Ten Ways to Save Money in This Tough Economy

Many people talk about "living beyond their means," but what exactly does this mean? Too many people have become dependent on credit in the past few years, and this has caused the average household's debt to dramatically increase. In our grandparent's generation, if you didn't have the money then you simply did without. There was no such thing as thousands of dollars in credit card debt. If you didn't have the money to pay cash for something, you either didn't buy it or saved your money until you could purchase it. This is something that we all need to get back in the habit of doing again. If you pay cash, you will have a better understanding of how your money is spent each month, and you will save thousands of dollars in interest that you would have been paying if you had used credit cards instead.

Write down every purchase you make for one month

If you write down every single purchase, no matter how insignificant it may seem, you will start to see just how much money you are actually spending. Many people have a great deal of money going out each month, and yet they can't account for where that money went. If you force yourself to write down every single purchase and every single bill, you will likely find many ways you can cut back and save money each month.

Cut back on unnecessary bills

Many people have cell phones that they rarely use, but pay a hefty monthly bill for the service. Some people also have extra cars, motorcycles, boats, etc that are rarely used, but cost a great deal to insure and keep. Take an honest look at your bills and determine which ones can be trimmed or eliminated to save money. For instance, if you own a boat that you only use once or twice a year, it is probably less expensive to rent one when you need it, then to make payments, pay insurance and storage fees, etc. If you aren't using your cell phone very often, consider switching to a pre-paid service to save on the monthly costs. On the other hand, if you use your cell phone quite a bit and have an unlimited plan, consider cancelling your home phone service to save money. Why have two phone bills when you don't have to?

Make sure your home is energy efficient to save on energy costs

It's common sense to turn off lights and appliances when not in use. But, there are many other ways to save energy and money that go overlooked. Be sure that your home is properly insulated to save on heating and cooling costs. You can install energy efficient Compact Fluorescent Light Bulbs (CFL's) to save on electricity.

You can even purchase Smart Power Strips that dramatically cut down on energy uses for major household appliances such as computers, printers, televisions, VCR's, DVD players, etc. When I purchased my Smart Power Strips, I noticed a savings of over $25 on my next month's electric bill. You can search "Smart Power Strip" on Amazon.com to find one that fits your needs. You can also contact your power company to get an energy efficiency inspection. Most companies offer this service for free. They will come to your home and determine how you can save money on your energy bill by making simple changes around your home.

Clip Coupons

Most moms will tell you that clipping coupons is a great way to save money on everything from groceries to hair cuts to oil changes for your car. With very little effort, you can easily save $5-$50 per week or more on your grocery bill. Not to mention all the money you can save by clipping coupons for restaurants, auto repair shops, vacations, hair salons, etc. Your local paper has coupons each week that come free with your subscription. You can also search online for coupons and you will find many websites dedicated to helping you save money. Some of them even have coupons you can print and redeem at your local retailers.

Let your clothes and dishes air dry

When you do the laundry, skip using the dryer. All it does is cost you extra energy dollars and shrink your clothes. If you hang your clothes out to dry, they will hold their shape and size longer and save you money on your electric bill as well. The same thing goes for doing the dishes. When you use your dishwasher, skip the dry cycle. Instead, turn the machine off, and open the door. Pull out the racks and let the dishes air dry. This usually cuts out about 20 minutes off of your dishwasher's cycle, saving you energy and money.

Take advantage of sales and promotions online

Some things are definitely cheaper online than in stores in your area. As always, it's best to shop around and know your prices. But, if you can find a great deal, take advantage of it. Also, search for free shipping offers, reduced shipping, or coupon codes online. A simple Google search for "coupon codes" followed by the retailer's name will yield you several discounts for the store you're interested in purchasing from. These offers range from a percentage off your total purchase to free shipping.

Cook more, eat out less

Eating out can become very expensive. For instance, a family of four can spend anywhere from $25-$60 for lunch at a restaurant. That same family can easily cook their own meal for less than $10 at home. Also, meals cooked at home can be much healthier than what you'd find at a restaurant.

Stay away from the middle of the grocery store

The groceries located on the perimeter of the store are the healthiest, and the least expensive. The farther you go towards the center, the more likely you are to pay higher prices and find less healthy options. Stick to fresh fruits and vegetables, milk, eggs, meat, chicken, and fish. These are the items on the perimeter of the store. And, they are the cheapest, freshest, and healthiest.

Pay your bills online, save money

Take advantage of online bill pay. Many banks have free online bill pay. If you choose this option, not online will you save on stamps, but you will save yourself from late payments as well. You can set up a recurring monthly payment so that you never miss that payment for your electric bill, car payment, or credit card. Most companies will also send your statements to your email address. This will save you from having your bills lost in the mail, and also save paper. Save money, save stamps, save paper, save the environment. Pay bills online.

If you use these ten tips, you will save yourself a ton of money and headaches in the future. In these tough economic times, we all need to cut back wherever we can. Take my advice and use these tips to save yourself from financial disaster.