When shopping online, don’t just buy on the first site you find; use online price comparison websites, and cashback sites too!

Number one on your list really hits home. My wife and I added up fees at one point last year; bank fees, late fees, misc fees… it was sad to see how much extra we paid in one year. For us, the big financial drain is our son’s day care. I work full time at an agency and my wife is entering the teaching field. Day care is bigger than my mortgage payment and it really takes a chunk out of our monthly budget.

Paying for services you don’t actually use. I had Netflix DVD”s sitting on the TV for weeks or months at time. Now no more Netflix

You’re broke because you’re always buy what you WANT when you should only buy what you need

Most people assume water is cheap. It can be, depending where you live. But it can also be very expensive. Saving water (for instance using small capacity flush for the toilets, checking regularly all the pipes for leaking and changing rubber joints) can save a lot of money. If you live in a place where it is feasible, using an external rainwater tank can be a life saver. And by the way, all these tricks are also good for the environment, so why waste your money and not save the planet?

Quit smoking. Saves THOUSANDS.

You’re broke because you’ve never made a basic budget and have NO idea what your income is vs. expenses.

You’re broke because you refuse to find ways to telecommute and work remotely. You and your associates are wedded to face time and can’t quite bring yourselves to cut the visual ties and trust each other to get the work done regardless.

Put as many things as you can on a surge strip and shut it off. Many times they are silently sucking power…blinking 12…anyone?

Hm! I thought I was always broke because of the glass ceiling and income taxes. But… a few of these actually apply.

Emphasize avoidable penalties like late fees, parking tickets, finance charges on unpaid debt.

We live in a society that says “spend, spend, spend”. I say, if a $6 Starbuck coffee is what what want, find a job that pays you enough so you can afford it.

A little paint goes a long way! I have reused furniture, picture frames, planters etc that others would have thrown away. I fix, patch, paint and varnish and everything is new again. I NEVER throw anything away without thinking how I may be able to reuse it. I’ve saved thousands!

Don’t get me started !
You’re broke because you’re a fashion victim (that’s the easiest one). Don’t buy clothes that will only be “in” for one season. Buy a few “staples” good quality clothes that will last for years and you can mix with everything (talking to ladies here), then buy cheaper stuff to go with it. Ask yourself “do I really really need this” before buying anything. At least clear out what you don’t wear anymore on Ebay before splurging on clothes you might not even wear.

You’re broke because you suck at planning: instead of paying the full price for things bought at the last minute. PLAN things. Buy plane tickets in advance, check bargains on the net, (did you know that the MOMA is free on Friday afternoons ? reg entry price is 20$). The same goes for anything, especially travelling. Before going anywhere visit travel blogs, ask questions (the Lonely planet forum is a great place) I recommend)

You’re broke because you don’t anticipate. Living for the day is fine, but remember taxes, health expenses, etc etc might be just round the corner. Save a little to be prepared for unexpected circumstances.

You’re broke because you ‘re too impatient. Instead of buying things on the spot at whatever price, because you want it and you want it now, step back, do some research, compare prices, and then buy the best bargain/ or nicest shop owner, etc etc

You’re broke ‘cause your parents left you nothing. So don’t act the same and save up for your kids future.

You’re broke cause you’re spoilt. Sum up all the reasons above and Peter’s ones and there you have it: you’ll enjoy things more (going out, travelling, buying stuff) if they are scarce, or at least if you fell you’ve been good enough to deserve them. Stop spending like an inconsiderate person, cook homemade meals and the odd time when you go out or you buy something, you’ll get your kick.

OK do I get the prize now Peter ?
:-)

I have two: 1) pack your lunch! Yogart, a turkey sandwich, and fruit make a great lunch – then go for a walk after you eat. 2) shop around for the best price on insurance – whether its renters insurance, home owners or car insurance, you may be paying too much.

Awesome post! I’m a little addicted to Seamless and need to start cooking. I just did Airtran from Newark to Manhattan and it was painless.

Money saving tips?
1. Read the free books on Amazon’s Kindle and on Audible. It’s crazy what happens when you put your credit card into these services and never see a physical bill. Also, there’s some good stuff in the free section.

2. If you have an Itunes addiction spring for an inclusive music service like Spotify or Rdio. They make apps that work on your phone. I used to buy songs and delete them when I was bored with them or it wasn’t trendy to walk around with it on your computer anymore. I was in college (le sigh). It’s a waste of money paying for a single song. I’ll go to battle on this.

3. Scan your credit cards for anything you committed monthly to just to get it once. I can’t be the only one who has joined ridiculous paid sites (no not porn) because I thought I needed something right now. Are you still using your flavors.me page? Upgraded media bistro profile?Paying for access to a bazillion WordPress themes? Quit all of these janky things that promise to help you make millions.

4. Rent photography gear. You don’t need to own strobe lights. A less expensive DSLR often does the trick. Full frame and 30 pixels…save that for people who retouch nose hairs. You’ll be fine with a camera that fits in your pocket for just going to group dinners and trips.

5. Don’t wear the trendy gym gear. Lulamelon makes these trendy yoga clothes that everyone at my gym has. At the end of the day they’re the exact same stretchy pants found at Target.

