These habits have helped us grow our net worth. An even greater benefit is that they have greatly contributed toward our overall sense of contentment. Some of these we don't do anymore, but some we do. So in no particular order, here are 9 things we do (or have done) to save or spend less money.
We recently hit up a nearby garage sale where there had to have been $10,000 worth of kids clothes. Everything was a high-end brand name and a lot of things had never been worn. By garage sale standards, the prices were a little high, but for $50 we got what would have cost >$250 in stores and everything is basically brand new. If only my feet were a little smaller, I could have got some handmade Italian leather shoes for just a few dollars. Our entire neighborhood isn't so flashy, but having neighbors with expensive clothes and flashy cars is a natural byproduct of living in a neighborhood like the one we do. Their waste is our gain.
On the other side, we try to be really selective about what we bring into our home and to shy away from short lived "trendy" items as to not be having the need to have garage sales of our own.
Get Multiple Quotes
In our house, we do a lot of home improvement projects. Lately, it seems that we're about 50/50 in terms of doing the work ourselves or hiring it out. (Rules of thumb: We always hire out drywall - it sucks. We never hire out painting - it's easy to do ourselves and my wife can spend the time to get it to her exacting standards. She's not been impressed with many "professionals" work).
Sadly, there are some real boneheads out there amongst residential subcontractors. Take, for example, the guy we had come to our last house for a drywall estimate. We were finishing our basement and had done all the work ourselves up to the point of drywall. He walked around the basement, saw what needed to be done, leaned back with his thumbs in his belt loops, and after taking a deep breath pronounced "Yup, I'll get 'er done for $3,500". No measurements were made, nothing was written down, just 3-minute walk through and a 30-second mental estimate. The contractor who got that job actually did some math and did it for just under $2,400. Always get multiple quotes.
To this day, we have spent very little on brand-new clothes for our four children. We only really buy clothes for our oldest son and daughter and the other kids get hand-me-downs. Most of the clothes we buy for them come from consignment stores or thrift stores.
(Side note - in our town we actually only have donation centers for Goodwill. We have to go to the next town over to be able to buy stuff from Goodwill. Our town is definitely the demographic of Goodwill donors, not shoppers).
Nowadays it seems that most families don't have more than two children, so there are often plenty of perfectly good clothes that kids outgrow where there isn't a sibling to hand them down to. Most of what we buy at thrift/consignment stores is for the kids, but one of my favorite ties is a Brooks Brothers tie I got for $1 at Goodwill.
When we were getting out of debt and paying our way through graduate school, I think I probably went several years without going out to eat for lunch at work. Not only that, but the lunches I did eat were pretty pathetic. I think I've eaten enough Michelina's frozen lunches for a lifetime. We've also packed meals for road trips and flights to avoid the need to purchase food on the go.
Even now that I'm no longer paying for grad school I continue to pack my lunch, but now I eat a lot healthier. I do eat out at work on occasion now, but when I do I try to make it a networking lunch and use it as an opportunity to maintain relationships with people I don't work with every day. Making this sacrifice early in my career had a compounding effect on our net worth and ability to save, but now has become a money saving habit.
When we were both working, my wife and I carpooled to work for over two years. We had sold our second vehicle and worked close enough to each other that we didn't have to get a second vehicle or pay >$1,000/yr for a parking pass at her job.
Currently, I have a couple of co-workers who live nearby and have carpooled with them, but it's not a regular occurrence and it's more a convenience thing than a cost savings thing when it does happen.
Takeout vs. Dining In
For years, we almost never ate out to ensure having enough money to pay for grad school. Now, we still don't eat out much, but it's because we have four kids and taking them all to a restaurant just sounds like it's own special form of hell. But we still want to eat good food without making it ourselves every once in a while. Our latest tradition is that I will pick up take-out on my way home each Friday.
This isn't really an area of saving money, but I have learned that at most restaurants the folks that handle take out orders get paid a little bit more to compensate for not getting tips. Knowing that, I have no problem skipping the tip on a takeout order. Boom - 15% savings. My kids are picky eaters too. Unless we're going to a pizza place, any restaurant food we buy for them is a waste of money.
There are certain cities where toll roads are just a part of life. Just driving into Manhattan or crossing the Golden Gate Bridge will cost you a decent chunk of change. This can come as a surprise to folks visiting from smaller parts of the country where all roads and bridges are free, but to locals it's just part of living in a big city.
One city that I've found particularly egregious for tolls is Orlando. The worst is the one toll booth that you HAVE to go through to get in/out of the airport. Or do you? On your favorite navigation app, you can simply turn on the 'Avoid tolls' option and find ways around those pesky tolls. Note that this isn't always recommended since your time is worth something too. One time we were driving from Orlando to South Florida and decided we wanted to save the ~$12 toll and avoid the Turnpike. We made it, but it probably tacked on 90 minutes to our trip. Next time we'll just pay the toll.
The Orlando airport toll takes just a couple of minutes to avoid and doing so gives me a sense of accomplishment, even though it only saves $0.50. Note that this isn't always recommended since your time is worth something too. One time we were driving from Orlando to South Florida and decided we wanted to save the ~$12 toll and avoid the Turnpike. We made it, but it probably tacked on 90 minutes to our trip. Next time we'll just pay the toll.
Learn to Sew
This is an area where all the credit goes to my wife. I'm not talking about making your own clothes. I know people who do that, but the cost/benefit doesn't make sense for us. For me, I regularly will need buttons reattached, hems to be redone, or even holes patched in my pants. My wife has taught herself how to sew and now I don't need to go anywhere to get clothes repaired.
It blows me away that I meet people who won't even attempt to repair clothes. It's just seen as easier to replace something that only needs a simple fix. We draw the line at socks. If my socks get holes, they go in the trash.
Wal-Mart Parking Lots vs. Hotels
Here's one that I haven't seen anyone talk about before. Now, it's been a few years since I've done this, but I've taken a few cross country road trips with only me in the car. When I'm by myself, I hate spending ANY money on hotels. All I really just need a place to lie my head down for a couple of hours before getting back on the road. Enter the Wal-Mart parking lot.
Did you know that most Wal-Mart parking lots allow for overnight RV and Semi-Truck parking? Regular cars are allowed too. It isn't often the best nights sleep as the semi trucks leave their engines running and the flood lights stay on all night, but it's completely free. I'd compare it to sleeping on a plane, which I've done more times than I can remember. My favorite part is that I can walk in at any time of the night if I need to brush my teeth or use the bathroom. In the morning, I grab a donut, a banana, and am back on the road before the crowd.
I've even met some cool people doing this. The most memorable time was driving through South Dakota and sleeping at the Wal-Mart closest to Mount Rushmore. This was near the time of the huge Harley Davidson rally in Sturgis and there was a caravan of RV's and motorcycles that had formed a circle in the parking lot and they were up all night having a good time.
Note: this would never fly if I was with my wife and kids. I'm not sure I'd suggest my kids do it either, but I'd probably do it again.
There are a lot of other things we do that didn't make this list. At the end of the day, I think it all comes down to being deliberate in your spending. You'll be served well if you find ways to do things yourself rather than automatically hiring someone.