2007: The Year of Living Below One's Means

Several thoughtful comments here suggested that personal economy would make a good diary topic. So here goes.

In 2005 I got a handle on living within my means. For 2006 my big New Year's resolution was to move beyond that and start living well below my means: cutting month-to-month expenses and accelerating my savings program. 12 months later, it strikes me as an even better resolution for 2007. To start things off, here are a few steps I took over the last 12 months:

• Replaced incandescent bulbs as they burned out with compact fluorescents
• Bought a stainless-steel insulated mug and started brewing coffee at home to take to work, rather than stopping at the coffeehouse
• Switched from soft drinks to water
• Quit eating out during the week
• Cooked meals in large batches and froze them in individual portions for lunch or supper
• Changed to a cheaper cell plan that better reflects actual use

These and other steps cut basic monthly expenses by several hundred dollars. That means thousands in savings that I simply wouldn't have had otherwise. Not to mention the peace of mind that goes with it. And I know there's more where that came from.

What are your best tips for living below--or at least within--your means?

•  Piggy bank. n/t

  by ticket punch on Thu Dec 21, 2006 at 12:14:19 PM PDT

•  I made this vow on november 2, 2004

  And I have stuck with it.

  by anastasia p on Thu Dec 21, 2006 at 12:21:20 PM PDT

•  A couple.

  I give this tip to my employees all the time.  If your benefits include a 401k take a look at how much you are contributing.  401k contributions are taken out pre-tax, which decreases your taxable income.  You might be able to increase your takehome pay by increasing your contribution by 1% or 2%.  You'll be saving more for your retirement and you'll have more money in your pocket now.

  Rechargable batteries.  Good for your wallet, good for the environment.  

  by clonecone on Thu Dec 21, 2006 at 12:22:31 PM PDT

  •  Not to mention

    That if your company matches and you aren't taking full advantage of it and forcing them to put in the max, you're giving away free money.

    by nightsweat on Thu Dec 21, 2006 at 12:29:02 PM PDT

    •  A-men, nightsweat.

      I would add that, if you could swing it, put aside the max that will be matched, then start a Roth-IRA as well.  

      Since you're investing post-income tax with the Roth, you aren't taxed on it at withdrawal.

      You can find some interesting stuff here:

      Fairmark.com link

      by urbannie on Thu Dec 21, 2006 at 01:29:33 PM PDT

  •  401K

    I look at the increase in 401k contributions by Americans and how there has simultaneously seen an increase in salaries for corporate CEO's and the people on Wall Street.  I don't like them - I don't like my money to be taken out of my paycheck and handed over to Wal-Mart.  It was the first step at trying to privatize Social Security.

    I'm all for investing - I just prefer to have more control over where my money goes.

    Living within your means is the best way to fight the system - good for you for getting out of the credit card trap.  I stopped using my credit cards a while back and I'm slowly paying them down - it feels great and I realized how much stuff I can live without.  It's good for the environment and its good to keep the money that I used to pay in interest to the bastards at the credit card company.

    by friendlyfire on Thu Dec 21, 2006 at 12:31:12 PM PDT

    •  I control where my 401k money goes.

      No one decides for me.

      by clonecone on Thu Dec 21, 2006 at 12:42:24 PM PDT

      •  My selections are limited

        I have several Mutual Funds to choose from.  I don't get to choose each company, I give my money to a fund manager.  One choice I have, for example is American Funds Bond Fund of Amer A ABNDX.  When I look at the portfolio holdings, the State of Israel is one of the investments.  That doesn't sit right with me.  Another option I have is Davis NY Venture A (NYVTX).  If I select that one, a portion of each of my paychecks will be handed over to ConocoPhillips and Altria Group.