:)

Peter, you started talking about the practical use of Hulu for your entertainment needs a few years ago. I bought a Roku last year and I am saving $75 a month from cable that I wasn’t even watching anyway. With more than 250 public and private channels, I find stuff every single night to watch. And, with Amazon having daily 99 cent deals with a month to watch, that is another way to save from In Demand prices.

One of the biggest financial secrets is $1 saved = $2 earned. Especially on big ticket items. If you can save $100 on a computer, it’s the same as a weeks’ worth of salary (for me) or $200 – once the taxes and fees are taken out of my salary. This is a life changer when you grasp this concept.

My suggestion is not paying for parking. It’s easy to say “I’ll just stick my car in a garage.” Three hours and thirty bucks later I’m pissed. Have patience. A spot on the street will open eventually. As the great George Costanza said, “Paying for parking is like paying for a prostitute. Why pay when if I apply myself I might get it for free?”

A few more quick ones on why you’re broke:
1. You don’t pack your own lunch. Even at very liberal $5/day for cheap eats that adds up to $1000 for a 200 workday calendar year. I’ll use the liberal amount to help offset the cost of buying groceries to brown bag it.
2. You use a laundry service or drycleaner rather than wash your own clothes. Dryel kits do pretty well for simple sweaters and other dry clean only garments.
3. You are still paying for cable TV. Streaming products over the web and taking your money back from the cable company can easily add up to $500 per year or more.
4. You won’t wash your own car. Why go to the local car spa to get a $20 hand wash when you can do it right in your own driveway (city dwellers likely exempt). Plus it’s an active chore that feeds into your tip about getting outside and burning some calories.
5. You insist on big brands instead of buying generics or off-brand products. In many cases the ingredients and percentages are the same or nearly the same for a lot less. If nothing else, take a moment to simply compare the prices of what you are buying before you simply choose one because it’s what you know or what your family has always used.

Weddings! I’m at the age where it seems like all
my friends are getting married. From different states to different countries it all adds up. Depending on the number of weddings a year I’ve been invited to, pick and chose. Ive had to pass on a few of the ones where I’m not as good of friends. Send them a gift but I just can’t afford all the traveling or vacation days.

Actually, transit only works in some parts of the regions you mention. Take DC, for instance – I live 35 miles north of DCA, and it rarely makes sense for me to take the metro system. Why?

– it closes early in the evening. If my flight is delayed, I’m stuck taking a cab to the metro parking lot
– it’s a 20 mile drive to the metro, where I need to park anyway
– it makes my roundtrip to and from the airport nearly 2x as long

On that last point, I like to say this: I can always make more money. I can’t make more time, and time is way, way more valuable than money.

James: Good point – I’d say this though – The amount I can get done on the subway vs. the amount I can’t get done sitting in traffic is immeasurable. I do understand the part about not being close, which is why I started off the line with “I understand if you’re not close.” :)

You’re broke because you’re paying for cable TV. We just switch to full streaming device and get more than anything we need and are saving $50 a month! It’s in full HD quality and there to watch whenever we want. Boy do we feel silly for not doing that before.

Volunteering is a great way to save money on entertainment for festivals you usually get in free, get a shirt and probably get fed and free parking

One of the best – and most old-fashioned – tricks for saving money is to cook a big meal on Sunday and use it for several meals throughout the week. I have an outdoor grill where I fashioned a make-shift rotisserie (no Ron Popeil for me!) and I usually roast a chicken on Sundays. Takes 15 minutes to set it up (set it and forget it) and it’s done in 2 hours. Cost about $14 (including the rosemary and a lemon) and it’s enough to make at least 5 meals. I started it for the convenience more than money savings, but the savings add up!

You are broke because you order in take out too often, go out to eat too often……..

You’re always broke because you are bad with paperwork. Did you fill out the paperwork to get reimbursed for your work expenses? Did you invoice your client in a timely manner and follow up quickly when your check didn’t arrive as promised in the contract? Do you keep your receipts in order for when it’s time to file taxes and itemize?

To those that are paying for day care- if you or your spouse is working just to cover the cost of day care expenses, you are wasting your time. You are also adding a lot of stress to your lives for a zero sum in the cash department as well. Stay home for a few years until the kid is in school full time, then go back to work.

To use an “on the other hand” approach to transit here in the DC area, if taking transit works, the parking is nearly free. Overnight parking (at the lots where it’s allowed) is supposed to be $4.25 a day. I’ve never been charged more than $4.25 for a full week, so if the DC metro works for you to get to DCA, it does save a ton of money.

A couple of major money savings move for me include:

1. Going back to my natural hair color. Now I go to the salon 4xYear and pay $50 a cut. This not only saves me nearly a $1,000/year but countless hours of precious time. And, yes, I love being a brunette more than a blonde!

2. My local library. 90% of my books, ebooks, audiobooks, and DVDs come from my local library. As a voracious reader and movie junkie, I save thousands.

3. Buying makeup at CVS or through discounts online. While this may not work for all your makeup needs, with a little research, you can find a $10 lipstick that looks almost as good as the $30 brand.

