In My Piggy Bank - Part 2

I could look at Michael Kors, Kate Spade, Gucci, and Prada purses all day.

I understand they are nice to have but would I drop $300 or $1,500+ on a purse?
That is rent/mortgage or groceries money!
I rather have the money in my pocket.
I think my most expensive purse was $109.
Even if you re-sell it, how much do you get back?
I doubt you will get more than you bought it for...then again you might get lucky :)

My few tips to reduce wasteful spending:

1. Don't buy/limit your purchase on paper towels
Use cloth towels or rags that you can wash and reuse.  You will be amaze how much  you can save when you are not dropping $5-$7 a week or every other week on paper towels.  Not only this will save you money but also helps the environment.

2. Don't buy/limit your purchase on sandwich bags
Use tupperwares or wash & re-use them again.  I don't think we need more garbage added to our earth.

3. Eating in
So you have heard that you could save money if you bring your own lunch or eat at home.  It's true and it is alot more healthier.  Restaurants uses more fattier meats, lard/butter, and more sodium than you normally would.  No wonder they taste better.  Try this for a month or two and I think your piggy bank and waistline will thank you.  For the days you are not in the mood to cook, use take out instead.  Why?  First, you might have leftovers and second you don't have to pay tip.  :)  If ordering, try the pick-up option.  Some places will give you a discount if you pick it up.

4. Limit your coffee/tea purchase
You will be amazed how much you save if you purchase Starbucks/Tim Horton's once a week instead of every working day.  There is a co-worker who purchase her coffee everyday (5X a week).  $4 per coffee x 261 working days in a year =  $1,044 a year.  Imagine both you and your husband purchase coffee daily.  That is $2,088.  That is worth a vacation trip to Cuba or one person trip to China!  Here is a tip you can limit your coffee/tea purchases.  First, pick your ONE coffee/tea hot spot and get their gift card.  Put in $20 or $30 and that is your limit for the month.  You can not re-load the gift card until the next month.  When it is time to reload, just top it off to the maximum of $20 or $30.

5. Groceries
I think you have heard this before.  Bring a shopping list or don't go shopping when you are hungry.  My tip is avoid the junk food isles if you could.  If you don't purchase $3 bags of chips, $4 boxes of cookies, or $6 for pop every week, you can easily save money and reduce your waistline.  If you could, take multiple trips during the week so you purchase what you need every two or three days so there is no waste.  I could do that if the grocery store was walking distance.  I think you waste alot of gas by driving back and forth every few days.

I never said saving was easy.  It is about sacrifices for the future so you are not dipping into debt.  You might never know, you might shed a few pounds from my saving tips that you might need a whole new wardrobe...LOL

Piggie Bank

If saving was one of your resolution, how is that coming along?
Need some help, tips, or ideas?
I grew up in a poor household and that taught me the value of money.
I remember getting one present for Christmas.
My mom couldn't afford any more.
I remember at the age of 10, I was assisting my mom writing cheques to pay for the property tax bill and the water bill.
That showed me where her money is going.

For starters:

1. Live within your means...
What does that mean?  If your income is $1,000 after-taxes then don't spend $1,500.  Try to budget yourself within your income.

2. Budget?
What is that?  It is not a foreign word.  How do you do that?  Well, first thing is to track all your expenses.  You can use an Excel program or one of those apps for you ipod touch/ipad or on your cell phone.  Don't forget to enter those $1 Tim Horton's latte...it's still money out of your pocket.  Then after a month, categories them as food, rent/utilities, entertainment, household supplies, etc...  Then see where you can cut and where you can limit yourself.  Once you figure out what is a reasonable budget, then stick to it.  Try it for two or three months.  Anything leftover is your savings or to use that to pay off those credit card bills/debts.

3. Credit Cards (aka. a straw that sucks up all your money)
Keep your credit card limit low.  Not $15K, not $10K.  Say, $1,000 or even $500.  They say, limit your access to cash/credit = lower your spending habits.  I didn't say get 20 credit cards with $500 limit.  That is insane and defeats the purpose.  One tip (I am taking) is to get two credit cards.  Yes, only two.  (Deux, zwei, dwa, dois, 二, I think you get the point.) One with a $500 limit that you can keep in your wallet and the larger one you keep at home.  I do have a $500 limit on my card.  So when I need to purchase a bigger item like a school course or pay for my kid's summer camp I will pay the visa first.  Not raising the credit limit.  I treat my visa like a pre-paid card.

Well, this is a start.  I will try to write another one this week.  I have so many ideas.  This is not a step by step program but a general idea.  If you want more an in-depth help, seek a financial advisor.  These are what I have picked up over the years.  This may or may not be useful but you never know...