        Each choice I have takes my money and hands it over to a company that I don't feel good about.  Until I have more control over my investments, I'll abstain from participating in the 401k.

        by friendlyfire on Fri Dec 22, 2006 at 11:13:42 AM PDT

        •  Unless it's an IPO

          buying shares really isn't handing money over to the company. They got the money on their initial public offering.  The money for shares purchased after that goes to whomever you're buying the shares from.

          by clonecone on Fri Dec 22, 2006 at 11:18:29 AM PDT

          •  then help me understand

            When their portfolio lists Wal-Mart, none of the money actually goes to Wal-mart and I'm no way contributing to the success of Wal-mart and neither is anyone else?  

            by friendlyfire on Fri Dec 22, 2006 at 11:27:17 AM PDT

            •  It means you own a piece of Wal-Mart.

              Your money is going to buy shares of Wal-Mart, but that money is going to people, or more likely other mutual funds, that are selling those shares.  

              You might have a moral problem owning a piece of a company you don't like.  I can certainly relate to that.  But your money really isn't going to them except in a few rare cases, such as a release of additional shares.

              by clonecone on Fri Dec 22, 2006 at 11:32:20 AM PDT

    •  Get good advice

      Increasing use of 401k or 403b plans is just great.  I hope young people will max out their contributions (once loans are paid), and just keep the contributions maxxed (sp?).  It's hard (I know from experience), but Compounding Is A Good Thing.  This is pre-tax, so your tax burden is lessened at both federal and state levels.

      These plans offer more owner control than ever before, and rolling them into an ongoing IRA at appropriate opportunities (e.g., job change) gives you total control of the rolled-over money.  

      It's important to get good advice on investments.  A fee-only financial planner, properly certified, takes a payment from you (based on the amount being handled) but has no particular investments to push on you, so the advice is unbiased.  They have great computer-based tools to project the effects of changes you might be discussing.

      I've had a planner for awhile, and could not be more satisfied.  I found some in my area via this page, interviewed some (first visit free, of course), and chose one.  I get detailed discussion sessions and printouts three times a year, and monthly statements from Schwab, which my planner uses for my accounts.  Most of my bad .bom investments were jettisoned and re-invested in stuff appropriate for my age, I got my estate issues straightened out economically with easy TOD mechanisms and an inexpensive attorney I was referred to.  My cost is less than 1% annually, lower than most mutual fund fees.

      by Leading Edge Boomer on Thu Dec 21, 2006 at 02:10:51 PM PDT

  •  Not sure how this works

    You might be able to increase your takehome pay by increasing your contribution by 1% or 2%.

    Do you mean your overall pay, or what makes it into your paycheck? I want to be certain this isn't a misunderstanding of how tax brackets work...

    by brittain33 on Thu Dec 21, 2006 at 12:44:05 PM PDT

    •  What makes it to your paycheck.

      Most 401k providers offer a contributions calculator.  You can see how raising or lowering your contribution will effect your take home pay.

      by clonecone on Thu Dec 21, 2006 at 12:46:33 PM PDT

      •  Ok, but

        I just don't get how raising your contributions will raise your takehome pay, unless takehome pay includes "what goes into your 401(k)." I think of takehome pay as what gets put in my bank account.

        by brittain33 on Thu Dec 21, 2006 at 01:08:48 PM PDT

        •  B/c 401K is pre-tax, lowers amount of taxes

          coming out of your check, therefore increasing the amount of takehome pay to some degree.  Check with your HR dept.

          by BlueMax on Thu Dec 21, 2006 at 01:12:14 PM PDT

          •  But it's all pro-rated.

            If you pay 31% tax rate, for instance, then every dollar you put into the 401k only returns 31 cents for your take-home pay.  How does putting more into the 401k ever result in positive changes to take-home pay?

            Are  you implying that with employer match ($1 becomes $2, and the Saver's Credit of 50% for some income classes, that a truly 100% return could be realized?

            I'm all for Sugar Daddies finding and funding Savers.  But most people who qualify for this credit are not in a position to actually save money.

            -7.75 -4.67

            "Freedom's just another word for nothing left to lose."

            by Odysseus on Thu Dec 21, 2006 at 01:24:27 PM PDT

        •  I am talking

          about what goes into your bank account.  

