An idea that needs further development..... "Hard Cash for Hard Times"
I'd like to make a very sharp right turn.... based on the post by BizCoach:
That turn should be into something along the lines of...
"An Entrepreneur's 'Survival-Tactics Guide' For Hard Economic Times"....
With the theme (thread) being "Hard Cash for Hard Skills". The economy MAY be in for a sharp decline (although I'll not convinced of that just yet) and it might be well to discuss business types and methods to have at least in reserve for our folks to use when they hit a personal fire-wall in their economic life. I expect that most of the ideas, endeavors, and hints n' tips will generally be along the lines of what folks did in the 1930's.... when just earning enough cash to buy food for basic survival was a serious challenge. (It might even make a firm foundation for a great biz-manual the group can actually publish as well!) Really this is a longer - I hope - extension of the "Underground Economy" thread..... and other posts over the years here at The ECN that may have use too.
On that - I am asking everyone for whatever ideas and info they may have along these lines. Please feel free to go as "long" as you like! PLEASE - stay "on-subject" in this thread... Thanks!
For those that make useful contributions - IF this gets published as a manual - I will give a copy to you for your comments and additions for the final edition. Deal?
Thanks... now, let's get cracking - OK?
1 comment:
Some suggestions on how to get a 'head-start' on the recession (and for good times too) with the income you already earn:
1. Avoid impulse buying. One statistic I read said the average household spent $3500 per year on impulse purchases. OUCH!
2. Barter. Can you provide a service to a friend or neighbor in exchange for a service that they can offer you? For instance, you are a great painter and you have a neighbor who is great at wallpapering. You need wallpapering and she needs painting. Trade services and save money.
3. Shop at consignment shops. If it’s been a long time since you’ve been to one of these, you may be surprised at the change. Many won’t accept junk, and some specialize in designer clothing. They want high-quality merchandise.
4. Use consignment shops to sell stuff that is gathering dust in your house. It’s found money and you don’t have to go through the hassle of selling it yourself.
5. Look for cooperative purchase possibilities with friends and neighbors. Share the expense of a snowblower, lawnmower, ladders, boat, etc. Anything that is not used regularly is a candidate for a cooperative purchase.
6. Shop out of season. Buy snowblowers in July and air conditioners in January.
7. Sell in season. Sell your no-longer-needed air conditioner in July and snowblower during a snowstorm!
8. Read the classifieds. Anything you’re looking for can be bought inexpensively from someone who already has it and no longer needs it. If you don’t see something advertised that you want, ask friends and relatives if they know anyone who has it. If all else fails, put your own ad in the WANTED section. Look on the internet. In advertising anything wanted or for sale, try your local Pennysaver-type publication first time out. People who read these are definitely looking to buy.
9. Shop around for the best in insurance. Some companies give discounts - if you have all your coverage with them.
10. Leasing a car is not a good idea for 95% of the population. Sure, the low payments are nice, but at the end of the lease, you have nothing to show for all your payments, except an empty driveway or more payments and a likely "excess mileage" fee. If you are self-employed and can deduct and depreciate and have a good accountant, maybe leasing is a good idea - but most often it’s not.
11. Find a good mechanic BEFORE you need one. Friends and relatives will be full of suggestions.
12. If you’ll be buying a car from a dealer, the end of any month and the end of the year are great times to save a bunch of money. Dealers have quotas and if they haven’t met them, they will bargain with you.
13. If you want life insurance protection only, buy a term life insurance policy. Use the money you save for your HEAD-START.
14. You can save more than $100 a year in fees by selecting a checking account with a minimum balance requirement that you can and do meet. The more banks (or credit unions) you have in your area, the better. More competition.
15. Offered lower credit card rates? Mailbox full of them? Instead of switching all the time, call your current company and say "I’m paying 15% with you but I get offers of 4.9% in the mail, will you lower my rate?" Many will. If not, call back the next day and get another operator, and maybe a different answer.
16. A home energy audit can identify ways to save up to hundreds of dollars a year on home heating and air conditioning. Surprisingly, most utilities are very helpful in this area. Many will do the audit for you FREE or a reasonable fee. If not, they can probably refer you to someone who can.
17. Offer to pay cash in exchange for a discount. Haggle over the price of anything costing $300 or more. You’ll be surprised at how often you can save up to 20% or more. It never hurts to ask. All they can say is "no".
18. Save your lunch money. In the book, "Don’t Worry, Make Money", Dr. Richard Carlson did the math. He says that if you are spending $7 a day to go out to lunch and instead bring a bag lunch that costs you $2, you’ll save $25 per week. Take that $25 per week and invest it at 8% and in 30 years you’ll have $100,000!
19. Stock up on non-perishables when you find a great price, including: toilet paper, diapers, napkins and the like. You’ll always need them. Finding a good price is key.
20. If you consistently get $500 or more back from the IRS every year, you may want to reduce the amount of income tax withholding. All that money is an interest free loan to the government. You’ll have more money in your paycheck every week and you can put that extra towards your own HEADSTART.
21. Make saving a group effort. It’s difficult for one person to save while the rest are going wild. Get the whole family focused on saving and debt elimination.
22. Buy, if possible, the cheaper brand of everything. Major manufacturers often make other "brands". So you may be paying more for a different name tag and a few cosmetic features for an item that’s basically the same. ----Here's a few examples: Chrysler makes Jeep, Dodge, Plymouth - Ford makes Lincoln and Mercury - General Motors makes Chevrolet, Cadillac and Buick - Frigidaire also makes Gibson, Kelvinator and Tappan brands - Maytag makes Admiral, Magic Chef and Jenn-Air brands
23. Buy a floor model appliance or a demonstrator car. Make sure the warranty is still good, but if you’re willing to sacrifice on the cosmetics, substantial savings can be had.
