Save Hundreds of Dollars Every Month in Household Expenses

Recently, I've found myself unemployed with little to speak of in savings, an all but vanished 401K, and in the middle of a divorce, to boot. Then came the recession and the swine flu. Needless to say, I had to make some drastic changes in the area of finances.

If you're like me you've probably read, or at least glanced at, countless articles on how to save money during these difficult economic times. The problem with most of the advice I've seen, however, is that it stops short--way short--of giving tips that would make a big enough difference in someone's budget. Sure, it's great to substitute hamburger for T-bone or replace your incandescent bulbs with compact fluorescents...unless you don't have money for hamburger or new bulbs in the first place.

Secondly, I'm assuming you have some income and are not pushing a cart with all of your worldly possessions in tow. Not that there's anything wrong with that--it's just that most of the tricks and tips listed here won't be as applicable (some will) to a person who is that far down on their luck. If that's your case, may God truly bless you. But to get a leg up you'll need to enlist the help of charitable organizations, state and local governments, or family members in order to get by.

Also, before we get started, here's the disclaimer: Nothing I'm suggesting (as far as I know, anyway) is illegal--but many people seem to struggle with some of the ethical considerations involved. What's more, I'm not an attorney (if I was I wouldn't be writing this) so if you think something is illegal where you live, don't do it. After all, it won't do you much good to save $150 only to end up paying a hefty fine or thousands of dollars in attorneys fees.

Another thing: I'm in good health, relatively young, and, for now, single. Some of these tips won't work if you've got health problems, a gaggle of kids, or advanced age.

Finally, everything listed here are things that I have actually done to slash my finances to the bare bone. It's not some blackboard exercise in the theoretical but very real, indeed-just like the savings. Moreover, when I embarked upon this journey I was somewhat reluctant. A few months into it, however, it actually became fun to see how much money I could squeeze out of a dollar and, now, I scrutinize every expenditure. I've genuinely become a minimalist, unlikely to return to my old ways when things do improve, and in the process I've improved my health, gotten a better perspective on what really matters, and have become a much "greener" person-without really trying.

With that said, here we go:

#1 Move in with Friends/Relatives: Right after losing my job, I called as many friends and relatives to (gently) float the possibility of moving in with them to temporarily create a win/win housing situation that had the potential to save me big bucks. This takes some time, patience, and the willingness to accept rejection. You also have to 'know your audience' lest it result in permanently tarnished relationships and be able to "sell" the idea--fixing the proposed amount of time and agreeing on a suitable payment so that it works for everyone involved. For me, I was successful in moving in with a relative, paying $300 a month for board in the guest bedroom and, in the process, saved myself $400 a month for rent and utilities that I was paying at my former place. In turn, it also helped my unwitting new landlord gain an upper hand on her finances as she had recently agreed to take a pay cut at work for nearly the same amount. This is a fairly big step for both parties, so making sure you're an upbeat, helpful, temporary guest will go far (the definition of "temporary" agreed upon in our case was one year.) Your mileage may vary. At any rate, I gladly help with chores at the new place as well as buy pizza now and then and generally strive to be a good guest.

#2 Cut your Cable/Improve your life: At my old place I was paying about $60 a month for basic cable. Before moving in with relatives (see above) I eliminated the bill entirely but was able to keep the television type of entertainment by installing a $30 outdoor digital television antenna. Happily, I'm not too far from a city where, thanks to the digital television revolution this year, I receive 21 channels in enhanced clarity (not all are in English but I've been brushing up on my Spanish anyway for a proposed trip to Mexico next year.) When I moved in with my relative I took the antenna with me and immediately pressed it into service there. Bottom line: I don't miss cable a bit and am saving $60 a month in the process.

#3 Be a WiFi "Piggybacker:" While I never gave it a second thought, I'm finding this idea poses a true moral dilemma for many I've spoken with. Before unemployment (BU and AU as I refer to it much like BC and AD) I was paying $40 a month for laptop WiFi service from a no-contract cellular carrier. Before that, I was paying $60 a month for cable internet. After unemployment one of the first things I did was get rid of this expense, and spend a one-time $50 for an external, extended gain, WiFi antenna. This antenna, generally only available by mail-order and certain other "geek" computer stores allows the owner to greatly extend the range of available WiFi signals. My laptop already has a WiFi card built in-and I use that in public places-but at my new 'home' I plug the range-extending antenna into the computer and receive more than a dozen WiFi signals from neighbors around the block. While not being too technical, most of the sites are encrypted-meaning a password is required for access-however three in my area are "open" meaning you can connect anytime and surf to your heart's content.

