Sure-Fire Tips to Save Money

Save money by spending differently.

Planning for the future and saving money are goals for almost everyone, but implementing a savings plan can be challenging, especially during an economic recession. Although saving is a priority, it sometimes seems as though the budget is too tight to allocate funds directly for saving. Instead of planning to save, change how you spend money. Making small changes to your purchasing habits can result in a wealth of savings over time.

Cash Only

Paying with credit is convenient, but credit card interest rates can result in an additional 9 to 22 percent tacked on to your purchase price when your credit card statement arrives. Although the impact of credit card payments are usually only a small portion of the balance, using credit to save cash doesn't make sense because it creates debt. Instead of using credit, use cash or debit cards for interest-free purchases.

Save the Change

Paying with cash usually results in coin change. Instead of spending coins, drop your daily pocket change into a change bank at home. When the bank is full, open a savings account and deposit the change. Keep doing this every month, and the dollar or two each day will add up to hundreds of dollars annually. Even low-interest savings accounts will add interest income to the balance, but using a money market savings or Roth IRA account will result in higher interest earnings.

Coupons

Smart coupon use can save thousands of dollars on groceries annually. Shop at grocery stores that double or triple manufacturer's coupons and if the grocery store has a frequent shopper's discount card, sign up for it. Find coupons in weekend newspapers and organize them by product type and expiration date. Pay attention to weekly specials and coordinate coupon use with items that are on special. Always compare prices between stores; deep discounts can make it worthwhile to visit more than one store for your household needs. Sale items plus coupons can result in free or next-to-free groceries. Purchase in bulk to stock up on items when they are on sale.

References

• MSN Money Central: Turn $1 a day into $67,815
• Federal Trade Commission: 66 Ways to Save Money