Saving Money = Avoiding the Bread Line

In a market that has not yet recovered from the recession, many people are trying to find a way to save a little money without having to give up their quality of life. Making your money go a lot further is vital these days, as the ever increasing threat of unemployment casts a shadow over everyone. Here are 10 tips that you can use today to maintain a good quality of your life on a budget.

#1 – Know the difference between Necessities and Luxuries.

Saving Money — Image courtesy of David Castillo Dominici / FreeDigitalPhotos.net

In order to cut back on your monthly budget, you really need to take stock of the things that you need versus the things that you just want. For instance, that cup of coffee in Starbucks in the morning is not a necessity, although it may be something that you really enjoy. There are cheaper ways to get that same cup of coffee in the morning, and the tips below will help you strategize a way to do that.

#2 – Learn to invest.

Most people think that investing involves a pinstripe suit, a Wall Street address and complex mathematical equations. However, investing is something that everyone can do on an everyday basis. Investing is learning how to pay upfront to accumulate savings later. You can do this with that morning cup of coffee; instead of going out to a fast food coffee place every day, investing in a home coffee maker and serving yourself at home can save you up to $1200 a year. Incidentally, the biggest fast food coffee businesses now sell their beans for home coffee makers at a considerable discount to their in store product.

#3 – Make a list of what can be cut and what is essential.

By quantifying your monthly budget, you hold yourself accountable in a way that most people do not have the discipline to do. Just by placing everything on paper, you give yourself an added incentive and a psychological edge because you can see exactly what it is that you need to do. One easy way to do this is to go through last months bank statements and highlight everything you see as a waste of money or something that you didn’t really need. Learn from this and don’t spend money on those items again.

#4 – Conserve Electricity.

Instead of overworking your air conditioning unit during the hottest days of summer, do a little research. If you run your ceiling fans at the same time as your air conditioner, your indoor heat index will go down, giving you less reason to have a heavy hand on thermostat. In the winter, ceiling fans (on slow speed) also help circulate the heat, pushing it down and preventing it from collecting up by the ceiling. We regularly publish Energy Saving tips like this that can save you a great deal of money in utility bills.

#5 – Shop around for the cheapest utility provider

In addition to cutting Energy usage, many portions of a monthly budget are actually up for grabs, although many people may not think that they are. One of the most important expenditures that can be reduced is the monthly utility bill. Do not be afraid to shop around for different utility providers, and you are sure to find a cheaper deal than the one you are you have.
In some cases you can save up to $500 a year simply by switching providers. And it doesn’t have to be difficult! There are endless websites out there that help you to decide which provider is best for you.

#6 – Make sure that you have the best interest rates on your credit cards.

Even in the wake of the Great Recession and rising interest rates on credit cards, local and regional banks kept their rates low and in some cases, even lowered them. Getting the best interest rate on your credit card will work wonders for your monthly budget, especially if you have loans on large assets. One tactic is to pick up the phone and ask your credit card providers for a better deal. In most cases they will consider it, depending on your history with them. Another idea is to switch credit card providers to take advantage of the introductory interest rates. This will work better with people with good credit score, so check out your score before you apply. Compare Credit Cards Here

#7 – Time is money. Streamline your time.

Most of the time, people do not have a problem making money – they just have a problem making money quick enough to actually have a life. Make sure that you budget your time as well as your money so that you can have enough of both to actually have a life when the workday is done. Invest in a time-management book or have a read at the countless blogs online that can help you plan your days better.

#8– Learn to eat in.

Eat in instead of going out to restaurants – it’s that simple. The food is usually healthier and less expensive. Ok, sometimes you have to treat yourself, but keep it to once a month, as costs can mount up. Again check your past bank statements for that extra motivation.

#9 – Budget your trips before you leave.

Make a plan before you go to the grocery store so that you only have to make one trip. Combine trips- groceries, banking, library, gas fill-up… check to see if you need to get anything else in the same area, plan your route to minimize back-tracking and you will limit your travel time and gas expenditure.

#10 – Recycle.

Reuse grocery bags to line trash cans, plastic containers instead of baggies, all can save you a great deal of money on your necessities. Get some your clothes from second hand stores, sometimes you can pick up designer clothes for next to nothing. Ok, maybe not your underwear. You need to draw the line somewhere!

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Image courtesy of David Castillo Dominici / FreeDigitalPhotos.net