Money Saving Tips in a Tight Economy

With the cost of everything going up, many people are finding it hard to make ends meet. Gasoline, grocery and utility costs are making it hard to survive, but there are some things that you can do that will save you money and even leave you with some left over if you are willing to make a few small sacrifices in your spending habits.

Use Coupons When Grocery Shopping

Usually every Sunday edition of the newspaper has a ton of coupons in it. Many of the coupons are for name brand products which makes it even better.

Coupons are a terrific way to still buy many of the products that you already use and also save money. Though the savings may be small on the individual items, the cumulative savings overall will surprise you. The Grocery Game.com reports that it's members save an average of $482 each month by using coupons.

Some coupons may be for a larger size item than what you would normally purchase but the savings coupled with the larger size which will last longer (unless you have teenagers) will more than compensate for any "extra" cost.

An added bonus to using coupons is sometimes you are introduced to a good product because you saw their coupon advertising it.

Buy Generic and Store Brands

Although you may be skeptical at first you will probably be surprised that there is very little difference in the taste of the generic/store brand product. In some cases it may even taste better.

You don't have to worry about the quality of the generic/store brand because they take the same care to make their product as the name brands do. The packaging and processing is the same.

In looking at the label you will find that the generic/store brand has just about the same ingredients as the name brand product only at a significant savings. It is equivalent to buying generic drugs. The product is the same just at a lower cost.

A study conducted by Wise Bread.com showed an approximate savings of 20% to 25% by buying store brand products.

Buy Clothes Out Of Season

OzGateway.com advises to buy clothes out of season and so do I. This is a trick I learned as a teenager and the savings are tremendous. You may be a little behind in the current fashion trend but the money in your pocket will more than make up for it.

At the end of every season, clothing stores usually have a season ending sale where they cut prices. The store's logic is, it is easier to get rid of the stock than have to store it and have a lot of out of fashion clothing to get rid of the next year. Many stores have a clearance sale where they are trying to sell everything. This is where you can really rack up some savings. Clearance sales can net you anywhere from 30% to 80% off the regular price which is a bargain in anybody's book.

Buying clothes this way will not only keep you looking good but feeling good about the money you saved.

Adjust Heat and Air Conditioning

There is nothing worse than heating or cooling an empty house. If you know you are going to be gone from home for a length of time adjust your thermostat.

Heat should be turned down to a lower temperature so that the sensor in the thermostat has a lower threshold to trigger it. Having the thermostat set at a higher temperature means every time the room temperature falls below that setting the furnace will activate, thus having a well heated empty house.

BC Hydro, the third largest electric utility in Canada, says on it's website that turning down your thermostat two degrees will save five per cent on your heating costs.

By contrast, the thermostat should be turned up to a higher setting for air conditioning so that it is closer to matching the temperature outside. This will keep the thermostat from activating the furnace as much as it would trying to maintain a lower temperature setting. Turning it off altogether is also an option.

Again, the savings per day may not add up to much but the overall savings from doing this over a season will be substantial.

Use Cash

I know you have heard this before but it's true, using cash is cheaper.

First of all, using cash will force you to adjust your spending habits. A lot of impulse purchasing is done on credit. If you don't have that option it will hopefully cause you to wait until you can pay cash or not make the purchase at all.

Secondly, the additional cost that you incur in paying interest on the unpaid balance of your credit card takes away from your cash flow and most of the time causes you to blow your budget (if you have one).Using cash helps you keep your spending in check and cuts down on your overall costs which will help you to save.

There is a nifty calculator on indexcreditcards.com that will show you how much interest you will pay over a designated period of time.

I wouldn't advise anyone to cut up their credit cards because sometimes you do need them in an emergency and some businesses will only accept a credit card. But I would advise you to lock them up in a safe deposit box or some other safe place where you cannot easily get to them.

Sometimes putting a little distance between the two of you is all that is needed.

Buy Used Cars

If you've had a new car before and experienced "the new car smell", the thrill should be gone by now. Buying new may make you look trendy but the cost will have you lying awake at night wondering how you are going to make the payments.

If you are in the market for a car you should consider buying a used one. I know there is a stigma attached to buying used cars and there is always the fear of buying a "lemon" but the truth is, buying a quality used vehicle, in a lot of ways, is better than buying a new one.

A two to three year old used car is past the greatest depreciation period (the time when the car's value to price ratio is at it's lowest) which means what you pay for the car is much closer to what the value of the car is on the retail market. In essence what this means is, except for finance interest charges (if you choose to buy with credit) you are almost getting the car at cost (to the dealer). This means a lower car payment and a faster payoff.

Many cars that are manufactured today, have a 50,000 mile factory warranty* that covers major components like the engine and drivetrain. If you are not sure, you can call the manufacturer. You can also purchase an extended warranty to cover other equipment that may not be covered by the factory warranty like power windows, power locks, etc. Almost all major dealerships offer their own warranty which usually is for about 30 days or 1,000 miles.

Buying used is a good way to ride in comfort and confidence while saving at the same time. Try it, you'll like it.

Don't Go Out As Much

I don't have to tell you how much it costs to go to the movies, out to dinner or to a ball game. Going to the movies can easily cost two people $40. Dinner for a family of four could run you well over $100. And i won't even talk about going to a ball game. Doing one of these things once or twice a month is a significant piece of change.

Try something different. Stay at home.

Instead of going to the movies, rent a movie and have a movie night at home. Pop your own popcorn and make your own drinks. Instead of going to the game, get it through pay-per-view or some other satellite/cable channel. You'll actually see the game and you can seventh inning stretch all night. You can still go out to dinner, just don't do it as much. Once a month is good. That way when you do go out to dinner it will be a real treat that you and your family will appreciate more.

Cutting back in these areas will bring significant savings.

Turn Off Lights and Other Devices

Leaving lights, televisions, radios and other electric consuming devices on wastes unnecessary power and runs up your electric bill. Think of it in the context of a taxi cab, as long as the device is on the meter is running. The cost may not be all that significant but in this economy every little bit counts.

As you can see, it's really not hard to save money if you are willing to make some small sacrifices and be serious about doing it.

*Nissanextendedwarranty.com