Archive for the ‘Money and Finance’ Category

5 Not-So-Obvious Ways to Save Money

Monday, October 1st, 2007

While there are some pretty obvious ways to save money, there are also some more elusive ways that can save you a lot of money but require more work.

  1. Learn to say NO. Say no to your kids, your pets, your friends, and yourself. Kids don’t need everything they see, your cat does not need a new toy, and your friends don’t need a drink. You don’t need to eat out every night, 5 drinks at a bar on Friday, or new clothes all the time. This does not mean you can never have fun or buy something for fun, this means be conscious of your spending.
  2. Find an investment you are passionate about so you want to spend money on it. Some people it is stocks, they love P/E ratios and prospectuses. Some people love property that they can buy cheap and fix up and sell for a profit. Others may like building a business they can sell for a profit.
  3. Hire a good accountant / tax advisor. Yes, they cost money but a good accountant / tax person is worth every penny. By an advisor I do not mean someone who works for HR Block. I mean someone who has made their living finding tax loop holes and who can save you money legally. If you have very simple taxes, no family, no property, no personal business, and no investments, then you probably don’t need one. I personally like the safety of using an accountant because many good ones will back up their decisions if needed to the IRS (and they are a lot better at dealing with the IRS then I am :D ). Most good ones can save you enough money to make their fee worth it. Even better, they give you advise for the next year so you can save even more money.
  4. Start a part time business. This can save you a bundle in taxes, but you must make sure to actually turn a profit or the IRS starts to notice you. By starting a business, you can ride off a lot of expenses. Example: You like to do wood working. You have quite a few tools and have converted the garage for your hobby. You sell your work to few people and under the table take in a few hundred bucks. Well if you declare this, yes you have to pay taxes on it, but you can deduct part of your monthly mortgage, your tools, phone, supplies, mileage on your car, and a slew of other things. A good accountant or tax person can see if that is right for you.
  5. Don’t be spontaneous with your money. Being spontaneous with life can be good, but being spontaneous with your money is usually not good. Every three dollar drink, ten dollar movie, five dollar magazine, six dollar snack, one dollar water bottle, and fifteen dollar cd add up. This even counts the stuff you don’t need when you are grocery shopping or the fair. Spontaneous vacations, new clothes, new videogames, and other bigger items are purchases that some people tend to make on the spur of the moment. This again all boils down to spending money consciously. It’s good to have but make sure you are aware of where your money is going.

Adrienne :)

  • Share/Bookmark