The world is divided into two kinds of people: savers and spenders. Before one can be a saver, one must learn not to waste money. Spenders, take heed: Wealth is not about how much you make. It is about how much you keep.
Here are some quick and easy ways for you to hang on to your hard earned money and let it build up.
Always negotiate.
Memorize these five magic words: “Can you do any better?” Take a few minutes to call your phone company, insurance company, cable, dish and Internet provider, credit card company, bank, etc. Utter the magic words. Don’t be bashful, just be nice. Do the same at yard sales and big box stores. You will be amazed at what will happen.
Start a ‘found money’ account.
Begin with a jar. Put every penny that you find in the street, every penny that you didn’t have to pay because you used a coupon, every penny from something you sold, got from a refund or gift into that jar. Then open a no-fee savings account, put all future freebies into it, and watch it grow.
Cut things in half.
Don’t laugh! Here’s an example: You bought a bag of sponges for 99 cents? Cut them in half, and voila! Twice as many sponges.
Avoid buying coffee.
Brew your own coffee, and take it with you. Put the money you didn’t spend on a latte into the jar. Ka-ching!
Take your lunch to work as often as possible.
There is nothing wrong with a peanut butter and jelly sandwich on whole wheat and an apple once a week. It’s probably better for you than some greasy thing bought on the run and wolfed down in a car, and it will mean more money for the jar. Ka-ching! Ka-ching!
Forgo bottled milk.
Use powdered milk for cooking. It’s always cheaper than regular milk, and it lasts much longer. It’s fat-free, but you can make it as creamy as you like by adding less water as you mix it. Mix it dry into your coffee or tea instead of an expensive creamer. I guarantee you won’t tell the difference. I blind-tested it on a friend who said it was great and asked what brand it was. It was the house brand of dry milk from the local supermarket.
Ever heard of soy flour?
Use soy flour for baking instead of eggs. One tablespoon of soy flour equals one egg. It’s cheaper than eggs and lasts a long time. Obviously, you can’t make an omelet with it, but you can mix it with milk and make beautiful, golden French toast.
Libraries have free stuff.
Make use of libraries. They are the best resource of all. Libraries provide free books, movies, audio books, music, magazines, Internet access, programs, classes and more.
You’ll find most of these ideas and more in the many books about frugal living in your library. Here are two to get you started: “The Tightwad Gazette,” by Amy Dacyczyn, and “The Millionaire Next Door,” by Thomas J. Stanley and William D. Danko.
One last word of wisdom: Wealth is relative. Are you wealthy compared with Bill Gates? Probably not. But compared with someone trying to survive in a developing country, you are wealthy beyond all measure.
Barbara Ericson runs a money-minding group called the Tightwad Exchange, which meets at the first Wednesday of every month from noon to 1 p.m. at the Ellsworth Public Library. It’s free and will next meet Wednesday, Sept. 2. Feel free to bring a lunch. Coffee will be provided.