How to Save Cash

Ok, fellow young people, it's time to talk about something we need to start doing ASAP: saving our money for rainy days and retirement.

Some of you are probably wondering exactly why I think I'm qualified to talk on this subject.  Here is my answer: I lived in Irvine, Orange County, California (easily one of the priciest places in the USA) for about 4 months saving over $600 every month while earning about $1,900 per month (after taxes).  (That means I was averaging less than $24,000 per year -saving $7,200 of that- and still living a nice life).

Here are my recommendations for saving money:

1.  Carpooling.  Do not be ashamed of doing this.  Gas is $4 per gallon (higher out west), and you cannot afford to NOT be doing this.  For example, I organized bi-weekly grocery shopping trips with friends and my roommate.  It's easy, and it saves a bundle on gas.  

2.  Cheap (but healthy food).  Yes, this stuff does exist: canned beans, eggs, frozen veggies, bananas, celery, peanut butter, and apples.  Canned beans, eggs, and peanut butter are some of the most protein-packed foods out there (in fact, eggs actually have the purest and most-beneficial protein on the planet.  They're cheap, but don't eat more than 2-3 egg yolks per day).  Frozen veggies (contrary to conventional wisdom) have just as much nutritional value as fresh veggies, and they're a fraction of the cost.  Bananas and apples are good for you, cheap, and they keep forever in the fridge.

3.  Cut out ingestible crap.  Soda is a big no-no for me and for you.  That stuff adds calories, has no nutritional value, and is more expensive than the best beverage on the planet for you: water.  A similar analysis can be applied to most juices.  Just drink milk, water, and homemade coffee (coffee has antioxidants and appetite-suppressing qualities).

4.  No more gym memberships.  Seriously.  You can buy some kettlebells on eBay (for about the same price as regular weights) and get high-quality cardio and strength-training workouts in your home.  Most people don't know how beneficial ballistics exercises with kettlebells are for your muscles, bones, and heart.  For more, read this: http://www.livestrong.com/ballistic-training/.

5.  Save on utilities.  Unplug electric devices when you are not using them.  Do not leave lights on when you are not in the room.  Get more efficient light-bulbs.  Wear heavier clothes indoors instead of turning up the heat.  Stuff like that.

6.  TV, land-line phones, and internet service.  If you have a cell, I do not believe you need a land-line; get rid of it.  As for TV, if you can handle it, cut it out entirely or find a different company (or smaller television package).  Or, you can start watching TV shows online.  Many TV networks broadcast their shows online a few days after they air, so you can catch them there.  In terms of the Internet, it may be possible for you to share Internet access wirelessly.  Specifically, ask your neighbors who have WiFi if you can pay them a percentage every month to access their wireless network.  Everybody wins with that kind of arrangement.

If you start using my ideas, you can save tons every month.  Now, with your extra savings, what should you do?  That's easy.  Start a retirement account.

Vanguard has a nice, cheap retirement account option.  You can start a Roth IRA with them and invest your money monthly (see: https://personal.vanguard.com/us/home?fromPage=portal).  Make sure you pump as much money as you can every month into your retirement account; it will be huge over time.  As you will find out, compounding interest rates are your friend.

I cannot stress this enough: the earlier you start your retirement account, the better your results will be because of compounding interest rates (see: http://personalfinance.byu.edu/?q=node/440).

Get to it, people.  You're going to need all the money you can save in order to have a comfortable retirement because we cannot depend on Social Security and Medicare (as I have mentioned numerous times).