          The difference in your taxable income can alter your federal income tax witholding.  Sometimes that difference makes up for the increase in your 401k witholding.  Sometimes it actually more than covers the increase, depending on the amount you withold.  I increased my 401k witholding and added a flexible spending witholding and my takehome pay went up by $40/month.  That's not a lot, but it's still $40.

          by clonecone on Thu Dec 21, 2006 at 01:19:18 PM PDT

•  Fewer trips.

  I try really hard to bundle shopping trips.  This means that I have lists--one for the hardware store, one for the kitchen store, one for Costco.  They are all at the same plaza.

  The other thing about not running out right away is that it resolves some of the impluse things.  Later you realize you don't really need that thingy you thought you had to have two weeks prior...

  by mem from somerville on Thu Dec 21, 2006 at 12:32:41 PM PDT

•  If you don't already use it

  ... get to know your local library.  Books, music, DVDs - and it's all free.

  by el dorado gal on Thu Dec 21, 2006 at 12:33:20 PM PDT

  •  damn skippy n/t

    by MarketTrustee on Thu Dec 21, 2006 at 12:38:50 PM PDT

  •  Absolutely

    One of the biggest changes I've made in the past few years (thanks to my wife!) has been to stop buying so many damn books.  Its a waste of money, resources and space.  Once in a while I'll buy a book if I have a gift certificate, or the library hasn't gotten something I really want to read.  The online system for my library is pretty good, so it makes it easy to find and request books.  If only they had better hours.

    by DaveS on Thu Dec 21, 2006 at 01:00:17 PM PDT

    •  Unfortunately when your local library

      isn't that great.....

      This town didn't HAVE a library until a decade ago - and more than a few bitched about the $35 a YEAR in taxes that it cost.

      Books are one place where we still spend.  Knowledge is priceless - and just might explain why our kids are so bright.  Access to information feeds curiosity and learning.

      by xrepub on Thu Dec 21, 2006 at 01:04:09 PM PDT

•  I just exercise more discretion.

  When I see something that I might otherwise buy on impulse, I take a step back and consider how much I need the item first, then how much I want the item.  Usually it ends up that I don't need it at all and that I don't want it more than the money in my pocket.

  Then, each time I decide against buying that item, I take whatever money I would have spent & I throw it in my daughter's piggy bank.  Now it's her money & I would never spend my daughter's money.  She's only 3 now.  I'm hoping that by the time she is 18, there will be an extra couple thousand dollars for her college fund.

  by GTPinNJ on Thu Dec 21, 2006 at 12:35:54 PM PDT

  •  Agree on the impulse buys

    and I'll add don't be fooled by advertising and marketing. The whole point of advertising is to make you feel inadequate about what you have, that your life will be better if you buy the overpriced and/or useless crap that they're selling. Once you understand that, everything becomes much easier.

    Of course, the flipside to this is, don't buy the generic no-name stuff just because it's cheap. Sometimes they're just as good. Sometimes they're lower quality than the name-brand stuff, and they fall apart faster. You really have to judge on a case-by-case basis.

    by dwcal on Thu Dec 21, 2006 at 02:16:46 PM PDT

•  good job, tick

  it's nice to find, decisions aren't so complex after all.

  rec'd.

  by MarketTrustee on Thu Dec 21, 2006 at 12:37:44 PM PDT

•  your food suggestion is my biggest improvement

  Even cheap $5 restaurant/fastfood meals add up if you eat out all the time, and they aren't even particularly good (either in taste or for your health).  Getting in the habit of bringing sandwiches or leftovers for lunch has helped that a lot, not to mention increased my productivity at work by not requiring me to waste a bunch of time waiting in lines during the busy lunch-hour.  I stopped drinking soft drinks as well, which are really quite expensive for what you get (and also not good for you---even diet soda is bad for your teeth!).