Here’s a couple ideas for (new) parents and parent of toddlers:

1. If you can wash/sanitize the essential baby gear, buy it used. I bought these items on Craig’s List: a Bumbo for $10, diaper genie for $10, baby Bjorn for $30, exersaucer for $20 and walker for $10. Retail would have been $300+, I spend $80.
2. Buy used clothes! This is great for sizes up to 4-5 since they grow so quickly. I buy Gap, Janie & Jack, Carter’s, Old Navy, Gymboree and a variety of other brands all the time at resale/thrift stores and Craig’s List. Typically, I pay $.25-$1.00 an item.
3. I am a career mom, so formula is a must. Try the Walmart brand, if your baby is ok with it, it’s about 1/2-1/3 of the name brands.
4. Use cheaper diapers during the day for frequent changes and more expense at night. We use Target brand for day and Huggies for night.
I negotiate on anything I can and inspect before I buy for stains/tears/etc. Good luck!

You’re broke because:

- You just had a child/paying for childcare.

- You or someone in your family is ill or has a life-long medical condition.

- You or someone you love is a senior, requiring assistance with daily activities.

- You were born in an area of the country where you didn’t have access to quality education.

- You just left your spouse who was the primary wage earner of your family. (make it worse? Add to that you’re a parent who has been out of the workforce for several years to care for young children)

- Your job has been outsourced to a nation without basic labor protections.

- You’re still paying student loans

My list is completely different from the one you generated- but we’re in completely different socio-economic situations. I suppose I’m more focused on the things that aren’t as easy to change like skipping your daily cappuccino, since well- several items in the above list have applied to me at various times in my life, and had someone suggested I just cut cable or cancel that expensive gym membership, I might have punched them. And I’m a pacifist! :-)

My above list and rant notwithstanding, not every list can tackle societies ills, and for those of your audience who have the means to meet their needs and aren’t because they are barista and fashion slaves-there are tips here that can help. I guess the title just got me fired up…

You are broke because you buy bottled water which is not only bad for your wallet, but terrible for the environment. Dirty little secret is much of the bottled water is just filtered tap water in non-recycled plastic bottles (don’t believe the pretty nature picture on the label). Invest in a good water filter pitcher and reusable bottles. Save money and the environment.

You’re broke because you don’t use your library. Free books, free e-books, free music, free magazines, cheap movie rentals, a lot of your entertainment needs can be met at your local library, which your taxes already support. Just be sure to return materials on time to avoid late fees.

Get rid of cable television. You can watch your favorite shows online a few days after they air.

You were spot on with cooking vs. ordering. I get really annoyed my my husband who will order from the local Chinese joint but refuses to take an equal amount of time to cook something that’s in the house.

No matter how much you make, always spend less than you earn.
Save change!-I roll up a couple of hundred dollars every year and we use it for our anniversary night out.
Secretly save.-At the start of every week, I “hide” a $20. If it’s not in your wallet, you can’t spend it. I have hundreds saved already, for a trip planned for this summer, all from “hidden” $20′s

I’ll add to the coffee idea – if you think SBs is just ‘better’ then roast your own. A decent roaster can be had for ~ $120, unroasted coffee ~ $6/lb, and it will be some of the best coffee you’ve ever had. I promise.

I will also echo the ‘find free books’ to Kindle users. It’s REALLY easy to by stuff (by design) Remember those things called ‘libraries?’ Most lend ebooks now, from the comfort of your own computer. Seriously.

Save your riase – set up automatic withdraws to a savings account, increase that amount when you get a raise. You won’t miss it and you’ll be saving for a rainy say

If your employer has any kind of matching retirement plan, make sure you’re getting all of it. Free money.

Own a house? Get an energy audit. Lots of gas/electric companies will do it for free/cheap. I insulated my home shortly after buying it and literally cut my heating bill in half. Insulation paid for itself in one winter. True story.

Pay attention to your interest rates on everything – credit cards, house, car, loans. DO NOT buy something based on the payment per month that you think you can afford.

Coupons – use them. It may surprise you that the heaviest coupon users are the more affluent households, NOT the lower income ones. There is a reason they’re in the ‘affluent’ category, they’re smart with their money. Whatever negative connotation or aversion you have to clipping, drop it.

Budget budget budget – if nothing else, just to see where your money goes and identify places to save. Use a spreadsheet, find an app for your phone, or use something like mint.com (I haven’t actually used mint yet – not sure I like all my account info in one place) We plan everything else, why don’t we plan how we’re going to spend/save our money?

Bottled water – not only does it cost $5 for 24 16oz bottles, it’s creating more garbage than we needed in the first place. Spend $30 on a Brita and you’ll be saving money after a month. (and maybe even drinking more water)

Another great reason: You always have to have the latest/greatest. Don’t get my wrong, Nikon releasing the D4 this past week made me get all twitterpated, however, I am not shooting DSLR video ads or getting paid as a photog yet, ergo, I don’t need it. i WANT it, oh damn do I want it….but I don’t need it.
Keeping up with the Joneses has ruined more than one family budget. If your neighbor happens to buy a Jag/Escalade/Phantom ;-) that doesn’t mean that you need to have something equal to that. There was once a commercial where the family dad was out back grilling, bragging about all his stuff and his secret to affording it? “I’m in debt up to my eyeballs”.

SNL said it best – http://www.nbc.com/saturday-ni.....uff/27169/

Great point on the bottled water Kristina – one of my pet peeves and a massive waste of money. I can’t say there’s no value – I usually have a case in the fridge. But it’s for rare occasions, and not a daily thing.

