397 Ways to Save Money: Spend Smarter & Live Well on Less - PDFDrive.com Read online

  397Ways

  TOSAVE

  MONEY

  SpendSmarter&LiveWellonLess

  KERRYK.TAYLOR

  CREATOROF

  SQUAWKFOX.COM

  ToCarlRussmann,mypartnerandsupport

  inallthings,includingwriting.

  Contents

  Cover

  TitlePage

  Introduction:MoneyMatters

  PARTONE:BigDecisions

  CHAPTER1:Renting

  CHAPTER2:Homeownership

  CHAPTER3:FinancialChoices

  CHAPTER4:Shopping

  PARTTWO:HomeManagement

  CHAPTER5:HomeMaintenance

  CHAPTER6:Energy

  CHAPTER7:Cleaning

  PARTTHREE:RoombyRoom

  CHAPTER8:Kitchen

  CHAPTER9:LivingRoomandDiningRoom

  CHAPTER10:Bedroom

  CHAPTER11:Kids’RoomsandBeyond

  CHAPTER12:Bathroom

  CHAPTER13:LaundryRoom

  CHAPTER14:Garage

  CHAPTER15:OutsideYourHome

  PARTFOUR:MoreWaystoSave

  18WaystoSaveonYourNextFamilyVacation

  11WaystoSaveonYourPets

  5Easy,HealthyFamilyDinnersfor$5

  Month-by-MonthMaintenanceChecklist

  HardwareStoreShoppingList

  GetStartedNow!

  Resources

  ACKNOWLEDGEMENTS

  Copyright

  AboutthePublisher

  INTRODUCTION

  MoneyMatters

  Believe it or not, you have money. It’s hard to see it, but hidden in among tax bills, mortgage or rent payments, bags of groceries, debt repaymentsandallthemyriadcostsofdailylife,there’smoneywaiting tobesaved—youjustneedtoknowwheretolook.

  Andthat’swhatthisbookisfor:totakethechallengeoutofsaving

  moneybyshowingyouhundredsofpainlesswaystospendsmarterand

  savemoreforyourselfwithoutscrimpingorpinchingpennies.I’llshow

  you how to avoid the traps we all fall for—buying slick brand-name products,watchingthebankdingyouwithfees,shellingouttoomuch

  forshelter,gettingzappedbyenergybillsandfeelingthepinchatthe gaspump—andpreventthesehugecostsfromerodingyourhard-earned

  dollars.I’llshowyouhowsimpletrickslikeraisingdeductiblesonyour insurance, shopping smartly online, switching banks and buying more foods with less packaging can help your savings add up to thousands annually.You’llseehoweventhemostbasicswitches,likechangingthe wayyoudolaundryorhowyoupreparemeals,cansaveyouhundreds

  withouteventrying.Itmightbehardtobelieveyourlifecouldbefull livingonless.Butitcan.AndI’llshowyouhow.

  InmyownlifeI’vediscoveredthatsavingmoneyisfunandsomewhat

  addictive. I came from a family who valued saving, so when I found myself in a whole mess of student debt after university, I decided I neededtogetoutofitasquicklyaspossible.Bymakingsimplechanges, rethinking which costs mattered in my life and picking up a whole bunchofeconomicalnewhabits,Inotonlydugmyselfoutofdebtinsix months but went on to save my way to a six-figure portfolio—and budget-friendlylivingjuststuckwithme.Oncemydebtwasgoneandas

  myearningsincreased,mycost-cuttingwaysmeantIwasspendingless

  on unimportant things, leaving more for things that mattered to me. I startedmyblogatsquawkfox.combecausefriendswantedmetoshow

  themhowIcouldpossiblyliveonlessbuthavemoretoshowforit,and Idiscoveredalongthewayhowfrugallivingisnotonlyprofitablebuta lotoffun.Iwrotethisbooktosharethesethriftytipsandtechniquesso youtoocanfindyourlostmoneywithoutsacrificingwhatisimportant

  toyou.

