A few years ago, I decided to change jobs. I left a high-paying, high-pressure management job in the private sector to take a less stressful position in the public sector. Unfortunately, in accepting the new position, I also accepted a 50% pay cut. It was a bold trade-off (i.e. less stress, more free time for less money) and within about six months I was surprised to find myself drowning in debt. As it turned out, I was not particularly good with money and certainly was not accustomed to having significantly less each month.
I won't bore you with the details of how I struggled to get back on track financially, but I will share some of the lessons for saving money I learned. I was shocked at how much money I could actually save by observing certain “rules” within my lifestyle.
• I plan all my meals for the week and stick to this list. I typically allow for two meals eaten out each week (one lunch, one dinner). I used to go to the grocery store, grab a cart and start filling it up. I basically planned my meals while I was there. Invariably, I found two things were happening on a consistent basis: first, I was spending about twice as much on groceries as I needed to spend and, second, I was throwing out a lot of food each month because I never ate it before it spoiled. Now I find that I eat better, my kitchen cupboards and fridge are clean and organized because they are only filled with what I need and I cut my grocery bill in about half or $50.00 per week (in my case). Estimated savings each year $2600.
• Installing a programmable thermostat for your heating and air conditioning needs has a huge impact on your heating/cooling costs. In the winter, I keep the house at 58F during the day when I'm at work and at night, when I'm sleeping. It warms up to 68F for the morning and evening hours. In the summer, I set the air conditioning at 85F during the day to drop to 80F when I'm home. These temperatures are tolerable and comfortable for me and I have noticed about a one-third savings on my natural gas bill during the winter and a 20% savings on my summer hydro bills. I also make sure to open the blinds and drapes during the winter to allow heating assistance from the sun, but keep them closed during the summer. Estimated savings each year $525.
• I drive the speed limit now. Quite apart from the savings on insurance and tickets, you get the optimum gas mileage out of your car when you drive it at 50-60 mph. I have noticed that I am getting about 15-20% better mileage from a tank of gas. Keeping your tires inflated properly and your car tuned up helps a great deal as well. Estimated savings each year $970.
• This one was shared with me by a co-worker and I have been slowly implementing these ideas. Buy everything white. Simple, eh? Buying white sheets, towels, bedding, dishes, etc. means replacing a worn out towel or a broken dish does not mean buying a whole new set. Because plain white products are available in abundance and individually, it is easy and cheap to keep your stock up without investing much money. White coordinates with everything, so adding a splash of colour here and there is easy. Estimated savings each year $455.
• Gardens can be expensive but if you enjoy gardening than it won't be any trouble to grow your own flowers and plants from seed each year. I am extremely surprised at the success I have had with this and, in addition to sharing cuttings of perennials with neighbours each spring, now all my annuals are started from seed in the basement each winter and ready to plant come May. Estimated savings each year $620.
There are obviously plenty of ways to save money and we know someone who is really good at doing it. These are just a few of the things I have come to find practical, easy to follow and responsible, in part, for helping me bring my cost of living within my means.
