Here’s a couple examples from my life:
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Safety Razor. I get a better shave and it’s like $15 for 100 razor blades, which lasts me a couple years. Way way way better than the disposable multi-blade Gillette things, which sell 5 heads for $20.
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Handkerchiefs. I am prone to allergies, so instead of constantly buying disposable tissues, we now have a stack of handkerchiefs that can just be used a few times and then thrown in the wash. This has also saved me loads.
What about you?
Buy from bulk stores and markets instead of bagged supermarket products.
Switch to soap strips instead of liquid detergent for laundry
Cook yourself instead of getting delivery
Use public transport and or bike
Buy local produce and fruits that are in season
Use public transport
This is the biggest cost savings for me right now… Assuming I get a cheap rust bucket paid in full (estimate in metro Vancouver, BC in Canadian $s):
- I’d expect to pay $200 a month in insurance
- I’d expect to pay at least $100 a month in gas
- I’d expect to pay $250 a month in parking fees
- I’d expect to pay at least $500 a year in maintenance, repair and incidental items (oil, winter tire storage etc.)
So all together that’s $591 per month or $7100 per year.
Transit costs me $135/month and I’m lucky to live and work somewhere where transit actually sort of works.
This is particularly true with the multitude or car sharing programs that are available in major cities like Vancouver. The odd time you need a vehicle it is trivial to rent one, which is still cheaper than owning a vehicle.
You don’t even need a car sharing program, rental car companies still exist.
And this is true both for people looking to use public transit, as well as people people afraid to go electric because they take one monster road trip every 2 years, or people considering buying a pickup truck because one time they had to move a couch.
as far as buying bulk, the idea it to look for price per unit, and with this you have to take at least a medium (month) or long (annual) look at the pricing. This is your typical restaurant budget strategy.
I love the principle of buying from bulk store but after a non-zero number of weevil infestations I tread carefully. Could just be bad luck though.
Wear a condom
Babies left in woods grow up to kill and eat horny teens in festive seasons, disrupting the local economy.
not to be all social darwanist, but i think if a baby can survive on its own in the woods, it deserves to grow up to be a horny teenager
I know how to fix almost anything mechanical and I usually try to buy really high quality things when I can. It means spending more money up front, but things tend to last a lifetime and I don’t have to buy it again.
I can’t even fathom the amount of money I’ve saved from buying older used vehicles and doing all my own automotive work on them, or fixing all my appliances. I couldn’t fathom a $400 vehicle payment. My prius I’ve had for three years I installed a new oem hybrid battery in and have a grand total of about $7,000 into (three years of tires and replacement parts and buying the car itself). Never had a vehicle loan in my 25 years of driving.
I wouldnt dream of swapping out a gas tank, or a combustion engine, but I did a diy battery swap on my gen 1 Leaf, and it was surprisingly easy (well, physically it was hell, but engineering-wise it was a piece of cake).
My attitude to fixing anything is “well, it doesn’t work now, it’s not like I could break it more”. Swapped out a 3 euro rubber ring on a 400 euro coffee machine last week, and feeling pretty good about it.
The leaf is quite doable, because it has a small battery and a small range. Most evs though, and the ranges that are needed to be a full on vehicle replacement without the need of a 2nd ice vehicle for trips out of town are far beyond the 85 mile range of a subcompact car like the leaf. The batteries are over 1,000 pounds and run the length of the vehicles underside.
I can swap out a 4 cylinder ice at my house (sure, that is beyond your average do it yourselfer). In no way could I swap out a 1,060 pound battery in a tesla model 3.
For the record, swapping out a gas tank is not very hard.
I mean yes, people have payments over 700 a month but to me, paying 400 would be a lot.
An interesting realization was that “saving money” and “reducing waste” are often competing optimums. I live in the developing world where there people waste a lifetime sitting at home doing nothing to save money. I am one of two or three people in my neighborhood with a job – the rest “save tons more money than I do” but don’t have jobs so their real income after inflation is negative.
Anyway, I figure out what my time is worth (based on what I estimate I could earn by grabbing extra contract work). Then I don’t spend my time saving money unless it saves something at least comparable to my hourly rate, or it’s in a context where working would be impossible, or there’s a nontangible element (e.g. repairing a thing I like a lot).
I prioritize not wasting my time first (it’s the only resource I can’t buy more of), and spend most of my spare effort finding ways to make more money (I regularly cram-study 2-3 hours per day for this purpose, usually tech). Then with the extra money I make, I can save 80% of my income on a good month.
When I started this habit, I made about 135 USD per month and had zero savings. Even if I saved 100% of my earnings, it still amounts to essentially nothing – so it became obvious that the best way to save more money, was to earn more money. When I had a little money, I didn’t put it in the bank – I invested it in myself by buying tools to learn more things and provide more services to accelerate my gains.
