Personal Finance

Saving money with common sense

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  • Feb 22nd, 2010 2:40 pm
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Saving money with common sense

Hey so I figured I would start a thread where people could post common sense points about things that people purchase. Though it's common sense to you, it might be news to someone else and I hope to find out some ways to save money!

For example,

-Movie theatres make all their money from concessions.

-Big-chain electronics retailers are pushed to sell the warranty on big ticket items. Even the "commission-free" Best Buy, which gives bonuses to the managers who sell the most service plans. Screen cleaner, wall mounts, HDMI cables and audio cables should all be purchased online and not at the retailer that you purchased your tv from. I remember seeing the at-cost price for screen cleaner at 2 dollars while it was selling for 20.

Any other ones?
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GTA West
Get out of debt as soon as possible so you are not paying all your money in interest! Debt is a PRODUCT.

Cook your own food most of the time.

Pack your own lunch and take it to work.

Write a budget together with your spouse and actually live on it.

Keep an emergency fund of 3-6 months expenses so you don't go into debt again for emergencies.

Don't buy extended warranties (except maybe from Apple.)

Negotiate everything you can. Bringing real paper money to a negotiation for a couch or used car or something gives you power.
What if there were no hypothetical questions?
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Oct 31, 2008
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1. I don't think people realize how easy it is to make some good coffee in the morning that would blow Tim Hortons crap out of the water. Cheaper and it taste better, great way to save money. (I don't drink coffee much but the few times I do every year Tim Hortons taste like crap and I have stuff made at a friends place that is much better)

2. Cut down on fast food and buying food at school. While it is convenient it does not take that much effort to grill a burger at home or make a grilled chicken salad.

3. Just because something is on sale does not make it a good deal. If you don't need it or never really wanted it until you read a thread on RFD then it's not a good deal to you. Saving 50% on a camera that you dont need or never wanted 20 minutes ago is not a good deal, you still spent money that you did not need to.

4. Certain "no name" brands (PC, Compliments) make certain items that are just as good as the brand names. I honestly can't tell the difference in ketchup, mustard, and many other products.
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Stop Smoking and Stop Drinking and no fast food = a whole months rent
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Montreal
Yankees 1903 wrote:
Feb 21st, 2010 1:02 pm
4. Certain "no name" brands (PC, Compliments) make certain items that are just as good as the brand names. I honestly can't tell the difference in ketchup, mustard, and many other products.
it's usually the same product (from the same production line) but they are branded differently
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flashy_mcflash wrote:
Mar 19th, 2012 3:17 pm
haha. Though seriously, what a ridiculous year for CG to be trendy. If there was one year NOT to spend $600 on a coat, it was this winter.
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Dec 23, 2007
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Hamilton
Yankees 1903 wrote:
Feb 21st, 2010 1:02 pm

3. Just because something is on sale does not make it a good deal. If you don't need it or never really wanted it until you read a thread on RFD then it's not a good deal to you. Saving 50% on a camera that you dont need or never wanted 20 minutes ago is not a good deal, you still spent money that you did not need to.
So so so so true...
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T.O. Lotto Captain
If you simply cut back one dine out meal per week... and invest the money you save...
You could have $61,468.00 by the time you retire.
This is assuming you start your working age @ 25 and retire @ 65.
I did the calculations ING's saving calculator which only calculates @ 1.2% interest.
using http://www.ingdirect.ca/en/save-invest/isa/index.html
So it isn't all that unrealistic to expect a 5% return on a diversified long term portfolio or mutual fund meant for the long term.

so that 1 dine out meal per week could end up being much more then $61,468 by retirement... it could $70k or maybe even $80k.
Even with inflation... that could probably afford to buy you a really nice car during retirement, or cover your vacations for a few years into retirement. Or more sensibly... cover your living expenses for a while.

Imagine those people that like to eat out every night or several times per week. :eek:
This really puts things into perspective.
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Read my signature.
Too many people spend money they haven't earned to buy things they don't want, to impress people they don't like. -- Will Smith
Growing older is mandatory. Growing up is optional.
Stay hungry, stay foolish.
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UrbanPoet wrote:
Feb 21st, 2010 1:30 pm
If you simply cut back one dine out meal per week... and invest the money you save...
You could have $61,468.00 by the time you retire.
This is assuming you start your working age @ 25 and retire @ 65.
I did the calculations ING's saving calculator which only calculates @ 1.2% interest.
using http://www.ingdirect.ca/en/save-invest/isa/index.html
So it isn't all that unrealistic to expect a 5% return on a diversified long term portfolio or mutual fund meant for the long term.

so that 1 dine out meal per week could end up being much more then $61,468 by retirement... it could $70k or maybe even $80k.

Imagine those people that like to eat out every night or several times per week. :eek:
This really puts things into perspective.
I would prefer I can enjoy everyday (if one considers eating out is enjoyment which I don't necessary agree) instead of having extra $80K when I retire.
Too many people spend money they haven't earned to buy things they don't want, to impress people they don't like. -- Will Smith
Growing older is mandatory. Growing up is optional.
Stay hungry, stay foolish.
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T.O. Lotto Captain
gman wrote:
Feb 21st, 2010 1:34 pm
I would prefer I can enjoy everyday (if one considers eating out is enjoyment which I don't necessary agree) instead of having extra $80K when I retire.
If you are someone that already manages money well and eats out once, maybe twice a week... Then this wouldn't really apply. Since you'd just be looking at it as an occasional luxury.
But there are some people that eat out ALL the time...
Like the ones that go out every lunch and spend $10-$15. O_O
Or some people eat dinner out every other night!

But when you think about it... all those times you went out for that $20 plate of pasta and cola... You could have $80k @ retirement instead.

:O
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If you are a student, milk your student discounts for all they're worth! Even small things like saving $1 off a 3D ticket at AMC theatres, to decent discounts on Greyhound tickets all add up. Lots of places offer perks for students, always check if you can get student pricing on something. You'd be surprised at some of the deals you can find - for example my student union sells Yuk Yuk tickets for $4 to students which can be used any night - a regular Saturday night show is $20 + tax.

Student "perks" also includes favourable tax treatment and GST rebates of up to $392/year. You don't even have to go out of your way for these things - doing your taxes as a student is simple. for less than 2 hours of effort, you're rewarded with a minimum of a few hundred dollars! If doing your own taxes is daunting, the CRA offers free tax clinics to low income people, which most students qualify for. Some schools, like mine, also host free tax clinics on campus. Even if you had very little income, apply for that GST rebate.

Students also get free chequing accounts banking at most large banks - I haven't kept more than $400 in my primary chequing account since I was in high school. BMO's student plan is the best IMO - you even get free banking for one year after you graduate university. And their free student plan gives you lots of transactions, inlcluding 1 free EMT/month.

You can also persuade the big telecos to give you cheap cell phone plans by pulling the whole "I'm a student, this is what I want and this what I can pay. Or I leave". It's worked for me :)
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Use credits cards everywhere, everytime - interest free, short term, loans while your money grows in your savings account and cash back (or points) just for using them.
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jcon wrote:
Feb 21st, 2010 4:29 pm
Use credits cards everywhere, everytime - interest free, short term, loans while your money grows in your savings account and cash back (or points) just for using them.
Adding to that - don't withdraw money from ATM's which charge a service fee. Either your bank or the ATM bank.

Buy a water filter and bring a bottle from home instead of buying water on the go.

Wait to the last minute to book a vacation down south. Just book the time off from work with an open mind where you want to go.

Get rid of the car if you can. Get a credit card with free car rental insurance. Rent twice a month to grab groceries and run other errands. Save $ on gas, insurance, etc.
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Bern, Switzerland / …
drink tap water
buy used vehicles
borrow dvds from friends
reading as a form of entertainment
take up a (relatively) cheap hobby i.e. gardening
use priceline to book hotels
travel during off seasons
use coupons wherever possible

more as more come to mind
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UrbanPoet wrote:
Feb 21st, 2010 1:54 pm
If you are someone that already manages money well and eats out once, maybe twice a week... Then this wouldn't really apply. Since you'd just be looking at it as an occasional luxury.
But there are some people that eat out ALL the time...
Like the ones that go out every lunch and spend $10-$15. O_O
Or some people eat dinner out every other night!

But when you think about it... all those times you went out for that $20 plate of pasta and cola... You could have $80k @ retirement instead.

:O
If I consider eating out all the time is an enjoyment or not eating out all the time is a suffering, I am more than willing to give up $80K in my retirement fund for 40 years of "enjoyment".

You can always find an alternative to save money so that you will have a 'big' retirement fund.
Well, don't drive. Use TTC only would save you more than $80K at retirement.
Rent a room in a basement instead of a flat whole life will give even more for retirement.
The question is how much you want to give up. Or, what you give up is important to you or not.
Too many people spend money they haven't earned to buy things they don't want, to impress people they don't like. -- Will Smith
Growing older is mandatory. Growing up is optional.
Stay hungry, stay foolish.

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