NameRedacted
Recycles dryer sheets
- Joined
- Oct 23, 2016
- Messages
- 236
After I retired in Mar 2017 I went ahead and optimized my spending. These were things that I was intending to do anyway but never got around to since I was so busy working I never had the time.
It's mostly low hanging fruit to be honest and this list is far from exhaustive.
1. Called all the local trash collection companies and got quotes. Then called my current collection company and asked if they could match. Also switched to annual billing. Saved about $150/yr.
2. Analyzed our cell phone bills and figured out how much data we actually used. Then selected the cheapest plan offered by a carrier in our local area. Also made sure the phones were switched to use wifi at home and the free wifi at various businesses that we frequent. Managed to save about $240/yr plus got a "free" phone when I switched carriers (I'm really buying the new phone over 3 years at 0% interest - but the lower rate including the phone is still about $20/month less).
3. Pestered the cable company until they allowed me to get a promotional new customer rate of Internet/phone/cable. This was helped by the fact that I had quite a few cable outages over a period of two months. Also got credits for the outages. Managed to save about $600/yr.
4. Figured out what car/home insurance we really needed and then got several quotes on bundles. Saved about $400 /year.
5. Called the local alarm companies to get the best rate. Sadly I couldn't find any cheaper rate than I have now.
6. Switched grocery shopping to Aldi's. I estimate I'm saving about $10-20 a week - so let's say $750/yr
7. Stopped buying so much diet soda and other processed foods and replaced them with tap water and real fruits and vegetables. Estimated savings about $500/yr.
8. We live in a State that lets you select your gas and electricity suppliers. Switched to the lowest cost providers. Not sure I saved that much here - maybe $50/yr and you really have to stay on top of this.
9. Switched my gfs prescriptions to the lowest cost pharmacy. Some cost less if you don't go through insurance! Saved around $50/yr.
10. This is probably the biggie. Manipulated our income using judicious use of capital gains/losses and living off capital rather than income to get the biggest ACA credit possible. We managed to save about $7000/yr over paying the full price. Although to be fair it's doubtful that I would pay the full price without doing this.
11. Played the credit card rewards game. Every few months apply for a new credit card that pays you a bonus for spending x amount of money in usually the first 3 months. So far I haven't seen my credit score drop and have made - maybe $1000/yr.
12. Played the bank savings account rewards game. Open up a savings account - deposit x amount of money and keep it there for y days. After the y days are up and you get the bonus - close the account and repeat at another bank. Probably got about $1500/yr doing this. Helped immensely by Ally I have to say.
Here are other things we have done that are difficult to quantify.
A. Stopped buying sodas at restaurants - water is free and better for you.
B. Use coupons and special offers at restaurants - for example Friendly's restaurants have half price breakfasts every Mon-Fri - which makes their breakfasts quite competitive with local diners and usually makes their restaurants much busier in the week than at the weekend.
C. Use an app that shows the cheapest gas in your area.
D. Take advantage of special offers from CC companies to buy gift cards. So for example Some CCs will offer 10x points at various stores. Take advantage of this to buy a GC for Amazon say at the store at an effective 10% discount.
E. Ask if there are any discounts for old people at every museum, restaurant, club. theater etc. For example, when renewing a membership at one place I asked if they had discounts for old people - she said no - So I asked "what about cheapskates?". She laughed and said hold on and then gave me a $20 discount - not sure what for.
F. Visit the movie theater on half price day or at least see a matinee which is usually cheaper. Also, smuggle your own food into the theater.
G. Sign up for every reward program that you can - hotels, airlines, grocery stores, movie theaters. The points build up slowly but eventually you get to use them. Plus you'll get occasional free gifts. JCPenney and Staples both keep sending me $10 off $10 coupons which I use mostly for batteries and socks.
H. Figure out when your grocery store drops prices on almost expired meat/fish. Just buy it and freeze it. I once got 4 racks of lamb for $4 each.
I. Look for stores that are going out of business - Sears and Kmart have been the big ones lately. In the week or so leading up to the last day you can get 80% off most stuff and the last day is 90% off - although to be fair there is not much choice left on the last day.
