The following is a guest post from No Debt MBA, who has saved and is working to get an MBA from a top business school debt-free.

I going to brag a little here.  I’m pretty good at saving money and living frugally.  I may not be a poster child for Squirreling Gone Wild, but each year I tuck away a tidy sum, I’m debt free and I’m on track to pay for my MBA in cash.  Okay, bragging aside, I have a few tricks to help you pad your savings with less pain.  Remember, your savings won’t benefit from these tips unless you actually follow through with them and do it.  So here are some strategies to put more money away:

• Do it automatically – Everyone’s been talking about it for years.  You know why you should be doing it, but are you actually following through?
• Do it in lump sums – Let’s be honest, it takes a lot of $25 automatic monthly transfers to add up to anything like $5000. (Think more than 16 years) It pays to bring out the big guns and tuck away lump sums.
• Do it before you see it - That pre-tax 401k, FSA, or HSA your employer offers? It can be savings godsend, allowing you to squirrel away thousands or even tens of thousands of dollars before it even hits your accounts. Start this immediately and keep ramping it up – you’ll hardly even notice it.
• Do it with change – Our very large coin jar recently got cashed in.  After the hefty labor of carrying it to the bank we found we’d saved $250.  The change became bills which will be put in the bottom of the jar and we’ll begin filling it with coins again.  When it’s filled with bills…. that’ll be a nice day.
• Do it with found money – Yard sales, change found on the ground, bonuses and more – unexpected money should help you beef up your savings a little or a lot at once. Since it’s not in your budget there’s no reason not to save it, right?
• Do it with purpose – By giving your money a cause it’s a lot harder to cheat – you’d be robbing the cause you selected for more discretionary money. Our coin jar has a cause – spending more time together through vacations or downshifting. Any time I take quarters out for laundry I pay the jar back with dollars. Otherwise I’d be saying that a convenient source of quarters was more important than spending time with my SO. Named, separate savings accounts are another way to do this. It’s a lot harder to take money out of the bank when it’s labeled little Janey’s college fund or Christmas gift money.
• Do it with leftovers -  If you already have a budget challenge yourself to slash one area of it for a month and put the rest towards a savings goal.  If you don’t have a budget, try one for a month and save the difference over what you normally spend in a month. I’m channeling all the savings from our $25 a week grocery budget towards next year’s tuition for my MBA. 

My Questions for You:
What are your best strategies for saving a little extra money?

Which of your goals could use some extra cash?

The following is a guest post from Kyle James, who runs Rather Be Shopping

Haggling for a better price has become a habit for me. A habit that I can safely assume has saved me thousands of dollars over the past 10 years. I became a haggler 10 years ago when my first child was born. With the added expense of raising a child, I was forced to find ways to make my paycheck go as far as possible every month. So haggling for a better price was born out of necessity. I must say that I think I have become pretty good at it, and I will even haggle successfully at big chain stores like Macy’s, Home Depot,
and Best Buy. Hopefully this advice can help you save some money.

~ Assume It’s Negotiable – To assume otherwise is going to cost you a lot of money over the course of your lifetime. I always use the example of big ticket items like furniture and electronics. Whenever I go into a furniture store and I will immediately ask the sales associate what is the best price he/she could give me. If they tell me it is not sale, I will politely ask to speak with a manager and ask them the same questions. But I will say something to the effect of “I really love this piece of furniture and would like to take it home today, but I was wondering if you could help me out a little bit on the price.” In my experience this type of haggling will work 80% off the time. Managers want happy customers and they often will do anything to make that happen. You can’t be timid to make this work, you have to stand strong, speak up, and tell the manager exactly what you want.

~ Look For Imperfect Items and Ask For A Discount- This works really well in clothing stores, as well as stores like Home Depot or Lowe’s, where many items have imperfections. I usually ask for 25% off and will negotiate downward. This works great. I use to work at The Home Depot and we were encouraged to lower the price for customers to move imperfect items off the shelf and out of the store.

