5 Tips on How to Save Money in 2007

Saving money is all about planning. It doesn't just magically happen no matter how hard you wish on that star. If you are ready to really start saving money, or getting out of debt for 2007, now is the time to figure out your game plan. Here are 5 tips to get you started.

1. Budget

Although this is a very obvious tip toward saving money, it is often overlooked. Really sit down and make a list of set monthly expenses. Use a financial program on your computer or just plan Excel. These programs can help you to keep track of these expenses in an orderly manner. Sometimes just organizing numbers in column this way can help us sort out what is needed and what is unnecessary. Calculate other expenses that aren't usually set like food and clothing, and make a realistic budget for these things on a weekly or monthly basis.

2. Stick with it

There is no sense in making a budget unless you plan on sticking with it. If you budget $500 a month for food, than you need to divide that out into the weeks and not go over that amount on a weekly basis. Writing out a budget will not help you unless you really plan on giving it your all.

3. Making more money doesn't equal having more money

If you think just because you are making more money this year, you will be saving more. It just doesn't work that way. If you have more money, than your 'budget' expands to encompass that amount. It's a natural law of finances that you won't have 'extra' unless you actually set it aside. Those that find themselves making more money, spend more money. Don't fall into this trap, and set aside the 'extra' money that you will be making.

4. Every little bit counts

Even if you don't make a lot of money you can still save. It you can only spare a few dollars a week, than do it. It's better than nothing. You can keep it in a jar or in a box in your home somewhere, but make sure you are saving consistently each week. Even $20 every few weeks, still adds up in a few months time.

5. Automatic Payments

If you will put the money aside before it is in your hands, this is the best way to save. For some reason a bird in your hand is not worth two in the bush when it comes to saving. If you find it very hard to put aside money in your hand, than don't let it get there. Set up automatic payments to go to your savings account out of every paycheck. This way you won't 'forget' to save, and it won't be a temptation to spend it right away. In addition, you will find it easier to stay in your budget when you don't even 'see' the money you are saving. It is just tucked away in your savings without having to calculate it into your monthly expenses as excess.