Tip #3 – Cut Your Cable

Welcome to day three of our roughly 10 day journey to save $10,000 over this next year. If you missed the introductory post of 10 Money-Savings Tips to Help You Stash $10,000 you’ll definitely want to check it out so we’re all on the same page.

But to sum it up – here’s our mission:

For the next couple weeks we’re going to look at one money-saving tip each Monday, Tuesday and Wednesday.

On Thursdays we’re going to hear Personal Finance bloggers’ and hopefully some readers’ ideas and experiences on how they’ve saved money!

If you’d like to be included in the Thursday posts – please let me know your best money-saving tip here! We’d love to hear your stories of what you did and how much money you saved by implementing your tip!

If you’re a blogger and have posted about your money-saving tip, please include a link to your post!

Tip #3: Cut Your Cable

I know I’m stepping on to some thin ice here, but I just have to do it.  The average digital cable subscriber spends approximately $75 per month and many pay well over $100!

Now before you get too upset – I am NOT suggesting you need to get rid of your cable altogether, although there are some who are in full support of cutting cable completely and have saved a lot of money doing it!

Take for example, Kita – from Personal Finance Journey.  She recently posted about how she got fired up to knock out some debt and made a radical decision to cut off her cable completely and saved over $70 per month!!

What I’m suggesting here is at the very least taking a look at your bill and sacrificing a bit to help shave some expenses.  Especially with all of the technology out nowadays like streaming from Netflix, Xbox or even just using your computer to watch shows online – there is no reason why you can’t find the shows you want.

Seriously, do you really need 800 channels? 

My wife and I just recently moved in our new house and after some debate we decided to go with the Direct TV family package, which includes channels we like HGTV, DIY and Food Network.  It also has all the cartoon and kids programming that we wanted as well since we have a daughter that is totally into Dora.

 It only has 50 channels, but the regular rate is $43 per month with taxes! 

It doesn’t have ESPN, but can I get by without it?  No – I mean Yes, yes I can.  I can actually check any highlights I want on ESPN.com! 

Will I miss some games I really want to see?  Sure, but I can see most of the games that I’m into and if there is something I want to see, I can always find a friend or family member and invite myself over!

I remember talking to someone a while back who was loaded to the gills with credit card debt.  It was so bad that the interest being paid was similar to most people’s mortgage payment! 

One of the things they staunchly refused to cut back on was their $150 cable bill stating they “needed” all those movie channels and premium packaging for their teenage boys.

One of the things you can do also is to negotiate with your cable provider for a lower rate.

So, take a look at your cable bill – see if there are some channels that you can do without for a while and give your cable company a call!  You’ll be glad you did.

Estimated Savings: $25-$75 per month

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Check Out All The Tips From Our Series

Tip #1: Cut Back on Going Out to Eat

Tip #2: Evaluate Your Entertainment

Tip #3: Cut Your Cable

Tip #4: Turn Your Heat Down

Tip #5: Negotiate Your Cell Phone Plan

Tip #6: Get Rid of Your Land Line

Tip #7: Slash Your Grocery Bill by Cutting Out Junk Food!

Tip #8: Use Coupons, For Everything!

Tip #9: Negotiate Your Home and Auto Insurance

Tip #10: Start Packing Lunches!

Tip #2 - Entertainment

So, we’re on day two of our roughly 10 day journey to save $10,000 over this next year.  If you missed the introductory post of 10 Money-Savings Tips to Help You Stash $10,000 you’ll definitely want to check it out so we’re all on the same page.

But to sum it up – here’s our mission:

For the next couple weeks we’re going to look at one money-saving tip each Monday, Tuesday and Wednesday. 

On Thursdays we’re going to hear Personal Finance bloggers’ and hopefully some readers’ ideas and experiences on how they’ve saved money!

If you’d like to be included in the Thursday posts – please let me know your best money-saving tip here!  We’d love to hear your stories of what you did and how much money you saved by implementing your tip!

If you’re a blogger and have posted about your money-saving tip, please include a link to your post!

Tip #1: Cut Back on Going Out to Eat

Tip #2 Evaluate Your Entertainment

Over the course of this journey, we’re breaking down the US Bureau of Labor’s statistics on average consumer expenditures and taking a look at some ways to cut back. 

Next we tackle your entertainment.

Maybe your entertainment budget includes going out to eat like ours does, but even so you should probably evaluate your other forms of entertainment.

According to the most recent survey, the US Department of Labor reports that the average American family unit spends $2,698 a year on entertainment costs – or roughly $225 per month!