~ Quantity Discount – This is the notion that the more you buy, the bigger the discount you should ask for. I did this at Best Buy a
couple years ago when I was buying a TV and a DVD player. I asked the manager if he would give me $50 off the DVD player if I bought both today. He said “sure” faster than I could finish my sentence. Always worth a shot.

~ Do Your Research and Compare Prices – You have a great negotiating tool in your back pocket if you know what other stores are selling the item for. Many stores have a price match policy or a 110% price match guarantee where they will actually undersell their competition. Knowledge is power.

There definitely is a science to haggling and choosing the right words to use. The more you do it, the better you will get at it. Have you ever used any of my haggling techniques? If so, were you successful in scoring a discount? I look forward to your comments.

Whether you are a haggler or not, hopefully these online coupons can help you save some additional money. No haggling required to get these deals!

Eddie Bauer.com

Save 20% Off
your entire online purchase

Coupon Code: DAD20

Expiration: 6/19/11

See All: Eddie Bauer
Coupon Codes

Harbor Freight Tools.com

Save 20% Off
Any 1 Item in your online purchase

Coupon Code: SHOP20

Expiration: 6/20/11

See All: Harbor
Feight Tools Coupon Codes

Harry and David.com

Save 10% off any 1
Father’s Day gift idea

Coupon Code: AFFDAD11

Expiration: 6/19/11

See All: Harry & David
Coupon Codes

Home Depot.com

Save $10 off
your $100+ online purchase

Coupon Code: DADHD10

Expiration: 6/12/11

See All: Home Depot
Coupon Codes

Lowes.com

Save 10% Off
your $397+ Major Appliance order thru this link

Coupon Code: None Needed

Expiration: 6/14/11

See All: Lowe’s
Coupon Codes

Macy’s.com

Save 20% Off
your order + Free Shipping

Coupon Code: SUMMER

Expiration: 6/15/11

See All: Macy’s
Coupon Codes

Office Max.com

Save 20% Off your
entire online purchase

Coupon Code: SUMMER20

Expiration: 6/11/11

See All: Office Max
Coupon Codes

Overstock.com

Free Shipping and
Handling on your purchase thru this link

Coupon Code: None Needed

Expiration: 6/16/11

See All: Overstock Coupon
Codes

The following is a guest post from Paula, a former car rental reservation agent who has created the website Best Car Rental Tips. Her goal is for visitors to obtain tips and tricks for saving money on their car rentals, as well as to provide them with information and guidelines for various car rental policies.

The prices of car rentals have risen steadily over time.  It’s more important than ever to save money, and a little effort and research can get help you save money.  There are several ways to try and get a discount on your car rental.

Discount Car Rental Coupons

You can find car rental coupons online through coupon sites, in magazines, sometimes your yellow pages, and in the Entertainment book.  The most common types of coupons are free upgrades, money off (usually either for weekly or weekend rentals) and free days (again, usually only applicable to weekly or weekend rentals).  Go for a money off or free day coupon, if possible. Generally when using a free upgrade coupon, you’ll find that when you read the fine print, the upgrade isn’t guaranteed -  usually they’re subject to availability of the larger car at the time of pickup.

Make sure that the terms and conditions of the coupon fit the parameters of your rental.

Discount Car Rental Codes

There are hundreds of membership programs (think auto clubs, travel clubs, frequent flyer programs) and professional organizations (example United Teachers Federation, American Bar Association, etc.) that offer car rental discount codes to their members.  Check with any memberships that you have to see if there is a car rental discount code that you are entitled to use.

If you have several memberships, compare rates using your different discount codes to see which one is better.  You can often combine a coupon and a discount code (many coupons have a discount code associated with them), use both for maximum savings.

Discount Car Rental Deals

All car rental companies offer various deals to attract customers.  These deals can be for different lengths of rental, for different sizes or types of rental vehicles or for a specific rental car location.  Visit various car rental company websites, as well as car rental booking sites (like Travelocity, Kayak, Priceline) to see and compare various car rental deals. There are also websites (rentalcarmomma, for example) that are dedicated to showcasing various discount car rental deals for multiple companies.

