Over a year ago I shared 3 Ways My Wife and I Save Money. Since then we’ve published many posts about various ways to save money. Today I want to share three more ways my wife and I save money.
In the first post about how we save money I talked about couponing, getting DVDs from the library, and pursuing low-cost hobbies. I am happy to say that we still do all three of these things to save money each month. Just last week I picked up Breaking Bad season three and four from the library and literally just an hour or so ago my wife finished updating our coupon database. While doing these three things save us thousands a year, we also do other things to save us money.
1) Save Money on Coffee
Both my wife and I drink coffee every single day. I didn’t used to drink coffee, but I started to get up at 5:30am for work on weekdays despite being a night owl. One morning I found myself cracking open an energy drink at 7:30am and realized I should really look for a healthier alternative. I quickly made the switch to coffee and have never looked back.
So how exactly do we save money on coffee? Well, the most obvious way is by brewing a pot at home every morning instead of going through the Starbucks or Caribou drive-through. This simple habit saves us tons of money every single week, month, and year.
So do I think you should deprive yourself of Starbucks, Caribou and other coffee shops? No. I do go to coffee shops from time-to-time, but it’s usually to work on the blog or some other income-producing activity. I also always take advantage of deals – see my post How We Saved Hundreds of Dollars on Coffee if you are interested in seeing exactly how I save money at coffee shops.
Photo by waferboard
2) Shopping at Target instead of other Retailers
I know, I know – I mentioned couponing in the first post. But trust me, I’m not talking coupons when I say shopping at Target instead of other retailers save me money. I’m talking about the Target REDcard. When you use the REDcard you save 5% off your purchase. Every. Single. Time. It’s a no-brainer! I can’t believe that so many people shop at Target and do not take advantage of this deal.
Many people are put-off by store credit cards. But what most people don’t realize, because they dismiss the REDcard so quickly, is that you can get it as a debit card with the exact same benefits. My wife and I got the debit card a couple years ago and we couldn’t be happier with the benefits of saving 5% every time we shop at Target.
Okay, I lied. Target also has some awesome coupons, as well as a solid pharmacy rewards program. Check out my post 3 Ways to Easily Save Money Shopping at Target if you are interested in joining me in saving hundreds (if not thousands) of dollars shopping at Target.
Photo by Fan of Retail
3) Using a Health Savings Account (HSA) for qualified expenses
I’ve had a lot of unexpected health expenses the past two years. Because I had sinus surgery in both 2012 and 2013 I hit my out of pocket max for health insurance. This can be quite high – over $3,000 each year for me. Thankfully my health insurance offers a Health Savings Account (HSA) that helps save a ton of money on health care expenses.
If you have an HSA, anything you deposit up to the allowed federal amount is not taxed. This means instead of paying for medical expenses with after-tax money, you can pay for them with before-tax money. Additionally, let’s say you have a good year health-wise and don’t go to the doctor at all. Let’s say you also contributed the maximum allowed into your HSA. You can actually invest the money and, as long as you use the profits to pay for health-related expenses, you will not be taxed on the gains.
Even if both my wife and I had very little expenses in a given year, you can guarantee we will be putting the maximum allowed. There is to much money to be saved to not contribute as much as we can.
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What do you do to save money? Do you use an HSA, brew your own coffee, or use Target’s 5% tax savings?
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HSA is something which I would like to look into for saving money. I was really happy to see how you can save money on coffee as I love to sip coffee when I am working from home.
Samgill I definitely need coffee every morning, and I’m jealous that you work from home. I get to do that for the blog, of course, but my full-time job requires me to come in to work each day.
I don’t drink coffee and try to eat healthy not to get sick! The more I read the ingredient lists on prepared meals and processed food the more I try to make my own from scratch.
RFIndependence I’m surprised you don’t drink coffee! You could just leave the cream and sugar out and it’s essentially harmless, but I hear you about sticking to making food from scratch.
I’ve not heard much about HSA, but this looks like a great tool. Anything you can pay pre-tax is usually worth while? Do you think there are any downsides? Can you withdraw from the account after investing? Do you have choice in the investments?
moneystepper You can withdraw from the account after investing (or at any time, really). You can go to an ATM right now and withdraw all your cash. It’s easier to leave it in there, though, because you are going to be taxed unless you can prove the withdrawals were for qualified medical expenses. You do have a choice in the investments.
I make coffee at home too. I always have, but it makes even more sense now that I actually work from home! I drink the generic store brand coffee too. Always have, so I’m used to it!
Holly at ClubThrifty That’s great that you are used to store brand coffee, and I have it from time to time. I’m a bit spoiled though so we buy the “brand name” coffee beans with coupons usually.
We brew at home as well and only buy coffee if we’re out on a date or something. We did that this past Friday actually and was amazed (though I shouldn’t have been) that it was $5 for a latte for my wife. Of course, she didn’t like it when I said that was the cost of half a bag of beans at Costco that’d last us for 6 weeks. I guess I am not romantic enough. ;)
FrugalRules Haha not romantic at all! Let your wife enjoy herself once in a while! Just kidding ;)
We brew our own coffee (almost never buy it out) and shop at Target with the Red Card. I like the savings. I never used to drink coffee, but having a kid really pushed my tired button. I need it now.
DebtRoundUp If it’s not having to work early it’s a kid. There’s always something that pushes people to become a coffee drinker haha.
I used to be one of those people who didn’t take advantage of the red car. I think people just see the 5% n think to themselves that it’s not that much.But in reality you actually save alot. But I don’t think I could live anywhere without a target at least in a five mile radius. I’m dependent on it for almost everything.