  Another place I found some savings was raising the deductibles on my car insurance.  I ran the numbers and figured out that raising my deductible from $500 to $1000 would save me $250/year---so they were charging me as if I was going to get into an accident every other year!  Since I get into accidents much more infrequently (knock on wood), I raised the deductible, and will just make sure to keep $1000 in an account to self-insure.

  by Delirium on Thu Dec 21, 2006 at 12:41:34 PM PDT

  •  I did the same for my homeowner's insurance.

    An improving financial position means I can assume a bit more risk, in the form of a higher deductible.

    by ticket punch on Thu Dec 21, 2006 at 12:44:13 PM PDT

  •  Also--drop the colision and comprehensive

    if you own an older car.

    by blue jersey mom on Thu Dec 21, 2006 at 01:20:30 PM PDT

    •  theoretically, yes

      I did that on my previous car in Feb 1994; in May 1994 I got rear-ended by an uninsured motorist and ended up having to pay for repairs out of my own pocket. :P  (I won't even go into the hell of having to fight my own insurance company to get the medical bills paid.)

      My current car is now older than that one was at the time, and I'm very nervous about dropping the comp and collision given past experience. Then again, my insurance is already quite low because I don't put many miles on the car, I'm a female over 35, accident free for several years (gods, I hope I didn't just jinx myself on a sleety day!) and I've been with the insurance company for over a decade so I get a good-sized discount.  

       
      Actually, there's a good tip - anyplace you have been a customer for a long period of time, particularly with regards to home/renters/auto insurance, call and make sure you're getting all of the appropriate discounts.

      • If you drive fewer miles than you used to, or have started keeping your car in a locked garage, make sure that's updated on your car insurance.
      • If you had a home alarm system installed, upgraded your electrical system in an old house, live in an apartment or condo with a sprinkler system, etc- make sure you contact your homeowner's insurance and get the appropriate discount.
      • Get some quotes - if you bundle all of your insurance needs with one carrier, can you get a multiple-line discount that may save you money?

      by Lashe on Thu Dec 21, 2006 at 02:35:56 PM PDT

  •  second the food suggestion

    Since last year I've been bringing lunch to work instead of getting fast food or restaurant meals. All it takes is a little planning at the supermarket and making sandwiches the night before. I'm not sure how much I saved, but it has to be a lot. Best of all, between cutting out fast food and exercising, I've lost 25 lbs.

    by dwcal on Thu Dec 21, 2006 at 02:20:39 PM PDT

•  Let us not forget those who cannot

  live beneath their means.

  Those who are able to do so should count themselves fortunate in this economy.

  by redstar on Thu Dec 21, 2006 at 12:41:51 PM PDT

  •  Ameliorating the hardship is valuable

    Even if the condition of poverty cannot be dispelled by change of spending habits.

    We do what we can, wherever we can, all that we can, everywhere that we can.

    by cskendrick on Thu Dec 21, 2006 at 01:18:17 PM PDT

•  This year

  This is the year we pay off our substantial HELOC debt, accumulated over years of home improvements and travel. We can afford to, and if we want to start a family, it's going to be from a baseline of zero on that debt.

  I'm embarrassed that it took me until my 30s before I started an annual budget. Although I didn't really need one in my early 20s, because keeping my bank account above the zero line was guidance enough.

  by brittain33 on Thu Dec 21, 2006 at 12:42:49 PM PDT

•  I love my CFLs!

  We just did a major CFL for incandescent overhaul.  We tried had a mix of different brands and love these the most (Sylvania A line):

  http://www.sylvanialightbulbs.com/...

  by Blue Orb on Thu Dec 21, 2006 at 12:45:25 PM PDT

•  writing a budget

  YES! (I really should be doing this.)

  clearence rack sales too.

  by terrypinder on Thu Dec 21, 2006 at 12:48:50 PM PDT

•  Cooking, Cooking, Cooking

  This is a hobby I have taken up in earnest over the last five years or so. It is a revelation to me how many "high-end" meals you can make for very little cost. I actually have a negative reaction about going out to eat anymore--I enjoy cooking so much, and I cringe at the money I spend going out to eat, knowing that I can come close to duplicating nearly everything I see at home. If my wife and I do go out (and of course we do on occasions) we tend to go to BYOB's, because the markup on alcohol at restaurants is preposterous.

