Jane Dough of Boston Gal’s Open Wallet references an article about keeping your mandatory expenses to a minimum. It seems that you should keep your ratio of take home pay to expenses under 50%. I did a look at mine and they are at 35.35%. I was helped out by splitting utilities with my fiancee and having my car paid off.
This weekend, I’ll try to get my fiancee to put her numbers in and we’ll see what our combined numbers are. I think we may get lower than 25%.
Over at No Credit Needed (updated link), the blogger has come up with a great idea of summarizing some of the best money saving tips from all around. There’s nothing like combining the knowledge of many people and taking the best 5% of that.
I read through them and was just shocked that the best money saving tip I ever heard was not included. Simply, pay yourself first. Set aside money from each paycheck to automatically deposit into a separate savings account, mutual fund, money market account, etc. The key is to have it in any account that you normally wouldn’t pay attention to or have easy access to.
The idea is that if you don’t see it, you won’t spend it.
After reading a comment at Boston Gal’s Open Wallet, I was reminded of the free comics at the Federal Reserve Bank covering a variety of financial topics. I happen to have a friend who works at the Fed Bank, so I have to see if he can grab a few of these.
It occurred to me today that how efficient I’ve become at living in Boston. Between grocery stores like Shaw’s, Stop and Shop, and Roche Brother’s, I can usually get good cuts of chicken, pork, and steak at prices at or below $1.99 a pound. I know when all the sales are going to be so that I can get similar deals on ice cream or Thomas’ English muffins.
I know there are still Trader Joes’ which is going to be a relief. In fact, I’m looking forward to purchasing actual Two Buck Chuck instead of the 2.99 version we have here in Boston. Unfortunately, Trader Joe’s tends not to have too many bargains. I know there will likely have deals and I’ll be able to adjust. Where I lived previously, there was only one grocery store option nearby.
I hope that I’ve been clear about how cheap I am. If I haven’t, this post might set the record straight. So here’s my guide to eating out on the cheap…
First off, head for the big meal at lunch if you can. Not only are the meals cheaper, sometimes half price, but it’s more healthy as you can work off the calories through the rest of the day.
Second, pick up an Entertainment Book. There are a few buy one get one free dinner places in the Boston area. Use up one or two of those (depending on when you buy the book) coupons and you have made your money back.
Divide your portions. Usually restaurants give you enough food for more than one meal. Sometimes it’s just enough for a snack later. However, at a place like the Olive Garden, with free unlimited salad and breadsticks, I end up taking 85% of my main course home.
Save the alcohol for home. Not only do you not have to worry about drinking and driving, but the wine makes a nice nightcap with a loved one when you get back. At a number of places, this alone will save you upwards of $20 on the meal.
A last thing you could do is buy gift cards at a drug store with your high reward credit card. I think it would qualify for 5% cash back with most cards.