Earn Tax-free Dollars when You Save Money

When I retired after over 20 years spent in the world of finance, my focus changed from making money to saving money. After all, $1.00 saved is like making about $1.50 when you consider Social Security tax, state tax and federal tax, not to mention the additional expense incurred when making the dollar.

Saving Money at the Grocery

Use homemade cleaning products. Baking soda is inexpensive and great for cleaning sinks and tubs and as a tooth whitener. You can combine it with a little vinegar for tough spots on tubs. Watching it fizz is half the fun.

Buy in bulk when during sales. One 10-pound whole ham cost $8.00+ and provided meat for other meals over the next few months, when cut and frozen. You can use the bone to make a large pot of bean soup and freeze any leftovers for future meals.

Purchasing a gallon of milk is almost the same price as a half gallon, so why not go big. Keep out what you'll need and store the balance in appropriately sized containers. Just thaw the remainder as needed. Buying cheese and butter in bulk to freeze is also a savings.

Don't forget to coupon when you go to the grocery. Saving $5 to $15 per week with coupons calculates to $500 of tax-free money over a year's time. Buy generic brands for additional savings. Many generic brands are the same as the name brand but with a different label.

Stop Heat Loss

Even if you're not handy with tools, you can operate a caulk gun or a can of spray foam insulation to plug drafts around windows, outlets and door frames. (Alert! Spray foam insulation expands a lot after you spray it.) Plastic window insulation can also keep your home warmer while driving down the heating bill. So can making soup for dinner in the winter months. The steam from the soup adds humidity and warmth to the air for even more savings

Saving Interest

Interest on credit cards can eat up any budget. Negotiate your interest on present cards. A call to your credit card company requesting a lower rate can produce a big savings. Another method is to pay off credit card debt with a lower interest loan, such as a home equity or 401(k) loan. If you do this, close out all but two cards, a fee-free reward card and one for emergencies. Use the fee-free rewards card for purchases you pay off at the end of the month and only use the emergency card if it's a real emergency, not a "got to have that new iPhone" emergency.

Free Exercise and Gas Savings

You save gas, now the liquid gold of this decade, and stay in shape at the same time when you walk or ride a bicycle on short distance trips. Consider it a free gym membership with benefits.

If bike riding doesn't fit your schedule, develop a shopping plan. Plan your shopping around your drive to and from work. If you don't work or don't pass stores, shop with a friend or neighbor to save gas. Check the items on sale at each store and make a list so you don't have to make an emergency run or purchase 15 bags of sugary treats. (Been there, done that.)

Track Your Savings

Keep a tally of what you save. It turns saving money into a game. It doesn't have to be precise, just ballpark it. Once you start, you'll find saving becomes addictive and fun.