Strategies to Save Money in Tough Times

When the economy is tight it can be more difficult than ever to save money. It is difficult to save when every nickel it seems is going to bills. This means saving on bills takes a higher priority and planning strategies to save money.

Take a hard look at what is necessity vs what is a luxury. Necessities are food, shelter, basic clothing, transportation. This doesn't mean eating out every night. It means basic food, even if it's simple meals.

Keeping your bills paid is important but that can mean some juggling. The necessity may vary - for someone who works from home perhaps internet and phone are also a necessity. Look at new ways to save on energy costs. Can you save on auto insurance with a higher deductible?

Pay yourself and savings first. Many experts say 10% but even if it's $10 or $20 pay yourself and put the same in savings. This pay is for a no-guilt purchase of something that you enjoy (or saving for something you enjoy). The savings should be the same amount set aside for true emergencies.

Get rid of credit card reliance. Charging items like groceries speeds going into debt as you're paying interest and many times what the items are worth long after they've been used up. Using less expensive household items usually doesn't make a big difference over expensive items. Laundry detergent, dish soap and other items should be used with an eye towards value and measuring the amount needed to do the job.

What can be done away with? Manicures, cosmetics and like items are not necessities. Eliminate them. The cost of a manicure by some reports is more than an oil change on a vehicle that provides necessary transportation. Transportation is needed - perfect fingernails aren't.

Many have had luxuries so long that determining luxury from necessity can be difficult but is essential to do. Television, despite "must see tv" and advertising, is not a necessity. Cable and satellite companies have successfully convinced the masses it is, but truly life does go on without television.

Keep these necessities paid above all else. If you don't have television but have a warm home to cook a meal in that is of high importance. If neighbors turn their noses up for not having the proper laundry detergent (can they tell?!) then do you really need those kind of neighbors approval?

There are many ways to trim the budget. Focus on the necessities. Initial steps towards strategies to save money are small but, like debt, will snowball if you persist.