How to Easily Save Over $1500 a Year

Stocks are down, jobs are folding, and Christmas is right around the bend. You need an extra thousand dollars but have already maximized your earnings. Here is how to save.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Calculator
• Pen
• Paper
• Monthly Bills/Payments

1. Total up your total costs. Include basic categories such as entertainment, food, transportation, clothing, utilities, rent/mortgage, childcare, medical. The more specific the categories, the easier the analysis.

2. Begin to cut out unnecessary food costs. This includes the coffee on the way to work- brew it at home and save upwards of 60$ a month. Pack a lunch for work and save 250$ a month. Eat dinners at home rich in vegetables and seasonal produce to reduce food bills and stay healthy. Family dinners can cost as low as 15$ for a rich, balanced meal versus 50-100$ at a restaurant. Buy generic brand cereals and foods - they taste the same and often come from the same factories as brand name goods.

3. Bicycle or ride public transit to work. Substituting a bicycle for an automobile can save over $1000 per year alone. Check for proper tire inflation in car tires to ensure proper gas mileage, and remove all excess cargo baggage to reduce weight.

4. Get a programmable thermostat to turn down heat or air conditioning while the house is empty and while you are sleeping. Use manual controls when necessary. Check joints and seems of windows and doors for leaks and drafts and ensure your home is properly insulated. Many states offer tax incentives for these upgrades.

5. Wash clothes on cold/cold versus warm/cold or hot/cold. Durable and permanent press fabrics can both be washed on cold/cold without detriment, and will help your clothes look newer longer. Switching to cold/cold can save up to 15% of your laundry bill.

6. Avoid overspending on credit whenever possible. Each purchase you buy on credit, if not paid off in its entirety immediately will add 14%+ (check your cards rate) per year on outstanding balances.

7. Generally avoid needless purchases, such as DVD's, CD's, or books which can be borrowed at your local library (which you pay for with your taxes). Research best prices, delay purchases for personal gratification for several days, and analyze if you REALLY need the product.

8. Buy clothing second hand - some of it is NEW and premier brand names! Or buy brand name clothing at discount outlets. Even premier names in fashion can be had for a bargain off the boutique price.

9. Buy soaps, cleaners, detergents in bulk whenever possible.

10. Put 400 - 500$ in a savings account for overdraft protection. This can save up to 50$ on overdrafts of as little as 25 cents, and help pay for things like emergency auto repair or medical expenses without going into debt.

11. Live comfortably and within your means. In years of plenty, keep your habits the same and add to your savings acount, RothIRA, 401k, etc.

Tips & Warnings

• Avoid unnecessary food costs by buying in bulk and packing from home.
• Keep money in a savings account to avoid overdrafts.
• Lower utility bills to save monthly expenses and possibly lower taxes.
• Inflate car tires to proper pressure.
• Carpool, bike, or ride the bus/train to work.
• Make smart cuts in spending which are sustainable but do not alter your way of life.
• Be cautious of over saving and undermining your quality of life. Chances are what you are saving for is itself a needless purchase.
• Maintain habits in times of plenty and avoid recidivist habits to overspending.