It's Just A Cup Of Coffee A Day

We have all heard the saying, "It's on adverts all the time." They usually are trying to make the point that whatever they are selling is no more than the cost of a cup of coffee each day. And that in turn makes it cheap. So anyone can afford it, even you!

While a cup of coffee a day does not sound like a lot, imagine if they said it's as low as a new television a day. This saying doesn't sound quite as cheap. But really, how much is a coffee a day and what if you saved the money instead of spending it?

Well off the top of my head, a coffee can be anywhere between $2 and $4. So let's go with $2 a day or $60 a month. Or $720 dollars a year! OK now it doesn't sound so cheap. So I guess this is why they say it the cheap sounding coffee way.

OK, so you decided not to go ahead with their great offer. Instead you are going to bank the money over the course of the year. Can this really make a difference to your bank balance long term?

Well, if you could keep this, saving of $2.00 up for one year and get 5 percent interest, you would have $736.

But if you could keep it up over 5 years with interest you would be looking at $4080.

Now what I need you to do is think of this in reverse. What around the house is costing you money you know you should cut back on? Think of it as a daily amount, that you can add up monthly.

For example do you have pay-TV each month for $55? If you cancelled this, divide the amount by 30 days in the month to work out what you will save each day. In this case it will be $1.83 a day.

What about if you really do buy a coffee on the way to work each weekday. If the coffee was $2 and you do it about 20 times a month. This equals $40. Divide this by 30 days in the month and there is another $1.33.

Now add this $1.33 to the $2.00 and you are saving $3.33 a day.

Are you purchasing the newspaper each day? You are spending $1.20 each day for the whole month. OK add this $1.20 to the $3.33 a day and it equals $4.53.

Can you see how this little so-called cup of coffee purchases really add up over time? And if you can cut them out of your life each day, your money can quickly add up. In fact with just cutting out the Foxtel, weekday coffee and 7 day a week newspaper, we are not only saving $4.53 a day, but we are saving $1653 a year.

But of course it doesn't stop there. You can bank this extra money and earn 5 percent interest; do it for a full year and get $1705. Do it for five years and get $9447.

While you might not have Foxtel, drink coffee or buy a newspaper. If you really thought about it, I'm sure you could start reducing costs in your life right now. Just think if you could lose $10 a day from your weekly spending. Wow, all of a sudden you are saving $3650 a year before interest and $3745 after interest at 5 percent.

And if this trend continued for 5 years you would have; really think about it in those terms. Just $10 a day for five years equals $20,401.

Small savings each day really do add up over the course of a lifetime.

Eight Quick Things You Can Start Right Now To Save Money!

1. Why not automate your finances? Back in the 1960s, computers were the size of whole rooms. Well, lucky for us those days are over. But without even having a computer you can automate your finances by direct debit. You will never pay late; never get overdue fees and you can file all your invoices right away. No more thinking in bed, "did I pay the electricity bill?" Now you know each month all your bills are handled.
   A word of warning, still open and double-check your bills. Companies still make mistakes. Just give it the once over to make sure you're getting charged the right amount.
   
   
2. Finally use all those gift cards. There was a study done which says nearly a third of all gift cards expire before people get around to using them. No wonder big stores love selling them. If you are like most people, you probably still have some in your purse or wallet collecting dust. Grab them and make a commitment to use them.
   
   
3. Cost wise, meals with no meat in them are far cheaper. Now we are not saying you should turn into a full-blown vegetarian, but could your household have just one day out of seven as a meat-free day? Even the White House in America has introduced this rule. Choose a day and start saving money.
   
   
4. Finally get organised with your taxes. Now we are not suggesting you should set up a secret account in the Cayman Islands to avoid paying taxes. What we are saying is stop keeping all your receipts in an old shoebox; put them into a folder and make sure you get all of them through the year. Talk to your accountant to see if there are any other receipts you could keep for your line of work. Come tax time, be on top of your game, and get the biggest legal discount possible.
   
   
5. "One man's trash is another man's treasure." You have heard the saying. You probably have a bunch of stuff you could sell on eBay or at a Garage Sale. Don't let this stuff sit there collecting dust, sell it and put the money to good use.
   
