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Shop for Free: How to Legally Get Stuff for Free

May 31, 2011 in Saving Money with 0 Comments

I feel like I’m becoming a money saving expert of late.  I have a bunch of small little ideas each and every day that are adding up to hundreds of dollars in savings each day.  Today I want to share with you a little tip for how you can get stuff for free.  Yes, you can shop for free using this strategy.

Here’s a saving money tip I know you’ll love which is guaranteed to save you money (if you’re not already doing it): Use Your Membership Rewards Points.

Membership Rewards Equals Budget Saving Rewards
I have been accumulating American Express Reward Points for years and I have never redeemed any of the points for any free stuff.  We’re talking close to 20 years of spending on my card and earning points. 

Well, I recently said enough of waiting for the right purchase to come along.  I’m going to splurge a bit on things that we need for our house and some things I just plain wanted, like a Free Amazon Kindle.  Man, I love writing that word free in front of something as expensive as an Amazon Kindle.  I think I’m going to get used to buying my books and ebooks on Amazon, now that I can get them free.

The whole process of shopping with my points was super simple.  I just linked up my Amazon Account and my Amex account and I was able to buy a Kindle for “free.”  I have free in quotes because I obviously spent money to earn those points, but it’s as if it was for free because there is no out of pocket cost for me.

Next up is some housewares and other stuff we need, but have been putting off.  Nothing big or major, just things like a coffee pot and a new vaccuum cleaner.  Not sexy, I know, but it’s free and shipped right to my house.  Not a bad way to get stuff for free.

If you have membership rewards, miles or any other kind of loyalty points that are just sitting idle, you might want to start cashing them in.  You earned them and by using them, you ensure that a) you don’t lose them and b) you save money/cash outlay you’re currently making.  That extra savings can go toward paying down debt or your long-term investment plan.

WATCHOUT: Just make sure you don’t spend that extra cash you’re saving.  I operate my budget and Conscious Spending Plan on autopilot to guard against this, but if you don’t manage your budget automatically, make sure you funnel that extra cash toward long-term investments and paying down your debt, not more non-value added spending.

Shopping for Free More Frequently
Now how do you or I use this strategy going forward?  Easy.  Just use your credit card for normal every day purchases like gas, groceries and food or even reoccuring purchases to rack up the membership points.  If you use your credit card responsibly – pay off your balance each month – it’s a great way to earn points and get stuff for free in the process.

How is this a saving money tip?  Well, while you’re spending money to earn the points, you are now able to get free stuff instead of paying for it, just by redeeming your reward points.  I’d say that’s a great saving money tip, don’t you?

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More Money: Comparison Shopping in a Few Seconds

May 30, 2011 in Saving Money with 0 Comments

Are you getting a good deal on the stuff you’re buying on a daily or weekly basis? How about those once in a while purchases? Do you even know?

I admit that I’m not the best comparison shopper, but I’m starting to focus on cutting my expenses down and getting the best price for the stuff I buy is a critical way to keep my expenses low. Today I thought I had outsmarted the system when buying a book, but I could have done better.

I was at Barnes &Noble looking at books and I scanned one to check the price. The book, It’s Not About the Coffee was selling for $15 in paperback in the store. Amazon had the hardcover for $7.98, so being an Amazon Prime customer, I passed.

Upstairs in the Bargain Rack, I came across the hardcover version for $5.98 so score one for me. That’s $2 in my pocket, but it could have been even more savings.

I forgot I had the free Red Laser app on my phone. I scanned the book just now and saw it listed on Barnes & Noble’s website for $3.99 and shipping was free. It never entered my mind that BN.com could have a lower price than Amazon. Now I know for the next time I’m book shopping.

This idea of always doing a check for a better price is something to keep in mind because it could save you valuable money each time you make an out-of-the-ordinary purchase.

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Forced Living Below Your Means

May 29, 2011 in Financial Freedom, Saving Money with 0 Comments

When I was just starting out in my career out of college, I kept on using my old Savings & Loan bank from when I was a kid. The bank didn’t have an ATM and the only way to get cash from my account was through a withdrawal during bank hours. Which meant just Saturdays because I was working during the week.

Every week I would deposit my check and take out a certain amount of spending money for the following week. If I spent too much during the week, I wouldn’t have enough cash for the rest of the week. I would then be forced to dial back on my spending until Saturday when I could make it to the bank. If I was good about my spending, the extra cash went into a “cash can” as kind of an emergency fund.

Sounds archaic, doesn’t it? You bet and this crazy old school method is something I follow to this day. I use an ATM these days and my paycheck is directly deposited into my account, but the routine is still the same. Extra cash stays in my pocket for the following week and then I don’t take any cash out from my account and the cash builds up over time.

Why did I do this crazy cash thing? Why did I deposit my paycheck into an accoutrements with practically no access? Because it forced me to live below my means. I saved a ton of cash and paid down my debt and just lived off my weekly cash allocation. The process was all about automating myself into a sense of scarcity, something Trent Hamm advocates in his book The Simple Dollar.

If you have trouble with spending too much money, putting your cash/paycheck into a hard to access account is a great way to save money and live below your means.

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Being Cheap versus Frugal

May 20, 2011 in Saving Money with 0 Comments

In your quest to save more money to get out of the rat race faster, you might be called cheap by some of your friends and family members.  Don’t let them bother you, especially since they’re likely on the fast track to the eternal Rat Race. 

Also, it’s important to realize that you’re NOT cheap, you’re just being frugal and there’s a BIG difference between the two.

Cheap people focus just on trying to save as much money by paying less for everything.  In fact, they want to get the lowest price for EVERYTHING they buy, regardless of the quality or value they get in return.

Frugal people on the other hand, like to spend on things that matter to them, the things that add value to their lives, while saving on everything else.

For example, a cheap person will buy all their clothes at discount retailers or on sale.  A frugal person who wants to “invest” in a great pair of jeans will do it, but they’ll make sure they get a great deal on the rest of their outfit. 

Again, being frugal is all about spending where it matters and enjoying things, not about cutting back on things that you personally value.  For instance, my wife and I love going out to dinner every weekend.  I look forward to it and she does too.  We could cut back on this expense, but to what end?  Sure, we could save a lot of extra money every year, but we derive a great deal of happiness from going out and having a good time, so I don’t cut back on this area of my life.  I may choose to cut back on other expenditures, but not on the things I highly value – like spending quality time with my wife doing something we love to do together.  Make sense?

How about you?  what areas could you be more frugal with to help fund your early retirement?

Another great article on this topic can be found over at Ramit’s site.

As he put it “Cheap people think short term. Frugal people think long term.”  I couldn’t agree more.  Don’t be cheap, be frugal and enjoy life where it matters most…to you.

Image courtesy of David Hilowitz

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