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Step out of Your Routine and Save Big Bucks

Think about your daily routine. You wake up, you get ready, you get in your car, you fill up your gas tank, get to work, get lunch at a restaurant, go back to work, get a drink at Starbucks, drive home, watch cable for a few hours, and then go out to dinner with your family, right? Seems like a normal day for most of us. However, inside this day are lots of ways to save money, small amounts that can quickly add up to big rewards.

I'm sure you see what I'm saying - that you should get rid of your daily Starbucks coffee, pack lunch for work, etc. But what about an even bigger change? Imagine not driving at all! J.D. at GetRichSlowly just wrote an article about taking the bus for the first time, something that many of us would laugh at...but why not? Why is taking the bus so different? It's because we have become accustomed to the car, and to the lifestyle a car gives us.

I made a similar point in my recent post here on the Lending Club blog, entitled "Why Today Might Be A Good Day To Travel.” Making changes such as switching from a car to public transportation, or traveling cheaply, can seem extremely hard to do at first. However, small changes to your routine quickly create a new routine, and while it might seem ridiculous to get up and move to another country for a few months, once you have done it the act will feel natural. The same holds true with switching from driving to riding the bus---the act of doing it quickly becomes second nature.

What changes can you make to your routine? How can you save money?

There are two ways to get out of debt: spending less, or earning more. Most personal finance sites deal with the first---how you can spend less and save more of your money. With times like these, however, it might be time to look for more desperate measures. How can you earn more money?

I wrote in a recent article about how the recession might be the right time to start a new business. People want to find ways to save money, and if you can provide people with a good service for a good price, you can definitely start a side business. Trent over at TheSimpleDollar wrote a great article on 50 Side Businesses You Can Start On Your Own. In it, he lists some great ideas such as the following:

"Event DJing: Are you an audiophile? If you have a great sound system and a
large selection of music, you’ve already got what you need to hire yourself out
as a DJ for various events and receptions. This is a great way to fill an afternoon
and evening while also earning some cash in the process.

Landscaping services: Willing to mow lawns and trim bushes and trees? Many
people are quite happy to pay for such services. Not only is this a great side
business for a fit adult, it’s also a great way for a teenager to get a small
business started."

There are lots of great ideas to make some quick and easy cash during this downturn. One excellent example is Edufire.com, a site that lets you teach classes via the Internet. Do you speak a language or have a skill that other people might want to learn? You can teach it from your home, either privately or to a class of students!

Have you thought of starting any side businesses? What would you do? What skills do you have that you could teach others?

In a previous article, I talked about how traveling right now might be a good idea because of the strong US dollar. In this article, I'm going to talk about how to move to another country. It's not as crazy as you think!

Before reading this article, you should know about my history. I've been living abroad since January 2008, in Italy, Spain, Buenos Aires, and currently Brazil. Ever since moving to South America, my standard of living has shot up, and I have been able to afford things I never could before. Thanks to the awesomeness of currency conversion, you'll find that traveling can be surprisingly cheap if you do it the right way. However, you should also know that I am single, without any rent or mortgage to pay in the US.

But first, let's talk about what you shouldn't expect to do.

What not to do while traveling affordably

If you've ever traveled before, you probably think of it as a serious expenditure, with pricey hotels and expensive food. However, if you intend to travel for a longer period of time (say, for a month or so), you can make your money stretch a lot farther by acting more as a traveler and less like a tourist. Therefore:

• Don't expect to eat out for every meal
• Don't pay for hotels, as they are much too expensive
• Don't take taxis everywhere
• Don't buy expensive souvenirs

Acting as a tourist can be very expensive. If you plan ahead, however, you can save tons of cash.

How to travel cheaply

Choose your location wisely! Europe is pricey, northern Europe even more so. However, South America is very cheap right now, and you can generally get around with knowledge of English. Consider other locations as well, such as Iceland (very cheap right now), the Caribbean, or Australia.

Research your city well. Also, wikitravel.org has great guides to most cities, with information on prices and almost everything else you need to know.