Are you movie buffs and love going to the theatre?  You’re well aware it’s easy to drop a 20 spot without blinking.  After your ticket, a popcorn and a soda, your Andrew Jackson is throwing you a goodbye kiss on the way to the register!

Maybe you enjoy going to professional sports games, going out for a night on the town with some friends or hitting up the local Starbucks several times a week while reading a book. 

Again, the challenge here is not to get you to stop doing these things – it’s to challenge your conventional thinking to see if there are some ways to trim the fat.

Finding Frugal Entertainment Alternatives

If you’re a social butterfly, this doesn’t mean you have to turn into a homebody or that you can’t get out of your house to have some fun, but think about some alternatives.

How about starting a Frugal Club like Tisha talks about over at Wise Bread.

The first rule of Frugal Club is you don’t talk about Frugal Club!

Sorry, just seeing who’s on their toes.

Try waiting for a movie to come out on DVD or going to the town’s local theatre if you have one.  Sure, you won’t get to see the latest and greatest, but you’ll save some money.

Try getting together with some friends at your house and enjoy a game night! 

We just did this last weekend with some friends.  We ordered pizza, played some games, had great conversation and a ton of laughs!!  Total cost?  $10! 

Get your friends on board with your saving challenge so they’re not enticing you to go out every night. 

Try alternatives like local museums that offer free or discount days. 

You get a bunch of friends together and go camping.  My wife and I do this every year and we love it!

Get creative, frugal living doesn’t have to be boring! 

You don’t have to stop spending on entertainment, just look for some fun ways to cut back.

Estimated Savings: $25-$100

Share Your Thoughts!

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Check Out All The Tips From Our Series

Tip #1: Cut Back on Going Out to Eat

Tip #2: Evaluate Your Entertainment

Tip #3: Cut Your Cable

Tip #4: Turn Your Heat Down

Tip #5: Negotiate Your Cell Phone Plan

Tip #6: Get Rid of Your Land Line

Tip #7: Slash Your Grocery Bill by Cutting Out Junk Food!

Tip #8: Use Coupons, For Everything!

Tip #9: Negotiate Your Home and Auto Insurance

Tip #10: Start Packing Lunches!

Who doesn’t love to save a little extra cash each month? Finding ways to save money, trim the fat and pocket some coin each month isn’t easy, but it is simple.

The question is, “Will you do what it takes – and if so, what will you do with the extra savings that you find each month?”

Saving the extra cash is critical because let’s face it, the average American spends more than they make! 

Most people find other ways to spend their money rather than socking it away into an emergency fund or long-term savings.

But, if you got on board with this challenge, you’ll be in much better financial shape, feel better about yourself and your future and be in a position to do things you really want to do with your money like helping others.

So here’s what we’re going to do: 

• The Goal: Save $10,000
• By When: This time next year
• How: By implementing 10 money-saving tips 

The Plan to Save $10,000

For the next couple weeks we’re going to look at one money-saving tip each Monday, Tuesday and Wednesday. 

On Thursdays we’re going to hear Personal Finance bloggers’ and hopefully some readers’ ideas and experiences on how they’ve saved money!

If you’d like to be included in the Thursday posts – please let me know your best money-saving tip here!  We’d love to hear your stories of what you did and how much money you saved by implementing your tip!

If you’re a blogger and have posted about your money-saving tip, please include a link to your post!

When all is said and done and you’ve implemented each of these 10 tips, you’ll have saved over $10,000 this next year! 

Of course, not everyone will be able to save 10 G’s, but even if you don’t save quite that much, saving a couple thousand bucks will be worth it!! 

So, are you ready to come along for the ride? 

Let’s save some money!!

Tip #1: Cut Back on Going Out to Eat

Let’s be real here.  We probably all spend a little too much on going out to eat.  It’s hard to walk out of  a chain restaurant and not drop $30-$40 on a meal if you get an appetizer, two entrees and a couple drinks!

How often do you do that per month or even per week?  As you’re well aware, this can add up pretty quickly.

According to the Bureau of Labor Statistics in their 2008 Consumer Expenditures press release - they cite the average 2.5 unit household spend approximately $2,698 on food away from home! 

That works out to be roughly $225 a month on going out to eat!! 

Let that sink in a minute.  $225.

Now, I love going out to eat – who doesn’t right?  It’s fun, it’s easy and there is some pretty good food out there.  But hear me out for a second -

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What if, instead of going out three, four or five times a month you cut that back by two!  Only two! 

I’m not asking you to give up eating out completely – that’s just silly and you and I both know YOU WON”T DO IT!  It won’t be a goal you can commit to for a long period of time.

