Saving Money

If you're wondering why you can't seem to save money each month, then we know the answer. Saving money can be explained using one simple relationship. When household income is greater than household expenses, then you're saving money. On the other hand, when household income is less than household expenses, then you're going into debt.

In this publication, we're going to provide some tips on saving money. We're not going to create the longest list you can find, but we do promise to provide insights into some very practical techniques that allow families to save each month. In short, we're going for quality over quantity. We're also going to warn you right up front that saving money won't be easy.

Saving Money on Utilities

Additional Resources

In this first section, we're going to be looking for savings on those routine utility bills: energy, electricity, natural gas, water, and telephone.

Electricity and Natural Gas Bills

Insulate Water Heaters - if your electric or gas water heater was built before 2004, then adding an insulating jacket can save you around 10% annually on your water heating bill.
Service House Heaters - if you have your home's furnace or boiler serviced once every two years, then you can expect to save as much as 10% on your home heating bills.
Programmable Thermostats - the average household can save about $180 a year by properly setting their programmable thermostats, and maintaining those settings.
Compact Fluorescent Bulbs - each ENERGY STAR compact fluorescent light bulb can save you $30 over its lifetime in electric costs, and pay for itself in about 6 months.
Water Heater Temperature - by lowering the thermostat setting on your water heater you can expect to save 3 to 5% in energy costs for each 10 degrees reduction in water temperature. Most households require a water temperature setting of 120 degrees.
Lower Temperatures in Winter - by lowering the temperature on your thermostat by 1 degree in the winter time, you can expect to save between 2 and 5% on your home heating costs.
Higher Temperatures in Summer - in the same way, by raising the temperature on your thermostat by just 1 degree in the summer time, you can expect to save 2 to 5% on your air conditioning bills.

Water Bills

Low Flow Showers - the average household could save around 2,500 gallons of water each year by using a low flow shower. In addition to the $60 per year savings on water bills, you'll save money on your water heating bills too.
Watersense Toilets - buying a water saving toilet will save about 4,000 gallons of water each year or roughly $90 per year on water bills.
Sink Faucets - by installing a faucet aerator in bathrooms, the average home can expect to save around 500 gallons of water each year, as well as saving money on water heating bills.

Telephone Bills

Landline Phone - the most effective way to save money on your phone bill each month is simple, get rid of your landline phone. Information gathered during a telephone survey conducted by the Centers for Disease Control and Prevention in 2008 indicated that 20.2% of American homes did not have a landline phone. Savings can range from $15 to $50 per month.

Saving Money on Groceries and Food

In this next section, we're going to focus on saving money on food or your monthly grocery bill.

Grocery Bills

Plan Ahead - take the time to plan your meals for the week, and make a list before heading to the grocery store. Maintain a list in your kitchen to track the items you'll need. Take an inventory of what you have in stock. Don't guess at the store.
Shop Less - consolidate shopping trips with the goal of going to the food store once a week. Not only will you save money on your food bill, but you'll save on gasoline too.
Buy in Bulk - warehouse stores can offer significant savings if you're buying essential products (such as soaps, paper towels), and you have the room to store these items.
Ads and Coupons - read the grocery store advertisements in the Sunday newspaper to see what's on sale for the week. Adjust your weekly menu based on the meats on sale at the store. Clip coupons for essential items. Don't just buy something because you have a coupon.

Food and Restaurants

Plant a Garden - it doesn't take an expert gardener to grow vegetables such as tomatoes, cucumbers, green beans, and peppers in your own backyard or in community gardens.
Seasonal Foods - buy fruits, vegetables and other food items when they are in season. A local farmer's market will not only tend to have less expensive items but also fresher produce.
Eat Out Less - eating fewer meals in restaurants will lower your overall food bill each month. Consider buying less coffee on the road, or in the office, and brewing more coffee at home. Bring your lunch to work a least a couple of days each week.
Bottled Water - twenty years ago, people would have laughed at the thought of buying bottled water, now it is commonplace. Buy a simple container, keep it clean, bottle your own water, and start saving money.

Saving Money on Vacations and Travel

In this final section, we'll be providing tips for saving on travel, commuting, and vacation expenses.

Vacation Arrangements

Airline Fares - comparison-shop among air carriers that fly to your vacation destination. Don't forget to comparison-shop on neighboring airports too.
Flexible Schedules - most families start their vacation on a weekend, and that demand drives up prices. Bargains can often be found by starting your vacation on a Friday instead of Saturday.
Car Rentals - call several rental car companies and ask for price estimates. Find out which companies offer weekend or weekday deals.
Rental Insurance - verify your coverage with your automobile insurance company and credit card company. In most cases, it makes sense to decline the insurance offered by car rental companies such as the collision damage waiver.
Hotel Rooms - book the hotel along with your flight or as part of a vacation package. Use discounts offered by travel club memberships such as AAA when booking your hotel.

Travel and Commuting

Drive Cars Longer - a car depreciates more when it's new than in later years. Deriving the most value from a car means driving it longer. If well maintained, a car can last 200,000 miles or more.
Gasoline - clean air filters, properly inflating tires, keeping the engine tuned, and buying the correct octane will both improve gas mileage as well as lower costs.
Travel with Snacks - you pay for the convenience of buying food on the road. When traveling, pack your favorite snack before you leave home, including drinks such as water and coffee.
Walk - instead of driving your car short distances, try walking instead. Not only will it save you money but it will also improve your health.

About the Author - Saving Money

Leasing / Buying a Car