A word of caution here: While most "open" access points are safe and legit, it is possible for anyone to see what you're sending and receiving including in-the-clear passwords, financial and banking information, and other sensitive information. Also, I'm told in a few parts of the country this actually may even be illegal-although an open access point with no encryption is the equivalent of hanging a "vacancy-free rooms today" sign in front of a hotel. If this one bothers you, simply don't do it-and limit your computer use to free, public locations. If you do, however, know that accessing the web via your neighbor's WiFi is likely as safe as surfing in a busy downtown coffee shop and can save you $40, $50 or $60 in monthly expenses-not to mention the convenience of trolling the web late at night or in your pajamas.

#4 Sell Unwanted Stuff: Even before I needed to drastically cut my expenses I'd come to the conclusion I had way, way too much stuff that wasn't being used-at all. What's more, my pre-divorce garage was so full I couldn't get my car in. When I moved out of the house my wife and I had shared for 17 years before the post-nuptial decoupling (divorce) I realized I would be hampered by having to move or store so many things.

Slowly but methodically I began to critically evaluate what I needed or what I might use in the future, and separated that from what was just excess "stuff." I started by selling items I could get a good chunk of change for and stuff I knew I wouldn't use again. Initially I made several hundred dollars by selling a receiver bike rack, commercial carpet dryer from a previous business, car top carrier from a vehicle traded in years ago, excess camping equipment, and a portable RV hot water heater. I had great luck on Craigslist with most of the large ticket items being snapped up within days of being posted. Truly, it was the easiest-and fastest-money I ever made.

#5 Eat at Sam's Club and use the Pharmacy for No Charge: For this to work you need to have access to a Sam's Club membership card-even an old one. It can even be expired, but the key is to be able to show the card to the entrance greeter for admittance. Once inside, you can do a variety of things. My favorite is to grab a cart at the outset to blend in as a buyer and sample the many delicious items that are being demonstrated. In recent months it seems like they've cut back a bit, but many weekdays and always on Friday, Saturday and Sunday you'll be able to delight in sampling anything from fresh crab legs to imported cheese, juices, cereals, and everything in between. The goal, of course, is to get you to buy the product they're sampling but many, many days I take a break from job hunting and simply eat a light lunch by visiting every demo table in the store. You'd be surprised how full you can get after a couple of circuits around the warehouse. It's also enjoyable to talk to the demonstrators and see all of the new item's they're selling. If retail is your thing, you might even drop off a job application during one of your visits.

With an expired card you won't, of course, be able to buy anything. What you will be able to do, though, is get prescriptions filled at the deep discount pharmacy, tour the store, eat at the Sam's Club Cafe, and buy discount liquor (where available) without having to show your card. For those unfamiliar the Cafe offers quick snacks at ridiculously low prices. It's not health food, but all of it tastes great and will fill you up-guaranteed. Choose from a huge piece of pizza and soda for about $2. Salted pretzels for a buck. Take home a whole pizza for about $8. They also have ice cream, huge hot dogs and polish for $1.50 as well as other snack favorites for similar savings. Recently I was able to buy a "summer" membership for $15 and take advantage of the great merchandise specials that are offered. My particular Sam's is just off the metro bike path convenient to my house and a perfect destination for spending part of the day. Which brings me to my next money-saving tip:

#6 Ride Your Bike or Walk More: Even though gasoline has gone down from a year ago, I was still able to trim $75 or more per month off my fuel bill by regularly riding my bike almost everywhere. Of course, I don't have a job to go to and I'm fortunate in that I already had a good bike and now live in a suburb with many bike trails and a nearby business district. Not only am I saving dough along with wear-and-tear on my truck but, in addition, I've dropped ten pounds in the last couple of months-all attributed to an increased activity level. Of course, I still use the truck for job interviews and long trips but it's refreshing to save money and help the environment at the same time. If you don't have a bike you can simply walk or oftentimes pick one up used at a bicycle shop (or barter for one while you're selling stuff on Craigslist.) Be sure to consult a doctor if it's been a while since you exercised and by all means buy (and wear) a good quality helmet and observe the rules of the road.

