Second Anniversary ChicagoCheap Recap
Posted by Christine Talley at 10/28/2010 10:39 PM 
Categories: cash, Personal Finance, Real Estate, Advice
Categories: cash, Personal Finance, Real Estate, Advice
Hey! Chicago: cheap! passed its second anniversary, and I didn't even notice! Like we did last year, let's review this year's tips for saving money.
Seek out cheap rent. My rent is high for a studio because I have a certain expectations: good condition apartment, building amenities, location... but it's still cheaper than a one-bedroom in similar condition and location. After being offered a rent freeze, and unwilling to compromise for a lower quality apartment, I decided to stay another year. See other tips on getting the most bang for your rental buck.
Don't buy things twice . As we learned from my spendthrift cousin. He wants something nice, but instead of saving up, he just buys the cheapest version. In short order, he finds the item is poor quality, and/or won't work for him, so he goes out and buys the nicer item, too. This process is costing him 25%-50% more on his major purchases than the rest of the population, but he does it because he's trying to be thrifty! Don't make the same mistake.
Figure out where your money flows, so you can plug any leaks. My cousin was spending $300/mo on coffee, but didn't realize it! A simple investment in a $30 thermos cut that way down, but he had to do a budget first to figure out where his money was going.
Make your money work for you. I got rid of my combination savings/checking account at CountyBank, and opened a new one at Danversbank. I'm earning 3%. I also switched from the American Express Blue Cash card, where I was making around $190/yr, to the Charles Schwab Invest First 2% Cash Back credit card , and am on track to make $260 this year. For retirement planning, I've still got the cheapest IRA: the retirement plan that gets you a company match, or a ROTH if your company doesn't match. Since I maxed out my ROTH, I chose to open a SEP this year, too, which gets me a tax deduction.
Want more of our best tips for saving money? Check out last year's anniversary edition of Chicago: cheap!
Seek out cheap rent. My rent is high for a studio because I have a certain expectations: good condition apartment, building amenities, location... but it's still cheaper than a one-bedroom in similar condition and location. After being offered a rent freeze, and unwilling to compromise for a lower quality apartment, I decided to stay another year. See other tips on getting the most bang for your rental buck.
Don't buy things twice . As we learned from my spendthrift cousin. He wants something nice, but instead of saving up, he just buys the cheapest version. In short order, he finds the item is poor quality, and/or won't work for him, so he goes out and buys the nicer item, too. This process is costing him 25%-50% more on his major purchases than the rest of the population, but he does it because he's trying to be thrifty! Don't make the same mistake.
Figure out where your money flows, so you can plug any leaks. My cousin was spending $300/mo on coffee, but didn't realize it! A simple investment in a $30 thermos cut that way down, but he had to do a budget first to figure out where his money was going.
Make your money work for you. I got rid of my combination savings/checking account at CountyBank, and opened a new one at Danversbank. I'm earning 3%. I also switched from the American Express Blue Cash card, where I was making around $190/yr, to the Charles Schwab Invest First 2% Cash Back credit card , and am on track to make $260 this year. For retirement planning, I've still got the cheapest IRA: the retirement plan that gets you a company match, or a ROTH if your company doesn't match. Since I maxed out my ROTH, I chose to open a SEP this year, too, which gets me a tax deduction.
Want more of our best tips for saving money? Check out last year's anniversary edition of Chicago: cheap!
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