My philosophy is rather than trying to cut back on the things you spend money on - which will lower your standard of living. Try to find ways to spend less money for the same or similar goods and services.
It's mostly low hanging fruit to be honest and this list is far from exhaustive.
1. Called all the local trash collection companies and got quotes. Then called my current collection company and asked if they could match. Also switched to annual billing. Saved about $150/yr.
2. Analyzed our cell phone bills and figured out how much data we actually used. Then selected the cheapest plan offered by a carrier in our local area. Also made sure the phones were switched to use wifi at home and the free wifi at various businesses that we frequent. Managed to save about $240/yr plus got a "free" phone when I switched carriers (I'm really buying the new phone over 3 years at 0% interest - but the lower rate including the phone is still about $20/month less).
3. Pestered the cable company until they allowed me to get a promotional new customer rate of Internet/phone/cable. This was helped by the fact that I had quite a few cable outages over a period of two months. Also got credits for the outages. Managed to save about $600/yr.
4. Figured out what car/home insurance we really needed and then got several quotes on bundles. Saved about $400 /year.
5. Called the local alarm companies to get the best rate. Sadly I couldn't find any cheaper rate than I have now.
6. Switched grocery shopping to Aldi's. I estimate I'm saving about $10-20 a week - so let's say $750/yr
7. Stopped buying so much diet soda and other processed foods and replaced them with tap water and real fruits and vegetables. Estimated savings about $500/yr.
8. We live in a State that lets you select your gas and electricity suppliers. Switched to the lowest cost providers. Not sure I saved that much here - maybe $50/yr and you really have to stay on top of this.
9. Switched my gfs prescriptions to the lowest cost pharmacy. Some cost less if you don't go through insurance! Saved around $50/yr.
10. This is probably the biggie. Manipulated our income using judicious use of capital gains/losses and living off capital rather than income to get the biggest ACA credit possible. We managed to save about $7000/yr over paying the full price. Although to be fair it's doubtful that I would pay the full price without doing this.
11. Played the credit card rewards game. Every few months apply for a new credit card that pays you a bonus for spending x amount of money in usually the first 3 months. So far I haven't seen my credit score drop and have made - maybe $1000/yr.
12. Played the bank savings account rewards game. Open up a savings account - deposit x amount of money and keep it there for y days. After the y days are up and you get the bonus - close the account and repeat at another bank. Probably got about $1500/yr doing this. Helped immensely by Ally I have to say.
Here are other things we have done that are difficult to quantify.
A. Stopped buying sodas at restaurants - water is free and better for you.
B. Use coupons and special offers at restaurants - for example Friendly's restaurants have half price breakfasts every Mon-Fri - which makes their breakfasts quite competitive with local diners and usually makes their restaurants much busier in the week than at the weekend.
C. Use an app that shows the cheapest gas in your area.
D. Take advantage of special offers from CC companies to buy gift cards. So for example Some CCs will offer 10x points at various stores. Take advantage of this to buy a GC for Amazon say at the store at an effective 10% discount.
E. Ask if there are any discounts for old people at every museum, restaurant, club. theater etc. For example, when renewing a membership at one place I asked if they had discounts for old people - she said no - So I asked "what about cheapskates?". She laughed and said hold on and then gave me a $20 discount - not sure what for.
F. Visit the movie theater on half price day or at least see a matinee which is usually cheaper. Also, smuggle your own food into the theater.
G. Sign up for every reward program that you can - hotels, airlines, grocery stores, movie theaters. The points build up slowly but eventually you get to use them. Plus you'll get occasional free gifts. JCPenney and Staples both keep sending me $10 off $10 coupons which I use mostly for batteries and socks.
H. Figure out when your grocery store drops prices on almost expired meat/fish. Just buy it and freeze it. I once got 4 racks of lamb for $4 each.
I. Look for stores that are going out of business - Sears and Kmart have been the big ones lately. In the week or so leading up to the last day you can get 80% off most stuff and the last day is 90% off - although to be fair there is not much choice left on the last day.
My philosophy is rather than trying to cut back on the things you spend money on - which will lower your standard of living. Try to find ways to spend less money for the same or similar goods and services.
The look on the manager's face was priceless).