Hmmm… first try either timed out or got marked for review because of the URL maybe… if so, Peter can delete one :)

I’ll add to the coffee idea – if you think SBs is just ‘better’ then roast your own. A decent roaster can be had for ~ $120, unroasted coffee ~ $6/lb, and it will be some of the best coffee you’ve ever had. I promise.

I will also echo the ‘find free books’ to Kindle users. It’s REALLY easy to by stuff (by design) Remember those things called ‘libraries?’ Most lend ebooks now, from the comfort of your own computer. Seriously.

Save your raise – set up automatic withdraws to a savings account, increase that amount when you get a raise. You won’t miss it and you’ll be saving for a rainy say

If your employer has any kind of matching retirement plan, make sure you’re getting all of it. Free money.

Own a house? Get an energy audit. Lots of gas/electric companies will do it for free/cheap. I insulated my home shortly after buying it and literally cut my heating bill in half. Insulation paid for itself in one winter. True story.

Pay attention to your interest rates on everything – credit cards, house, car, loans. DO NOT buy something based on the payment per month that you think you can afford.

Coupons – use them. It may surprise you that the heaviest coupon users are the more affluent households, NOT the lower income ones. There is a reason they’re in the ‘affluent’ category, they’re smart with their money. Whatever negative connotation or aversion you have to clipping, drop it.

Budget budget budget – if nothing else, just to see where your money goes and identify places to save. Use a spreadsheet, find an app for your phone, or use something like mint.com (I haven’t actually used mint yet – not sure I like all my account info in one place) We plan everything else, why don’t we plan how we’re going to spend/save our money?

I have to disagree with Sara on the trendy yoga gear. I admit, I thought exactly the same thing when I first saw lululemon pants at $75 a pair. I scoffed at the luon-draped girls in my gym. Until I actually bought some of their stuff. Here’s the thing: the workout gear I got from Joe Fresh for $15? Lasted about 2 months, after which trying to get it to stay in one piece (let alone look good) was an exercise in futility. Fabrics shrunk and/or stretched, colours faded, seams came apart. All of it had to be trashed or turned into rags within 6 months. My lululemon gear? Still looks, feels and fits brand new, after 5 years, and I doubt I’ll have to replace it for another 5. Suddenly, one $75 pair of pants that last even just 5 years is looking a lot better than one $15 pair every 6 months. Invest in quality :)

More money-saving tips:

1. Take better care of your stuff (tools, appliances, furniture, clothing…) to avoid big repair or replacement costs.

2. Choose permanent or long-term solutions over consumables or disposables, when possible.

3. Save water and electricity by only putting full loads in your washer, dishwasher and dryer (without overloading, of course).

4. Borrow books from the library instead of buying them.

5. Anything in a health food store that came from anywhere in Asia can be bought in Chinatown for a quarter of the price or less. Ginseng? Aloe drinks? 14 kinds of ‘miracle’ berries you’ve never heard of? Check, check and check.

I second: Use your library and buy your makeup at a drugstore. (Revlon and Almay do NOT test their products on animals, even Revlon hair color.)
Don’t buy just because it’s on sale. Before you buy anything, say “do I really need this now?” The most you could possibly need are two purses – one for winter one for summer. Period. No, you do not need another evening bag.
Don’t pay for a designer’s logo or initials on your clothes. Ralph Lauren should be paying you when you sport his nag on your sweater.
Take care of yourself and use your sick days if you are sick. You’ll get better faster, less likely that your cold will turn into bronchitis or strep; you won’t infect your co-workers and you’ll save everyone’s time and money.
I disagree with washing your car yourself. If you wash at home, the detergent goes into the grass or in a drain and off to the ocean/lake/river/aquifer. Pay for the basic wash at a car wash where the water is recycled and used again and vacuum yourself. Look around for coupons for local car washes. WAX your car yourself.

I was notorious for eating out, but I’m on a budget (paying off student loans etc). Eating out was KILLING my budget. I found a site e-mealz.com and they plan weekly menus based on the sales and the put together your shopping list with prices. I usually buy groceries for about 4 mealz for under $25 each week (meals for 2 people). Also, if you don’t use it get rid of it. I’m more of a movie person and I dropped cable and switched to Netflix saving almost $1k last year. It’s amazing the little things you can do that save so much!

You’re broke because for entertainment, you go out to eat with friends. Instead, invite them over, including their kids, and make a family-style meal, having them bring something along. The kids get to play (no babysitter costs) or watch a movie and the adults get a great meal with adult conversation.

You’re broke because you pay a babysitter. My friends and I have a babysitting coop, where we put out requests for childcare. It’s free, and we use a barter system. I’ve saved hundreds and hundreds of dollars with this system, and have people who I trust watching my kid and they usually get a built-in playdate with our friends’ kids.

Make a grocery shopping list instead of buying on impulse at the grocery store.

Cutting the premium cable channels. How many movies do you actually watch vs. the cost of renting a movie elsewhere?

Here are some more:

1) You don’t budget. The money comes in, but you don’t know where it goes out. When you sit down at the beginning of every month and write out where every dollar is going on paper, on purpose, you will catch many of these money-eating habits like $4 coffees. Couple this with a service like Mint.com or software like Quicken and you can really put it in perspective by looking how much you spend in categories in a month or year.

