Tips to Save Money

Saving money, cutting costs, and budgeting are all very popular buzzwords lately, and with good reason. There is a wealth of information available online and in print about personal finance, and much of it is relevant and useful. However, many people are able to save significant amounts of money on their own by following a few basic, and sometimes mundane steps:

1. Avoid Eating Out: While taking yourself or your family out to dinner on a regular basis obviously costs quite a bit, even eating out for lunch or breakfast on a regular basis can funnel away significant amounts of cash over time. Assume that the average lunch during the work week will cost you $7.00. That's $35/week, $151/month, $1820/year. Think about how much more quickly you could pay off your credit card debt by putting an extra $151 per month toward it, or the impact of making one or two extra mortgage payments per year with the $1820. That $7.00 a day five days a week could be put to much better use.

2. Use a List: Don't go grocery shopping without a list. Plan out what you need before you go and avoid impulse purchases. Planning out a shopping list helps avoid unnecessary purchases and can save a shocking amount of money.

3. Shop in Bulk: Invest a couple of hundred dollars in a large deep freeze and shop in bulk. Buying in bulk saves money on the quantity discount and it saves money by cutting down trips to the store.

4. Plan Meals: When you are cooking at home, time becomes an issue. Planning out a weekly menu fits right in with shopping in bulk, not eating out, and using a list. Having a weekly menu makes it a lot easier to plan ahead for meals to be cooked at home and allows you to budget your grocery money better.

5. Cut Utility Costs: There is a long list of ways to cut utility costs, but investing in a programmable thermostat, making your home air-tight, and getting a tankless hot water heater are some popular and effective methods of saving money on utilities.

6. Insurance: Make sure you are getting a good deal on your home and auto insurance. Most insurance companies will give substantial discounts for writing your home, auto and sometimes life insurance as a package. If you have your insurance policies scattered out among different companies, consider combining them at a lower price at one company. The savings can be surprising.

These are just a few basic money-saving tips, but if take to heart, they can be effective. A big component of saving money and cutting costs is planning and discipline. Planning out a budget and sticking to it instead of spending blindly, paycheck to paycheck can make a huge difference.


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