Small Costs Add Up Fast – 3 Ways to Save
First, I want to be clear that I’d rather find ways to earn more and make my money work than focus exclusively on reducing costs. However, I’m also a realist and in this economy many are in a position (some for the first time) of having to cut costs AND find a way to earn more.
I’ve been on a diet and I find there are parallels between cutting calories and cutting costs. Both surprise me in how small amounts add up to big differences over time! It’s much easier to prevent costs than to try to figure out a way to make up for them. All of this has to do with choices we make every single day, most seemingly insignificant.
I tried to address each tip from different perspectives. Comparing this to a diet again, if I told you to cut out all soda but you don’t drink it anyway, that advise wouldn’t be helpful. Also, I might have more luck getting you to cut it way down rather than getting rid of it altogether.
Don’t go to the Movies or Find Alternatives
Unless it’s a dollar theater, it’s best not to see new movies on the big screen. It’s gotten so expensive just to get in. Then you sit through ads for 20 mins. If you order popcorn and a drink for each person then you’re quickly paying a lot for the experience. However, some people will never cut this out, so I’ve given 3 options depending on your values.
1. You are an occasional movie goer: get movies on Netflix or Redbox movies.
2. You won’t give up going to see some movies in the theater.
Whether it’s your standard date night activity or you’re so into the experience that you’re willing to pay for it, some people aren’t going to cut here. So eat before the movie so you’re full. Go get dessert after rather than buying popcorn or treats there.
3. If you watch a lot of movies, get DISH Network or other subscription service so you can watch them more often without paying for each or the hassle of renting or sending movies one at a time. DISH claims to be the low price leader, with pricing lower than cable or DirecTV.
Facts: ABC News reported in July 2008 that even a small popcorn costs around $5.50. That’s more per ounce than filet mignon. University of California-Irvine professor Richard McKenzie says popcorn costs less than ten cents an ounce to produce. The markup for popcorn then is somewhere between 900%-1,300%!
Avoid Brand Name Prescription or Over the Counter Medication
Yahoo! Finance points out that the markup is around 60% for name brand medicine. Are name brand products superior? No (even though perception are that they are better, that’s just good advertising). Here’s some comfort for you: the law requires all generic drugs to be just as effective (and even use the exact same active ingredients) as the branded drugs they are modeled after.
1. You only have brand names to choose from – order in bulk (some insurance plans have this option). Ask the doctor for samples. Wait for the generic version or for the product (if it’s over the counter) to go on sale or look for coupons on the brand’s web site.
2. Buy generic drugs or store brand.
3. Change your lifestyle so you aren’t dependent on drugs (if this is realistic based on why you are taking the medication). The cost of a gym membership or a dietician could be cheap if you get healthier and no longer need the medication.
Bottle your own Water
LockerGnome.com reports that the claims that bottled water is superior to its free alternative, tap water, are essentially lies. Dasani, and Aquafina, for example are just bottled tap water. You can pay $1.25 for 1 bottle or pack your own in a reusable water bottle for under a cent for the same amount. Many public drinking fountains have been removed which correlates to higher sales of bottled water.
When I travel I always have an empty water bottle. Once I check in and pass security I fill it up at a drinking fountain. That way I avoid paying triple or more for bottled water and don’t have to wait for the stewardess to bring me water. Expect that at just about every event or trip you go on will necessitate water and plan ahead by bringing it with you.
1. If you must buy bottled water, get the store brand on sale. If you want the brand name, get it once then refill the bottle with tap water.
2. Don’t buy bottled water at all – plan ahead and always have water with you.
3. Order tap water instead of bottled water, soft drinks or alcohol when you eat out (make up a strong case for it in your head – you’re on a diet or the like).
Some cities have gone so far as to require restaurants to offer tap water because of the negative environmental impact of throw-away bottled water.
In conclusion
Overall, keep in mind that you can adjust to new habits and that they can make a big difference over time. Don’t think in restrictions, think of alternatives. You can still have the same quality of life for less if you’re willing to give up some ego or make some small changes.
Hat tip to Bill Shrink
About the Author
Janet Thaeler is an accomplished PR expert, blogger, and published author. She currently resides at OrangeSoda.com where she provides killer press releases and social media.
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Thanks for these great tips. I especially like about choosing generic/store brand medicine. I used to purchase brand name hayfever medication until a friend pointed out that the store brand tablets contained exactly the same ingredients for about a third of the price!
I tend to find saving little and often is the best way for me. In the UK I always take advantage of tax-free ISAs. They are great because you can stick to a cash ISA (basically a tax-free savings account) or if you want a little more risk you can invest in stocks & shares ISAs. ISA rules is a great site which explains all the details.