MonaSez I also share your love of Target and go usually at least once a week. The 5% really adds up and I love how they show your year-to-date savings on each receipt.
I’ve never been able to acquire a taste for coffee, so thankfully I don’t have to worry about wasting money there. Unfortunately, my wife’s consumption more than makes up for me so we probably aren’t saving much!
Oh, and sinus surgeries are no fun to recover from at all. I had one back in 2008. The first week or so is tough. Good advice on using the HSA.
PFUtopia Hold up. Coffee is a waste of money? Blasphemy! : P
I stupidly decided to work from home the third day after my second sinus surgery. Boy was that dumb. Definitely need at least a week to feel somewhat normal.
I confess myself guilty of shopping at Target and not using the REDcard. Shame on me!
ayoungpro You read my mind: Shame on You!
Wow, I never knew about the HSA. I’ll have to see if my insurance offers that, what a deal. To save money on shopping I go through amazon. There aren’t many easily accessible discount stores, like target, in NYC.
brokeandbeau Target needs to expand to NYC! Target was started in Minnesota and they are literally everywhere (even right in downtown Minneapolis).
I am not a huge fan of coffee where I need to drink it every day, but I do make it at home, along with tea. I can’t bring myself to spend so much money on one cup when it’s about half the cost of a bag/k-cup package. I also shop at Target, but lately for some reason their prices have been going up on some grocery items we used to buy there, and going to the grocery store is actually a better deal. I would say I look through all the circulars and try to keep track of what stores have the best prices for the products we buy to save money. Luckily they are all within a close distance!
JourneytoSaving There are certainly some situations where it’s better to take advantage of other grocery stores deals (I’m doing a campaign for Cub right now but I can say in all honesty that we DO shop at Cub each week or every other week for the discount items). Stores do change pricing policies so definitely a good idea to look around.
I have a Flexible Spending Account for medical bills so I have to spend all the money I put into it in a given year, but I lowball the number and keep track of all my expenses so I know a good average to put aside each year. We have found it so useful to have that money there, just sitting and waiting to reimburse us for our medical expenses. It’s especially helpful because our budget is very tight so a $100 medical bill can be a problem but I know that I can pay it and get reimbursed in a couple of weeks so I don’t have to panic. Also, I always brew my own coffee at home and I just learned about the Target debit card. I haven’t yet signed up for it but I love some good Target coupon matchups!
You will love the Target debit card because not only will you have your coupon matchups but you will get 5% taken off the top every time you go! I’m really not a fan of the FSA. I don’t like the fact that you lose the money at the end of the year. I hope FSAs are phased out in favor of HSAs.
I don’t drink coffee and have to drive 70 miles to get to Target, but I’ve used the heck out of my HSA this year. It doesn’t hurt nearly as bad to go to the doctor, although the ER visit this spring was still a zinger.
Eyesonthedollar It definitely helps, especially when you are just starting your career. I don’t think there are many people my age who wouldn’t find devastating to have $3,800 in medical bills (that’s my out of pocket max, which I hit two years in a row). It’s much less painful to have the automatic deductions made.
I am really happy that we will be having an HSA implemented this year at work. We had an FSA in previous years but I never used it because it was use it or lose it at the end of the year. I refused to put my hard earned money in an account that had to be spent by the end of the year. Now I can sock away some tax free dough and watch it grow into a medical emergency fund.
MicrosMissions Yeah FSA is a terrible system. HSAs are great because it helps people save for medical bills, while I think in the past people would just get stressed out because even if insurance covered a chunk of it you still might end up with a $2k or $3k bill but no money set aside specifically for it.
I really wish my job offered an HSA. I’ve had an FSA before but never an HSA. FSA’s were too stressful for me as I realized I put too much money in mine and had to spend it frivolously at the end via paying an annual fee for a no-waiting, same day appointment doctor’s service I only used once lest I lose the FSA money. :(
I think the big thing with saving money is people have to be willing to work for it. If you’re willing to look for the bargains, you’ll be rewarded sweetly!
Tara Zee I’m NOT a fan of an FSA! It gives ZERO incentive you to contribute at all! At the same time, insurance is screwy that way. Once you hit your out of pocket max you have all your little medical issues that you wouldn’t go in for if you had to pay for any of it. I went in for carpal tunnel this year and I am making sure I regularly see my ENT in case I need surgery or something expensive again this year. But yeah, the HSA is so nice to have.
Tara Zee Shoot thought you were the one who was getting the HSA implemented, but it looks like that is Micros Missions below you. I hope your work adds it soon.
We use the Target RedCard as well and I agree it’s pretty great. You still need to make sure to compare prices at other places, but for most of what we get on a regular basis you really can’t beat it. I would love to have an HSA. Someday…
The Target RedCard is one of my favorite cards I own! Yea, it’s a credit card, but I make sure I pay it off in full every month, taking full advantage of the 5% off all purchases! I shop at Target all the time, so it’s nice to know I’m saving money without really thinking about it.
Great post.. We actually do all three of these as well. We still have only about 30% of our HSA spent, and we are into September.. We might have to get some of that orthodontic work started that we have been putting off, if there is money left over.
I don’t have a Target in my area but I wish I did. I have a Walmart, Kroger, and K-mart and since I avoid Walmart all all costs I am stuck with Kmart and Kroger. I don’t drink much coffee….actually I am more like an energy shot addict. I buy the $1 energy shots at Kmart and the Dollar Store as opposed to the $3 Five Hour Energys.
I love the Target cartwheel app on Facebook. I find a lot of coupons through that.