  The book is divided into three parts. Part 1 covers your biggest expenses—shelter, financial choices and shopping habits—and shows

  youwhereyourmoneygoesandhowtogetitback.Part2revealsthe

  sneaky expenses you don’t see every day and gives you the tools you needtomaintainyourstuff,poweryourhomeandcleanforless.Part3

  takes you on a room-by-room tour of your home, giving you the blueprinttosavingseverywhereyoulive.

  You’vewaitedtoolongtosaveyourmoneyandkeepmorefromyour

  paycheque.Readonandfind397waystosavemoreandlivewellon

  lesswhilehavingfun.Youmayjustlaughyourselfallthewaytoyour

  no-feebankaccount.

  PARTONE

  BigDecisions

  Theplaceyoulive,thewaysyoubankandthestuffyoubuyallhavea

  hugeimpactonhowmuchyouhaveleftattheendofthemonth.Itmay

  soundobvious,butfindingwaystocutbackinareasthathavebecome

  ingrained habits like housing and banking can be difficult. But it’s amazingtoseehowrethinkingthesecorechoicesineverydaylifeand

  making a few smart money decisions can reap big savings in a short time.Readontoseehowyoucansavethousandsofdollarsonhousing

  costsandfinancialfees,andlearnnumerousshoppingtacticstohelpyou savemorewhilespendingless.

  CHAPTER1

  Renting

  Renting can make you rich. That’s the kind of statement that runs againstalmosteverythingoursocietytellsusaboutpropertyownership, butit’strue.Undertherightcircumstancesandwiththerightstrategies, renting can be one of the thriftiest decisions you can make—and, becauseshelterexpensesaccountforsomuchofourmonthlybudgets,it

  canbeabigwaytosave.MostpeoplewouldbesurprisedtoknowIbuilt up a six-figure portfolio and paid off $17,000 in student debt while renting a modest basement suite in Vancouver, B.C. I had more than enough money for a down payment on a condo an hour outside of Vancouver, but I made the decision to continue renting to save more money.Myreasonsforrentingwerebasedonhardfinancialfactsrather

  thanemotion.

  The cost of real estate where I lived was, and still is, astronomical whencomparedwiththerestofCanada.Atthetime,asmallcondofar

  outsideofthecitywasaround$300,000,withcondofeesrangingfrom

  $300 to $500 per month. With my rent being a mere $600 a month including heat, cable and laundry, the choice was clear: given my location within walking distance from work and my ultra-low rent, I couldsavethousandsayearbynotpayingmortgageinterest,condofees, propertytaxandtransportationcosts.Andthat’sjustwhatIdid:Ilived in my rented apartment and squirrelled away savings—much more in savings,infact,thanIwouldhavegainedinhomeequity.

  Manybankers,realestateagentsandmortgagebrokerswouldlikeyou

  tobelievehomeownershipisthebestpathtowealth.Butrentingcan

  have huge advantages for those who pay low rent because they have either made housing sacrifices or live in a rent-controlled building.

  Rentingalsooffersflexibilitytothoserequiringaplaceformonthsora few years. It’s a lot easier and less expensive to give notice on an apartmentthanitistosellahouse.

&nbs
p; Ifyou’relookingtorentahouseorapartment,theCanadaMortgage

  andHousingCorporation(CMHC)suggestsyourmonthlysheltercosts—

  includingrent,electricity,heat,waterandmunicipalservices—shouldbe less than 30% of your before-tax household income. This calculation doesnotincludethecostsofrentersinsurance,parkingoramenitieslike cable, phone and Internet access. So before pounding the pavement lookingfortheperfectrental,addupyourlivingcostsandconsideryour levelofincome.Itmakesnofinancialsensetorentaplacethatleaves youwithlittlesavingsattheendofthemonth.

  Ifyou’vemadethedecisiontobearenterratherthanahomeowner,

  therearecommonwaysyoucansavemoneyonrent.

  Rentlessapartment. Rentershavemanyhousingoptions:high-rise and low-rise apartments, townhouses, condos, detached homes,

  basement suites and duplexes. As a general rule, units on upper-level floorscostmorethanunitsclosertotheground—orunderit!Sosteer

  clear of penthouses and opt for the ground level in buildings.

