Money Saving Ideas - the biggest and best

Here are money saving ideas that I consider to be the best of the best. They're the biggest and best because they'll make a big dent in your spending. A frugal living principle of mine is "you can only save the most where you spend the most."

It’s true. You can’t expect to save much money at all unless you focus on areas where you spend a considerable sum. Focus on these “big chunks” and you’ll be in much better financial shape than you will be if you worry about nickels and dimes. Stay focused where you’ll be most effective in saving serious money.

The idea of saving money isn't just about spending less or more wisely, it often focuses on making better decisions that include not spending money at all. If you find not spending money difficult to do, then perhaps you have some sort of spending addiction, and that needs to be addressed first and foremost.

The big money consumers in our lives are typically:

• Housing
• Transportation
• Taxes
• Insurance
• Food
• Utilities
• Family
• Discretionary purchases

Being frugal is a great idea, but some of us can only keep a few things "on the radar screen" at one time. If that's the case, then focus on the money saving ideas below, and you'll be in better financial shape much faster than you will with "clipping coupons" and the like.

After you've mastered some of these "big chunk" money saving ideas, then you can move on to implement all those hundreds of other frugal living tips you've heard about to save a dollar here and there. Use those hundred or so ideas to fine tune your approach to frugality.

Until then, let's look at the big money saving ideas that can help you keep way more money in your pocket. Here they are in no particular order:

• Rent when interest rates are high. I remember 13% interest rates on mortgages. What a crock! That's a credit card rate, not a rate for interest on a mortgage.

  I know that having a home is an investment, but when the interest payment on your investment starts to approach the cost of renting, then renting vs owning a home is one of the better money saving ideas. When interest rates drop, you can get back into the housing market.

• Refinance when interest rates drop low enough. Careful on this one. Refinancing seems like one of the obvious money saving ideas, but remember that it makes money for others that are handling the refinancing, and someone has to pay for that. That someone would be you. So, be certain that you are getting good return on investment. You need to know when to refinance.

• Move to a tax free state. Depending on your income, this might be the best of the money saving ideas. My move to Wyoming saved me about $8,000 each year over what I was paying California. Now, if you can save thousands each year, that savings can pay for a lot of necessities in life. Perhaps it's time to move to one of the states with no income tax.

• Become the ultimate cheapskate by having a deliberate focus on frugal living. This type of "minimalist" lifestyle isn't for everyone, but it most certainly can be effective in keeping more of the money you make, instead of handing it out to others who are all too eager to take it. Living such a lifestyle really requires that you step ouside the norm and become a type of oddball in the community. So what? Who really cares what others think? As long as what you're doing is effective and isn't hurting others, then it's none of their business.

• Focus on total cost of transportation, not miles per gallon. Don't get caught up in how many miles per gallon your car gets. Focus instead on what you are paying for transportation.

  Sure, miles per gallon and the cost of fuel influence your transportation costs, but when you buy a new hybrid that gets fantastic fuel economy, you're also paying:

  • higher license fees
  • higher insurance costs
  • monthly car payments

  Do the math and you'll find that calculating your transportation cost is one of the great money saving ideas, especially if, like most Americans, your life centers around having and using a car.

• Say NO to those asking for your money. Aren't you just about tired of seemingly everyone asking for your money? You don't ask for money, so why should others? It's time to tell these people to take a hike. You worked hard for your money, and you shouldn't have to suffer others who are merely begging for it.

• Move to a low cost of living area. This is another of the good money saving ideas because it can greatly affect your cost of commuting, housing, and goods and services. Do some research and figure out where the general cost of living is lower. It might be time to relocate.

• Grow your own vegetables. Most of us eat vegetables, so growing our own can be one of the best money saving ideas since it costs very little to do it, and the potential payoff is rather large. There is work involved, but quite often the payback is much greater than the modest amount of work required. After all, the vegetables largely grow on their own. The key is to select varieties that produce lots of food for the growing time, space consumed, and effort required to tend to them. Get into vegetable gardening and start saving money.

• Avoid discretionary spending. This means buy what you need and not simply what you want. Americans buy lots of things that we don't need. We are fully engrossed in consumerism. No other country on the planet even comes close to the range of things we buy and how much we buy. Becoming more selective as a spender can make a huge difference in how far your money goes.

• Staying out of debt - stop debt before it starts. Debt is a form of enslavement to another. It's alright for some things like a home mortgage, but better off left alone when it comes to other things. They say: "If you find yourself in a hole, the first thing to do is stop digging." I hope this is one of the money saving ideas that's easy to understand - don't start digging in the first place. Staying out of debt can be difficult, but it's essential if you're really interested in saving money and not being a financial slave to others.

• Have a bank account. This almost seems unnecessary to mention, but it is amazing how many people don't have a bank account. In Cheyenne, a town of about 60,000 people, it is estimated that about 10,000 adults don't have a bank account. That's hard to believe. Instead, many of these people go to check cashing services and pay a portion of their check to cash it. To my way of thinking, it's so unnecessary that it borders on crazy. Just open a bank account and you'll be much better off.

• Pay off the mortgage. Okay, here is one of the real big money saving ideas. When you pay off your mortgage, you save tons of money over what you would have paid over the entire term of the loan. Many of us could do this if we really tried. For just an average house, you might be surprised to learn that the savings you could realize is in the hundreds of thousands of dollars. Now, clearly we're talking about something that's worthwhile doing. Consider an early mortgage payoff as one of the most important of all money saving ideas.

• Disassociate yourself with human "tar babies". I'm going to take some heat for this, but it is among the most important of the money saving ideas, so I'll take my chances. If you have someone in your life that is high maintenance, puts you in the financial "hurt locker," or otherwise drains you financially, you have a type of financial tar baby, and it's time to revisit the relationship. It could be a family member, an associate, an acquaintance, a friend or a neighbor. It doesn't matter, any tar baby in you life can pull you down under financial water. It may be time to let them drown on their own.

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