  I've found one of the cheapest types of food to cook is Indian or Thai food. With a paltry investment in spices and core ingredients you can just make meal after incredible meal. And the prices for spices at Asian groceries are literally a fraction of what you pay at supermarket chains.

  by Dartagnan on Thu Dec 21, 2006 at 12:50:42 PM PDT

•  There are people whose incomes...

  ...are low enough that living below their means isn't really an option.  

  I've got a friend, for example, who lives on disability due to Parkinson's.  The monthly disability income is $1100.  The prescriptions to manage the Parkinson's are $1600 per month.  But $1100 per month is too high to qualify for a low-income waiver to the Medicare Part D "donut hole".

  He's in real horrible shape, scraping by in the most desperate of conditions.  I can't really afford much to help, so I just do what small things I can, but they provide only momentary diversion, and can't touch the fundamental problems.

  Would you care to suggest exactly how this person is supposed to live below his means on that $1100 per month?  I've given it a lot of thought, and really don't know what can be done.  So suggestions from others are welcome.

  by Land of Enchantment on Thu Dec 21, 2006 at 12:58:31 PM PDT

  •  Tips

    Have him go to this portion of theMedicare website.  It links to prescription drug discount programs that are available to those who fall outside the waiver process.  

    This site also has links and applications to other federal, state, and private programs that can assist with prescription drugs.

    by clonecone on Thu Dec 21, 2006 at 01:09:58 PM PDT

    •  He does basicly the equivalent of...

      ...a job searching for assistance.  No luck yet.  Says he gets by on "drug samples" from the doctor.  His car's 15 years old.  There's gonna be a big crisis when it dies.

      by Land of Enchantment on Thu Dec 21, 2006 at 01:18:54 PM PDT

  •  Walmart or Target $4 scripts

    Yeah - I know we hate them - however, if it means that his Dr. sits down and figures out what drugs can be generics you may have some considerable savings there.  Sometimes practicality has to win out.

    by kfred on Thu Dec 21, 2006 at 01:24:21 PM PDT

•  Real Estate

  In '95 I bought my first house for about $40k and paid it off in 4.5 years.  I lived well within my means back then....

  Now, on the other hand, I'm married, 3 stepchildren, 2 mortgages (on 2 houses)...not much in savings.

  But no credit card debt!  That's the advice I give everyone, don't fall into that trap!

  by MKinTN on Thu Dec 21, 2006 at 01:02:03 PM PDT

  •  Seconding on the credit card debt

    If you do have credit card debt, try to get a consolidation loan. (Credit unions are the best for this. ) The interest rate will be much lower, it will be one payment instead of several, and it will probably be far less than all your cards combined.

     
    Tip (learned the hard way): If you cancel some of your credit cards, do so one at a time, every few months. If you cancel several at once your debt to available credit ratio changes suddenly, and you are considered a bad credit risk for some time after. (Go figure.)

    I have two store cards (one of which has been saving me LOTS of money this gift season - 15% off your total purchase at the store every time you use it), which are pretty much used only to consolidate holiday shopping bills, and one credit card that I keep in my purse and use for consolidating holiday shopping at other stores or when purchasing things online.

    After serious thought I decided to keep most of my other card accounts open, but never use them. They are for emergency use only. (And they're in my filing drawer and not easy to find...)

    by Lashe on Thu Dec 21, 2006 at 02:47:22 PM PDT

•  Modest house, well located

  I live in a nice little house half the size I once had. It is close to almost everything I do and everywhere I go on a daily basis. On nice days I walk unless there is too much to carry. This makes living below my means almost automatic. My cars last for fifteen years or so, my heat bills are low, and I really have no room to buy much of anything else other than food and replacements for things that wear out. I made this move in 1990 and have never once regretted it.

  by global citizen on Thu Dec 21, 2006 at 01:06:34 PM PDT

  •  If you have kids, look for the cheapest house

    available in a good school district. Your kids will get a great education, and you will not have to pay for private or parochial schools. Even if your kids are small, check out the high school as well (no. of AP courses, % of kids going on to college, SAT scores). Look for a good K-12 public education. It is the most important investment you can make.

    by blue jersey mom on Thu Dec 21, 2006 at 01:29:54 PM PDT

•  Instead of paying someone else to "fix" something

  try doing it yourself.

