Professor Finds Ways to Save Money in Consumer-Driven Society

Newswise — Live cheaper, retire earlier.

That is what a Kansas State University professor is urging people to do.

Fred Brock, assistant professor of journalism and mass communications, has published his second book, "Live Well on Less Than You Think: The New York Times Guide to Achieving Your Financial Freedom," which offers readers a way to make their lives richer without giving up much.

"We are a consumer driven society and are urged on every front to spend money," Brock said. "That's fine until you spend too much. The fact is, we can easily and comfortably live a lot cheaper than we think."

Brock offers five ways for people to live on less money while still getting what they want:

1. Save on the small things. People can save on items such as soft drinks and lunches by bringing them from home rather than buying them every day.

"If you buy a can of soda from a machine, it is going to cost about a dollar. If you do this twice every work day, that is $10 a week, $40 a month and $480 a year," Brock said. "Or you could go to any discount store and buy a case of soda for about $6, which is 25 cents a can. If you take this $30 you are saving and invest it at 6 percent and compound it over 30 years, you would have an excess of $30,000- and you haven't given up any sodas!"

2. Be smart about how you spend your education dollars. People often believe that prestigious private universities offer better educations and thus higher future earnings. However, Brock says there is at least one study - by a Princeton economist - showing an inverse relationship between prestigious schools and future earning power.

"Don't be obsessed about college," Brock said. "Parents should realize that it is better for their child to be in debt than for them to do so, especially if it affects their retirement."

3. Prioritize your insurance. Brock recommends that people purchase insurance to protect what they already have. People should first have health insurance, then property and casualty; after that they need to make choices.

"People spend too much on the wrong kinds of insurance," Brock said. "Some will take out huge life insurance policies, but have no health insurance or disability insurance to protect their incomes. And people are three times as likely to be disabled than to die during their working years."

4. Be aware of credit card debt. Credit cards can lead to trouble when balances build. Brock said people should try not to charge anything until their balances have been paid and, if they cannot pay the balances, take advantage of low-interest promotions.

"If you play the credit card game, then play it to your advantage," Brock said.

5. Be wise about where you live. Although few people have a choice in where they live, comparing costs of living can save thousands of dollars. When people are looking at where they want to live, they should consider how much it is going to cost to live in the area compared to how much they will be earning.

Brock's new book is a prequel to his first book "Retire on Less Than You Think: The New York Times Guide to Planning Your Financial Future."

"As I wrote the first book, it became clear that there are people in their 30s, 40s and early 50s who are looking to retire but are having trouble putting money aside," Brock said. "With the second book, I show that if you really put your mind to it, you can live on a lot less money while saving to defend your future."

Brock holds the R.M. Seaton Professional Journalism Chair at K-State's A.Q. Miller School of Journalism and Mass Communications. Prior to K-State, Brock worked as a business editor and columnist for The New York Times. While in Manhattan, he continues to be a contributor to The New York Times.

Brock has also worked as an editor and reporter for The Wall Street Journal, The Houston Chronicle and The Louisville Courier-Journal. He has taught undergraduate reporting and editing at New York University and has been a fellow at the Washington Journalism Center. Brock earned his bachelor's degree in English literature from Hanover College in Indiana, and his master's in education from Temple University in Philadelphia.

Both books are published by Henry Holt, Times Books.