How to Save Money

Saving money is not easy, but you need to be willing to have self-control of your “wants.” My wife and I were able to get out of debt and we are in our early thirties with no credit card balances. I will tell you how we did it.

Difficulty: Easy

Instructions

Things You'll Need:

• Self-control
• Budget

1. You should create a budget on Excel or simply written on a piece of paper. Learn to live within your means. You should forecast your bills and your potential savings. This way you know exactly where your money is going and this will enable you to determine where you need to cut back on unnecessary expenses. Be smart and frugal with your money.

2. Grocery Shopping - Always shop at grocery stores that are not expensive. If this means that you have to shop at Wal-Mart because you’ll save $20 a week on groceries then this means you’ll save $1040 a year on groceries by shopping a Wal-Mart. Buy generic brands, most of the time you can’t tell the difference between name brands and generic brands on certain products. Look for grocery coupons on the Internet or in the Sunday Newspaper. Multiple coupons can add up to potential savings. I have found it to be a wise investment by becoming a member of Costco or Sam’s Club. I believe membership prices range from $30 - $40. Just be careful of what you buy. You can save money buy certain common items in bulk like: milk, eggs, toilet paper, detergent, dish washing soap, and other common items which you would normally buy at the grocery store.

3. Shopping for Clothes – Clothes can be very expensive. Discounted or thrift stores often have clothes for below $5. Some of the clothes I have found are in very good condition. I can buy 3 shirts and 2 pants for less than $15. This new clothes would have cost well over $100 at a retail store. If you are accustomed to wearing name brand clothes you can sometimes find name brand clothes on eBay or at discounted stores like TJ Maxx, Ross, etc… for less than big department stores. My advice is to try and be used before you buy new, it will save you a lot of $.

4. Saving $ - Only keep the money you need to pay bills in your checking account. Put the rest of you money in a high-yield interest savings account. Make sure it compounds daily. Also, you should open CD’s, and IRA’s (Roth or Traditional). Traditional IRA’s are tax deductible and Roth is not. In your budget make saving a bill, this will you force your self to transfer money into savings account.

5. Be Smart – Discipline yourself with your “wants.” If you have cable TV, don’t get the most expensive package or the most the fastest Internet speed. If you have have HDTV and the Internet with your provider, your bill could exceed $150. It is best to cancel Cable TV because it is a luxury, but if you must have it then get the most basic prescription. Avoid eating out because this is where most people waste most of their potential savings. My wife and I struggle with this, but you need to have self-control. Instead, look for recipes on the Internet and cook at home. I am not saying if you eat out 4 times a week to stop completely, but instead eat out 2 times instead of 4. Gradually cut back on the number of times you go out to eat. Avoid have using credit cards. Only use them when you get rewards/points and you can afford to pay it completely off before the end of the month.

[akchrist]

on 6/13/2008 Great tips!

[cjwritelife]

on 6/9/2008 Great information that is basic and very usable!

[momandpopoften]

on 6/3/2008 I REGULARLY buy over $100 in groceries for less than $10 by using coupons. It really works! Take a look at my articles where I share how I do it: http://www.ehow.com/members/momandpopoften-articles.html

[AmyJaine]

on 3/6/2008 very good article, thank you.

[slphilbrick]

on 3/3/2008 Saving money 101. This stuff should be taught in high school so our kids don't end up in debt before their lives really begin ! Good job. I'm having tech. difficulty with the star rating so if they don't show that's why. :(