  If the cost of specialized tools and materials is less than what you'd pay someone else, give it a try.  Then you already HAVE what's needed the next time.

  We've saved a fortune over the years doing pretty much anything.  You can readily learn whatever you need to learn when it comes to home repairs and such.  Plumbers and electricians cost a fortune and aren't worth it for small jobs.  ANYONE should be able to change a switch of light fixture.  Basic plumbing isn't hard - it's more about having the tools.

  Cars on the other hand have evcolved to now require such specialized equipment that they're usually best left to mehanics for anything beyond oil changes and such.  Have you even tried to reach a spark plug on some new cars?

  by xrepub on Thu Dec 21, 2006 at 01:08:57 PM PDT

  •  You can get ceramic tile on sale for about

    $1 per square foot and install it yourself. If you pay someone to do it, you will pay about $8 per square foot!!

    by blue jersey mom on Thu Dec 21, 2006 at 01:31:08 PM PDT

  •  Home Depot and Lowes

    both have tool loaner programs.  You have to leave a deposit but you get the use of expensive specialized tools for free. I've used it a few times.

    by clonecone on Thu Dec 21, 2006 at 01:42:52 PM PDT

•  Living below your means is something...

  my hubby and I are going to do in 2007.  I find as I get older I don't have the desire I once did for extravagance.
  I do love good coffee and won't scrimp BUT I brew it at home...for the cost of a couple of lattes I can get great coffee
  for a couple of weeks!
  We eat most of our meals at home...I spend MORE on groceries than my friends, but less on food...and we eat healthier!
  I live in a house that is entirely too large so we are going to downsize...the kids are grown...I don't want to have to clean as much!  
  When I get another car I will get one that is more economical.
  GREAT DIARY!!!! I will recommend it.

  by cyncynical on Thu Dec 21, 2006 at 01:22:19 PM PDT

•  Maybe I won't recommend IF this is the troll! n/t

  by cyncynical on Thu Dec 21, 2006 at 01:26:06 PM PDT

  •  What the hell does that mean?

    by AllisonInSeattle on Thu Dec 21, 2006 at 09:43:04 PM PDT

•  Here's ours

  1. Set up a childcare expense account. If you've got expense you're going to have to pay anyway, you will basically get paid your effective tax rate (say, 20%) times whatever you pledge in contributions. We're basically paid about $1100 a year in lower taxes to pay some of our daycare expenses in a different way, expenses we have to pay regardless.

  2. Turn out the lights when not in a room. My single biggest peeve with everybody else in my family is they never turn out lights. They're better at it.

  3. Keep the heat/AC down. Bundle up in winter, get comfy with lots of skin in the summer. :)

  4. Debt retirement. There are three ways to save (1) build up cash, (2) invest money for a return, (3) retire debt and receive a return in the form of interest payments that you no longer have to pay. Think of this way - the less debt you carry, the lower your fixed costs. That's widely considered a good thing.

  5. Trade out of overly expensive internet providers. You better-situated to do this if you used dial-up. Cable folks (alas, I am one) are monopolized upon. Booo.

  6. Contemplate killing the land line. We're locked into a $100 a month plan for two cell phones. In our home area, we can call the planet Mars all day long and only pay that fixed rate. Outside...roaming charges, a huge pet peeve of the wife's.

  7. Retire credit cards, period. Cards we don't use, we cancel. We've gone from having, oh, $50,000 in possible credit to (I think) $10,000.

  8. Prepay and refinance the car loan. We had some cash, I just bought a new car. The terms were good but not great. I found a better deal, all I had to do was drop some cash. So now I pay $120 a month less, will pay it for a year less, and at 1.5% better interest. Sometimes you win.