Frequent Renter Offers

Car rental companies often offer savings and reward benefits to those who Sign up for their frequent renter programs.   Benefits often include discounts, faster and easier check in and check out of your rental car, unlimited mileage and sometimes even the opportunity to earn free car rental day coupons after a certain number of rentals. Sign up with programs for several car rental companies;  they will often send you email updates of new car rental offers and specials as they become available. They may even have offers that are only available to their frequent renter members.

The bottom line is that you do have options for discount car rentals; you just need to check them out.  Finally, book as far in advance as you can while continuing to check regularly for last minute car rental specials that you can take advantage of, and always compare multiple companies for your intended rental in order to get the best possible car rental rate!

The following is a guest post from Beating Broke, as part of the 2^ndYakezie Blog Swap.  The topic is “What is your best day-to-day money saving tip.” 

When you’re saving money and paying off debt, it’s easy to get bogged down by the bigger picture.  We analyze all of our debt together, and, in effect, miss the tree for the forest.  But, if we want to truly be successful at reducing our debt, and eliminating our debt, we have to overcome that problem. 

In our day-to-day lives, we can’t run around focusing on the fact that we have $50,000 in total debt.  We have to consciously focus on the things that we do.  Every little thing.  It’s the driving force behind David Bach’s “Latte Factor”.  And, you’ll be hard pressed to find any good advice on debt reduction without seeing something similar.  

“But, how do I focus down on something so small as a latte when I have this mountain of debt?”, you might be asking.  And the answer is that it isn’t easy.  It’s downright hard, in fact.  It’s so very easy to overlook the mountain and say “this $5 isn’t going to make a difference in my $50,000 debt, so I can spend it on this latte.”  

Here’s how you do it though.  Conscientious spending.  Not just on big items, but on all items. We’re all very used to analyzing big purchases.  Buying a car has become a several day, and 100 questions ordeal.  And, while I wouldn’t condone asking 100 questions (or taking several days) to buy a latte, I would suggest pausing long enough to think it over a little.  You need to conscientiously think about each and every purchase.  It doesn’t matter whether you’re buying bubble gum, coffee, or groceries.  If you don’t, you’ll find yourself buying in a rut.  But, if you give yourself time to briefly analyze your purchases, you’ll find yourself making smarter purchasing decisions.  

Even if you still buy that latte, maybe you make it a short and spend $1 less.  Or, maybe you decide just a regular old coffee will work just as well and you save $3.  Buying the generic brand at the grocery store can save you quite a bit each shopping trip.  And if you pair all those little choices together with a good budget, you’ll find yourself with surplus at the end of the month that can be added to your debt payments.  $1 or $3 may sound like small fries, but over a month, that could add up to $100s!  

I leave you with my day-to-day savings advice.  Conscientiously think about each and every purchase.  Take a few seconds to break out of your spending rut and see if you can find a way to save just a little bit on each purchase.  Don’t do a “no-spend” month.  Do a conscientious month.  I think you’ll find the end result to be the same, and you won’t have had to “starve” yourself off of something all month long.

Recently, I had to do an overnight business trip which required me to make a 2 hour flight. Given the flight time, time of day of the flight, and accompanying delay, I decided to buy dinner at the airport.  Why stay hungry for hours on end, right?

With a little bit of time on my hands before the flight, I ambled over to the little food court that was within my gate. In surveying the choices, I found pizza, Chinese food, and subs. The pizza kiosk looked empty, and the Chinese food looked pretty unappealing. When you see tired business travelers eating greasy noodles out of a to-go container, it’s not exactly a siren song that draws you to buy that stuff and consume it:)

So, I instead decided to purchase a sub sandwich and, a drink. In surveying the choices, I settled on a full-size sub, and a large bottled water for the flight. I like to bring water on the flight, just in case.  After the sub was made, and I grabbed the bottled water, the employee rang me up.

The total? $13.

Yes, it was $13 (and some change, actually) for a sub sandwich and a bottle of water.

