What Will You Do With An Extra $330 Per Year?

Photo from Amazon.com

I thought of the question "What Will I Do With An Extra $330 Per Year" when a co-worker came into my office a couple days ago and told me "Thank You" for informing me how to save money on my phone bill. It will help tremendously with he and his wife's budget. I was so humbled.

You see the previous day I informed him about Magic Jack. I was very touched because I was only passing along the information my relatives in Dallas informed me of.  Pay only $20 or $30 (if you keep your existing land line phone number) per YEAR for your phone bill. Not per month, but PER YEAR!! I told my co-worker how I ordered the equipment. It will arrive today or tomorrow.

With the average land line being $30 per month it equals to $360; pay $30 (Magic Jack Plus) once a year; and you SAVE $330 per year. I know saving an extra $330 per year may not seem much, but it can be the difference for a single person paying an unexpected health bill, a father wanting to take his family to the beach or the mountains for the weekend, or an educator finally making the decision to open a 403(b) or Roth 403(b) account to supplement their retirement.

Photo from Bestlunchideas.com

For many people $330 may not seem like a lot, but believe me it can make a difference. What other savings can you do to be able to contribute to your retirement. Below are my 5 Suggestions:

1) Brown Bag It: Ever since I started working at age 18 as an undergraduate at Clemson University in their Business Department, I bagged my lunch. A few times I may go to the cafeteria cafe and order a small pizza or hamburger, but 98% of the time I brought my lunch to work. It saves so much money. You only need time. Take the time either the night before or when your breakfast is in the microwave, go grab a fruit and make a sandwich. Mix it up by bringing a salad twice a week and a sandwich the other days.
My Result:
THEN: After I got my graduate assistantship for Grad School, the remainder of my tuition was paid by me stashing my savings(brown bagging it). NOW: I contribute to both a 403(b) and Roth 403(b) via ValuTeachers.

2) Automate: It is not quite a savings, but if it is out of sight it is out of mind. Have your HR automatically take the money out of your paycheck and directly to a savings account at another bank, a 401(k), Roth IRA, or 403(b) account. And when you get a raise increase the amount you contribute.
My Result: In 2008, I was able to contribute fully ($5,000) to my Roth account. You can always decrease as I did when I had to start car payments in 2009. I still contribute, but it is not near the amount I would contribute if I didn't have a car payment.

3) Buy Generic Products: There is very little difference.
My Result: I pay generic on vitamins, cleaning products, store brands of Spaghetti, jam, peanut butter, bread, etc. The savings goes to my retirement account.

4) No Name Brand Clothing: Similar to #3, but for clothing. However, if you must buy name brands shop at The Goodwill or other consignment shops. Shop off season as well. Buy Winter items during the Spring or Summer.
My Result: Recently went to The Goodwill in Brooklyn, NYC and paid for two pair of pants - $9 each - with regular price of $45 per pants. Nice clothing for work in which you paid less in clothing than what you earn in any given day.

5) Travel Savings:

Photo from Airlines.co.in

1. If you like to go on a cruise go during the Winter.
2. Travel after Labor Day, the prices goes down tremendously.
3. Use your air mileages if you travel 2-3 times per year.
4. Travel mid week and purchase airline tickets on a Tuesday or Wednesday.
My Result: I've been able to travel on a cruise in January that was half the cost of a Summer cruise and will be traveling to China for New Years. It may be cold climbing The Great Wall, but the savings goes to my retirement account.

What will you do with an extra $330 per year and what are your other ways of savings to pay for your retirement? Please comment below.

Rhonda W.