Tips to Help Save Money
- Can of dollars image by Carusell from Fotolia.com
By plugging money leaks and directing the savings to a bank account, your money can grow almost painlessly. Once your savings account starts growing, it can start working for you. Plug the leaks as soon as you recognize them to keep your long-term financial goals afloat. - Keep a log of every penny you spend for a month. By forcing yourself to write down everything, you have a clear picture of where your money goes. You may be surprised to find how much little incidentals cost on a monthly basis. Unnecessary purchases, such as coffee, treats for your children, a new lip gloss or another pack of cigarettes may appear to be only a few dollars, but spending a few dollars repeatedly adds up quickly. Being prepared with snacks and drinks brought from home, learning to tell yourself and your children no to treats or ditching that cigarette habit can give your savings account the boost it needs.
- Food spending can get out of control quickly. To reduce your dependence on restaurants and processed food, try batch cooking and freezing dinners. Once-a-Month Cooking, a cookbook by Mimi Wilson and Mary Beth Lagerborg, outlines a plan for creating a month's worth of meals at a time. This method not only prevents waste of ingredients (what do you do with the rest of the cilantro after using the required two tablespoons anyway?), but you use less overall water and energy in the cleanup.
- Review utilities, and shop around once a year to ensure that you still have a great deal with your current company. You could benefit by receiving your phone and Internet services from one company or by ditching either the land line or cell phone. Pre-paid cell phones can meet your emergency needs at a fraction of the cost of a typical cell phone plan. Water only once a week. Adjust your thermostat a couple of degrees to save on heating and cooling. Improve your home's insulation. The U.S. Department of Energy says, "Properly insulating your home will not only help reduce your heating and cooling costs but also make your home more comfortable." Paying for television is becoming increasingly unnecessary. Sites like Hulu.com offer many shows online at no cost.
- Check with your insurance companies on how an increase in deductibles would decrease your insurance rates. Raise your deductible to the highest comfortable level. Take a defensive driving course, which might reduce your auto insurance rate. Contact your home insurance agent, and go over your policy together. Your house could be insured for more than is necessary, or you may no longer have that pit bull. Ask your agent if there are other discounts for which you are eligible.
- Automatically deposit part of your paycheck into a savings or retirement account. Jean Chatzky, author of "Money 911" and "Pay It Down," advises "You should be saving 10 percent of every dollar you earn." Also, your bank may offer a savings program that rounds debit card purchases up to the next dollar and moves the difference into your savings account. Some banks offer matching incentives to get you started.