Sure, the sandwich wasn’t small, and the bottled water was a probably over 20 ounces, but that’s quite an expensive price to pay. Even the lady that rang up the order remarked that you could probably buy two of the same meals for that same price if you were outside the airport at a regular location. If the same meals were made at home, I’d venture to guess that one could probably make five of the same meals. To be fair, I didn’t take a really close look at the prices when I ordered, only because it was clearly a fast food, food court quality meal I was buying. How expensive could that actually be, right?

Well, it was quite expensive by most standards here in the U.S. Fortunately for me, as I mentioned earlier, I was on a business trip. It was a legitimate reimbursable expense, so I wouldn’t personally feel the pinch. But still, it’s not something I want to pay, whether I’m ultimately responsible or anyone else is.

That got me thinking about how expensive it can be to travel by air. Sure, the tickets themselves represent the bulk of the expense.  But there are other expenses that can really add up, and make the airport a place that drains your pocketbook unexpectedly and in a hurry. Normal rules and price ranges don’t quite apply there, and it’s easy to fall into the trap of being on “vacation mode” and lose perspective on keeping expenditures in line.

With that inspiration, I’ve drawn upon my travel experiences to come up with 5 ways to save money at airports:

1. Pack your Food.  When packing for your trip, prepare an easy to transport meal that can be placed in a carry-on. You’ll have to be sure to pack food that can go through security (check on specifics ahead of time), but most items should work. Maybe a sandwich and an apple, for example, would make an easily transportable meal that’s not messy and could be eaten while waiting for your flight or while on board. Instead of spending $10 for an airport meal, you could pack one for $3. For a family, this can add up quickly.
2. Drink Water Before Arriving.  Since you can’t bring water bottles into the gate area, make sure you drink a fair amount of water before getting to the terminal. No need to drink like a fish and then be running to the bathroom all the time. Just drink enough so that you won’t be super thirsty upon arrival. Now, I do recommend getting water while at the terminal, in case you’re stuck on board and then subsequently delayed at some point. That said, at least you can purchase less water. A $2 bottle of water is better than a $4 bottle of water! Or, alternatively, you could bring an empty reusable water bottle and fill it at a fountain in the gate area.
3. Bring Reading Material from Home.   Many people like to bring items to read onto the plane. If it’s a long plane ride, that’s certainly understandable. Personally, I do this as I can be quite focused on the plane and prefer to read instead of sleep. If you’re like me, plan ahead and bring a book or magazine from home. If you choose to make an impulse purchase there, you’ll likely pay full price and might be missing out on reading something you’ve already purchases. Plan ahead, and you can save from $5 to $25 and up.
4. Avoid Clothing, Souvenir, and other Airport Retailers.   These items purchased at the airport are probably not going to be cheaper than what they would cost at a normal location. Rather, they’re likely to be priced at a premium. Remember my sub sandwich example? Think of that multiplier, except for bigger ticket items. Again, some people get into vacation mode, escape from reality, and buy things that they don’t need while paying a premium price.
5. Park in Economy Lots or Take Public Transportation.  This applies to the part of the airport travel experience that occurs before you get to the terminal. Now, if you’re flying from a small, regional airport, this might not make a difference. But if you’re traveling out of a larger airport, it’s something to consider.  For me, parking in the garage would cost $31/day vs. $16/day in a remote, “economy” lot. Over the course of 5 days, that adds up. Another option is to take public transportation to the airport, if available. This would likely result in even more significant savings.

What about you?

Do you ever follow any of these approaches to saving money when traveling at airports? Do you have any other tips?

Saving money is obviously an important action to be taken to maintain strong financial health. It’s something that too many people don’t do, despite being widely encouraged to do so. On the other side of the coin, there are some people who actively save. Within that group, there are some that are passionate about saving.

I’m in that latter camp.  As I’ve gotten older I’ve taken a closer look at my finances and projected where I am compared to I would like to be long-term.  The results of this analysis have pointed me in the direction of increasing my savings rate. Of course, one can only save so much; if you grow income concurrently, your savings increases further.

Clearly, there’s something motivating me, might you agree? This “long-term” notion I mentioned at the beginning of the prior paragraph naturally points to a future a need for money.

