Getting the Most Out of Your Money

First of all, you'll want to have goals to save for. What fun is saving if you don't know what for? Whether it be a nice car, buying your own home, or a trip to a place you've always wanted to visit, with a little thought you should be able to find something you'd like to save up for. If nothing else, retirement is always a great savings goal. How else do you expect to pay for health care and costs of living, well into old age? If you plan to work for the rest of your life or are counting on Social Security benefits to come through for you, then good luck; you're going to need it.

Save on groceries
Check on eBay to buy multiples of coupons for your favorite foods, then stock up on those foods when they go on sale. Especially take advantage of coupons if your local grocery store doubles them; you'd be amazed by how much the savings add up when you're using doubled coupons on top of sale prices. And while they don't accept coupons, places like Aldi, Big Lots, Costco, and bakery outlets can still offer fantastic savings on groceries. For further savings, use the cheap groceries you bought to pack your lunches for work or school.

Cut your own hair
This option is particularly great for guys. You can pick up a nice set of Wahl hairclippers for about the cost of one trip to the hairdressers, and if you like to keep your hair short or have a few boys in your household, the clippers can lead to hundreds of dollars in savings every year. Simply put on the trim guard set to whatever length you want to trim off, and shave your whole head. Unless you're really good with mirrors, I'd recommend having someone else trim the neckline for you. Another option that could be great for girls would be to go to a beauty school or training salon to get your hair cut at a discount.

Stay out of debt
Credit card debt can be a big drain on income. If used wisely, credit card rewards can be beneficial, but if you miss a payment or hold a balance, those rewards will quickly be wiped out. If you've had trouble overspending with plastic, then try to stick with cash instead. Consider setting aside a few envelopes with a set amount of cash for designated spending categories each month; once you've spent all the money that month for, say, groceries, do not spend anymore.

Take advantage of Roth IRA/401k plans
The tax savings from doing so can be great. And if your employer offers to match your retirement contributions through 401k plans, then don't miss out; this is free money for you. Choose to invest in low-cost, low-fee index funds, such as those offered by Vanguard, and you'll come out ahead of the the vast majority of individual investors. Plus, the sooner you begin saving for retirement, the longer you'll have to benefit from the incredible power of compound interest. As a result of compound interest, a one time contribution of $1,000 at an annual return of 5% will more than double after 15 years. After 30 years, that $1,000 will more than quadruple. Just imagine how much more your money will grow if you're annually contributing to it.

Don't buy lottery tickets
Sure, it can be fun to entertain the slim possibility of winning big. And you can't win unless you buy a ticket. But the odds really are very much stacked against you; state lotteries have been referred to as a tax on people who are bad at math, or even just a voluntary tax. And if by some unlikely chance you do win big, those winnings will be heavily taxed. Maybe you could play the lottery for fun on occasion, but you'd be dumping your money down the drain to make it a regular thing.

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