  Downsizing your apartment can also save you hundreds a month,

  becauseasmallerspacecostslesstorent.Rentingasmallerspacehas

  the added benefits of reducing your energy costs and requiring fewer furnishings.

  BOTTOM LINE: A modest rent reduction of even $100 per month saves you $1,200 a year. Multiply this by three years and you’ve saved$3,600,pluscompoundinterest.

  Get a place with utilities and amenities included. Basic monthly rentisagivencost,butsometimesyoucanfindaunitwithexpensive

  utilities like heat or cable included in the price. Not having to pay a separateheatingorcablebillcouldsaveyou$60amonth(or$720a

  year).Rentingwithperkslikeparkingcanalsosaveyoubigbucksifyou liveinamajorcityandneedaplacetoparkyourcar.Rentalswithon-site coin-free laundry can save you upwards of $40 a month, and the convenienceofnothavingtosearchforlooniestogetyourundiesclean ispriceless.

  BOTTOM LINE: Turn up the heat and park your car for less by renting an apartment with utilities and amenities included in the

  monthlyprice—andsave$100permonth.

  Checkutilitycostsandconnectionfeesbeforerenting.

  Many renters find the cost of connecting utilities a shock to their pocketbookwhentheymoveintotheirnewplace.Hookingupaphone

  runsabout$35,cablecancostupto$60,andfeesforhydroandInternet add up. Before signing a rental agreement, find out which utility companiesservicethebuildingandcontacteachcompanytodetermine

  the average monthly cost. Knowing in advance what your monthly

  utility bills amount to could save you from renting a place that’s too expensive to heat in the winter. Also, don’t be afraid to ask utility companiestowaiveconnectionortransferfeesorgiveyouadiscount—

  competingbusinesseslikeBell,ShawandRogersallwantyourmonthly

  businessandmaycutadealtogetyouontotheirserviceplan.Ifutility companies are unable to cite monthly costs, try asking the previous tenantsforaverageutilityprices.Keepinmind,though,thatutilitybills canvarydrasticallydependingonindividualusage.

  BOTTOM LINE: Doing a little research on monthly utility costs couldsaveyoufromrentingaplacethatistooexpensivetoheat,

  while negotiating for lower connection fees could save you

  hundreds.

  Rentclosertowork. Rentingclosertoyourplaceofemploymentcan saveyoufrompayingforadailycommuteorbuyingacar.Lookingfora

  place within walking or biking distance is the most frugal scenario, keeps you fit for free, and will save you time on your commute. Who doesn’twanttospendlesstimestuckintrafficorwaitingforabus?

  BOTTOMLINE:Paying$100moreamonthinrenttolivecloserto

  workcansaveyouthousandsayearintransportationcosts.

  Negotiate monthly rent and yearly increases. Asking prospective landlordstoreducetherent,evenbyaslittleas$20amonth,canadd

  uptohundredsinyearlysavings.Ifthereisahighvacancyrateinyour area, be sure to negotiate hard in a renter’s market because landlords willbecompetingforyourrentaldollars.Havingagoodrentalrecord

  with excellent references can also bolster your bid for a break on

  monthly rent. But keep your eye on yearly rent increases as well and negotiatetokeepyourrentinlineattheendoftheleaseifyouwantto stay.Beingaclean,quietandprompt-payingtenantmayhelpconvincea

  landlord to freeze rent rather than risk an empty unit or an unknown newtenant.

  BOTTOMLINE:Don’tletincreasingrentsdeteryoufromaskingfor

  a discount—even $15 a month adds up to an extra $180 in your pocketattheendoftheyear(enoughtocovermorethanaweek’s

  worthofgroceries).

  Get a written tenancy agreement. Always get the rental rules in writingbeforemovingin.Understandhowlongyouarerequiredtostay,

  how much notice is required to end the tenancy, the landlord’s obligationstomaintaintheproperty,andthedepositcosts.Knowingthe rules in advance can protect you from disagreements and unexpected rent increases. Landlord and tenancy laws vary from province to province,sogetfamiliarwiththetenancyactthatwillapplytoyou.In someprovinces,you’llbeentitledtoanyinterestearnedonyoursecurity deposit—checkyourlocalregulationsandthenmakesureyourlandlord

  paysup!