24. Keep your loose change. A couple in my money neighborhood saved $1600 in loose change over two years and went on a cruise with the money. The worst part was wrapping the coins. Your bank will probably use one of their coin machines to do that for you... for a small price.
25. Automate any loan payments you can. It saves time, prevents late fees and trims service charges. Check with your bank about such a service.
26. Use only your own bank’s ATM. Cash machines are convenient, but if you use them often at other banks, fees running at least two dollars pile up quickly. Or, take out your weekly cash when you grocery shop. Use your ATM card and ask for cash back. There’s usually no charge... but do ask first!
27. If you decide not to use anything else you've learned at the ECN, and you can make one extra mortgage payment per year, you will knock 8 years off your 30-year mortgage. The payment can be made in one lump sum or 1/12 every month. In any event, make sure you indicate on the check that the extra is to be "applied to principal".
28. When looking for a car you will need to finance, show up at the dealership with the financing already in place from your bank or credit union. You are in a much better position to bargain. It’s like having cash. You get the deal you want or you walk.
29. Sell your used car yourself rather than trade it in. You’ll ALWAYS get more for it.
30. Buy used merchandise instead of new. Garage sales and flea markets are a favorite pastime for many, and you can get wonderful deals.
31. Have your own garage sale and make some money. Can’t stand sitting around all weekend? Hire yours or the neighbors kids to do it for a split of the profits.
32. Can you do it? Then do it yourself. Mow your lawn, clean your pool and paint your own house.
33. Use overtime and bonus income as HEADSTART cash. You were living without it before, so put it toward debts!
34. Looking for a house? Look for homes for sale by owner. Real estate agents charge about 7% - so make an offer of at least that much below the asking price.
35. Use fluorescent bulbs and save 75% of lighting costs when compared to incandescent bulbs.
36. Make the largest down payment you can afford to make when buying a house. The more your down payment, the less your interest cost will be, and the lower your monthly payment.
37. Never take credit life insurance on any account. Realize when you get this type of insurance, the lender is the beneficiary, NOT your survivors. Get a cheap blanket term life policy to cover your house, credit card and car balances, should you die before they do.
38. Use savings to pay off credit card debt. If your credit card interest is higher than what you’re getting for your savings account, you should draw from your savings account to pay off your credit card debt. Realize that if you pay off a credit card and don’t cancel and close the account, you could use that card for emergencies. That’s what the savings account was for, right? BTW: Your FICO score is partly based on the available credit to credit used ration.
39. Get a part-time job or volunteer with an organization for all kinds of free goodies. For example, if you love music or theatre, get a part-time job at a venue or concert hall for free tickets to events.
40. Work at a college? Most colleges offer significant tuition discounts to employee's and their family members.
41. Barter skills in exchange for goods and services – for example, a carpet cleaner could clean the carpets of their favorite restaurant in exchange for free meals. What skills can you trade in exchange for goods and services?
42. Record your credit card purchases in your checkbook as a regular check and you’ll know EXACTLY how much money you have spent.
43. Pay off any balances on special offers (like no interest for 3 months) before they expire. Otherwise, you’ll be hit with accrued interest from the date of purchase.
44. Buy holiday gifts on sale throughout the year and store them. Do this until done and there will be no last minute shopping or cramming to wrap presents.
45. Don’t make snap decisions. Wait at least 24 hours before making a purchase. This will give your emotions a chance to cool off so you can evaluate clearly whether you need the item or not. If you have a tendency toward impulse buying leave your cash, checkbook, credit cards, and ATM cards at home.
46. Look around for more bartering opportunities. Hair cuts, babysitting, cooking, errands, yard work, etc. The possibilities are endless…!
47. Start thinking! Look for programs that require proofs of purchase. Collect them for nearly free items. A woman on the Today show last month bought $400 worth of groceries for $.03. Call the 800 numbers on the back of your favorite products or write them to tell them how great they are. They'll send you all kinds of free samples and other stuff.
48. Watch the price scanners at the cash register and check your receipts. The stores make mistakes and often reward you if you catch them.
49. Keep visits to the grocery store short. The more time you spend in the store, the more money you will spend.
50. If you are not too fussy about your haircut, look at beauty schools for hair cuts. They are inexpensive.
51. Check out the rebate coupons just beyond the cash registers at computer and office supply stores. Do not throw away anything that you can donate for a receipt.
52. Stop subscribing to magazines and newspapers. Use the internet to read the same news.
53. Get rid of cable TV, or at least the premium channels like HBO, Cinemax, Showtime, etc.
54. Compare the sales tax difference from county to county. On big items, this can add up to hefty savings.
55. Join a buying club. You can make up the difference on one purchase for the cost of the membership. Buy in bulk quantities only if you think that you will use it all, and of course, if you really need it.
56. Buy items off-season such as cards and clothing. This works with items that you know that you will definitely buy anyway.
57. Get furniture that requires some assembly. It is less expensive and is usually simple to assemble.
58. Make your own greeting cards on the computer. Most computers come with a program already installed for doing this. Or, have your kids do a drawing. Relatives love it!
This is by no means an exhaustive list. You can read hundreds of books with hundreds more ideas for saving money, many of which are available at your local library. You can search the internet for even more ideas. If you are real lucky, you might not have to do any of this stuff. But, even if you are getting along nicely, paying your bills on time, socking some money away and generally having a great life, this "HEADSTART program" will nonetheless just work great for you!
The point is, you have to work at it!
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