3056: Save $50 a Day & Feel No Pain? Hmm I Dunno About That by J. Money of Budgets Are Sexy

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[00:00:30] This is Optimal Finance Daily. Save $50 a Day and Feel No Pain? Hmm, I Dunno About That by J. Money of BudgetsAreSexy.com As many of you know, I'm a huge magazine addict. I like all the pretty pictures. So it's no surprise that I devour about 4-5 personal finance magazines every month, all of which excite me.

[00:00:54] Every now and then though, I come across some advice that I personally have a hard time agreeing with. The cover story, Save $50 a Day and Feel No Pain, being one of them. Now before I get into it, keep two things in mind. Number one, my opinion is certainly biased. And number two, I still think Kiplinger's is a kick-ass mag. Though not my favorite, that would be money mag.

[00:01:21] That being said, not everything you do to save $50 a Day is necessarily going to be smart. And I'm feeling feisty enough today to explain why. But because I'm also a lover, I'll also share the tips that I happen to agree with as well. But let's start with the bad ones first. Three tips I hated. Number one, boost the deductibles on your insurance.

[00:02:03] You mean to tell me every time you cause a car accident, you'd be willing to spend $2,500 to get it taken care of? No way in. That's like saying you can go four full years without an incident. No siree, Bob. Not for me. Number two, cut your commute one day a week.

[00:02:24] Quote, if you reduce your driving time by one day per week by telecommuting or carpooling, you'll drive 3,120 fewer miles per year. End quote. Yes, and you'll also be on the top of the list when it comes time to downsize. Of course, this is totally based on your employer and given situation. But during times like this, I wouldn't risk it. If you want to save on driving, then I'd suggest going with the carpooling idea.

[00:02:52] Number three, ditch the old fridge and pick up a brand new one to save on energy costs. They recommend a Frigidaire 18.2 cubic foot model for $750. So you want me to spend over $700 so that I can save $100 a year? No thanks. My current fridge is doing just fine and I'm not about to trash it for a newer version. Now if I needed a new one, then yeah, I'm open to suggestions.

[00:03:20] But how many people reading this mag will be in the market for one? Not many. The three tips that made me ponder. Number one, cut your hair off. Yes, I suppose this would indeed save you some bucks, but good luck convincing the ladies of this. For men, Kiplingers suggest using the hair cuttery at $15 a pop. I used to go there all the time before I got the missus to do the dirty work.

[00:03:47] And for women, they brought up beauty schools like Paul Mitchell's for around $50 instead of $90. I've heard both excellent and horrible experiences using stylus in the making. Number two, travel last minute. They say you can save around $500 a year by using sites like lastminute.com. Pretty sexy in theory, but most people like to plan for this sort of stuff. At least the big vacations. I'd be up for giving it a shot for quick getaways though.

[00:04:18] Number three, buy a fuel efficient car. This may or may not belong in this category, depending on what your idea of fuel efficient is. If we're talking about hybrids, there's a good chance you won't make up the difference in what you spend versus what you pay at the pump. But going with great efficient cars in general is totally a good call on your part. The five things that made me cry with joy. Number one, eat at the bar.

[00:04:45] Yep, apparently you can get the same food at a fraction of the price by dining at the bar instead of the normal dining area. I wouldn't want to do this all the time, especially if I'm in a fancy place to enjoy the atmosphere and good talk with some friends. But I'd totally do it when in need of a quick bite. In Kiplinger's test, over at the Cheesecake Factory, McCormick & Schmicks, and Morton Steakhouse, they were able to cut the bill in half.

[00:05:13] Number two, swap sitting services. Get your friends to watch your kids once a month while you and your lover go out on a date. Then do the same for them each month and save yourself about $40 from not using babysitters. I don't have kids at the moment, but this sounds like a most wonderful idea. Do any of you all do that already? Number three, pick up generic medications over brand names.

[00:05:38] They say the average person can save up to $797 a year by doing this. I don't take much meds myself, but I can see how it would add up like that. And actually, I'd throw in ordering your meds via mail too. A lot of health insurances allow you to order three months at a time too, cutting your bill down by at least a third in most cases. Number four, rent cars off-site and fill up your own gas.

[00:06:06] You can grab a better deal by not renting them at airports or hotels, as well as topping up the gas yourself before dropping it off and paying their insane rates. Of course, the money you'd be saving for convenience might not be worth it depending on how much time and stress you have going on at the time. And number five, install a smart thermostat. This allows you to program the temperature yourself and let it go on autopilot.

[00:06:34] A lot of newer homes already come with this, but if not, I totally recommend picking one up as it can save up to $180 a year. And you can probably find them for way cheaper than that too. So you'd make up the money in no time. The tricky part is determining the degree to set it at where everyone in the house is happy. Our magical number is 72 in the winter and 75 in the summer.

[00:06:59] So yeah, I actually agreed with more of what was on their list than I originally thought when I started this post. But I suppose that's a good thing, right? Just keep in mind, however, that what works for one person may not work for the next. So as long as you've got that straight, get out there and start working the system. You just listened to the post titled, save $50 a day and feel no pain? Hmm, I don't know about that.

[00:07:27] By J Money of budgetsaresexy.com. And now a word from our sponsors at Betterment. When investing your money starts to feel like a second job, Betterment steps in with a little work-life balance. They're an automated investing and savings app, which means they do the work. While they build and manage your portfolio, you build and manage your weekend plans. While they make it easy to invest for what matters, you just get to enjoy what matters.

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[00:09:24] Cancel your unwanted subscriptions and reach your financial goals faster with Rocket Money. Go to rocketmoney.com slash OFD today. That's rocketmoney.com slash OFD. Rocketmoney.com slash OFD. I always take these articles about ways to save money and ways to increase income with a grain of salt. I think they're great to get your wheels turning, but usually the author is going to share what works for them specifically,

[00:09:53] and so it's up to you to determine if any of the ideas make sense for you. And just because you disagree with someone or the advice doesn't apply doesn't mean it's wrong. I believe each person has a unique set of circumstances, skills, and preferences that can be leveraged in different ways to make or save money. So when I read about how others are being resourceful in ways that are unique to them, it gets my wheels turning on how I could be resourceful as well.

[00:10:22] Remember, personal finance is very personal. I will say though, I definitely disagree with J Money on not having a high deductible on your insurance, especially if you're at the point in your financial journey where you have a fully funded emergency fund. Most of us will pay way more to have insurance than we will ever get out of it. So it's usually a good idea to take on as high of a deductible as you can afford.

[00:10:48] Insurance is best used only to cover large dollar catastrophes, not small dollar annoyances. For me personally, I've never once been in an accident. So to pay more to have a lower deductible just in case I need to use the insurance at some point doesn't make sense for my situation. And if that should change and I get into a big accident tomorrow, I can easily pay the deductible even if it's a bit higher.

[00:11:16] I get the sense that J Money has some history with car accidents given his comments. So for him, it might make sense to keep the deductible lower. Again, personal finance is personal. And that will do it for today. Have a great day and start to your weekend. Thank you for listening. And I'll be back here reading for you tomorrow where your optimal life awaits.