Chasing down savings....LBYM with how much effort.

[retire48in2018]

There have been a few threads about a few different topics that relate that would take time and effort to realize. We just did our annual budget, and were prioritizing our spending with a down market. How much effort to chase down these other savings would you do - to allow your $ to be used elsewhere, or just because you want to always stretch your money?

The threads that I have seen - and the impact for people in similar situations (have $ in Fidelity, can go with aT&T for cell, etc) -

1 - Fidelity free turbotax premier by downloading - this might involve contacting Fidelity to get it, and then figuring out how to download vs online. Worth around $70-$80.

2 - Getting the AT&T 15 GB data $300/year plan. this might involve moving your cell phone # to another carrier, so you can then join AT&T as a new customer to get this deal. Worth perhaps $200/cell, so assume 2 lines - $400 per year

3 - Move your emergency/savings fund (current years' expenses) to highest interest bearing account - this might mean opening a savings account somewhere else, moving money to it, and then again when that deal expires - Worth maybe $2000 per year

4 - moving your AA bond fund to multiple I-bonds and cd ladder. This involves getting government accounts for both of you (I-bonds), gifting, and then creating cd ladder over 5 years. Worth - unknown, but lower risk (from bond funds with market returns to known returns with I-bonds and CD-ladders)

So - the poll - which of these would you do?

 

[ncbill]

Note it now costs $5 to download the "free" TT from Fidelity.

 

[Sojourner]

If I were trying to cut expenses and save money to live within my budget, I would do any/all of the things listed that would help me to accomplish that goal. Start with the one that will save you the most money, maybe #3?

 

[pacergal]

#3 seems the easiest and most immediate savings.

We are fairly frugal and LBYM type folks, but don't chase every discount we can. It seems too much hassle to meto be changing cell providers, banks and financial institutions, car/home policy providers etc.

I have no problem calling current providers, such as cable, and asking for new discounts when contracts expire. But that's about it, other than regular spending. We always comparison shop and live pretty simply.

 

[audreyh1]

We don’t reduce spending due to a down market.

 

[jimbee]

We haven't adjusted spending or our investments, but I did move our spending money from a HYSA to a money market account. Very little effort to make an extra ~$60 per month.

 

[Sunset]

OP - I just like to maximize my spending, because I'm frugal, to me that includes picking up free $$$.

One thing not in your list, is to get a new CC that pays a bonus for opening, earn $250 or more, just for opening a new card and doing your normal spending. The most reward I ever got for doing this was $1,250 on 1 card.

If your wife and you each do it (without putting anyone else on the card) , you can double the amounts.

 

[TripleLindy]

Why not all and then some? Even in an up year, I always look for cost savings. We’ve cut the cord and also switched to T-Mobile’s 55+ plan, which is $35/month/line with free phones and unlimited data. Those are just examples and there are an almost unlimited variety to choose from. It’s just a matter of whether the effort is worth the savings for you.

 

[W2R]

We don’t reduce spending due to a down market.

+1

We are fairly frugal and LBYM type folks, but don't chase every discount we can. It seems too much hassle to me to be changing cell providers, banks and financial institutions, car/home policy providers etc.

+1

My usual, very predictable $30/month for Cricket cell phone service won't "break the bank". Neither will one of the ~$35 deals for Turbo Tax Deluxe with State that I seem to find each year on Amazon.

Most of the "spending reductions" listed look like more hassle than they are worth, (to ME, they may be great for you!). Instead, I tend to just cut back generally as needed or desired.

 

[retire48in2018]

We don’t reduce spending due to a down market.

In general, we always look to save, but this is our 2nd, coming up on 3rd year in retirement - and I don't want to take out as much during this bear/recession market.

Maybe in a few years, we might be more relaxed. But we cut our spending about 30% for last couple years, and for this upcoming year

 

[retire48in2018]

Why not all and then some? Even in an up year, I always look for cost savings. We’ve cut the cord and also switched to T-Mobile’s 55+ plan, which is $35/month/line with free phones and unlimited data. Those are just examples and there are an almost unlimited variety to choose from. It’s just a matter of whether the effort is worth the savings for you.

We have the AT&T plan for each phone (one's at $40, the other at $30).
We changed from YTTV to Sling to reduce streaming (no cable).

 

[Major Tom]

+1
My usual, very predictable $30/month for Cricket cell phone service won't "break the bank". Neither will one of the ~$35 deals for Turbo Tax Deluxe with State that I seem to find each year on Amazon.

Most of the "spending reductions" listed look like more hassle than they are worth, (to ME, they may be great for you!). Instead, I tend to just cut back generally as needed or desired.

+1

I'm not in the position to need to go to great effort just to save a little, so each potential saving is very much a judgement call for me. My biggest savings come from having developed good spending habits, and watching recurring expenses.