#7 Call Your Insurance Agent: After moving from my apartment I cancelled my renter's insurance and reduced some coverages for my automobile. The result: $75 monthly savings. You don't want to be pennywise and pound foolish here as many of the legal minimums for auto insurance won't cover much in a real accident. But if you're like me and don't have a lot of assets or have an older vehicle or have a premium that inched up over the years due to low deductibles and coverages like roadside assistance you've never used then it may be time for a change. And, while you're at it, if you haven't shopped around for the lowest rates in a year or so you may be shocked at how much money you can save by going with a different company. Contrary to many advertisements you see on television there isn't much difference in the service these days between online insurers and the brick and mortar variety. You could stand to save a lot of money, however, by going with a virtual agent.

#8 Close Your Checking Account, Say "NO" to Credit Cards: This, to me, is one of the biggest "no-brainers" and, yet, many people are reluctant to stop using credit cards and bank accounts that have been doing nothing but making their lives miserable for years. I can't tell you how many people I talk to who hate paying high interest rates and who are literally throwing away hundreds (sometimes thousands) of dollars a year on over limit fees, transaction fees, ATM fees, etc. For savings, put your money in a safe community bank and leave it there in an interest-bearing account with no fees. For checking, even those "no fee" accounts always have some hitch so my solution was to get the Walmart Moneycard. It's a debit card administered by GE, but the transaction fees are low and if you don't have money in the account to buy something you simply can't. There's no crazy overlimit fee (the average bank overdraft fee is $30) and no way to overspend which is perfect for people with little self-control or champagne tastes on a diet soda budget. What's more, you can use it to rent cars or do anything any other Visa debit card can do and if you have direct deposit, the monthly $3 fee is waived. I had two credit cards-both with low balances. I paid them off and closed both.

#9 Get a Different Cell Phone: When I was making the big bucks it may have been worth it to have a Blackberry at my disposal with its $100 monthly fee and data plan but now that I'm not making the big bucks I simply decided to scale back. Although there are many "pay as you go" cell phone providers, I like Boost [Nextel] the best. For a flat $50 per month you can get unlimited talk and text with no hidden fees. To be honest, I rarely used the web browsing features on my smart PDA and actually like my new Motorola cell phone better. At any rate, with this little adjustment I added another $50 per month to my savings.

#10 Eat at Home: While gainfully employed I typically ate out at least one meal a day-oftentimes more-and always bought one cup of coffee on my way to work in the morning. Frequently I'd buy another after lunch. While I still allow myself the pleasure of coffee out 3 or 4 times a week I now buy the ground version and faithfully brew it every morning. At one cup per day the savings is about $32 a month...even more with two (or more) cups. Add that to the $100 monthly in savings I get by making my own lunches and dinners and it's easy to see why eating out adds up to big bucks.

#11 Change your Thinking: If necessity is the mother of invention then desire may well be the father of opportunity. I've been living on about $1,000 a month now for the past six months and have grown to really love frugality (previously I brought home four times that amount) and it doesn't seem, to me, that I made all that many sacrifices. The key, I found, was getting more satisfaction from different activities-stuff I'd never really considered too much before. Some of the things I've done recently include visiting free community events, touring the botanic gardens, visiting art, archeological, space, and science museums, gone camping, taken bicycle tours of the city, enjoyed evenings in the backyard gazing at the stars, visited online websites to get free fast food coupons, hiked trails at several state parks, volunteered at the senior center, attended free outdoor concerts, gone tubing on a local river and started studying Spanish again.

Adding up the savings, I've cut my expenses a whopping $842.00 per month by making the adjustments listed above. Not everyone will be able to save in every category but, if necessary, I'm living proof it can be done. Further, by eating healthier (and at home) I figure I've saved even more money while helping my health considerably--hopefully my waistline will continue to reflect it.

Change, I've come to accept, is the only constant in the world today. Coping with it, successfully, may become the new definition of success itself-especially in this uncertain economy.

Live well, my friend, and best wishes for a long, happy life! It's never too late to start.