Money Saving Tips

Simple Money Saving Tips

When bills are through the roof, it seems impossible to save enough to build up an emergency savings account or down payment for a new vehicle. However, incorporating some simple ideas into your every day life can really make a difference.

Simple ways to save money include:

• Buy things with coupons or on sale. Take the money you saved (usually listed at the bottom of the receipt) and move it into a savings account.
• Double up on coupon days at the grocery store.
• Cut out one entertainment expense a week. Most people spend a much larger portion of their budget on entertainment than they realize. Play a board game and put the $30 you would have spent on a movie and snacks into your savings account.
• Walk or take the bus instead of a cab.
• Eat dinner at home instead of out. If workplace lunches are the norm, bring your own and sit with everyone else.
• Empty pockets into a change jar.

Also, have a small amount from your paycheck (even just $10 a week) directly deposited into a high-interest savings account. If you get a raise, put the difference (or a portion) into savings, too. If you were able to pay the bills on your former paycheck, you'll save even more money.

Use Your Checkbook and Credit Cards

Use your spending habits to save money.

Checkbook

Save your money faster by fooling yourself. “Hide” money by using your checkbook register.

Every time you deposit money, round down to the nearest dollar. Every time you write a check or have a debit transaction, round up.

This theory only works if you keep track of the amount of money you are “hiding” from yourself. Use a separate ledger to record the amount of money you are rounding by. At the end of the month, transfer the money to a high-interest savings or money market account.

Credit Cards

Credit cards, if used wisely, can also help save you money. Do not use this money saving tip if you cannot pay your balance off every month. But those who can and do use credit wisely can make the most of it.

Find reward credit cards that:

• Offer cash back
• Double your rewards at certain businesses where you already shop
• Have a points system to use for flights, vehicles, or everyday items
• Offer a “savings” program that involves rounding purchases up to the nearest dollar, then depositing the difference into an account for you

Save Money on Large Items

Two of the biggest money expenses are homes and vehicles. Large scale appliances are often expensive as well.

Homes

Save money on your next home by putting down 20 percent of the costs. This will save you the expense of getting mortgage insurance.

If you are handy and have a lot of free time, consider getting a fixer-upper in a nice neighborhood. Remodeling can be worth it. Slightly run-down homes cost less, and when it comes time for you to sell, you will make what you put into it and more.

Do not forget your mortgage papers at tax time. Most homeowners qualify for a deduction based on their payments and taxes. See your accountant for more details and to find out if you qualify.

Vehicles

Like homes, you should save at least 20 percent to put down on a vehicle. Have a trade-in? Consider selling it privately, you may get up to $1,000 more. Check the popular Kelley Blue Book to find out what your car is worth.

While the shine of a new car may catch your eye, consider buying used. Cars depreciate the minute they are purchased. If you must buy new, visit Consumer Reports to learn their tops picks for price, value, and safety.

Additionally, consider the maintenance, fuel, and insurance costs of the vehicle you choose. Whether new or used, find out the miles per gallon. Ask about routine maintenance. Call your insurance provider to find out the cost of coverage options. That “great” deal may not be so great if your premiums significantly rise.

Once you have that new (or newer) vehicle, properly maintain it. Pay your loan off quickly, and then continue to put that same amount away. When it comes time to get your next vehicle, you may have enough saved to buy a good used one outright.

Appliances

Stoves, refrigerators, washers, and dryers can cost a lot of money if you need to replace your old one. If you own a fairly new appliance, check to find out if the warranty is still in place. Should your warranty be expired, call a local repair place. Repairing something small and simple can be cheaper than simply junking an otherwise good appliance.

When you purchase a new appliance, always look for a sale. Compare brands, features, and prices. Buy exactly the features you need, to be sure you pay for only what you will use.

If a factory is located near you, call and ask if they offer direct sales. You can save hundreds of dollars by purchasing directly from the manufacturer and eliminate the retail middleman.

Ask about “scratch and dent” items at retail stores. Often in perfect working condition, they are usually floor models that have a little wear and tear due to customer traffic. You can usually get between $50 and $100 off, depending on the amount of visual damage.

Share Your Tips

LoveToKnow Save is an interactive website. Share your money saving tips by adding a comment!

Comment on Money Saving Tips

(Displayed with your comment)                        (Will not be displayed)

Verification Code: