work. | | | | it's worth financial freedom to me. You |
| - Instead of buying shower gel, go back | | | | can also always rent movies. |
| to soap bars. They last longer and are | | | | - Cable. When times are tough, the cable |
| much cheaper. | | | | needs to get going. It can get so |
| - Don't wash your hair every day, and | | | | expensive! If you do need it for the |
| when you do wash your hair, only wash it | | | | reception, get basic and then rent |
| once. That saves lots of shampoo. | | | | movies. Buying a great DVD player and |
| - I made my own coffee at home -- or cut | | | | renting movies is cheaper than cable in |
| it out altogether and put that money | | | | the long run. If you rent rooms in your |
| aside in your financial freedom jar. One | | | | home like I do, keep the cable -- it's a |
| guru calls that the "latte factor." | | | | perk for your tenants that are worth |
| - As a nation, we eat out a whole lot | | | | paying for. |
| more and buy convenience foods to just | | | | - Take your kids to the bookstore and |
| heat in the microwave -- but these can | | | | hang out. |
| be expensive. Cooking may take time, but | | | | - Find free community shows, like |
| it does save you lots of money. | | | | Shakespeare in the park or fireworks. |
| - Buy generic! I was so opposed to this, | | | | - Take the kids on the subway trip -- as |
| and one day I ate some potato chips that | | | | far as you can and go explore. In New |
| my boyfriend bought. Seriously? They | | | | York, take the train to Coney Island. |
| didn't taste different from the name | | | | - In the summer, there is always a local |
| brand. Try it. Ok, some things may be | | | | food festival or street fair. |
| non-negotiable, but you'd be surprised | | | | - Get your kids involved in a community |
| what is. Your grocery bill will go way | | | | group, like a theatre. They develop |
| down. | | | | skills, make friends and have fun. |
| - Take the effort to cut coupons, take | | | | Clothing |
| advantage of sales, and go to discount | | | | - For kids, don't go over the top with |
| warehouses, like Sam's Club or Costco. | | | | the brand names, especially since the |
| Heat & Electricity | | | | kids will grow out of them quickly. |
| - If you don't already have one, get an | | | | - For adults and older teens, don't buy |
| electric thermostat with a timer, so you | | | | really trendy clothes that will only |
| can change the temperature automatically | | | | last one season. Buy classical |
| during specific times of the day. Lower | | | | fashionable clothing that will last, and |
| the temperature when the family is out | | | | get trendy with accessories. |
| of the house. | | | | - Buy shirts and ties or blouses and |
| - Use space heaters and lower the heat | | | | just one suit -- accessorizing is |
| in the rooms you use. Use an electric | | | | cheaper. |
| blanket at night. | | | | - Buy a few pieces of quality clothing |
| - There is plastic covering you can get | | | | as opposed to lots of cheap clothing. |
| at the hardware store and cover your | | | | They will last a lot longer. |
| windows. That keeps the heat in the | | | | - This goes without saying, but buy |
| house. | | | | clothing in the off-season and on sale. |
| - Make sure your boiler and hot water | | | | You will save a tone of money. |
| heater are maintained properly. | | | | Transportation |
| - Wear layers of clothing and keep the | | | | - A gas saving tip I just learned: put |
| heat lower. | | | | your car in cruise control whenever you |
| - Use kitchen and bathroom vents | | | | can. It has cut my gas bill in HALF. |
| sparingly in the winter | | | | - If you live in a metropolitan area, |
| - Replace regular light bulbs with | | | | try walking around the city as opposed |
| compact fluorescents | | | | to taking a bus or a train. In New York, |
| - Wash laundry in cold or warm instead | | | | you can even get there faster sometimes! |
| of hot | | | | :-) |
| - Use a clothesline instead of using the | | | | - Maintain your car -- tire pressure, |
| dryer | | | | oil changes, everything. Preventative |
| - Use a ceiling fan instead of an air | | | | maintenance is way cheaper than repairs. |
| conditioner. | | | | - Never use cheap gas - use quality gas |
| Cell Phones, Internet, and Communication | | | | and the correct octane for your car. It |
| Utilities | | | | may seem more expensive, but it's |
| - Avoid pre-paid cell phones, even if | | | | cheaper in car repairs in the long run. |
| you just want the phone for emergencies, | | | | - Don't be afraid to walk, even in the |
| unless you are careful to use a plan | | | | winter. It's great exercise and it saves |
| with minutes that don't expire. You pay | | | | a ton of money. Bring a backpack with |
| exorbitant rates per minute. | | | | you for grocery shopping if you need |
| - Never underestimate the minutes your | | | | only a couple of things. |
| teen may use. Be careful not to get the | | | | The Change Jar |
| lowest plan. Constant overages are very | | | | I have a change jar. Every time I pay |
| expensive overall. | | | | for something, I always use bills and |
| - You don't necessarily need a home | | | | get the change. I put the change in the |
| phone if you have a cell phone. With | | | | jar. You wouldn't believe how much money |
| free nights, weekends and long distance, | | | | you can save! This money could be |
| you may save considerably. Be careful | | | | entertainment money, allowance for the |
| with phone plans that have low rates, | | | | kids, put it in a savings account or |
| because the taxes add significantly to | | | | saved for emergencies. This change jar |
| the bill. | | | | has saved my butt many times over the |
| - For your Internet connection, you | | | | years, and is a great way to have |
| don't have to get the highest rate of | | | | "found" money at the end of the month. |
| connection speed. For the average user, | | | | |