   
6. Call up all your utility companies and ask if there is a better deal. Shop around, a 5, 10 or 15 percent discount on things adds up very quickly. This should be done at least once a year.
   
   
7. Start using a diary. Do you forget important meetings, doctor's appointments or due dates? Missing these things not only cost you money, but also time, and adds stress to your life.
   
   
8. Two people driving the same distance every year can have two different petrol bills. Do you take off from a green light as if you are in the Grand Prix? Do you drive as if you are always running late? It's time to purposely slow down and take the pressure off your petrol usage. You don't have to drive this way, and it will add time between fuelling up; not to mention save you money.

Save Hundreds Of Dollars A Year; Not Just This Year But Every Year

If you are reading this article, you probably consider yourself a thrifty person. You might look out for cheap fuel, buy two for one deals at the supermarket, or even use coupons at takeaway restaurants. All these savings are great and they add up long term. However there is probably a saving you could make which really makes a big dent in your spending. And it’s probably been sitting under your nose for ages without you picking up on it.

There is a good reason why you may have missed this saving. The main reason is every time you think about making a change; you feel true apprehension about doing it. Sure you could save hundreds a year, but the headache of the paperwork alone in this saving is enough to send anybody running for the hills.

That’s right; there is probably a saving to be made by changing your bank account to a new bank. In fact, a study done in late 2010 suggested most Australians could save up to $330 by switching banks. This is not a once off, but year after year.

But like all good things there is no gain without pain. There are many headaches in doing this so we have written a step-by-step guide to getting a better deal.

1. Know your current deal. While we say that most Australians could save up to $330, you might be one of the lucky ones who is already on the cheap deals. Call up your bank and look over your last few statements. Some of the fees you will need to get your head around are:

Monthly fees

EFTPOS fees

Bpay fees

Etc etc.

2. Now before you start shopping around, why not call your own bank. Let them know you are thinking about changing. Ask them if they can offer you a better deal or different plan than the one you have now so you can save on the monthly fees. As they have a full record of your banking history, they will be able to see what fees you are incurring and should be able to at least offer advice. You might find big savings without having to switch banks. But if this is not the case, move to step three. Or even if this is the case, why not shop around; you never know what you might be missing out on. You can always go back to this offer at a later date.

3. Jump online and make a list of banks you have in mind (don’t forget credit unions as they offer some really good offers). Call around these banks and ask for their product disclosure statements for each account. Remember there is no timeline for this. You don’t have to do this all in one day. Take a month to go through everything and make sure you’re happy.

4. Select the bank you want to go with. An important thing to think about is where their ATM’s are located from your house, shops and work. There’s no use saving money on fees only to wind up spending more on other banks’ ATM fees (which can be up to $5.00 a time). Open a 2nd account with the new bank you have chosen and deposit $100 to start the account.

5. Now tell your employer you want to have your pay go into the new account. Plus start calling your direct debits and get them to send you forms for the new account. Make sure you inform your direct debitors the date you would like them to switch taking money from your old account to the new account. The last thing you want is them trying to get money out of the new account when it is bone dry.

6. Do not cancel your old bank account; just leave minimum money in there for at least 4 weeks. You want to make sure everything with your new account and bank is running smoothly. There would be nothing worse than to close your old bank account only to discover you have a personality clash with your new bank.

7. Now you’re free to close the old account and enjoy the savings. Can you see how this process might scare some people? But let’s be conservative and say you can only save half the $330. So each year you are better off by $165. This is nearly $14 a month in your pocket. What could the $14 a month go towards? Well try and think of it this way, if you spent the $14 a month on fuel this equates to 135 litres at $1.25 per litre a year. That is nothing to sneeze at and is a big dent out of your fuel bill. I won’t lie to you; there will be times during this process where you will want to pull your hair out in frustration. But if you can see it through, the rewards are obvious.

A Whole Year Of Saving Tips - 52 Tips On Saving Money

As it is the start of a New Year, why not come up with a saving tip for each week of 2011? Enjoy!

