Gyroscopic Investing

I thought it would be nice to start a thread dedicated to any money saving "hacks" you may have discovered.  A "hack" in computer terms is generally though of as a neat or elegant way of solving a problem that is much easier than the way most people might solve it.

I'll start the list with 1 hack that I've found recently:

1.  Eliminate your home phone bill by using Obihai + Google Voice.  I found this neat device on Amazon that costs $43.99 for the basic model or $49.99 for the "deluxe" model.  

http://obihai.com/

It's about the size of a deck of cards and plugs into your home Internet router on one end, and any analog or cordless phone on the other.  You sign into a web page, put in your Google Voice account number and password (Obihai's servers don't ever store your account info - it is sent encrypted to the Obihai device) and then you can send and receive unlimited calls from Google Voice without even having a computer on.

Some things to note:  You will not get E911 service through this.  They warn you right on the box that E911 service doesn't work with Google Voice.  Hopefully you have a cellphone for this.  Another option, with the Obi110 ($49.99) version, it has a second analog jack.  You can plug it into your landline for use as a backup, or for making 911 calls.

Another thing to note:  Google Voice is guaranteed free through 2011.  It is possible that Google might start to charge in 2012, although I think they will extend the free service indefinitely.  Even if they do, your Obi is not useless.  There are many other VoIP phone providers they are compatible with that only charge a few bucks a month, or far less than your home phone bill.

Any other saving money "hacks" that you care to share?

an alternate is skype.com

Take defensive driving every three years and get the car insurance discount.

Raise your auto and homeowners policy deductibles.

Drink water when you eat out.

Keep your tire pressure at recommended levels (better mileage).

speaking of (health) insurance, have a high deductible plan for catastrophic issues only

Don't pay PMI... if you do a ROI calc on how much interest & PMI you avoid by paying your house to 80% LTV it will make most "guaranteed return" calcs you've done in the past look pretty weak (10-15% ROI usually).

murphy_p_t wrote: an alternate is skype.com

Skype requires a computer - this is more "user friendly" for anyone in the house - since they can all just use a standard phone.

Good tips MT!  I didn't realize you could qualify for a discount auto rate by taking the course.

Another tip I have to save money - instead of buying those expensive foaming hand soaps for your bathroom, the ones like this:



Buy them once, then when they run out, buy one of these ($1.99 at walmart):



You can take the lid off the foaming hand soap and fill just a small amount of body wash in the bottom, then dilute with water.  We dilute about 10-1, since the body wash is much more concentrated than the hand soap.  Because the foaming action is from the dispensing bottle, it will still foam just like the original, only you spent about $0.10 to fill it instead of buying a new one for $4-5.  Soap is pretty much the same except for fragrance.

You save more by cutting line items completely than nibbling at the edges, so consider doing without expensive "essentials."  My wife and I share one car, and despite being a computer guy I've never had a smartphone.

Cook from bulk staples: rice, flour, dry beans, onions, potatoes, etc.  Very cheap and a good survival skill too.

Try to never pay retail for anything; buy on sale, used, use coupons, eBay, groupon, etc.

By default, do things yourself before you hire someone else --- financial advisor, personal trainer, tax preparer, gardener, handyman, computer repairman, auto mechanic, etc.

Buy a small car and rent a truck or minivan the 1-3 times per year you need that much space.

Cut cable TV and watch video through Hulu, Netflix streaming, or similar.

Netflix movies that aren't worth owning permanently or seeing in a theater (most of them).

Use the library.

Do business online, by phone, or by mail, instead of driving.

When you can, pay a one-time cost to eliminate ongoing costs: buy cars (not lease), handkerchiefs, exercise equipment, CFL light bulbs, etc.

Always keep a few thousand dollars in your checking account so you never pay late fees or overdraw penalties (probably goes without saying on this forum).

Use a credit card with some kind of rewards program.

Use free software: Linux, OpenOffice, GIMP, etc.

Make your own coffee every morning instead of buying it.  Buy a coffee machine for the office if necessary.

Make iced tea or filtered water instead of buying soft drinks.

Sharpen knives instead of replacing them.

Be mindful of turning off lights and appliances when not in use.

1. Eat at BYOB restaurants instead of ones with liquor licenses.

2. Find a local rancher who raises grass-fed cattle.  Buy one and split it up with several families.  You might need to invest in a chest freezer as the processor will vacuum-seal the meat for you.  The meat will be cheaper & healthier for you than store bought and you can cut down on trips to the grocery store.

3. Learn how to be your own G.C. and build your own house(no construction experience necessary).  You'll build 20-25% equity which is tax free when you sell after two years.  Considering housing is the largest expense of most families, I'm surprised more people don't do this.  You can avoid PMI as moda already pointed out is a bad deal.

Work the hell out of your library's on-line reservation system.

Books and CDs used to be a major line item around here. Now, between the library and torrents, my purchases are at about 10% of what they once were.

Bonus: less crap around the house.

When you want something that is expensive, just put off buying it for a while.  Sometimes the urge will pass and you will still have your money.

If the urge doesn't pass, you will have a few months of interest and/or the opportunity to shop around for the best price.

