Monthly Savings

I want to thank everyone who continues to view the blog. As of Friday the 13th, I had 238 views! Keep following and keep saving!

In August, I spent $2,429, not my most frugal month.

If you don't know how much you spent, KEEP READING!

There are certain items that are FIXED EXPENSES. Their cost DOES NOT CHANGE each month.

            For me, they are rent and a car payment. For you they may be mortgage, student loans, child support, alimony, etc. In general, these payments CANNOT be decreased.

            There are certain items that are SEMI-FIXED EXPENSES. They remain around the same cost, but can slightly vary month to month.

            In general, gas, utilities, cable/internet related items have a fairly similar cost. You drive a comparable amount of miles, you use a comparable amount of heat/AC and unless you purchase movies or up/downgrade your service, so these items are generally the same in cost.

Lastly, we have VARIABLE expenses. These items vary GREATLY each month.

Entertainment, groceries, travel, golf and dining are my variable expenses. 

My fixed expenses came to $1,254.
My semi-fixed expenses equaled $267.
My variable expenses summed $908.

             Rent and my car payment are NON-NEGOTIABLE. Well they are, but only at the beginning. Once the interest rate or rent payment are established, I HAVE to pay over that time period. I sign a lease or a contract. They give me a place to live, I pay them money in return. I sign a purchase contract for a car, they agree to let me take the car, even though I only paid a portion at the signing. They loan me the remainder at a .9% interest rate. The gist, I MUST make at least $1,254 after taxes or I CANNOT meet my monthly obligations.

My semi-fixed expenses (gas, utilities, heat/AC) are relatively low. 

How do I keep these low?
            GASBUDDY (app) is a GREAT TOOL. I downloaded the application and I can't tell you how much money this has saved me over the years. I know when I am going to from Columbus to Dayton, I have PLENTY of options for gas. This tells me my best option, based on user entries, updates minutes/hours ago. 

             Utilities are a FICKLE BITCH. One month I used something like $3 worth of natural gas and my total bill was near $15 after fees, charges and taxes. It is UTTERLY RIDICULOUS. Keeping the costs low are SO EASY though. In my little apartment, I turn off all lights, the AC, TV etc when I leave. This sounds simple, but the savings can really mount up. Sometimes it makes more sense to keep the AC on. You will have to judge based on the size of your home. In a smaller place, that doesn't take long to heat up, it is much less costly to turn it off when you leave and on when you return. In a much larger home, it may more sense to keep it on during the whole day because keeping the temperature at 73 is less costly than cooling from 79 to 73 when you return from work.

            What are you paying for your cable and internet? I can guarantee I am currently paying less... $0.00. For some this would be a major sacrifice. For me, I don't mind living a simple life. I bought an antennae from Wal-Mart for around $30 and it gives me ABC, CBS, FOX, NBC and some other channels, IN HD!!! If you insist that you need Bravo, E!, Food Network and HGTV, then here's a little tip, very little. You're still paying too much. CALL AND NEGOTIATE. If you're not comfortable with this, I CAN DO IT FOR YOU. THIS IS WHAT I DO!!! SAVE YOU MONEY!!! 
       
            Another option? NETFLIX. For only $8/month you can have access to over 100,000 titles. You think $8 is good? Try sharing with someone else and it's only $4/month. Guess what, there's always a way to save more!

           My variable expenses could be MUCH lower... Taco Bell.

        These are the most important expenses in a sense, because you have the most control over these. Look at your variable expenses and see where you spend the most.

Do you eat at Applebee's often? Did you know there are at least TWO OBVIOUS ways to save money?
1.) If they offer a $5 free card for buying a $25 gift card, why would you not buy one? That's $5 in instant savings.

2.) Buy gift cards at Giant Eagle or Kroger. Then you get extra discounts towards fuel. EVEN BETTER! Use your credit card and get rewards points on that. Think Credit Card rewards points are stupid? I have over $1,000 in cash saved up from credit cards and multiple free hotel nights (in less than 7 years). 

Do you ever travel to a place and need a hotel?
Use Travelocity, Hotwire or my favorite PRICELINE!

Just an example of savings:
Millenium Hotel - Cincinnati - Saturday Night Reds Game
After Tax = $174.70 for a 1 Double Room through their website.
After taxes and fees = $93.27 on Priceline. In addition, I booked it the night before.

SAVINGS = $81.43

There are certainly drawbacks, i.e. you can't choose your room type, you don't know the hotel until your bid gets accepted, it's non-refundable. The good news? NEVER BEEN AN ISSUE FOR ME!

After you get more comfortable with the site, you can even start determining which hotels you might be bidding on based on star rating, amenities, past history, etc. Questions? Worries? - Ask me!

Finally, the lost art of coupon-clipping is a GREAT MONEY SAVER. Don't buy stuff because you have coupons, use coupons for stuff you want to buy.

To receive a FREE and CONFIDENTIAL personal financial assessment, email me at davids@eqfin.com.

Next week: Use Your Credit Card!!!