I only got wise to the fact that Turbo Tax is cheaper on Amazon last year. I had been falling for their subscription offering every year, and paying something in the region of $100 for TT Deluxe Federal + state. I am currently seeing it on Amazon for $45 for Federal + state. Is the ~$35 TT deal that you refer to for Federal only?

 

[W2R]

+1

I'm not in the position to need to go to great effort just to save a little, so each potential saving is very much a judgement call for me. My biggest savings come from having developed good spending habits, and watching recurring expenses.

I only got wise to the fact that Turbo Tax is cheaper on Amazon last year. I had been falling for their subscription offering every year, and paying something in the region of $100 for TT Deluxe Federal + state. I am currently seeing it on Amazon for $45 for Federal + state. Is the ~$35 TT deal that you refer to for Federal only?

No, I always get the one including state. Usually the best deals are only available for a day or two in November or December each year. This year I didn't bother checking every day, and instead got a deal on Amazon for $35.99 that Jerry1 and others mentioned on one of our threads here in the forum back in November. Actually I think it was $10 more but came with a $10 gift certificate.

 

[Major Tom]

Thanks W2R. Looks like I might have to plump for the $45 offering this year then. It's still a lot less than I used to pay - and I have this forum to thank for my awareness of that.

 

[W2R]

Thanks W2R. Looks like I might have to plump for the $45 offering this year then. It's still a lot less than I used to pay - and I have this forum to thank for my awareness of that.

I have found a lot of deals on this forum, too! Not only that, but it's kind of fun talking to people here since we are an intelligent and interesting group.

 

[Major Tom]

I have found a lot of deals on this forum, too! Not only that, but it's kind of fun talking to people here since we are an intelligent and interesting group.

Oh yes, most definitely. I only have one family member/close friend who I can talk with about a variety of interesting things, as well as money!

 

[tominboise]

I always try to watch what we spend and how we spend it but I don't obsess over it. Lately I have been working to make more $$ on our cash fund than letting it sit in a MM earning little. So investing in CD's and T Bills and managing that cash stream to maximize earnings a little bit.

 

[athena53]

Many of the tactics in the poll are "churning" actions- switching from one provider to another to get the benefit of signing bonuses and/or lower ongoing costs till the account is shopped around again, calling the local cable company and threatening to quit so they reduce the monthly cost, etc.

I lean more towards the longer-term ways to reduce ongoing expenses. I've had Ting cell phone service and Google Fiber plus Netflix for Wi-fi and entertainment for the last 6 years or so. GF has remained stable, Ting actually revised their pricing plan to give me more for a bit less money, and Netflix has gone up by $10/month. I minimize subscriptions in general- a friend with a far more modest budget, for example, has Sirius in his car, a subscription for unlimited uses of the local car wash and Amazon Prime which, IMO, just tempts him to buy more Stuff because it's so easy and shipping is "free". I will resist buying an MS Office subscription to my dying day. Fortunately you can still buy a license outright.

I did shop my insurance around last year when the increases got too crazy but was careful to go with another large stable company, not an off-brand that whittles away coverage in place you don't realize till you file a claim.

 

[audreyh1]

In general, we always look to save, but this is our 2nd, coming up on 3rd year in retirement - and I don't want to take out as much during this bear/recession market.

Maybe in a few years, we might be more relaxed. But we cut our spending about 30% for last couple years, and for this upcoming year

Depends on your age I’m sure, but as I get older I know that spending the funds now rather than later will likely give us more bang for the buck.

Also time and less hassle become more valuable as you get older.

Theoretically we are well funded so not willing to scrimp for even larger portfolio later or for our heirs.

 

[Koolau]

If I were trying to cut expenses and save money to live within my budget, I would do any/all of the things listed that would help me to accomplish that goal. Start with the one that will save you the most money, maybe #3?

In my case, it would be the one that is easiest to accomplish (IOW bang for the effort.)

 

[Koolau]

+1

+1

My usual, very predictable $30/month for Cricket cell phone service won't "break the bank". Neither will one of the ~$35 deals for Turbo Tax Deluxe with State that I seem to find each year on Amazon.

Most of the "spending reductions" listed look like more hassle than they are worth, (to ME, they may be great for you!). Instead, I tend to just cut back generally as needed or desired.

Yes. This was kinda what I was thinking as well. It's not that little expenses (especially monthly expenses) aren't potentially important - it's just that saving $5 or $10/month might cost you a couple of hours on the phone or in a cell phone store or researching CD rates, etc. My time is important to me and lack of hassle is more important than money for the most part.

I'm with W2R. If I want to cut back, I just adjust my "attitude" about spending in general for a while. I'll cut out a restaurant meal or not order a drink or put a hard "no" on any impulse buying, or wash the car myself, etc. etc.

No negative judgement on OP's approach - it's just not where I would start but YMMV.

 

[Sojourner]

I will resist buying an MS Office subscription to my dying day.

Same here! I have never once been tempted to plunk down any money for an "Office 365" subscription. There are plenty of other very good, free options available for creating/editing documents and spreadsheets.