Wednesday, March 12, 2014

Ways to save money in London

There are a lot of ways to save money. I will be sharing you practical ways that can help you live frugal and save more as Dave Ramsey says "Live like no one else so you can live like no one else".

I should say that you can still be happy as you live a frugal life. Many people confuse happiness with fun. Money can buy fun but not happiness. Saving money does not mean a miserable life and lack of basics. It simply means you focusing at alternatives that conserve hard-earned cash.

1. Cycle to work (that is if you stay at considerable distances)

I stay about 5 miles from work and it takes me about 30 minutes to cycle to work. This is also a way to exercise and do free workouts. Hitting rather three birds with one stone. Waking to the station and getting to work before today was costing me 45 minutes (more than the cycling time) and train tickets of 3 pounds a day. By the way if you live far from work you may consider shifting to a house closer to work. I used to stay in Slough commuting to Reading everyday and it would cost me 8.30 pounds a day which translated to 50 quid a week. Since I moved it costs me nothing except energy to get to work.

For the bikers just make sure you have the biking accessories like helmet, reflective jacket, bike light (if travelling at night), warm outfits and mudguards if its raining. Leave home early for easy cycling that does not make you arrive at your place of work sweaty.

2. Drop the gym membership

Gym is great for workouts but unless you are a serious bodybuilder or "looser" you are wasting money and time (registering). I was going to the gym and discovered that I can do workouts that keep me in shape and give me the six-pack that I am after without giving away my hard-earned  192 pounds per year. There are apps that you can download for free that can give you perfect abs in 42 days. One such app is "Caynax A6W". By the way putting that 192 pounds every year for 25 years in a mutual fund that pays about 10% p.a (which is very possible) will give you 19,071 pounds.

3. Sharing rather than renting a full house

Rent is one of the biggest expense that gobble up Londoners' money. Rents that range from 600-800 are considered modest to most people but outrageous to me. Sharing a room will probably cost you from 250 -400 depending where you are. If you save 500 pounds by not treasuring privacy over the scarce pound you would have put 54,590 in a fund that pays about 10% p.a in the space of 25 years. (By the way look out for my post on finding the best mutual funds or ETFs).

4. Sack the fuel guzzler

Personally I do not have a car. Firstly the insurance payments make me groan and the need for it is very small. But for those with big pockets, no claims bonus and a genuine need I say small fuel economic engine saves the day. Diesel engines also tend to do better fuel consumption. Better still to those who are very wealthy, you can get the new hybrids that combine fuel and electricity. Not forgetting that even the red hybrids are green since they produce less CO2. Terminology!!! So ask yourself if you really need that "thirsty" tank.....

More tips to follow.Saving takes a resolve to silence "the baby" in most of us. The baby that screams wanting extra candy to feed the doll. Most of the things we buy we never use them, thus making the owners of ebay rich by listing our unwanted items there. Remember if you do not buy the things you do not need, you will not have to sell the things you need!!! Enough said.....

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