Strategies to Save money, it's easy when you know the major players

Strategies to save money...some might think you are going to enjoy life a lot less. Not necessarily.



It is 2010, the recession has everyone's attention, and lot's of folks are downright scared. Who can blame them, 401K's are now 201K's or worse.
 
Lets take a look at three main items that have the greatest impact on people's ability to retire: credit cards, grocery shopping, and the house they live in.

There are othe areas we can talk about but these three can make or break your retirement plans

Strategies to save money...Credit Cards

They can be the handiest item in your wallet. You don't carry cash. Credit cards allow you to postpone paying, up to 30 days, for what you purchase. You are essentially using the credit card companies money for the 30 days.

Sounds good so far. 2 things make it a great deal:

• The card must be free, no annual charge

• You must pay off the card each month

If you meet those 2 criteria, you are well on your way, to being able to retire. I sincerely hope this is you.

If this represents your credit card collection, it is a different story.

There is no need for this many credit cards.

 If you have this many, you are exposing yourself to identity theft. How could you possibly know one is missing, out of say 25?

Having this many cards
qualifies you as a credit addict. Not a good addiction to have.

If you want to watch a movie, that cuts to the core of the credit card industry. Rent the movie, Maxed Out: Hard Times, Easy Credit and the Era of Predatory Lenders. It will inform you, anger you and have you shaking your head.

You should have only 2 cards, a free credit card and a debit card issued by your bank. Toss the rest. Use this tip immediately in your own strategies to save money.

They say the average household has $8,000 in credit card debt. The monthly interest charge averages 11 to 14 %.

The golden rule is to never use a credit card unless you can pay off the entire balance every month. Those that pay only the minimum monthly charge and incur the interest charges, are going to have trouble surviving, let alone being able to retire.


Personally, we make the following exception. If we have a purchase for the home. And that purchase will be several hundred dollars, we do the following.

Lowe's and Home Depot run the occasional credit promotion. Apply for a credit card and get 10% of your first purchase. We go apply for a card, buy the lawnmower (ugh) or appliance, and get 10% off. We pay off the card upon receipt of the bill, and cancel the card. This the only exception to the 1 credit card rule.

It has to start here...get rid of credit card debt first.



Strategies to save money...grocery shopping

We have to eat in order to live. We don't have waste money when we buy food.

First tip, is to plan your grocery shopping. Never just jump in the car when you need something. The market will always have what you want. But you will pay dearly without planning first.

Make your list of needs and add to it as necessary. If you know you need bread you can be on the lookout in the paper for the best price.

Second tip, shop only one day a week

My very frugal bride shops on Thursday only. She has a plan of where she is going and does not deviate from her plan. She has had up to a week to research what she needs. She has located the store with the best price on each item.

Third tip, Coupons...  the key to her shopping...if you have patience, you can find one for what you need.

A sad commentary is the usual reaction from the checkout clerk, if she is a young girl.

"Ma'am, you spent 7 dollars and you saved 8 dollars!"

Duh

Don't they have Home Economics anymore?

For more on her guerrilla shopping tactics, go here.

That's the idea folks...these habits are  ingrained in her DNA. Include them in your personal strategies to save money. She has made it a game...a game you should be playing whether you are ready to retire or not.

If you don't use coupons on a regular basis, you are leaving money, hard earned, on the table. Use them...please.

Strategies to Save Money...Your House

Typically, the largest monthly outgo is your house payment.

I'll confine my remarks to what we know best...downsizing.

Check out on the left our sailboat and RV sections.

Both styles make do with less space. Unless you use every bit of your house on a daily basis, and no one does, you are a candidate for a smaller house.


Think of the last time you used the formal dining room or formal den, whatever.


Stop and identify the rooms you use on a daily basis.


They are bedroom, kitchen, bathroom and where you read or watch TV.


I won't belabor this but I hope you stop and think of which frugal retirement living lifestyle you might be able to apply to your situation.

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