Slash Your Bills (page 5 of 5)

Cost-Effective Clothing and Job Outlook

9. Shop Smart
Clothing's a basic need, but the endless cycle of sales, the proliferation of outlet stores, and online coupons can actually make people spend more on clothing than necessary, says Kathryn Finney, author of How to Be a Budget Fashionista.

Instead of grabbing everything that catches your eye, apply Finney's "cost-per-wear" rule: "When I see something I like, I ask myself ' How many times am I going to wear this in a year?' Then I divide the price by that number. Ideally, an article of clothing should cost no more than $3 per wear."

To help you find the best deals on the Internet, there's new bargain-tracking software that notifies you (your toolbar turns colors) when your favorite stuff is on sale. Check out the Intelligent Shopping toolbar at ShopAtHome.com. Finney also likes Wow-Coupons.com for its printable coupons that she takes to the store.

When you do go shopping, don't be afraid to ask your salesperson if she's got any coupons or deals. Or ask if that's her best price. Some stores will take off as much as 15 percent, just for the asking.

To stick to her budget, Finney avoids credit cards and buys prepaid gift cards at her bank in the amount she can afford. "Once it's gone, it's gone," she says. The cards may cost a few dollars. Check for hidden fees and expiration dates.

10. Up Your Skill Set
Money expert and radio host Dave Ramsey doesn't mince words. He regularly orders callers to perform a "plastectomy" by cutting up their credit cards, and he counsels down-on-their-luck types to "turn off your stupid TV and develop a five-year plan." Ramsey says the best protection against inflation is to bring in more money. And these days, the best way to do that is by upping your skill set.

"We're in a knowledge-based economy," he says. "What you know five years from now will determine your income. So learn something you don't know now to make money later. Read books, take classes, find a mentor, network with smart people. It's true, lots of people in this country are becoming poorer, but the good news is some poor people will become wealthy."

Ramsey doesn't have to convince Ilah Hardesty, who is studying for a degree in business administration. She hopes to move into a management position, perhaps at the exercise studio where she works, or as principal of her kids' small private school. To help pay for college, she locked in an affordable student loan when the rates were about to jump two percent.

Studying takes time away from work, which means a thousand painful budget decisions every month, but Ilah keeps focused on the payoff, saying, "I'll sacrifice what I can now." That kind of pluck really impresses Dave Ramsey.

From Reader's Digest - January 2007

 

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• Budgeting 101
• We tell you 16 ways to save $100, how to create a budget, steals and deals on gas and food, and more!
• 
• New Ways to Save Money and the Environment
• Cool new ways to save money -- and the planet.
• 
• 3 Easy Ways to Save Cash Now
• Three easy ways to keep more money in your wallet.
• 
• Setback Thermostats Save Money
• Install a setback thermostat to save money and energy
• 
• 16 Ways to Save $100
• Simple, sensible ways to save money.
• 
• Save on Insurance, Repairs and Gas
• Save on insurance, repairs and, yes, even gas.
• 
• What Will It Take to Pay Off My Balance?
• Find out the monthly payment necessary to pay off your card balance in the desired period.
• 

Which of these is the biggest drain on your paycheck?

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