Ok – so that’s nothing different than saving from retirement, right?

Perhaps.  But it goes further than that.

While some savers are motivated to squirrel away money for specific items (house, for example), paying off debt, or for a retirement filled with world travels – I’m primarily motivated by one thing: not being old and broke.

Sure, I have other “aspirational” motivations, such as a glorious retirement filled with traveling around the world, living in a very nice home, spending lots of time with grandchildren, generously giving to those in need, etc. Actually, I what I would really like is financial freedom as soon as possible.

Let’s get that party started quickly!

But really, it’s that avoidance of being old and broke that’s at the foundation of my interest in saving. I had always had that in some far corner in the back of my mind, but my recent increase in time spent downtown here in Chicago – as opposed to the suburbs – has increased my daily exposure to people begging for money.

Now, the area around Michigan Avenue is a fantastic area with VERY expensive real estate, particularly for here in the Midwest. Additionally, it has what in my opinion is the highest concentration of fine shopping, dining, and hotels in between the East and West coasts.  That said, this perceived prosperity draws a few beggars at times.

I really don’t like to see this, and it’s not because I’m annoyed at them for being lazy. Well, it might be for some of them, particularly those in their 20’s and 30’s.  But mostly, I just don’t like to see people in a position where they have nothing – no money, no home. Call me a softie, that’s fine.

What really gets to me, however, are the older people who I have seen.  While being on the street probably ages people, a few of the people I saw clearly looked to be 65+. The first such person I saw was a woman, the second one an even older man.

That could be someone’s Mom or Dad out there!

Now, who knows what happened in their life to get them to that point. Maybe they did some bad things? Or, maybe they had just one or two bad financial decisions or life events and they were out on the street? Tough to say.

I give a few dollars to people such as this. Hopefully an exceptionally generous person will step up and do more.

Anyway, once I acknowledge that I feel bad for them, I start to think “I don’t want to be them.  Ever.”

In the hierarchy of financial motivators, that’s at the top of the list for me. Or maybe a better way to think about is that it’s at the foundation of my personal finance hierarchy of needs.

What motivates you to save money? Not superficially, but at your core.  Why do you, deep down, feel the need to save?

Today marks a one month anniversary for me. A small anniversary, to be sure, but one that has taken some effort on my part to accomplish.

It’s been one month since I last consumed a caffeinated beverage.

OK, so like I said, this is a small anniversary. Perhaps you’re not much of a consumer of coffee, tea, or soft drinks. Or, perhaps you’re highly disciplined when it comes to food and drink, and wouldn’t have any issues with your eating and drinking habits. If so, that’s great! That’s a good place to be.

For me, this is a nice step in that direction.

If you’re like me, you might be someone who has your caffeine during the day at one time or another. Maybe it’s the morning cup of coffee. Or the cola at lunch. Perhaps it’s both. Maybe it’s at multiple times during the day.

There are many people that are hooked on caffeine, whether they realize it or want to admit it.

I have been advocating drinking water instead of less healthy alternatives, and had pushed myself to get to that point for the most part. However, my lifelong taste for Diet Coke emerged in a big way in recent months, with an extremely busy schedule at home and work.  I previously would have one occasionally,  but I slowly escalated my consumption until I was having at least 2 or 3 per day. This was reminiscent of my habits about 10 years ago. Additionally, if I came across free coffee anywhere (bank, office, etc), I would be sure to have it. That might be a few times a week too.

The result was that I just didn’t feel right, and decided that I needed to take steps to get more disciplined with my the food and drinks that I put in my body. So, eliminating caffeine seemed to be a good first step.

The first few days were rough, as I started to get headaches and felt nauseated. It felt as though I had some type of bad flu virus, for those initial days. Interestingly, when it was that bad during that initial time, I ran to a quick-serve place and picked up a fountain drink. After a short while, I felt good. While it was nice to feel better, it made me realize the hidden power of caffeine.

From that point, I resumed staying off caffeine, and I haven’t had any since. It’s been a month now.

No Diet Cokes, no coffee, no caffeinated tea.