Anyway it’s not the right advice for everyone, I’m just another fool like the rest of us, but I hope it’s maybe useful to someone out there.
This comment generally only applies if you are earlier in your career or don’t have much to spend (earning will result in more money than saving). If you’re already making a middle to above average income, you’re likely better off reducing spending and increasing investments — 99.99% of rich people (including the minority born poor) don’t get rich through their labor (wage); they get rich through assets, whether through owning and building a business, or buying and holding shares in them.
I agree to a large extent! There are some interesting caveats though (mainly that I’m not in the USA). Six years ago I had a Vietnamese company license and 0$. I’m only very recently anything like “middle class” so I don’t have much experience with it.
The company license was key (as you say), but not due to growing it as an asset – it was more accurately an instrument to extract remuneration based on the value I deliver, instead of just the amount of time I spend. It also gave me control of how I spend my time. That meant that early on, I could only tackle low-value work and times were tough… but eventually I could solve more expensive problems and demand far more than I could as an employee. Selling solutions as a contractor (especially to foreign companies) made a ton more money than selling my labor as an employee.
In other words, my company is not worth much money as an asset, because without me, it’s non-functional. I also work with a lot of foreign VCs and am convinced that private equity inflates valuations pre-IPO by enough that there’s a lot less upside to capture than there used to be. Gone are the days when a private investor could buy e.g. Microsoft shares and see a 30x upside. Also, I’m in Vietnam – we do have a functional stock market, but the volume is much lower and stock ownership less attractive overall. Anyway, overall it would be hard to sell my company.
So there is a decent argument that my optimal path really is though labor – but definitely not through “wages”. Working for wages was always a mess where I only got paid half the time, and had to work all the time. Also it means my visa status depends on my employer, which has always lead to flagrant abuse. With my own company, I get more stable visa status.
I’ve also been offered equity for my work. However, I have said no 100% of the time and this has never been a mistake so far. One day maybe, but equity is a weirder prospect here than in the USA.
So I focus on selling the solutions to the most expensive problems I can solve. That’s put me on track to a home + modest retirement for my wife and I. That’s “enough money” for me and I will likely go back to academia and volunteer work ASAP. I have no desire for millions of dollars – even if I can maybe see a possible path to it.
I wish you and your family the best in that endeavour.
Can I ask what job/s you did starting off?
This comment did not go where I thought it was going but very interesting. You’re clearly making the right call for your personal finances.
I assumed you were going to say something about like expensive composting equipment or aluminum straws.
Haha oh goodness no. Things I actually bought to save money (when I could afford to) were an efficient A/C unit with an inverter (better sleep = faster learning = more money), and a new motorcycle. Not having reliable transit was costing me a lot of money in wasted time so that was a big one to fix. It’s more fuel-efficient too, I use 2-2.5L of petrol a week. I also moved somewhere safer, where the building hadn’t literally collapsed on me before.
Poverty is complicated, there’s no simple way out of it, and the people who say there is… have generally never really been poor (although some have, there are few universal truths here). Saving money is rarely a useful solution – it’s more important to bootstrap yourself to better opportunities, which is really hard without any financial security. The way to do this is super specific to the exact circumstances – and there’s probably not always a way out. If you have money, of course you can afford to take time to study a new skill and so on. If you don’t, perhaps you’ll pay for it with a part of yourself that you’re not going to get back.
Saving money is not entirely useless, it’s a really effective strategy if you already have made some money, and are about to have a sharp reduction in income. It lets you protect your gains better than other people with wealth, so you inch ahead of them every time the market corrects (you don’t have to invest to be affected). The inverse strategy (look for ways to spend) you have to do earlier, to inch ahead again. Your timing has to be better than the market, and it has more information than you, because you don’t have the money or connections to have better information. So again, you’re going to have to pay in the currencies of the desperate – cut out those kinder parts of your mind that betray you to mediocre financial decisions. Then you can perhaps (very slowly) convert modest sums of money into more life-changing sums of money, and eventually land ownership.
Health is a problem too. It’s hard to cram-study engineering if you’re busy dying of cholera. Not my fondest memory, but perhaps an instructive one. I learned that I don’t fear death, only failure.
I guess escaping poverty wasn’t some glorious victory I feel proud of. It was more accurately a series of sad, Faustian bargains. Where at each step, you can end up receiving nothing. Even the devils of our fictions are kinder than the market, and less hungry.
Buy and use whole chickens instead of buying chicken pieces. They’re not difficult to break down yourself, a youtube tutorial is all you need.
Then keep the bones and stuff that would normally be considered waste. Put them into sturdy ziplock bags and freeze until you have a few of them. Then take them out and use them to make a chicken stock that can be the base of a soup or stew.