2) You use credit. Credit seems like a good idea and works okay for a while, but if you hit a snag, you can become buried quick. “I can make the payment” doesn’t mean you can afford it. Sure, you might be able to make the payments now, but what if you stop working…you don’t get that RFP you put in for, you’re laid off, you become pregnant, you become disabled, or one of these things happen to your spouse? That’s when people start shuffling debt and get buried in a pile they may not be able to dig out of. You’re better off paying cash for things. Not only does it make you spend less (spending cash hurts a lot more than credit and is more finite than a credit limit), it reduces risk.

3) You don’t have an emergency fund. In addition to being debt-free, everyone should have three to six months of expenses saved in a money market account for emergencies. If you lose your job or your car blows up, you don’t have to stress of how you are going to cover it or whip out a credit card. Having an emergency fund turns emergencies into inconveniences.

4) You don’t plan. Christmas comes on December 25 every year, so why do people wonder how they’re going to pay for presents starting around Thanksgiving or use their credit cards, hoping they can pay them off in January? There are certain things that you have to pay every month, every couple of months, or annually, so you better plan for them. If you know your auto insurance costs $1200 a year and you get paid every two weeks, you better put $50 a paycheck away in a money market account so you can write a check for it when it’s due. Same goes for college and retirement planning. If you think you’re going to want your kids to go to college, you better start an ESA for them soon after they’re born. Saving a little bit for 18 years is a whole lot better than trying to figure it out when they’re 17 or saddling them with a bunch of debt to start their adult lives with. Once you’re out of debt and have your emergency fund, save 15% of your income for retirement. Do this early in your career and you’ll retire a millionaire even if you don’t make a lot.

5) You don’t cover your backside. Get insurance you need and stay away from the gimmicks. Everyone should have health insurance, term life insurance, auto insurance, and if they’re over 65 long term care insurance. You don’t need whole life insurance (they only pay the insurance part out if you die and keep your investment, so why not get term and invest the difference in cost yourself?), short term disability insurance (if you have an emergency fund), or long term care insurance before 65 (statistically, you’re highly unlikely to need it before then, the opposite is true after then). Paying a little bit for insurance now greatly reduces risk.

6) Give. When you have squared yourself away, budget for charitable giving whether its to your favorite causes, your religious institution, whatever. Karma has a way of taking care of those who take care of others.

Whenever I’m about to buy something online, I search for the name of the company I’m going to buy the item for and “coupon.” At least 1/2 the time, I can find an online coupon code that works to save on shipping, save 10% on purchase, etc.

You’re broke because you’re buying everything new (underwear and beds excluded). After I lost everything in a fire, I discovered freecycle.com. Unbelievable, the things you can get for free. It takes a little trolling through the lists, but I refurnished my home, got kitchen stuff (including a full set of apple-themed knickknacks), and decorative elements all for free. Plus you get the warm fuzzies that come with helping someone out (I was thrilled to get rid a few things purchased while distracted that ended up not working. The folks who picked them up were over the moon).

What I didn’t find, I bought through garage sale stratagizing: check out the Craigslist listings for garage sales on Friday, plot a route, and head out on Sat. Morning. Brand new small appliances, the works.

The only reason folks knew we didn’t buy things new was because we bragged about how we got everything for free.

Kelly – I understand where you are coming from – just recovering a very bad few years myself. But you know what? No matter how tough it was, how broke I became: I was an idiot and did not cancel cable, paid late fees b/c I did not have the money when the bill was due, ate out more than I should have and generally continued to waste money. When your problems are BIG, sometimes you can overlook the small solutions. This list is not about fixing societal ills but about convincing idiots (yes, like me) that those little splurges add up and provide options for how to enjoy the same services for free/cheap. Now that I am out of ‘crisis mode’ I am thinking clearly and making wiser decisions (cancelling cable!) Such poverty made me realize I do not want to be that low ever again. It is my hope that someone in my shoes will read this list and say “duh” stop feeling sorry for themselves and entitled to such wastes of money and make these easy changes.

You’re always broke because you have no idea where your money goes. That’s why I use http://www.Mint.com.

Cable. So many ways to utilize Netflix and the internet to cut cable. Until the change the system, get basic and supplement with Netflix/Hulu, etc…we’ve done it for over a year and don’t miss it.

Ha! I’m broke because my paycheck is flat-out miserable from working in an extremely low-paying industry. It barely covers my most basic living expenses in this insanely overpriced city of NYC. I cook daily, would never dream of wasting money on Starbucks, don’t pay a utilities bill, and take a cab maybe twice a year. Maybe. The solution? Find a better-paying job! But that’s easier said than done…

I would love to be able to “like” so many of these great tips!
Currently not broke! But with 8 great kids and 2 stupendous steps and life- I totally have to stretch every penny and get pretty creative. Used stuff is wonderful, sometimes new is cheaper, You can never have too big of an emergency fund. For my broke friends…. been there done that, it could happen again. Wants vs needs…. our thermostat is set at 60 during the day in winter and less at night. Do you trust God or your credit card to bail you out? I don’t have a cell phone but I get to work from home. We don’t do eating out much- but it’s hard to beat homemade fresh hot bread and even cinnamon rolls last night. We drive our cars till they drop.

