How to save money?

[ajiva]

Hi,
I'm working my way to early retirement (or any sort of retirement). Currently my family and I are saving as much as we can, but it seems like it's never enough! We've cut the basics (using ooma instead of a phone line, dumped cable for an antenna, etc). Other ideas? I'm targeting 100k of savings, but we never seem to even get close to that.

[freebird5825]

There are some great ideas at this thread

http://www.early-retirement.org/foru...tip-43303.html

[FIREd]

If you are not tracking your expenses already, perhaps you should give it a try. It might give you a better idea of where to cut.

[Ally]

My best money saving idea was to pay off all our debts asap, and then it's easier to pile up money. We also eat at home more than we used to.

[jacob]

Post a budget. The biggest bang for the buck comes by controlling the biggest expenses which are typically housing, transportation, and food.

[easysurfer]

+1 about the budget. That way, when you have one can you surely identify how much to set aside for which category then cut down on those categories and save the rest.

[ajiva]

Thanks, I'll start with a budget and go from there

[Trawler]

Quote:

Originally Posted by ajiva Thanks, I'll start with a budget and go from there

What we did several years back was started to track real expenses by item food, fuel, water, entertainment etc. Once we idendified where it was going we made changes and set the budget. It was amazaing what we found we could save by saying would I rather have this today or retire early? We did continue to enjoy along the way just cut what we did not really value.

Good luck with your endevour

[mews]

For a few months, track every ^%$# penney you spend - the big and little stuff.

( I have an Excel spreadsheet for my slightly OCD record of spending)

Anyway, then take a look at where the $$ is going, and where you want it to go!

if you have access to decent funds in your 401-k, taking the savings off the top is a good thing - you won't see it, and won't miss it.

Otherwise, put "Monthly check of $xxx to IRA at Vanguard" on your monthly budget, as well as your taxable savings.

ta,
mew

[rescueme]

What's missing is not only the budget (which I strongly agree with), but also your income.

It may not be only an expense issue but also your level of income that is keeping you from progressing.

Sometimes, options may also include second (or third) j*bs, working/banking overtime on your current job (if you're paid OT) and simple things such as investing every spare cent (like tax refunds).

I would say for a great many people the answer is the outflow; however in some cases, the inflow should also be looked at.

Good luck to you, in your journey...

[LOL!]

An easy way to track all spending is to use a credit card for EVERY expenditure (pack of gum, donuts, coffee, etc) except those online bill pays that you do. Never go to the ATM and never spend any cash. That's the blackhole of a budget: cash.

[RetirementColdHardTruth]

Quote:

Originally Posted by rescueme What's missing is not only the budget (which I strongly agree with), but also your income. It may not be only an expense issue but also your level of income that is keeping you from progressing. Sometimes, options may also include second (or third) j*bs, working/banking overtime on your current job (if you're paid OT) and simple things such as investing every spare cent (like tax refunds). I would say for a great many people the answer is the outflow; however in some cases, the inflow should also be looked at. Good luck to you, in your journey...

+1

It definately looks like an income issue to me. Get that extra job for a year or so and save every cent of it.

[racy]

Quote:

Originally Posted by ajiva Hi, I'm working my way to early retirement (or any sort of retirement). Currently my family and I are saving as much as we can, but it seems like it's never enough! We've cut the basics (using ooma instead of a phone line, dumped cable for an antenna, etc). Other ideas? I'm targeting 100k of savings, but we never seem to even get close to that.

Insurance can be a big ticket item. Look at raising deductibles on car & house. Might look at food: buy store brands instead of national ones; also choose real food (ie potatoes) instead of prepared food (tater tots).
Be sure to pay yourself first: have investments/savings auto deducted monthly. When you get that 2% annual raise, increase your savings with half of it.