Debt Free

It's the little things in your life, those that you do repeatedly throughout the year, that add up. In many cases, you don't think it really matters, but that's where you're wrong, my confused friend. Here are some ways you can save money on those dull, routine things you do in everyday life, and how they can add up to that new (early retirement, vacation property, Porsche, kid's college education, high end new kitchen, home theater room, Vacheron Constantin....take your pick - Make mine a black Cayman S, 80 acres with a “cabin”, and a maxed out 529 plan) over the course of 20 years or so.

Here are 3 ways you can save money in everyday life. It's just a little bit here, and a few dollars there, but look out!  There'll be a few more ideas to follow.

1 - Saving Money on Prescription Drugs
It's a fact of modern life for most people that you or a family member will get stuck taking prescription drugs, either for a short term malady, or a long term condition. In the case of long term illness or condition, it can cost you many thousands of dollars in a few years. Here are some ways to reduce the pain, fiscally, not physically. Shop around to different pharmacies. They are free to set different rates for prescriptions, and many do. Remember that often generic drugs are available in lieu of brand name one, and there are definitely savings to be had going this route. Often there are multiple medications available for the same condition.

Check with your insurance company to see which available medication has the lowest out of pocket cost. In addition, you should get your doc to write you a prescription for as large a quantity of medication as possible. No, not so you can sell them on the black market to recoup your investment, but because the larger the quantity, the less often you'll have to fill it. Since every time you fill your prescription, you have to pay out of pocket, the fewer times you have to do this, the more money you'll save. Don't for get to check at the pharmacies that offer $4.00 or $5.00 generic prescription drugs to see if there's one available for you that will suit your needs.

2 – Save Money on Food
No matter how rich you are, and how well you've done for yourself financially, this basic need never goes away. In fact, it's a supreme source of pleasure for many, both rich and poor. Given that, you'll probably find yourself (or your personal assistant, for those of you in that income bracket), at the market fairly regularly. It's the regular things that offer the most potential for savings over time, so food is a great candidate for money savings.

Unless you like to pay more, you really don't need to shop in the cool, trendy, brand name supermarkets. Many cities are replete with very low cost warehouse food stores that have amazing selections, at a savings of as much as 50% on many items. This has the potential to save you more than almost anything else, depending upon the size of your family and their appetites. If it really blows your skirt up, you can visit the zoot markets once a quarter if you have to be seen by the beautiful people. If you like ethnic food, these warehouse food stores often cater to immigrant populations, so they sometimes have amazing selections of ethnic foods.

Buy using a shopping list, rather than your current appetite. You'll save money, especially if you have a good meal before you head to the store. This technique really works to keep all manner of different things from ending up in your shopping cart. As I mentioned in an earlier post about food's per unit pricing, don't forget to look at the cost per unit of things. Just because something's in the huge value pack, doesn't mean the specific price is actually lower.

3 - Save Money on Your Vehicle
No, not buying one, keeping the one you already own. Avoiding depreciation, you know. But in order to make that cost effective, you've got to maintain it. Priced a transmission lately? Better sit down first. That's why it pays to get your automatic transmission serviced regularly. The same holds true for such things as timing belt replacements. Many people are blissfully unaware that these even exist. On some engines, termed “interference engines”, a broken timing belt will cause the engines valves to collide with the pistons. This basically renders you expensive engine a pile scrap metal. No matter the price of scrap these days, it won't be enough to pay for a new engine. If your engine has one, replace the timing belt at the scheduled service interval. This typically between 75,000 and 125,000 miles, depending upon the model of engine in your vehicle.

Other basic, but oft neglected vehicle maintenance includes tire rotations. If you've taken a trip to your local tire store recently, you can see the price of oil has ramifications beyond those at the gas pump. Tires are made largely from synthetic compounds synthesized from, in part, crude oil. Hence, when the price of oil's knocking on $70/ barrel, the price of tires tends to be a bit steep. Rather than buying a new set of rubber wheel covers for your vehicle every 20,000 – 30,000 miles, rotate your tires every 7,500 miles, keep them properly inflated, and make sure your vehicle is properly aligned. Oh, one more thing; don't drive like you did when you were 17. A large percentage of tire wear can be directly attributed to driving style. Many tires today will last 60,000 – 80,000 if you let them. When you do replace them, don't get the cheapest set you can find, either. Little else contributes as much to the safety, braking, ride, comfort and handling of your vehicle as your tires.

That's not saying you should keep your ride forever. Eventually you'll reach the point where ongoing maintenance costs, or expected future ones will dictate the prudence of a newer vehicle. Beyond regular vehicle maintenance, do all you can to maximize the life of your car. Then of course, dump it unceremoniously at your nearest dealer and drive away in the used car of your choice (unless they're offering a 60 or 72 month, 0% financing deal on something new). You could sell it as private party, but that can be fraught with peril. You may get more for it, but you've got to spend much more time, pay to advertise it, meet who knows what kind of characters (and let them drive your car), and not realize any sales tax savings in states where that is applicable.

In states that have sales tax, you'll be able to save a substantial amount of money on sales tax by trading in your vehicle, rather than selling it and using the cash to buy a new vehicle. Often this savings is enough to largely offset the difference between the trade in value and the private party selling price. For example, if your area has a combined sales tax rate of 7% and you are trading in a car with a $10,000 value, you'll save $700 in sales taxes because you won't have to pay sales tax on $10,000 of the new car's sales price.

Have a great, debt free weekend.