Mostly lots of water every day.

There have been a few days where I had juice, and one day when I had two glasses of beer. That’s it.

The result: I actually feel better! Here are four benefits I have noticed:

1. Falling Asleep Easier. Caffeine isn’t preventing me from sleeping.
2. Getting Better Sleep. Once I fall asleep, I stay asleep more often
3. Less Ups and Downs in Energy. There are no bursts of energy followed by mini-crashes and lethargy; rather, I’m consistently at a good enough level of alertness throughout the day
4. Improved Concentration. It seems like it’s a bit easier to maintain focus for extended periods of time

In terms of the pocketbook, I’m clearly saving some money by having water instead of soft drinks, as I frequently suggest. But the bigger thing is that I’m able to maintain energy throughout the day – which I hadn’t been able to do as well before. This, I believe, can only make one a more productive, energetic, and innovative worker. It may not be directly quantifiable, but I think there’s at least a potential financial benefit that could be attributed to those factors.

Will I keep up this strict regimen? Probably not to this extent, but I hope to reestablish a long-term pattern of limited caffeine, with sodas being only an occasional indulgence once every few weeks. If I have a caffinated drink, maybe green tea would be a good option. We’ll see. 

Regardless, this one month exercise gave me a direct example of how good dietary habits can impact one’s energy, health, and even the ability to earn and save money.

For many young people, the life of a professional athlete seems like it would be amazing. You get money, fame, and the ability to play a game for living while also have a lot of fun away from the playing field.

Speaking for myself, the mindset I had at 24 would have steered me toward having a nice condo in a trendy area, a great car, and substantial expenditures on food, travel, and fun, had I been a professional athlete making $400,000 annually. I think I would have been fairly responsible overall – after all, at 24 one is a fully-grown adult. Additionally, I would have remained true to my values and continued to be very close to my parents, but wouldn’t have lived with them on a day-to-day basis.

That’s what makes this story I found on Fox Sports to be interesting. A 24 year old athlete who pitches for the Oakland Athletics organization, is a guy who lives at home with his parents. Now, these days that’s not so unusual; plenty of people, 24 years and older, live with their parents. Many families find this to be a way to pool resources and save money.

The difference is that this guy makes $400,000 annually! While it’s on the extreme low end of major league salaries, it’s still a substantial income by most accounts. How many 24 year olds making that kind of money, with plenty of fame, would live at home – when they clearly have many other more exciting options?

Apparently, he would. And frankly, I applaud that. Why not? While the 24-year old version of me wouldn’t have done that, the older version of me thinks that it’s not such a bad idea. At 24 years old, just getting started in life, it couldn’t hurt to live there for a short while. In his profession, there are ups and downs for young players (he was sent to the minor leagues this year), so it’s smart to be careful. He can pitch in at home and help defray some expenses for his folks, since he’s unmarried and not obligated to another person. Plus, it can help him save the rest of his money without doing anything crazy such as buying overpriced property, or having insanely expensive nights out on the town. Wouldn’t it be hard to do that with Mom and Dad right there?

Let’s assume, to make it easy, it comes out to $250,000 after taxes.  If he lives at home and helps out, what could his expenses be? Let’s say $4,000 per month? Annually, that’s $48,000 – leaving him with $200,000 after taxes.

Let’s say he takes that 1 year’s worth of savings from living with Mom and Dad, and invests it in the stock market, earning 5% annually after taxes for the next 30 years. In that scenario, that one year of savings by living at home would be worth about $864,000. Granted, this must be viewed in the context of inflation and decreased purchasing power. Nevertheless, that’s quite a benefit for just living at home for one year.

Regardless of what his actual motivations are for living at home, this guy is a good role model for smart financial moves.

Whether or not he is consciously doing it, he is demonstrating two important personal finance actions:

1. The ability to differentiate between wants and needs.
2. The importance of saving early in life, to open the possibility for compounding to perform its magic

What do you think of this? Do you think it’s smart for a 24-year old making a substantial income to be living at home, or should someone in that position live it up a bit more?

