On Mon, 7 Jun 2010 04:49:25 +1000, "Rod Speed"
wrote:

HerHusband wrote:
What are currently your best saving tips you recommend
and also practice, relating to how you make your money
go much further than it used to, whether it's for food
weekly living expenses, home and financial investment, etc.

Do as much as you can yourself. Obviously some things will require
tools, manpower, or skills beyond your ability. But labor costs are
usually half the cost.

We do our own car repairs, do our own yard maintenance, build our own
furniture, etc. If you study and take your time, there's not much you
can't do yourself. For instance, my wife and I built our own house a
few years ago for under $60,000. It's already worth more than
$240,000 today and we have no mortgage.

Me too.

Also, learn to live life simpler. You don't have to own that
megamansion or new car, just because your friends and neighbors have
them. We've never owned a car that was less than 10 years old (and
never paid more than $3000 for it), and our 1456 sq/ft house is more
than adequate for our family of three.

Avoid taking loans for anything. If you don't have
the money, wait and save until you can afford it.

I dont agree with that. There are situations where a loan does make sense,
most obviously to buy a reliable car that is essential for a particular job etc.


You can buy a $8,000 car with a loan, and end up paying an additional
$3,000 on fees and interest for the loan. The value-wise buyer will
buy a $11,000 car for cash with no interest, loan fees, etc. There is
also an additional risk for the person taking out the loan to default,
unless he/she has a guaranteed income. A cash payer has zero chance
of defaulting on a loan, despite the income. It's about
responsibility, right?


The loan allows you to start earning real money more quickly.


The loan allows you to lose real money upfront, and guarantees you
will pay more for the product/service.

Finance changes can easily double the cost of an item over the long term.

Yes, but if the loan is used to buy the car that produces significant
income, a cheap reliable car can be paid for quickly and you dont
end up paying much for the finance if you finance it properly.


A car does not produce income. A vehicle is not a "wise investment."

The other obvious situation where a loan makes sense is with business startup costs.

You can still use credit cards (that's how we pay for everything),
just pay them off each month to avoid interest charges.

And take advantage of the rebates. Thats better than using cash and more convenient too.