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