How to Save Money Everyday

The old, timeless maxim-money saved is money earned-is true. Most of us have occasionally grumbled about rising expenses and cash-flow problems. One of the main causes of cash crunch is our inability to save money on a routine basis. Saving money on day-to-day expenses is a great habit to cultivate and it is easier to accomplish than you think.

Difficulty:

Moderate

Instructions

1. Calculate your resources and income. This information will enable you to determine your spending capacity.

2. Contemplate purchasing a product before plunging headlong. Scrutinize each purchase, especially if it seems an extravagant purchase and figure out its significance or usefulness. You will soon realize that more than 50 percent of your spending is probably meaningless.

3. Develop insight into the holes where your money tends to slip by keeping an account of all the money you spend. Keep a month-to-month log of money spent on various categories such as food, clothing and medical expenses.

4. Avoid dining out while at work or with family and friends. Pack your lunch and drinks for the day and carry them from home to work. If you do eat out, check for early evening offers, new restaurants with specials and hotels that offer discounts and coupons. Or, try candlelight dinners at home instead.

5. Cut down on your trips to the vending machine or the deli to purchase snacks. Substitute homemade snacks, seasonal fruits or store-bought snacks purchased during your grocery trips.

6. Plan your shopping carefully, especially when you shop for groceries. Preplan your menu for the week, note the ingredients and only purchase items that are on the list. Refrain from buying groceries when you are hungry, as you tend to make impulsive purchases on an empty stomach.

7. Be a savvy shopper. Look for coupons in newspapers, magazines and online as well as weekly or daily in-store specials. Consider buying a store brand product instead of a branded product.

8. Check out prices at different stores and buy from a store where the item you require or a similar item is at a lower price.

9. Slash your power bill by using electricity sparingly. Develop a simple yet splendid habit of switching off lights and fans when leaving the room. Notice the difference it creates in your bill.

10. Do not make purchases when you are tired or when you have kids with you. Beware of enticing combo packs, eye-catching displays and free gifts with purchase of an item. Make use of coupons and rebates wherever possible.

11. Make purchases of shoes, bed linens, home décor items, furnishings and clothes during sales periods. Also keep an eye out for off-season sales and clearance sales.

12. Create a collection of original gift ideas. Present your dear ones with fresh hand-plucked flowers from the garden, a personally embroidered handkerchief, fresh homemade cookies or chocolates, jams or pickles. They will appreciate your skill as well as efforts and you will save a lot of money.

13. Allocate a specific amount per month towards a gift fund, birthday fund or whatever else you may want to call it. By setting aside some cash every month for this fund, a substantial amount will accumulate and it can be directly utilized towards buying something during the holiday season or on birthdays or anniversaries.

14. Economize with a motive. Keep in mind the beautiful diamond earrings you were tempted to purchase at a jeweler's shop or an expensive pair of cufflinks or a dream destination for the holidays. This will accelerate the speed and the size of your savings.

15. Address the issue of your credit cards, insurance and loans with care. Acquire the cheapest loans, pay back full balances on your credit card debts to earn discounts and balance the negative impact of the loans with the positive effects of insurance plans. Reach out for advice from friends and professionals.

Tips & Warnings

• Set up a monthly expenditure log by using spreadsheet software on your computer, such as Microsoft Excel. This way you can speedily, legibly and often automatically devise your income-expense plan.

• Coupons and rebates are only valid for a specific time period. Watch out for the expiration dates on them and plan your purchases accordingly.