You are broke if you can’t pay off your credit cards each month.
You are broke if you don’t call your cable and cell phone company once a year and tell them you are leaving if they don’t come up with a better deal.
Land line I have to have because of my home office fax. $Hundreds$ are saved annually with the convenience of not having to drive to my office to fax or pick up a fax.

I’m with Kelly. I didn’t find a single thing on this list that applied to us until I got to her list. $800/month in gas driving to and from the hospital every day for months for a sick family member, loss of wages to accommodate long term illness, hell trying to find a job that pays well enough to worry that I am wasting money on frivolous things. You can’t waste it if you don’t have it. I cut my own hair (or beauty school for $5 when I want to splurge!), don’t buy anything for myself, but when I do it’s Groupon at 1/2 price. I spend probably less than $100 a year on myself. My clothes are all mostly from college. Or at least 3 years old, and that stuff I consider new – even though most of that I still got used. Eat at home. “Never” by “anything” new. All our furniture is from Craigslist or garage sales. I haven’t bought a single piece of clothing for my 4.5 yr old! It’s all been hand me downs and we hand his down when he’s done! Unfortunately – still broke! But living off what we have, so not going into debt. I guess that’s all that matters.

You’re broke because you buy new cars. Buy a car that is four years old, maintain it well (really easy at that age) sell it when it is six years old and use the money to buy the next four year old car. I drive Volvos. I have had years when I got MORE for my six year old car than I paid for it two years prior. Yup, my car is, essentially, free.

You are broke because you don’t automate your savings. Just $50 a week will add up to a couple thousands a year. Pay yourself first. You don’t need to budget if you Save, because everything else is fair game.

I’ll second Maegan’s Mint.com suggestion.

An even better website is http://www.CreditKarma.com. Totally free credit monitoring. TOTALLY free. You get your credit score (as often as you want),. and a report card that tells you exactly what to do in order to improve your score.

Kudos to Kelly for pointing out that for many people, cutting out luxuries is not the solution to being broke. That is, many of us have no luxuries to cut. You may recall a study from 2005 that found half of all bankruptcies in the United States were due to health care costs. I doubt cutting out Starbucks would have helped.

You’re broke because you’re not satisfied with with what you have. Count your blessings. Everyone of us commenting is online and has/had access to a computer! Currently not broke but no one can ever have too many friends or too much money in their emergency fund. Been broke trying to avoid it by delaying purchases as long as possible( doesn’t count the dentist- waiting too long on that one will really cost you later on).

There was a great SNL bit that summarizes a lot of your advice: http://www.hulu.com/watch/1389.....-buy-stuff

Also — while I’ve “cut the cord” (recommendation #6), I will say that there are two possible constraints for not doing so. First, many home alarms are wired through the phone line. However, many alarm companies now offer a wireless option which, although more expensive, is a LOT less expensive than a phone line. The other is that many communities use “Reverse 911″ to get announcements like school closings out. However, many of those communities are realizing that people want to cut the cord, so they are implementing Code Red or similar services: the call goes to your mobile instead. Check your community!

You’re broke because families stick together when times are tough. My husband spent a few years during the recession helping his parents at their shop (with almost no pay) so they could keep their business and their home. As a result, my low salary went almost exclusively toward paying OUR bills. It was difficult and frustrating, but worth it. We have a lot more time to pick up the pieces and plan for retirement than his parents do.

You’re broke because you’re unhealthy. Living an unhealthy life (drinking, smoking, eating garbage) leads to medical problems that, oftentimes, could have been avoided.

You’re broke because of your attitude. There have been many times in my life when I didn’t have money to do something I wanted to do. But I never felt that I was poor. It was my choice not to go into debt for whatever it was I wanted. I think about the book, “The Millionaire Next Door”. Yes, they could drive a new Beamer every year, but millionaires know a late model, used pickup truck will still get them from A to B. Whether or not you are broke depends on how you think!
I may not have much money, but I am rich in what matters to me; family, friends and the chance to give to others, as they have given to me.

You’re broke because you don’t practice DELAYED SATISFACTION!

My husband and I took Dave Ramsey’s financial peace university. I’d highly recommend taking a class like that where you have materials to check back on…but the biggest thing is doing a budget every month. If you know ahead of time what you have available to spend on something you make better decisions. Another thing I do frequently is scan UPCs with my mobile phone and compare prices online. Walmart will price match just about anything.

You’re broke because you buy the same item multiple times until you get what you really want. Is it really necessary to buy “placeholders” until you can afford what you really want? Or can you do without for now? SHOP ONCE. You’ll save money overall and be able to afford it sooner.

Here’s several ideas:

Monthly charges kept creeping up for my 800 number. I researched and found a company that charges me $2.05 as a base rate plus a very small amount per call. I checked their site and it looks like now new service is $4.95/month. That would still be a fraction of what I was paying before..

Buy a whole chicken and roast it. Add some veggies and rice and you’ll have days of healthy meals – cheap:
1. a chicken dinner
2. leftover chicken dinner
3. sandwiches
4. chicken soup for two or three days (or freeze some for later)
Or lots of other yummy leftover chicken dishes.