When it comes to medical expenses, do you – or anyone you know, for that matter – find them to be surprisingly high on occasion? Do you ever wish that you could cut those costs just a bit to free up more money for other expenses? Or, better yet, for savings?

Many of us would answer yes to at least one of those questions.

A recent article from Yahoo! Finance offers a strategy that may help make that happen. Apparently, one person was able to save $1,000 off a $4,000 medical bill by making a phone call and using this scripted dialogue:

“Hey, my friend told me that if I offer to pay the bill in full over the phone, I get a 25 percent discount.”

That’s it. No negotiating involved. He got the hospital, anesthesiologist, and pediatricians to reduce the charges associated with the birth of his child.

It’s interesting how cash is king, and immediate payment reaps a benefit, even when dealing with medical professionals.

I had always assumed that there wasn’t much wiggle room when it came to medical bills. That perception changed when I had some dental work that needed to be done some years back. After years of having no cavities, my soft drink habits caught up to me and I found out that I had multiple cavities and needed a root canal.  While in the dentist chair at that visit, I casually asked about tooth whitening (mostly to distract myself from the cavity situation). The dental assistant and I joked that if I got all the work done, they could throw in free teeth whitening for a future appointment. It was almost something like wheeling and dealing for health care.

When you think about doctors, dentists, and other health professionals, why should they be perceived so differently than other business owners? For example, if we buy a car, we haggle. If we want someone to do handywork around the house, we negotiate. Let’s face it: while most prices of goods and services are “fixed”, many are clearly negotiable. So why can’t we try to “negotiate” health care?

In terms of the specific situation described above, I think the guy took a novel approach, and commend him for saving $1,000 just by simple effort. What I don’t agree with is the specific language used about a “friend” telling him he would get a discount if he paid by phone. Is that entirely – or even partially true? Not sure about that.

A more genuine, above board way to pursue the discount would be to say: “If I pay my bill right now, over the phone, I would like a 25% discount”. Yes, I”m nitpicking words, but I’m a stickler for integrity in such situations.

Anyway, the bottom line is that this example illustrates how many things can be negotiable - including a seemingly non-negotiable expenditure such as health care. The thing is, you have to take the initiative to make it happen.

What do you think about negotiating healthcare costs? Would consider taking this type of approach to reduce expenses?

When many of us go shopping, we like to think of ourselves as smart shoppers. If we aren’t, we probably want to be. Particularly folks that read personal finance blogs.

Sometimes, out of convenience or laziness, we overpay for things. It isn’t just paying full price while not using a coupon; rather, sometimes we just buy things for which there are cheaper substitutes available.

The problem is that when we do this, we’re overpaying more than meets the eye! If we pay $1 more than we could otherwise pay, we aren’t just losing out on $1. We’re losing out on a lot more.

Let’s say you forget to use a coupon, or just flat out overpay for something by $1. No big deal, you might think.

Well, today that dollar may not be a big deal, when considered in isolation. However, we’re talking about two variables here:

1. Time (today vs. future);
2. Quantity (one purchase vs. aggregated purchases).

Let’s first look at time, which is the linchpin of this exercise. Let’s say that you save $1 today, and you take that $1 and add it to your investments. Let’s further assume that this extra dollar you save earns 8% per year.  

Here is what that $1 can grow into, over time:

5 years: $1.47

10 years: $2.16

20 years: $4.66

30 years: $10.06

So, taken another way, a $1 impulse purchase is costing you over $10 well into the future. Sure, we could factor in time value of money, and a host of other variables – but the magnitude of growth of $1 is quite impressive.

Next, let’s look at quantity. When you look at how $1 can eventually become $10, it shows the impact that one smart decision can have. But what about the impact of making it a habit to make smart purchases? The more you take advantage of these seemingly small savings opportunities now, the better your financial future will be.

To illustrate, let’s say that instead of just saving $1 one time, you save a dollar a day for one entire 365-day year. In aggregate, that $365 saved during the year can grow to $3673 in 30 years.

Both of these factors – time and quantity – show how small savings today can add up and result in impressive amounts of money later.

What do you think?