But, giving up two meals is a goal that you can reach!  Give it a shot next month and see what happens. 

What should you do instead?  Well, invite some good friends over, grill out or cook a good meal and enjoy conversation at home rather than in a restaurant.

Or, why not invite a few couples over and each have them bring something.  You can do dinner theme’s so everyone brings something that goes together. 

Start rotating houses every month and have a good time with great friends eating good food and saving some good money.

You’ll be surprised at how much fun you can have by doing this and you’ll feel good about yourself that you saved some money!!

Estimated Savings: $40-$100 per month

Share your thoughts below on how much you’ve saved by cutting back on eating out!

Check Out All The Tips From Our Series

Tip #1: Cut Back on Going Out to Eat

Tip #2: Evaluate Your Entertainment

Tip #3: Cut Your Cable

Tip #4: Turn Your Heat Down

Tip #5: Negotiate Your Cell Phone Plan

Tip #6: Get Rid of Your Land Line

Tip #7: Slash Your Grocery Bill by Cutting Out Junk Food!

Tip #8: Use Coupons, For Everything!

Tip #9: Negotiate Your Home and Auto Insurance

Tip #10: Start Packing Lunches!

The price of oil has steadily increased for the past few months sending prices at the pump back to 2007 levels.  Saving money on gas doesn’t mean you need to run out and buy a new hybrid.  Here are nine things you can do right now so you don’t break the bank when you’re fueling up for your summer road trips:

Pump ‘Em Up

Believe it or not, properly inflated tires can help improve your gas mileage.  According to the Alliance to Save Energy, low tire pressure can reduce fuel efficiency by as much as 3.3%.  Check your car’s manual or driver’s side door panel to find out the proper inflation for your tires and check regularly.

Passive Not Aggressive

Do you drive like you just held up a bank?  Aggressive driving (i.e. speeding, jackrabbit starts, aggressive braking) can lower your fuel economy by up to 33% at highway speeds according to the Alliance to Save Energy.  Driving sensibly and more smoothly will help improve fuel economy by as much as 66 cents per gallon says the Consumer Federation of America.  Edmunds.com explains that if you slowed your 0-to-60-mph acceleration time down from your current 10 seconds to a more normal city pace of 15 seconds, you’d feel an average of 31% savings on your gas costs.

Pass on the Premium

Unless you are driving a high end sports car, most makes and models will perform fine on regular unleaded gasoline.  Premium fuel may boost engine performance a little in some cars, but does not improve fuel economy.  Your owner’s manual will give you recommended octane, but it is just that, a recommendation.  Martin Peters, manager of public relations for Porsche Cars North America Inc. stated in an interview with the Associated Press that even their cars ”will run on regular fuel without damaging the engine,” and the higher octane is really just for “optimum performance.”

Quit Excessive Idling

Do you warm up your car up to a balmy 85 degrees on a cold winter day or sit in massive traffic jams during rush hour?  Limiting your idling can reduce fuel cost by roughly 19%.  If you are idling for more than a minute, it is recommended you shut down your engine.  This may not be possible in work traffic, but can be done if you are stopped at a train.  Also, limit your “warm ups” on your car to only a minute or two.

Slow Down

This might be tough for some of us, but gas mileage decreases rapidly over 60 mph.  Every five miles per hour over 60 is like paying an additional 20 cents per gallon of gas.  Blogger WiseBread talks about how he increased his fuel economy by 15 mpg’s by simply slowing down. 

Plan Ahead

Do you tend to run multiple errands during the week?  Try planning ahead to reduce the number of trips you are taking by combining your errands into just one or two days.  Also, plan your routes in advance for the most efficient path to reduce excess mileage.

Shop Around

Technology makes shopping around so much easier when it comes to finding the cheapest gas prices.  You don’t have to drive around from station to station looking for the best deal.  Check out GasBuddy.com.  This handy website can help you find cheap gas prices in your city. 

Lighten Your Load

All that “junk in your trunk” can be a real drag on fuel economy. According to Brian Carr at dailyfueleconomytip.com, for every extra 100 pounds you carry in your vehicle, you reduce gas mileage and fuel economy by roughly 2%.  He tells of his real life example of taking out his golf clubs, cd cases and library books and shedding 44 lbs.  It all adds up.

Take the Challenge

The Alliance To Save Energy has a fun website calculator called the Drive Smarter Challenge where you can enter the make and model of your car and your zip code and they will show you the potential gas savings for your vehicle while they walk you through each idea. 

While these ideas may not seem like a lot on their own, as a whole they can begin to add up and put some cash back in your pocket.