Also, learn to make your own pizza (it’s easy), freeze another for future use if you’re really ambitious. And find a discount grocery store, you really can save 1/2 off your groceries.

The rewards programs some stores offer can sometimes really save you a lot. I bought a nice all-in-one printer/scanner, etc. for $20 by catching it on sale and using rewards points at the office supply store that starts with an “S”.

My husband is a bankruptcy attorney and there are a few things most of his clients have in common, hence things to avoid:

1. They drive nice cars, way too nice for their income level. They either lease them or have a ridiculously high payment.

2. They have several retail store credit cards with balances.

3. They do not know how to save money. Every last penny is spent on something consumable – something that is gone tomorrow.

Therefore, my tips are: Stick to a modest car you can afford, about 5 % of your monthly income or pay for it in cash. Always buy used cars. DO NOT sign up for store credit cards. No matter how good the deal seems, they get shoppers into trouble. Learn how to save money. If you have extra, put it away, don’t spend it on a fancy dinner that will be gone tomorrow, or a night out in Vegas. Save it – even if you save it for something nice like a vacation or a car.

Your broke because you are a slave to credit cards – you really can rent a car, buy anything (including airline tickets) online and in stores with a debit card.

You are broke if you consider buying used beneath you, or ‘have to have’ the latest and greatest electronic gadget.

You are broke if you don’t read the labels on containers of tempura batter, butter or mayo and realize you could make it cheaper, better, and quick on your own.

As a culture, we have distanced ourselves from a trust in our own abilities – to shop smarter, learn new abilities each day, and question everything.

Buy everything off-cycle: gifts and wrapping paper in January, winter wear in March, vacation travel in June, swimwear in August, and electronics in October. By not being the first to buy anything, you’ll end up with only market-tested products – and you’ll typically get a great discount. This is especially important for items you plan to use for a long time. Traveling off-cycle will save you lots of money, as well as the hassles of airports, roads, and resorts at peak capacity. Your odds of getting a bump up improve as well.

Great way to cut costs living in NYC while you are single and social: group pre-gaming. Going out for drinks is expensive, so if you aren’t hitting the happy hours (or get out of work too late) then gather at a friends place, people take turns getting cheap but tasty wine (or beer or whatever). Have a few drinks at home to cut down on the overall cost for the night. Also, don’t meet up for group dinners – the cost for each person always winds up being more expensive than if you ate at home and just met up for a drink. OR center around activities that don’t cost so much – in summer time, free concerts or hanging out in the park, for example.

You’re broke because you have, “It’s just” mentality. It’s just $3. It’s just $16. It’s just because I don’t feel like making dinner. I remind my husband that $100 is only five $20′s. Turn this around to saving… “It’s just $5.” Cha-Ching!

Ego. Nothing costs us more. It needs constant feeding. You need people to think of you in terms of the car you drive, the watch you wear, your shoes, your house…. We are so materialistic when, in fact, we need very very little. I enjoy my life and I enjoy plenty of things…but I feel rich for learning at a young age not to use somebody else’s ruler as a measure.

Amy Parmenter
The ParmFarm

You’re broke because you focus on getting instead of giving. Any “rich” person is rich regardless of his or her pocketbook. As my good momma says, “I have enough for today.” If you have the means, keep $25 cash in your purse or wallet and look for opportunities to help someone out. You’ll be amazed at what pops up in your day and how it helps you focus on others! So fun! Helped a couple out with bus fare the other day and got the best hugs. Also like to buy coffee for people randomly.

I think you can add “Your broke because you don’t maintain”. People don’t like to waste time or money on say an oil change in order to maintain their car so they until it breaks down and then have to pay a ton more in order to get the “big fix”. Maintenance shouldn’t be a nuance, it should be part of your strategy to keeping your goods around a lot longer.

Kadee
@kadeeirene

You are broke because you continue to use your credit cards, not your debit card, and go into debt. When you don’t see the money coming out of your checking account, you don’t know how much you have spent until the credit card bill comes in. If you put all of your charges on your credit card, “somehow” the balance due is usually more at the end of the month than you thought. So, what do you do to pay for it? Some people dip into their savings to cover the full balance, which is more than what they make. Some pay a portion, and some pay only the minimum, which will perpetuate the interest and balance. You will always be broke unless you get your spending habits under control, budget your monthly income, and pay with your debit card using the money you do actually have in the bank, instead of going further into debt.

Discloser: I must confess that I do keep a credit card for when I travel on business, as I get reimbursed for expenses, and the credit card makes it easier to keep track of them.

People are broke because they play small and operate from a space of scarcity instead of abundance. When we play to our brilliance we attract abundance toward us and always have more than enough financial resources to meet our wants and needs AND to do amazing things through generous donations to non-profit organizations.