  There are others. I gotta go for now.

  by cskendrick on Thu Dec 21, 2006 at 01:29:27 PM PDT

  •  Consider whether you even need a cell phone.

    I live without one, and I find I don't use my land-line much either. I got a cheap. limited use plan for my land line.

    by blue jersey mom on Thu Dec 21, 2006 at 01:33:43 PM PDT

    •  Prepaid wireless for light users

      If you're a very light user, try a prepaid phone. You can get it as low as $5 a month at about $.15 a minute.

      by dwcal on Thu Dec 21, 2006 at 02:28:04 PM PDT

  •  Training your family

    I grew up during the energy crisis of the 70s.  I learned to turn off lights because if my father found one of our lights on, rather than turning it off, he called us up from whatever we were doing to turn it off ourselves.  If it was a common room, he would call any one of us, regardless of who was responsible, making us all responsible.  It became an effective training tool and to this day I turn off a light every time I leave a room, without fail.  

    by Pennsylvanian on Thu Dec 21, 2006 at 01:48:59 PM PDT

•  Online banking is a good tool, too,

  though it isn't, strictly speaking, a money saver. Banking online make it easy to keep meticulous track of how the money goes in and out. And I found that bill pay helped me avoid late fees.

  by ticket punch on Thu Dec 21, 2006 at 01:39:22 PM PDT

•  GO BANKRUPT !!

  If Trump can do it - so can we.  Proudly default on all those medical bills you can't pay because your employer cancelled your insurance plan.  The credit card companies are deregulated now so they can arbitrarily push your int. rate to 39% even if you're late on a DIFFERENT account.  The business world and government are taking steps every day to pidgeon-hole us into becoming debtor-slaves.  Don't let this happen to you, hit the BK button and flush the debt away.  

  I just left the mortgage industry and let me assure you - banks are HURTING for new loans.  I worked for a large regional bank as a loan officer and we were told that if a customer was at least 2 years removed from a Chapter 7 discharge, there would be no hit on rate or points.  The 7-years of inability to buy a house is a myth and the opposite is the reality.  You are now the best credit risk in town because you can't declare another Chapter 7 for seven more years...   but you can file a Ch. 13

  So don't think you will be ruined from being "creditworthy".  Just do yourself the favor I did and don't acquire new debt afterward.

  by maverickdem on Thu Dec 21, 2006 at 01:42:11 PM PDT

•  switching from soft drinks to water

  may mean you have to buy new smaller clothes as well...

  by jrcjr on Thu Dec 21, 2006 at 01:56:19 PM PDT

•  Eating at home

  provides more nutritious meals than you get eating out. Restaurant meals are expensive, frequently awful, drinks are empty calories, and cooking is a great hobby anyway.

  Everytime you think you need more stuff, think about the planet and its resources and ask yourself again, do I REALLY need it?

  by ohcanada on Thu Dec 21, 2006 at 02:44:33 PM PDT

•  Credit Unions and winter penny pinching

  Credit Unions: Can't promote them enough.

  When I switched from a corporate bank to a credit union, I immediately started saving $10-12/month in fees. The interest on my savings account was also 1/2% higher (pathetic, but still), and the service is SO much better.

  I was also able to consolidate my credit card bills into one loan at a very reasonable rate. This has probably saved me around $100/month in interest, plus I now know the damn things will be paid off in another 3 1/2 years.

   
  Winterizing: saves more than you might guess

  Others have already mentioned how to save on your electric bill, so I'll cover the heating bills...

