1. Open up a savings account
Many people don’t even have a savings account, or don’t use it if they do have one. Check out your options and see if there is a way to automatically transfer money to your account every time you deposit your paycheck. If that money is in a separate account from your regular spending money, you are a lot less likely to use up your savings.
2. Track your spending
Keep track of how you spend your money. Write down every expense, and categorize it. There are many programs out there to help you with this. You might be surprised to find out what percentage of your money is being wasted. Finding money leaks is the first step in stopping them up.
3. Transportation
Gas prices are sky high right now. Instead of complaining about it, figure out ways to cut this cost. Carpool, walk or bike as much as possible, or take public transit. If you take the time to work out the numbers, you might even realize that your vehicle is costing you more money in gas that you could be putting back in your savings account if you just switched to a more fuel efficient model.
4. Reevaluate your entertainment budget
Going to the movies is not cheap! Neither is eating out, going on vacation, or many entertainment expenses. Explore your options. Look for cheap movie theaters that play movies a few months after they’ve been out. Watch movies at home. Find out which of your favorite shows you can watch online, and then decide if you really use those premium channels on your cable bill.
5. Don’t pay retail
Whenever you can, avoid paying full price. Buy in bulk when possible. Many items can be bought secondhand at a discounted price, but with comparable quality. Refurbished household electronics and computer equipment are often sold with warranties for your peace of mind.
6. Borrow when you can
Check around with your friends and family and see if you can borrow anything that it doesn’t make sense to buy. Use your public library instead of buying all your books or magazine subscriptions. If you can’t find a place to borrow something, sometimes even renting it for one use will be much more cost effective than buying.
7. Shop Around
Compare ads for groceries, and if it makes sense to run into a couple of stores for the best price, do so. Learn when different fruits and vegetables are in season to get them at the best price year round. You can often get deals at your local farmers’ market. For holiday items, try to buy a year in advance, once everything is on clearance. Stores are willing to take a loss on these things so that they can make room on their shelves for the new hot item.
8. Use Coupons Wisely
Lately, coupons are very popular, and it can be very useful to find out which stores honor or even double coupons. Remember that coupons are a marketing strategy. Some stores that rely heavily on coupons have higher prices in general, and you can get a better deal without the coupon. Avoid any purchase you are only making because you have a coupon.
9. Make your own
Convenience foods are more expensive than real food. It often is only a little bit more convenient, anyway. As your skills as a cook grow, you’ll come to realize that making food from scratch saves you money, is better for you, and tastes better. Cooking for yourself also keeps you from eating out all the time. If you do eat out, skip the soda, get to-go boxes for any leftovers, and consider splitting items.
10. Budget
If you ignore the rest of this article, please take this crucial tip to heart. Set up a budget, and follow it. All of the other tips only enhance this one. You can reevaluate as time goes on, but if you don’t have a plan for your money, your money has a tendency to disappear.
Other reading : Top 10 ways to save money
