10 Money Saving Habits To Have

As we start 2011, I wanted to share 10 habits I've found that not only enhances my life but also saves me money in the process.

1. Choose experiences over things. "Tomorrow isn't promised," this is something that I always heard growing up.  And as such I try to live my best life today. I like to experience life through traveling, exploring new venues, places and cultures. And as one that have experienced a long-term layoff from work, I am very aware of the little value material things have. I often wonder why someone would spend $500 on only a few articles of clothing or that new gadget, yet have never taken a vacation. Vacation = Investment in ones mental sanity.
   
   
2. Stick to a budget. This is pretty self explanatory. To get a better hold on spending, we need to know how much cash we are bringing in and letting go.
   
   
3. Your time is worth what? Instead of thinking about how much you make on an annual basis, calculate how much you actually make on an hourly basis. For instance, if you make $50,000 per year, work 40 hours per week (35 hours per week with an hour lunch) and receive 2 weeks vacation thus working 50 weeks per year not including possibly holiday time off, then your hourly rate will look something like this: ($50,000 / 50 weeks) / 35 hrs = $28.57/hr. The next time you buy something, think about how many hours you will have to work in order to pay for it. If you are one to pay $60 for a shirt (and I'm not one of them), then you will need to work 2.1 hours to pay for it. Placing this type of time value on the dollar will make you think twice about how you're spending your time...I meant money.
   
   
4. Be active - It's usually cheaper to play your favorite game than it is to watch people play it. Not only will you get the health benefit and the satisfaction of the game, but you will also save money in the process. For instance, I love tennis and have been playing in a tennis league for years which allows me to play other tennis players at my skill level within my city and costs me no more than $35 each season (since I usually take winters off that's only $105 per year). According to SeatGeek.com, if I wanted to attend last year's 2010 US Open Tennis Championship I would have spent at minimum $47 for an earlier session ticket and if I wanted to attend one of the finals, the ticket price jumps to an average $331. Accommodations and transportation to the event not included. As you can see when you compare playing a game versus watching a game, the savings is tremendous.
   
   
5. Dare to compare - It's easier to compare material things than it is to compare experiences. I'm a sucker for experiencing new cultures, especially if it involves a nice warm climate. My travel preferences and destination may differ greatly than Mr./Mrs. Jones and frankly I don't care what they like to do, however when it comes to material things our choices are actually quite few, somewhat pre-decided for us as consumers and thus forcing us to compare our purchases with others. This type of purchasing behavior only forces us to want the next big thing or bigger thing (thus more expensive) than our peers.
   
   
6. Mix it up - I like to mix up my experiences. In any given year I will do small getaways (i.e. day trip to a state park, weekend roadtrip to a destination, etc.) and then take at least 1 longer vacation (if not 2 if I can find a good bargain) such as a cruise to the caribbean, etc. By doing this, it helps break the monotony of everyday living and working while saving me money in the process.
   
   
7. Use what I pay for with my tax dollars - We pay for state and national parks, libraries and public recreation centers with our tax dollars, so why not use them? Instead of paying $20 for a book you will only read once, i will first see if I can borrow it from the library for free. Instead of spending $100-$200 for a motorized boat rental to go fishing, I will rent a pedal boat, jon boat or row boat at a state park with a lake for under $10.
   
   
8. Plan ahead - It just makes cents. Not only can planning ahead save you money, but the mere anticipation of the planned event can enhance your daily life. Those working a 9-5 know what I'm talking about since it gives you something to look forward to.
   
   
9. Bargain Hunt. Don't be ashamed of comparing prices and shopping around. As a personal rule, I always check at least 2 stores and online before a major purchase. And when I say major, it's typically over $20. I have saved up to 75% by doing so.
   
   
10. Be Social. As in social media. I always look for bargains, reviews and advice on social media sites such as Twitter, Facebook, Groupon, TripAdvisor and the hundreds of other online forums.