Consider your lodging choices carefully. A hotel in Buenos Aires runs about $100/night. If you rent an apartment, however, the price can be less than $500 for an entire month! If you are traveling alone and are willing to live with roommates (which is excellent for meeting new people in the city), the price can be less than $300, even in the nicest areas. I lived in an excellent apartment with roommates in the nicest area of the city for $330 per month in Buenos Aires.

If you eat out at restaurants every night, the prices can add up---especially at fancy ones. But if you eat out once every few days, and cook for yourself for the majority of the time, you can save some serious cash.

Taxies can also be pricey (not in Buenos Aires though!), so look into public transportation.

By researching the city you are moving to, you can save tons of money. I found that I actually spend less, even after taking into account any bills I have to pay in the US while traveling, simply because the cost of living is so low! To live in San Francisco, I needed to spend almost $100/day, but in Buenos Aires, $30 is more than enough.

Would you consider traveling for an extended period of time? Where would you go?

Here's a surprising fact: now might be the best time to start a business. I know what you're saying: it's a recession! No one should be starting a company! However, for many reasons, the truth may be the opposite - now might be your chance to shine.

This post from Harvard Business Publishing mentions some prominent examples of recent companies started in a downturn, including Clif Bar, Chipotle, Hanna Andersson, Cranium and Honest Tea. Why does this contradiction occur? Why would startups flourish in a terrible economy? An article from Personal Dividends mentions several reasons.

"Cheap resources: Everything from office supplies to rent to machinery are available at low prices, not available just a few years ago...

Lower payroll costs: With unemployment reaching higher and higher levels, there are many skilled workers coming on the market that are willing to take a job at a discount to compensation levels they were enjoying in their past jobs"

Additionally, there are many other reasons. Competition is lower---older companies are failing, and newer companies can operate more cheaply. Being the agile and small startup has many benefits. However, this doesn't mean it will be easy. Starting a company at any time is difficult, but you can use the recession to your advantage. The article from Harvard Business Publishing says it best:

"The bottom line: a downturn presents many unforeseen opportunities. Entrepreneurs view financial challenges and, instead of wringing their hands, find ways to innovate and spin them into gold (or social transformation). It doesn't hurt that entrepreneurs are used to being nimble, responding quickly to market shifts, and managing cash flow."

Have you thought of becoming an entrepreneur? If you are waiting for the recession to end to start your company, maybe today is the day to start. What companies do you think could benefit from a downturn?

With the financial crisis looming and unemployment on the rise, everyone is trying to save as much money as they possibly can. Surprisingly, however, there have been a few positive side effects from the crisis. One of these is the strong US dollar. Just 6 months ago, the dollar was extremely weak, which I experienced as I lived in Italy. However, the dollar has gained a lot more power since then.

How strong is strong?

If you are wondering how strong the dollar is today, let me give you some points of reference. When I lived in Italy, until August of 2008, one Euro equaled 1.6 dollars. One British pound was two dollars. A single dollar was worth 1.5 Brazilian reals and 3.1 Argentine pesos. (I mention these currencies because these are the countries I have lived in since 2008.) Additionally, one Canadian dollar was about equal to the American dollar, and one dollar was worth about 10 Mexican pesos.

However, today the numbers are different. Check out the current exchange rates:

Check that out. The dollar is stronger by at least 20% in each country, and even 50% stronger in a few.

What does this mean to me?

If you have a steady job and can afford to take a vacation, today is the perfect time. Prices are cheaper. Because no one is traveling right now, countries are offering great discounts. For example, I'm writing this article from Norway, where I bought round trip tickets from NYC for only $400. That's $400 to get to Europe, round trip. Incredible.

Many people are currently becoming unemployed, and I've noticed a lot of people are moving out of their apartments to cheaper locations. Are you about to move to a different apartment because you have no job? Do what I do---move to a different country instead and ride out the storm. I live in Brazil, which is 50% cheaper than it used to be, which means that I live like a king on less than $1,100 a month. That's only $13,000 a year! Try to live on $13,000 a year in New York City!

How can I just get up and move?

If you are interested in moving to another country, to save money or just to see what it's like, keep watching. In a future article, I will discuss how you can take advantage of currency conversions and live extremely cheaply in another country, even if only for a month or so.

Where would you live if you could? Have you ever traveled for an extended period of time?