  BOTTOMLINE:Beingfamiliarwithyourlegalrightstodaymaysave

  youbigdollars(andfrustration)inthefuture.

  Getaroommate. Gotanextrabedroominyourapartment?Reduce

  yourrentalcostsbyabout50%byrentingorsublettingthespareroom

  inyourapartment.Usetheroommate-findingsectionsonwebsiteslike

  kijiji.ca and craigslist.ca to post your classified ads for free. Before acceptingaroommate,checktomakesureyourlifestylesarecompatible

  and that you both can deal with the other’s schedule. Setting up a writtenagreementwithroommatesisalsoagoodidea.Ifyouliveclose

  to a college or university, consider renting a room to a student or a youngprofessional.Studentstendtospendlotsoftimeinclass,making themanidealabsenteeroomie.Sharingspacesavesonutilitycoststoo, sincebillscanbesplit.

  BOTTOM LINE: Renting out a spare room could save you 50% on yourrentalandutilitycosts:splittingthecostofa$1,350amonth

  rentalsavesyouawhopping$8,100ayear.

  Invest in renters insurance. Becoming a victim of theft or losing yourvaluablestowaterdamagecansetyoubackthousandsofdollarsin

  property loss. Spend your dollars wisely by investing in renter’s insurance. A renter’s policy can cover personal property as well as personal liability (in case you are sued for property damage or bodily injury). Before you call for a quote, calculate how much property protection you require. Do you have $25,000, $40,000 or $100,000

  worth of valuables? Do you require additional insurance for camera equipment,abikeorjewellery?Takeaninventoryofyourpossessions,

  listingeachitem,whenyouacquireditandthepurchasepriceorcurrent value.Don’tjustthinkbig-ticketitems!Inthecaseofafireyou’dneedto replace everything, from socks to computers. Totalling up the value of theseitemswillgiveyouaroughideaofwhatyourpropertyisworth—

  andyoumaybesurprised.Keepingreceiptsandp
hotosofyourproperty

  off-siteinasafetydepositboxcanhelpyouifyouneedtomakeaclaim.

  Youcanstorerecordsforfreebyemailingphotosandscanstoawebmail account. Also, ask your landlord for details about the rental property, includingroofcondition,typeofheating,andtheframeconstructionof the building. Insurance companies want to know the details of your building and the risks to them before offering insurance. Insurance discounts can be found through employer programs or your post-secondary alumni association (if you’re a graduate). Other lower-cost policiesareavailablethroughRBCInsuranceandTDInsurance.Asking

  foraquoteisfree,andcoverageoftenbeginswithin24hours.

  BOTTOM LINE: Protect yourself against property loss by getting renter’sinsurance.A$20amonthpolicycouldsaveyouupwardsof

  $20,000.

  Keepyourrentalclean. Livinglikeasloborcausingdamagetoyour landlord’spropertywillcostyouyourrentaldeposit.Keepingyourplace clean and caring for appliances like stoves and refrigerators will help yourecoverthemaximumwhenyoumove.Readthefineprintinyour

  lease about painting, changing pictures, cleaning carpets and dry cleaningdrapes—youmayberequiredtoreturnthespacetoitsoriginal

  state, which doubles the cost of painting if you decided to paint a

  formerlybeigeplacebrightpurple.

  BOTTOMLINE:Takecareofyourapartmentaccordingtoyourlease

  agreementtorecoupyourfulldamagedepositandsavehundreds

  fromrestoringtheplacebacktoperfection.

  Know when it’s time to buy. While buying a home may sound contrarytotheadvicegivenatthebeginningofthischapter,youmaybe intheperfectsituationtoseizeanicepieceofrealestategiventhesize of your down payment, the location of the home and whether the housingmarketfavoursbuyers.Whenthesefactorslineup,youcangain

  financiallyfrombuyingahomeinsteadofrenting.Forexample,assume