Refinance your house if you have a mortgage. Mortgage rates are killer right now. Can save you hundreds per month!

well, i’m probably not the typical one out there, but I don’t drink coffee, wear my clothes til they practically disintegrate on my body, have paid off my house, have never paid a penny of interest on a credit card, haven’t had a vacation in 5 years, (etc!) but am broke because I poured $120K of my hard earned money into a startup business working on getting a product people love (but hardly anyone knows about) off the ground. WAY harder than I thought but I refuse to quit because it makes too much sense and truly helps people, and those who get it LOVE it. Working on some licensing possibilities and a sparkly line right now so I hope I can say I’m not broke anymore…SOON! in the meantime, my regular savings strategies include buying gently used kids clothes from my friends who have children a little older than my own), always packing my own lunch &/or snacks whenever possible, using coupons (and seeking them before going places that may apply to them), and not needing the “best” of anything as much of what that is is paying for someone else’s marketing hype. at least imho. :) Also, traveling in off-peak times and staying at modest B&Bs always seems to result in a truer experience to a new place for me than staying at any of the homogenized “luxury” hotels which could be….anywhere!

You’re broke because you think toilet paper from Whole Foods is healthier.

You’ll always be broke because when your house is destroyed due to a hurricane and you get “relief money” you
buy a $2000 prada purse instead of buying food for your children.

To underline what you have already touched upon: look at and analyze your budget.

I began periodically downloading the transactions on our account(my husbands and my primary checking account) for the prior 3 months into a spreadsheet program and painstakingly categorized each transaction. The shock, the horror!

I found we were aimlessly spending money on nothing…well nothing good anyways, and lots of it! I utilized that “no good” data and deciphered a fair amount for each of us to get a weekly allowance.

I know it sounds a bit juvenile, but it works. The cash that we get every pay cycle is ours to spend as we wish on anything that is not a necessity in our budget. Things like coffee out, beer or wine, take out food or restaurant visits etc. Now my husband has to save up his money to buy a video game, and I can relish my allowance management over a cheap pedicure.

The other thing that I realized is there were categories that I was not planning for in previous budgets that showed up all too regularly so I included them in our new projected budget. Things like gifts, donations and doctors co-pays. I also put a contingency of 10% on each category (household, debt, misc.) as a cushion for the unforeseen.

It was scary but we both gained an understanding of why we felt broke all the time and allowed us the chance to change it based in OUR spending habits and weak points.

The sad reality is understanding your budget is only part of the game, we do still need to make more money to not feel broke, but at least of we do manage to pull that off we will know where to allocate it.

Coffee and dry cleaning. I’m not broke, but it kills me when I review these 2 bills.

You’re broke because you don’t GIVE! When you give your money, time, and energy to others who are in need, it comes back around. Really, it does! Has for me! Just be smart about it.

good list. you’ure flat out wrong about the closing your credit cards hurting your score, though. That is just a rumor perpetrated by the banks who still want fees. A big fat lie. I had 4 credit cards, I paid off and closed two of them — the oldest and largest ones. My credit score jumped 100 points.

So, CLOSE those paid off accounts. Keeping them open does not help you. That’s a huge, huge, lie.

You’re broke because you’ve convinced yourself you “deserve” spa days, mani/pedi’s, takeout and movies even though your budget doesn’t agree. You’re broke because you refuse to live within your means because it’s the in thing now to reward yourself with stuff you can’t afford.

Ahhh, you are talking my language here!

You are broke because you have no impulse control. If you didn’t go shopping specifically to buy it, and you see it and “NEED” it right now–put it back on the shelf and wait a week. Bet you don’t still “NEED” it at the end of that time.

And cooking at home? Huge way for folks to save! That’s why I talk so much about food, recipes and cooking on Frugal Upstate

The biggest expense for me has always been the coffee. I generally meet my clients at cafes and order a tall soy latte. That bad boy is almost $4.00. Luckily, I have the Starbucks Gold Card so I get my lattes down to $3.40 – but, if you add it up, that is still around $884 a year (if I meet clients once a day during the weekdays). Now, let’s add in that I sometimes meet up to 4 clients in a day at different cafes. We just jumped to well over $3,000!

My trick now? I bought a Keruig single coffee maker and bring my coffee in a reusable mug to the cafe. Each cup costs me around $0.35. A huge cry from Starbucks!

The other trick is that, if I’m meeting a client for lunch, I will eat at my home office first. This way I am happy with the appetizer and water with lemon. Works like a charm!

Well, the only one that applies to us is the landline. However, we have spotty cell service at best and have had to call EMS 3 times for our youngest (epilepsy). We feel much better w/a landline. Kills me to pay the bill, but justified, I believe. How about raising your own food? We have a huge garden and animals. Cage-free, free-range for a little food and effort from us. Kale not cheap in stores, but I can’t kill it in my garden. ;) I give bags away in the summer. Even if you live in an apartment, there are many space saving ways to garden and the taste is unbeatable!

You probably aren’t broke, but you might be missing some “found” money. If you shop online, use Ebates.com and get money back for each transaction. Log-in through Ebates first, then it takes you to the online retailer of choice and tracks any money you spend there. You won’t become rich, but you’ll appreciate that extra $50 or $100 check when it comes.

You’re broke because you don’t use the Sunday newspaper — Most metropolitan areas publish a Sunday edition where grocery stores publish coupons and their specials for a week — stock up on non and slow perishable items such as pasta, rice and canned goods. EG — this week John’s Market in Plainview, NY has tubs of butter two for three bucks — that’s better than paying full price of $2.99 for ONE.

Might not seem like a lot, but saving $1.50 per week on butter alone saves you approx $75 per year — now if you do that with twenty or thirty other items you’re saving a couple of thousand per year.

Not bad.