Rebalance The Economy Or Let It Slowly Die

The economy is in a real mess, just as they are for so many other so called developed countries. No political party is talking about doing anything substantially to change the status quo. It's a case of talk about cutting costs but not doing much of it in reality or spending even more to kick start things (no mention of where that money would come from of course). 

What the economy needs is a substantial re-balancing towards the private, entrepreneurial sector and away from the public sector that does nothing more than drain the money out of the economy and give absolutely nothing back. In fact, the public sector provides a double whammy of hit on the economy by costing a fortune and forcing unnecessary regulation on those in the country who can make a difference. 

Line Dry To Save A Fortune

Sun and wind can mean only o e thing when it comes to cutting costs on everyday living - putting washing out on the line to dry it properly. If you don't have a washing line or a rotary drier up yet and are still using vast quantities of electricity to dry your washing then you really do need to invest in one soon. It'll pay for itself far sooner than you'd think. 

Go On, Celebrate A Little!

When you spend your life doing all that you can to save money by living as frugally as possible it can feel tough at times. Paying off student loans, mortgages and simply the cost of living can get anyone down. This is why it is so important for each and every one of us to have a celebration of who we are every now and then. Not a splurge on things that means nothing to us but something that is of intrinsic value in its own right. It may cost a little extra and may need saving for but you're worth it aren't you?

So think of the next time that would be right to celebrate just being you (and your family). Not your birthday or any of the myriad other reasons retailers continually try to persuade us we need to buy cards and gifts. Put a little money aside and plan that something special that you deserve and will remember for all the right reasons. 

Cut Down On Food And Drinks Costs When Travelling

I'm sure it's not only me who when traveling ends up feeling hungry and in need of a drink goes along to a coffee shop or cafe and feels cheated because of how much I end up having to pay. Airports, train stations and motorway services must make huge profits from what we, as captive customers, have to pay. The premiums that get charged for coffees and snacks are huge. 

I like to think I've learnt my lessons and now:

1. Take sandwiches and snacks with me
2. Always take bottled water with me - not possible at airports if course
3. Take a vacuum flask of my own coffee with me - much better and far cheaper than any you'll get at a service station

It's not a disaster to have to buy food and drink when you're traveling but a little thinking ahead can save money that you can put to better use elsewhere. 

Dress For Much Less

Do you despair at the cost of decent quality clothes? Maybe not big brands names but good quality clothes. Outlet stores are certainly a great way to get the quality (and big name brand if you are that way inclined) at greatly reduced prices. Granted, sometimes the goods are slight seconds but providing you check them out carefully you should be OK. Most of the time they are simply end of season stock so if you're happy not to be the height of fashion then all is great. 

Charity Shops / Thrift Stores Are Great

There is another way you can get good quality clothing including big name brands at even lower prices. I'm talking about Charity Shops (Thrift Stores if you're reading this in the US). You won't have the quantity and the choice that you get in regular shops but real bargains can be found if you take the care and the time to look. It's exactly the same as regular shopping, you make sure the clothes are the right size, aren't damaged and aren't too worn. You'd be surprised how 'almost new' some of them can appear. 

So next time you're looking for some new clothes check out your local Charity Shop first and if you find something suitable you've saved a fortune and the charity has benefitted too. 

Don't You Want Freedom Of Choice?

When I think of what it would be like if all my money worries were swept away in one go the initial thought is of complete joy - why wouldn't it be? Then I think about what would come next. What differences would it make to me as a person?

Yes, there might be very different material things in my life (but not that much if I'm honest) and a few holidays to far off places would be nice. But would it change me for the better? I hope the answer to this question is that it wouldn't change me, and my values, one way or the other. 

I'd still believe in:

1. Not paying over the odds for things
2. Looking for the best deals I can 
3. Not buying things I don't really want 
4. Paying off any debt I have as soon as I possibly can

It's that last one that is so obvious to me but seems so elusive to far too many people these days. If you owe others money they have power over you. If you owe nobody any money they don't and you have freedom of choice over what you do. And that's more powerful than anything money alone can give you. 

Weekends Are For You And Only You!

Weekends can be a nightmare for those of us doing our best to save money and avoid spending on things we don't really need. So, now that the weather is starting to improve surely the last thing we need to do is go shopping!

Get out in the countryside, walking, jogging, cycling - anything in fact that does you some good instead of being tempted to eat, drink coffee and buy useless things you never actually use or actually want. All these activities are free, good for you and enjoyable so why do anything else?

Keeping The Costs Down When Staying In Hotels

For those of us who have to stay away from home in hotels either on business or for pleasure, we know just how easy it is for costs to add up. So here's my list of how to keep those costs down to more manageable levels. 

1. Make room bookings as far in advance as you can to benefit from cheaper rates
2. Booking online is almost always the cheapest way
3. Pay using a card that doesn't attract an extra charge
4. Go for the cheapest rate that means you can't make any changes once you have booked (if you need flexibility them pay for it)
5. Don't be tempted with all the add-ons for meals etc. (it's this up-selling that makes the hotel chains lots of money)

Of course there are lots of other ways to keep the costs down. What would you recommend?

Green Technologies Need Their Own 'Apple Moment'

It doesn't seem to matter where in the world we live the cost of energy is going up. Petrol, diesel, gas, they are all rising in price as demand increases and supply reduces. Add to that the increased costs of production as the reserves become harder to extract and it's obvious that this trend won't change any time soon, if ever. 

