Some Helpful Tips on Saving Money in Tough Economic Times

It seems as though every time you turn on the news lately, there's yet another report about some dire economic hardship we have to worry about. While a lot of it is probably pundits doing exactly what they're paid to, and doing it well, consumers should exercise a little more caution in spending. After all, how many of us have had some major crisis come up and then not had the money to pay for it? I'm sure many of us would like to start taking steps to ensure that things such as overdraft notices from the bank or declined credit cards are simply unpleasant memories. A person can start to take steps to seriously save without taking on extra jobs, making high-risk investments, or having a huge windfall. I've learned a few tips in my life that I'm happy to share in this article.

The best way to start saving up for a good investment is to cut your spending. It's possible to eliminate extra spending without living a miserly lifestyle, and there are probably several "corners" that can be cut very easily. Begin your saving plan by comparing your personal or household expenses every month versus what you earn. Once you know exactly what has to be spent, you'll know what's left over.

It may be somewhat distressing at first to see what's left after your expenses and realize that one unexpected problem could wipe out what's left until your next check. I know from experience that there's nothing worse than having nothing left over for several days while awaiting a check. Once you've cut back on your expenses somewhat, there will be a little more to save. These little savings will add up, provided they're not squandered. Money columnist Matt Krantz makes some helpful recommendations here: http://www.usatoday.com/money/perfi/columnist/krantz/2005-10-19-saving_x.htm

Now that you know your expenses, what's left, and have an idea of how much you'll need to save, you can go forward with having a little more set aside. While I have quite a ways to go before meeting my ultimate financial goals, I've begun putting some ideas into place that have helped me to save more of my earnings. Making changes to how you eat, shop, and earn money on the side is a great way to start saving up.

One particular problem area I've found involves eating out frequently and having takeout 4-5 times a week. When a household is on a limited budget, this can be far more expensive than eating in more often. Not only can purchasing takeout meals for a family of three be more expensive, but it also causes more gas to be used driving back and forth to the restaurants. Eating out or getting takeout can be treated as a special "splurge", rather than an everyday event. Search the Sunday paper for coupons, and keep them on you when you shop. If possible, also try to shop at grocery stores that offer discount cards.

Another large expense I've encountered personally is when you run out of something unexpectedly and have to go to a convenience store. Grocery items in convenience stores tend to be quite a bit more expensive than they are in supermarkets. When possible, it's a good idea to buy items that you run out of frequently in bulk at warehouse stores such as BJ's, Sam's Club, or Costco. If no such store exists in your area, try stocking up on these items when they're on sale. Bakery outlet stores are often a good source for bread and cakes. The good thing about buying several loaves of bread at a time is that the extras can be frozen for later use.

When shopping in general, an effective way of halting overspending is to avoid buying items on impulse. It's easy to walk into a store to get a few items and come out with $100 worth of merchandise you didn't intend to get. If you tend to have a problem with impulse buying, your best bet is to take only the money that you need to buy the items on your list. Leave the checkbook or credit card at home. When you want to buy something, think of whether you need it, can actually afford it, and will use it. A lot of people have attics, basements, and garages full of impulse items they thought were necessary at the time and never used.

Comparison shopping can help you save and can be a bit of fun, too. Good sources for price comparison are sites such as Shopping.com or My Simon, weekly store circulars, and browsing the stores themselves. Check everyone's prices out first, then make your decision. For smaller items that are inexpensive to ship, such as books, movies, CD's, and ink cartridges, you might want to buy online.

Several sites, such as MyPoints, now offer points for shopping that can be redeemed for gift certificates, and some also offer cash rebates, such as My Power Mall. These can be a godsend for consumers whose credit cards don't offer rewards or cashback points. Gift certificates are a good way to shop, especially during the holiday season. Money earned from cash rebates can be invested back into savings easily. Many rewards sites also offer some type of incentive for having your friends sign up.

There are also a few ways to earn money on the side without spending much or any money. Signing up with a site like LinkShare, Commission Junction, or ClickBank gives you access to affiliate sites where you can earn commissions. Setting up a simple free site you can put your links on, using a meta tag generator to make sure you have good keywords, and submitting it to search engines will help draw traffic. It's best to avoid signing up for anything that requires upfront or monthly fees unless you're sure you can afford it. Many people easily end up putting more money into programs than they'll ever earn. Before starting with any program, be sure to do some research on it.

I hope you've found these tips useful, and wish you the best of luck in your efforts to secure your future.