Ways to Save Money

Why It’s Important

Sit down with a piece of paper and a pencil, and list your saving priorities. Maybe you want to take a special vacation six months from now or you have to save for your child’s baseball uniform or dance lessons. Perhaps you’re starting a new savings account, or retirement fund. Maybe you’re just tired of living paycheck-to-paycheck.

Saving money requires a shift in thinking and action. Taking ownership of your money by creating a spending plan is one of the few things in life you can control. Consequently, when external forces interfere with your plan, you’re better prepared.

And don’t worry about the social stigma of saying, “I’m saving for X, so I’d rather not go shoe shopping” or “Let’s not eat out – let’s stay in and make homemade egg rolls instead.” You’d be surprised how many others are looking for better ways to save as well as fun, new experiences.

Ways to Save Money Today

The object of saving money isn’t to do without. Nevertheless, financial experts agree that the best way to save money is to not spend as much. It’s the most simple formula in the world, but hard to follow.

Here are some quick changes you can make to any lifestyle and see the savings add up.

Curb Certain Habits

Bankrate.com recently revealed some startling numbers about our “vice habits,” including:

Pack-a-day of cigarettes:

Daily: $5

Weekly: $35

Monthly: $150

Annually: $1,825

Daily coffee-to-go:

Daily double tall latte: $4

Weekly: $28

Monthly: $120

Annually: $1,460

Vending machine soda/snacks, twice-a-day:

Daily: $3

Weekly: $21

Monthly: $84

Annually: $1,008

If you indulge in any of these habits, quit. At the very least, consider cutting consumption by half as just one way to save money.

Other impulse purchases can add up just as quickly. Buying a magazine off the rack in the supermarket checkout, for example, is expensive.

Weekly: $4.95

Monthly: $20

Annually: $238

Subscribing to your favorite periodical costs far less per year – sometimes by as much as 75 percent. Also keep in mind that most libraries stock all the latest magazine titles, which you can rent and read for free.

Even a pack of gum makes a difference. An average pack costs 85 cents at a convenience store.

Weekly: $1.70

Monthly: $7

Annually: $84

Have you ever really thought about the fact that you might spend nearly $100 on gum per year?

These little “nickel and dime” purchases are what mysteriously eat away at expendable income, thus they are the easiest to curb. Before you know it, you’ll have an extra $20-$150 or more in your pocket every month.

Avoid Unnecessary Fees

So your bank charges an additional $2 for the convenience of using another institution’s ATM – and you think that’s okay? Bouncing checks, paying for overdue DVDs, not having enough change for the meter, which results in a multi-dollar parking ticket – these are just extra taxes on your hard-earned income. You also don’t want to incur late fees on utilities or credit card payments.

Make a plan of action as to how to avoid paying these extra charges, and you’ll save money immediately.

Eating Out

If you slip into a drive-thru or the nearest deli for your daily lunch, you’re spending an average of $7 each day.

Weekly: $35

Monthly: $140

Annually: $1,680

Try packing a lunch at least three days a week.

Now take into consideration the evening meal. Sure, it’s great to have pizza every so often. But a weekly splurge averages out to $17.

Monthly: $68

Annually: $816

If you must have a pizza fix, back it off to once or twice a month, and use a coupon. Better yet, learn to make your own for far less. For other meals out, choose a fine restaurant once or twice a month, rather than frequent fast food, or find a discount for a new place to make it more entertaining.

Eating In

Cooking for yourself, rather than buying a lot of pre-packaged food, is healthier and less expensive. How can a family manage to eat well on a budget? By planning ahead.

Sit down and think about the foods your family really likes the most. Create a two-week schedule with those favorite meals, allowing for four days to try a new recipe, and four days where the main meal will result in leftovers the next night. From this plan, you can then make a shopping list, and start to look for big bargains on what you use most.

Quick tips to make the home dining budget stretch further:

• Use coupons for what you really consume, not what the marketing department wants you to try.
• Stew small cuts of meat as part of a full recipe in a slow cooker for better flavor, as well as spending less per pound and getting extra meals.
• Purchase frozen vegetables, which are as good as fresh, but not as expensive.

Entertainment

Everyone needs a night out or a fun leisure activity, but that doesn't mean you can't hunt around for deals.

• Rent movies from the library
• If going out on a date, do lunch and a matinee, rather than dinner and a night movie
• Keep an eye out for inexpensive concerts and other performances
• Invite friends over for a potluck party
• Make many of your children's playthings and art projects

Remember, playing frisbee in the park, having a picnic by the lake, and other energetic outdoor activities are almost always free.

Ways to Save Money for the Future

The little steps you’ve taken to find ways to save money daily are preparation for the bigger gameplan: saving money for the future.

Financial guru Dave Ramsay suggests creating special envelopes to set aside the money for specific things: a new TV, vacation, furniture, and so on, instead of buying on credit. The top tools of successful money management include saving more ahead of time so you can pay in cash, or have it set aside so you can immediately pay off the credit card bill.

If you don’t already have a savings account, sign up for one today at your local bank. Or, consider an online savings account like Citibank Direct, which is FDIC-insured, charges no monthly fee, and offers a return on savings of four percent or more.

Once you have changed your mindset about the ways you can save money, you’ll find a windfall of opportunities to do so.

Additional Resources

66 Ways to Save Money is an online resource offering additional ways to save money.

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