Renewables do indeed offer alternatives but the reality is that it's only those with significant wealth who can afford the cost of installing such technology in their homes. The double whammy, in the UK at least, is that they then get significant paybacks directly from the government for years to come. 

What we need is mass production of the technologies that will help us reduce how much we pay out for ever decreasing fuels to heat and power our homes. Mass production will bring the costs down but there needs to be an 'Apple moment' equivalent of the iPhone impact on the phone market. Whatever the new, cheap, mass produced technology is it has to be easy to install and use by home owners who don't have to resort to middle men who charge so much for their so-called expertise. 

What's In Your Weekly Shopping Basket?

I was taken by a series of photos recently that showed typical families from around the world with their weekly food put out in front of them. The differences in how much each family spent for a week on food was staggering but not that surprising given the different costs of living and, crucially, the amount of food involved. We all know that we generally eat far more food in the West (and developing countries) than we actually need, obesity being a real concern now and one that is only going to get worse. It wasn't that which surprised me though. Looking at what food was actually on show started me thinking about not only the nutritional value but also of the costs involved. For the so-called developed countries there was a predominance of processed foods. 

I'm not just talking about ready-meals that you heat up in the micro-wave, this is about foods that have been produced in factories for our consumption. Breakfast cereals, tinned food, coffee and chocolate all fall into this category, not to mention confectionaries and snacks. While there was fresh produce in evidence on the tables of the developed country families it was very much in the minority. This was in stark contrast to the food the families in some of the poorest counties of the world were showing. Their food for the week almost entirely consisted of fresh produce and by and large this was fruit and vegetables - very little meat.

This got me thinking about how much we spend on food. Those companies producing the processed foods in factories have to make a profit so that's where a great deal of the price goes, along with money to the retailer. If we could only increase the amount of fresh produce we used in our weekly meals we would be reducing that element of the cost. The health benefits ought to be obvious to everyone too. 

If you put all the food you and your family ate in a week on a table in front of you what would it look like?

Take-Aways Can Be An Expensive Habit

Take-aways are so tempting after a long day when the last thing you want to do is cook a meal. For some reason we don't think of them on the same way as going out for a meal but more often than not we pick them up from Indian and Chinese restaurants where we could just as easily sit down and enjoy them there. 

So if we are doing our utmost to save money and are cutting back on meals out what is it that convinces us that take-aways are ok? Well, it could be that because we eat them at home it feels like it's alright and the cost issue is somehow blanked from our consciousness. It could be that in a similar way to eating out we consider it a treat every now and again and that we deserve it. Nothing wrong in this at all providing it is only now and again and doesn't become a weekly habit. 

Be careful with your take-aways, they should be considered a treat as they'll cost you just as much as a meal out. 

Reduce How Much You Spend Buying Food 'On The Go'

When was the last time you stopped and thought about how much you spent buying food and drinks when you are out and about? These costs, low when you look at them individually, add up to significant amounts daily, weekly and monthly. Coffees alone can take a real chunk out of the weekly budget for some (me included I have to admit).

It doesn't have to be about eating out at restaurants or cafes that pushes the costs up either. Buying snacks, sandwiches or other prepared foods either with that coffee or not, will eat up more budget than you realize. Remember that these are things that you probably buy from the supermarket anyway and have at home - they cost you a fraction of what you end up paying for them in a cafe. 

So next time you venture out and think you might be tempted to buy drinks and food just because it's convenient to do so:

1. Take a snack from the kitchen cupboard with you
2. Take a bottle of (tap) water with you, and
3. Buy a newspaper instead to distract you from the eating and drinking

See how it goes and just how much you will save. It could be healthier too given most of us choose the not-too healthy options more often than we should when we select our food and drink 'on the go'. 

Give Start-Ups A Chance

When economies need to grow from a low point it's not the big corporations and multinationals and public sector bodies that drive growth. It's the small businesses that start-up when they see opportunities in the market and 'give it a go'.

One of the difficulties in the UK at least is the business rates that businesses have to pay. These are very often two or three times the rents that businesses have to pay and quite simply make it uneconomical for many businesses to even start off in the first place.

If governments were serious about creating an environment that was conducive to start-ups wouldn't it make sense to help them get going? Pity such common sense measures seem to be beyond the comprehension of politicians and government officials.

Here's To Frugal Weekends

Weekends can be tricky times for those of us doing our best to keep to budgets. I still find the concept of "retail therapy" completely bizarre, although that could be a male thing I guess!

When we're distracted doing other things, working or studying, it's not possible to spend our money but when the weekends come round we are bombarded with opportunities to be parted from our cash. Whether it's having a day at a retail park (is this really a day of leisure?) or going somewhere that costs just to get in, there will always be those enticements to pay a little extra.

Just what is wrong with going out for the day, taking a picnic, and not spending any money at all? Being with friends and family is far more rewarding.

Lest We Forget The Basics Of Lending

In an era of low interest rates across most developed countries it's hard for some people to comprehend double digit interest rates and inflation to match. While lending to individuals for mortgages and to businesses stays depressed because of tighter banking regulations and a knee jerk reaction to the cavalier actions of the recent past mean everything has been kept in check that won't last forever.

Economies are slowly picking up and corporate memories are fading so it won't be too long before it starts to get easier to get mortgages and income multiples start to rise again. Traditionally a 3x multiplier has been seen as fair but stretching for people to pay of their loans but when 'confidence' increases so do the multipliers. Let's hope borrowers are more savvy this time round and only go for what they can afford.