Money Saving Ideas

Show Notes

Inflation is on the rise, so you have to look for new ways to save money if you want to stay on budget. We’ll share some ideas to help you do that today on MoneyWise.

• Let’s start with an idea for working parents.
• Have you taken advantage of the Child and Dependent Care Credit? You have to earn less than $125,000 adjusted gross income, but the credit could reimburse you for up to 50% of qualifying expenses - or as much as $16,000 if you have two or more dependents.
• Just fill out Form 2441 for Child and Dependent Care Expenses and include it when you file your tax return. This credit is only good for the 2021 tax year.
• Here’s another money saving idea: Use cash to buy gasoline. Prices at the pump have skyrocketed recently, so saving even a few pennies per gallon at the pump can add up.
• The National Association of Convenience Stores says that 75% of us use a credit or debit card to buy gas. But many places will give you a break for paying with cash. In some locations you could save up to 10 to 15 cents a gallon.
• And speaking of cash … use cash for all of your spending outside the house. Studies show you can save from 10 to 30% at the register when using cash only. That’s because it’s more difficult to part with real dollars than using plastic.
• Here’s another idea: Set aside one day a week when you don’t spend money. Bring leftovers to work instead of eating lunch out. Don’t buy coffee at a convenience store that day. And stay offline so you won’t be tempted to buy something on impulse. It’ll still be there tomorrow if you really need it.
• And when you do browse online, use a “private” or “incognito” browser. This can save you money because it doesn’t save your browsing history. The result is that companies can’t see what you’ve been looking for and then raise the price on you. And yes, sadly, it happens.
• If you’re buying a major appliance, ask the sales rep a simple question, “Is that the best you can do?” Our friend Dave Ramsey advises to always ask for a discount. You may not get it, but it doesn’t cost anything to ask.
• You can also ask for a discount if you’re paying with cash for a big ticket item. And if the item is on backorder, which many are these days due to interruptions in the supply pipeline. Ask for a discount for having to wait. Again, it never hurts to ask.
• If you see an item online for a certain price, but a local retailer has it in stock at a higher price, ask if they’ll match the lower one. Have the online offer on your smartphone ready to show the sales rep. Many stores have a policy that they will match a lower, bona fide offer.
• You can also implement the 30-day rule for anything costing over $100. If you see something you want—not need, but want … wait 30 days before purchasing it. If you find that after that time you still want it, go ahead and buy it.
• Another way to save is by actually doing it on payday. There’s a tendency to spend freely on payday and later realizing you haven’t saved anything. Instead, put something into savings before you spend anything. That way you’ll know how much you really have in disposable income.
• An even better idea is to make your savings automatic. Have your bank automatically put some of your paycheck into savings. Out of sight, out of mind.
• You can also sign up for paperless billing and auto pay with service providers like AT&T and Xfinity and some utilities. Many offer discounts on your monthly bill for signing up. It also makes it easy to manage your account with your smartphone.
• Here’s another idea: Start your Christmas shopping now. Start by making a list of everyone you’ll give a gift to at Christmas. Then set your total budget for gifts. There’s always a lot of hype about sales during the holiday shopping season, but if you give yourself months and months to find an item, odds are you’ll beat any price you’re likely to find during the Christmas crunch.

On this program, Rob also answers listener questions:

• What can you invest in after maxing out a 401k and Roth IRA?
• Is it best to use a lump sum to pay down a mortgage?
• How do you determine if your 401k investments are diversified properly?

• Find a Certified Kingdom Advisor