1. Pay yourself first. Automatically transfer part of each paycheck to a retirement account and/or a savings account before you receive your take home pay.
2. Track Expenses. Spend selectively and budget is exactly what money experts and consumer advocates advise.
3. Analyze Spending. Notice exactly now much you are spending and where. Managed money works harder.
4. Use Cash. When you spend cash, it hurts and you spend less. When shoppers spend cash, you spend 12% to 18% less than when you spend plastic because of the emotional pain. You can also get a better deal when you use cash as a negotiating tool.
5. Shun Retail. “Everything’s negotiable – purchase in season. For example, buy clothing in season. That’s when the retailers consider it past the season and put it on sale. Additionally, buy wholesale where possible.
6. Consume Store Brands. Purchase the store brand items when grocery shopping. They usually cost 40% less.
7. Buy Used. New is nice, but for the best buy, think preowned. The classic example is a used car. After two years of depreciation, you can get a good, high-quality car at virtually half price and if you ever do buy a new one, plan on keeping it five to 10 years.
8. Pick Your Credit Card Wisely. If you must use a credit card, make sure it’s one that gives you something. Look for a no fee card with a rewards program.
9. Shop For Auto Insurance. You want your car protected, but make sure you get the most cost effective coverage you can. The typical savings by shopping around for better auto insurance rates is around $1,000. Look at your coverage and deductibles on an annual or semiannual basis. Can you afford to raise the deductible to lower your premium? Are there any overlaps in your coverage that could be eliminated?
10. Dial up phone savings. Your cell phone certainly comes in handy, but is your plan really worth what you pay? “There are lots of people who sign up for calling plans for cell phones who don’t need them. A more economic choice might be a prepaid plan.
11. Change Your Mortgage Payment Method. Make bi-weekly payments instead of monthly house payments. You don’t change the amount; simply send in half a payment every two weeks. That means you make an extra payment every year and can slice nearly seven years off the average mortgage.
12. Exercise restraint. Finally, call upon your willpower or schedule a no-spend weekend when it comes to spending.
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