1. Always ask retail staff if there is a charge for using credit cards? If so, pull out the cold hard cash!
2. Fill out warranty cards on all purchased items, just in case you need to send it for repairs.
3. Write a list before supermarket shopping. Do not let impulse items sneak into your trolley.
4. Eat before you hit the stores. You can easily spend additional money on takeaway if you are hungry.
5. Use a microfibre cloth for cleaning. They are completely washable and in most cases you don`t need costly chemicals.
6. Ask for discounts when purchasing stuff over $100. You would be surprised at what retail store staff can offer you.
7. Clean out your car, get rid of extra items you do not need. Each extra kilo of weight in the car makes your car chew petrol quicker.
8. Take a day this week to check around your home for items you can sell on eBay. Turn them into cash.
9. Skip the expensive store bought coffee. Make it yourself at home or at work for next to nothing.
10. Start keeping a drawer of takeaway coupons. Never pay full price on takeaway night again.
11. It`s time to check your utility costs. Can you switch your gas, electricity or phone for a better deal?
12. Forget about extended warranties on goods. These so-called warranties generally cover very little.
13. Do you really need that monthly magazine? Is the information not on the Internet? Save the money.
14. One night a week eat vegetarian. Your wallet/purse will thank you for it.
15. Drive a little bit below the speed limit. The slower you drive the less fuel you use, simple.
16. Looking for a present? Do a search for a second`s outlet that sell brands at big discounts on last year`s stock.
17. Don`t listen to stock tips from your family. Nine times out of ten they have no idea what they are talking about.
18. Put on warmer clothes in the winter. Forget about turning up the heater.
19. Find a cheaper hairdresser. A saving of even $5 a cut can add up over 3 to 4 years.
20. Smoking leads to bad health and to higher costs each week. If you can`t give up, cut back.
21. Pay your bills when they come in the post. Putting bills off often leads to late fees.
22. Forget that fancy shampoo & conditioner, buy a bottle of the cheap stuff. You might be surprised.
23. Join a library, great books and DVDs and the price is right.
24. Change your home loan to a weekly payment rather than monthly. You will make one additional payment a year.
25. Why are you still buying newspapers? You can get all this information on the Internet.
26. Start emailing instead of calling or writing a letter... it`s quicker.
27. You are not going to win the lotto. The odds are 45 million to 1. Stop buying tickets. Keep the money.
28. Turn down your water heater`s heat. Every extra degree is more money out of your pocket.
29. Go generic. Why are you still purchasing branded drugs? Go generic and save on the same items.
30. Just like people, cars need a wash. Do you wash yours too often? Why not space out the time between washes.
31. Do you need a new couch? How about getting your old couch reupholstered. Looks great and saves money.
32. Second hand stores have heaps of hidden bargains. You would be surprised at what you can find there.
33. Why not pay your bills via phone instead of driving all the way down to the post office. It saves time and money.
34. Kids love toys. But how many can they play with at any one time. Cut back on gifts for your kids.
35. When you get fuel. Don`t get sucked into an impulse snack item.
36. Instead of going to the movies rent a DVD for the family to watch... $4 versus $40 plus.
37. Don`t buy a whole music album. Jump onto iTunes and just purchase the one song you want to listen to.
38. There are 100s of ways to get exercise rather than joining a gym. Put on your thinking cap and get healthy.
39. Use your shopping receipts to get your fuel discount; it all adds up.
40. How about buying rechargeable batteries. They are more expensive upfront but save you in the long run.
41. Learn the fruit and vegetable seasons. Buying any food out of season will mean higher prices.
42. How about this week you have an alcohol free week?
43. Call up your family members and suggest a secret Santa; more money in your pocket and theirs.
44. Learn one cheap recipe. Now include this recipe each and every month at least once going forward.
45. Why are you still buying lunch? Start making it yourself and watch your bank balance grow.
46. Stop sending useless, expensive text messages.
47. Get organised with your taxes. Start keeping all your deductions in one place. Get a good return quickly.
48. Make your way over to http://www.mrhomebudget.com.au/ and read our free newsletters. Great tips!
49. Looking to buy a big ticket item. Do your research on prices. You would be surprised by how much you can save.
50. Instead of taking the kids bowling or to the movies. Take them to a local sport`s game and have a picnic.
51. Do you really need any more clothes? Go into your wardrobe; you might be surprised at what you have.
52. Refill your ink cartridges. Forget about buying new ones; you will save big dollars.
    
    Hope you enjoyed the 52 money saving ideas.