Tips on How to Save Money for the Holidays and Everyday

It's no joke that in today's world, money can get tight. We are all not lucky enough to have the disposable incomes of celebrities, but I have learned a few tips to make you feel like you always have money. I use this money for holiday and birthday gifts, unexpected expenses, and an extra little something every now and then. Plus after you start saving more, it becomes easier to build that savings and not want to spend what you are working so hard to put away.

Save the Change
A smart concept adopted by some banks is to round up what you already spent and save the difference. If you are lucky enough to have this type of checking account, you bank might already do this for you. I do not have this type of account, but I still save the change. For example, if I spend $11.57, I deduct and even $20 from my checking register and pretend the difference is not available. This adds up very quickly! I keep this as a cushion in my checking account so that I always know there is something in there.

Coupon Savings
Everyone uses coupons and shops the ads. In my situation, most of the products that I find on sale I would need to purchase anyway. When I go grocery shopping I do take coupons and take advantage of sales. Most stores will gladly point out how much you saved by shopping with them, take advantage of it! Look at the bottom of the receipt for your savings and write a check to yourself for that amount, tuck it away and use it for vacation or gifts. Depending on how well you can shop the ads, you could be savings hundreds of dollars each month that you would have spent anyway.

Budget Savings
This is a variation on coupon savings. At the beginning of each month write down a budget for food, utilities, gifts, bills, etc. and save you receipts. As the month progresses, write down the actual amount you spent. By keeping a constant check on what is going out, you will tend to be more frugal. At the end of the month, add up what you spent and subtract it from the budget and put the difference in savings. It might take a few months to get your budget in check to where you are saving more than a few pennies, but you will become more conscious of where you are spending your hard earned cash.

Auto Transfers
By setting up transfers that will happen automatically, you are forced to save money, plus you really never have the money in your checking account to spend. You can do this in two ways, first you can have your direct deposit split between checking and savings, or your bank can do it for you. I prefer the first option and house my checking and savings accounts at different institutions to make my savings account less accessible for me to pull out of.

Don't Carry a lot of Cash
Cash goes fast, and many times without a receipt. By carrying a minimal amount on you, it becomes less likely you will spend frivolously. But be sure that you are keeping track of where the money is coming from when you do spend. Always use a register to know where you are at in your checking account, because even with overdraft protection, forgetting how much you have can be expensive. Plus most banks offer spending reports that you can use when developing a budget.