  I think it was the December 2006 issue of Family Handyman that had a cover story on winterizing, and the X number of little things you can do that will save you a lot in heating bills. A few of them:

  • Fall furnace tuneups. Make sure you change the filter regularly. Seal any openings around the intake and vent piping. If you have a fireplace or wood/pellet stove, make sure to close the damper when it's not in use. (And get your chimney cleaned regularly.)
  • If you have forced air heat, clean out your vents! Even just vacuuming out the parts you can easily reach will help a little bit.
  • Clean out your dryer venting! They accumulate more lint than you'd guess, and the more blocked up they are, the longer it takes to dry your clothes.  (If you have low humidity, try hang drying some or all of your laundry and just giving it a 15 minute air fluff once it's dry. It will help humidify the house, and cut your gas/electric bill.)
  • Make sure your windows are properly caulked. If you need to seal them better just for the winter, use fingertip caulk on the inside, or use the plastic window sheets. Even hanging curtains and keeping them closed at night can make a difference.
  • Open curtains during the day to get any sun you can for passive solar heating; close curtains/blinds at night to retain heat.
  • Make sure your doors have proper weatherstripping.  In a pinch, a rolled-up rug against the base of the door can help reduce drafts.
  • If your house has a crawlspace, make sure it's closed off/insulated.
  • Check your attic for drafts.
  • Make sure venting is working properly, and any of those self-opening/closing vents are opening/closing when they should.
  • Thermostat- If you have a programmable thermostat, take some time with the manual and get it set up. Most of the time, you can get by at 68 degrees - really! Even lower when you're in bed. If you have a standard thermostat, consider installing a programmable one; they really can save you money, and there are some available that aren't too pricey. You can install many of the newer ones yourself.
  • Water heater - consider using an insulator blanket (found at most home improvement stores). Check your water heater to find out if this is recommended for your model.
  • Bleed off a quart or two of water from the bottom of your water heater every month or so. This will remove any sediment that might be collecting, which can reduce heating efficiency.

  Water bills, too:

  • Make sure your toilets are working properly. A running toilet is Bad News for your water/sewer bill! (We fixed ours just before Thanksgiving; this next bill should be lower!)
  • Turn the water OFF when brushing your teeth. A couple gallons every time really adds up.
  • If you have a home humidifier attached to the furnace (such as an Aprilaire or what have you), be sure to clean the filter regularly. Soaking a metal filter in vinegar will get rid of/reduce mineral buildup  and keep it more efficient. (When it's not efficient, the water runs through it almost constantly.)

   
  Other - that soda habit.

  Yeah, I have one. I've cut back a lot over the years, but I still like my sodypop. Save money buy buying at the store when they have the 24-packs on sale. If you have coupons, use them. Take a case to work (at 20 cents per can or less) instead of spending 50-70-90 cents per can at the machine.

  Done right, you can keep your habit and save a few bucks every week at the same time.

  by Lashe on Thu Dec 21, 2006 at 03:27:14 PM PDT

  •  "make sure your toilets are working properly"

    Put some food coloring in the tank.  It is show up in the bowl without flushing you know you have a leak.

    by clonecone on Thu Dec 21, 2006 at 03:37:43 PM PDT

  •  68 degrees? That's freakin' tropical!

    Really, I used to keep mine there.  And then I got replacement window....wowsa.

    Kicking myself for not doing it sooner.  I can now keep it at 65 most evenings.  Of course, the laptop and the cat on the lower legs helps, too...

    It wasn't just the cold temperature, it turns out it was the draft that made it feel even colder that it actually was.  

    by mem from somerville on Thu Dec 21, 2006 at 03:43:51 PM PDT

    •  65 degrees? THAT's freakin' tropical!

      I keep it no higher than 60, myself...and wrap myself in a blanket if need be.  But for me that's about energy conservation not money conservation.

      by MissLaura on Thu Dec 21, 2006 at 09:37:26 PM PDT

      •  same here.

        by clonecone on Thu Dec 21, 2006 at 09:38:22 PM PDT

•  Get rid of the TV

  Saw a movie  recently on Big Pharma.

  It showed tons of ads for drugs. I never see them. No TV.

  Same for the rest of the ads on TV. Don't see them.

  No cable bill. No raised blood pressure over Bill O'Reilly. No way to see him.

  Etc.

  by AllisonInSeattle on Thu Dec 21, 2006 at 10:00:36 PM PDT