***

If you must have a swimming pool, try to buy a house that already has one.

***

If you are on maintenance medication, ask for a prescription for double your normal dosage and split the pills in half (i.e., if you take 50mg a day, ask for a prescription for the 100mg pills and split them).  This isn't suitable for all medications, but it works fine for many (assuming you have a cooperative doctor).

- "If it flies, floats or fornicates... rent it, don't own it."

- Cancel cable and get a Roku box.  Roku.com

- Purebred dogs usually develop more health problems.  I didn't want to believe this for many years-- but it seems to be true, for unknown reasons.  More health problems = more vet bills.  Adopt a mixed breed from the pound.

- Find a veterinarian farther outside the city.  Their rates will be A LOT cheaper.  Ex. Toe nail trime: $6 vs. $22.  
Of course-- if you can trim you own dogs nails... even better.

- Do It Yourself Dog wash.

- Your town has two types of grocery stores: Expensive ones and cheap ones.  (Hint: Albertson's falls into the former category).

- Rent movies at Redbox for $1.

Kevin has some really great tips, but I especially like this one:

KevinW wrote:Use a credit card with some kind of rewards program.

If any of you have an IRA, 401k, or Brokerage account at Fidelity, they have a "Retirement Rewards" American Express that gives you 2% cash back on every purchase with no annual fee.  By default the 2% deposits into an IRA (you have to setup an IRA to get the card) but you can change it to deposit into a regular brokerage account and from there transfer it to your bank and spend it if you want.  We started making all of our purchases on this card, pay it off in full every month, and have already gotten over $200 cash back.

http://personal.fidelity.com/misc/buffe ... shtml.cvsr

Coffee wrote:- Your town has at two types of grocery stores: Expensive ones and cheap inexpensive ones.  (Hint: Albertson's falls into the former category).

I don't know about you, but if you have a Trader Joe's in your town, it is probably the cheapest grocery store outside of Asian and other ethnic stores you might find.  I've found Trader Joe's in our area (New England) is less expensive than even the super Walmart and Target discount stores.  Not only that, but their store brand merchandise is really good and is often organic or locally sourced.  It's basically like Whole Foods but half the price.

big fan of Trader Joe...i can walk there....get exercise, save gas & wear on car

a laundry rack for drying clothes gets a big savings over the cost of coin op,
i am looking into buying a portable washer for an apartment, but i haven't figured out how well it pays for it self yet..

Marry wisely and lovingly once.

l82start wrote: a laundry rack for drying clothes gets a big savings over the cost of coin op,
i am looking into buying a portable washer for an apartment, but i haven't figured out how well it pays for it self yet..

When I lived in Costa Rica, the natives all used these things called, "Spinners".  They were similar to small drying machines, but without the heating element.  The clothes would still be damp when you took them out, but they'd dry faster on the line.  You might look into one of those?

They used 'em to save on their electricity bill.

I find http://earlyretirementextreme.com/ and its associated http://forum.earlyretirementextreme.com/ to have excellent ideas on how to save money aggressively and retire very early.

ETA:  Check out the thread on the Permanent Portfolio (http://forum.earlyretirementextreme.com/topic.php?id=80).

6 Iron wrote: Marry wisely and lovingly once.

Absolutely!

One of my best money-saving "hacks" was to marry a woman who is not a gold-digger and is relatively low-maintenance financially.  For our first four or five dates, I deliberately chose inexpensive--even cheesy--activities like bowling, miniature golf, ice skating, and a local zoo.  A gold-digger or princess never would have tolerated such cheap dates.  But my future wife didn't make a single remark about the low cost of those first several dates.

I continued to pay close attention to her attitude about money as we continued dating, but her great attitude on those first few cheap dates really told me most of what I needed to know.

It seems like most men don't actively screen out financially high-maintenance women in this way (their minds are too clouded by their emotions), which is why I like to think of it as a money-saving "hack."

6 Iron wrote: Marry wisely and lovingly once.

Too late for that one. 

Our total wedding costs 11 years ago were $250. I wanted to spend less and have zero guests. My husband insisted that we have five guests and take them to lunch.

Anyway, it certainly makes life easier to have a mate with compatible tastes and values.

What a great bunch of tips.  I'll be bookmarking this thread.

I also like checking your state's "unclaimed property" records to see if someone somewhere owed you money but couldn't find you.  I found an embarrassing amount of cash this way that I'd forgotten about in a less-responsible youth.  The money had been earned in the late 90s but was still sitting around waiting for me.  Here's the Texas unclaimed property website.

Lone Wolf:

This site says I have $513 dollars coming to me (Yea!).  But it's asking for my social security number. 



... makes me a little uncomfortable.

You need for find a woman who has more money then you

Coffee wrote: Lone Wolf:

This site says I have $513 dollars coming to me (Yea!).  But it's asking for my social security number. 



... makes me a little uncomfortable.

If speaking to a human being makes you feel a bit more comfortable, you might want to try giving them a call.  Here are their numbers -- see the one for "Unclaimed Property Claimants".

Sounds like you found a serious chunk of change... congratulations!