Tips on Saving Money During the Credit Crunch

Saving money is so much easier said than done. There's a lot more to it than spending less money and that can be challenging. Well below is some realistic ideas to keep your spending in hand.

Well firstly set yourself saving goals. For short -term goals this is easy. If you want to buy a new kettle. Find out how much it costs. If you want to buy a house, find out how much down payment you need. For longer- term goals like retirement, you will need to plan ahead and figure out how much money you will need to live in comfort for at least 20 to 30 years. You will also need to figure out how investments could help you achieve your goal.

Loose your debts first. Calculating how much you are spending each month on your debts will show you that by getting rid of them is the fastest way to free up money. Once this money is freed up you could start saving it.

Establish a time frame for shorter goals, and make sure the goal is achieved with in that time. If its not attained you will just get discouraged.

Find out how much you will have to save each month and keep a record of your expenses. What you save falls into two, how much you make and how much you spend. Since you have control of how much you spend, it is wise to take a serious look at what you are spending. Write it all down for a week or a month. Try not to leave out even the smallest purchase. Keeping a small notebook with you is a good way of recording expenses and receipts.

Take a long hard look after about a month at your spending. You will notice the obvious cuts you need to make like $200 on sweets. Think about your priorities and make cuts you can live with. Calculate the amount these cuts are over a year.

Ask yourself: Can I live in a cheaper house, can I refinance my mortgage?
Could I resolidate my debts so I'm not paying as much interest?
Could I save money on gas or live without a car?
Could I drop a land-line and use a cell phone?
Do I really need satellite or cable TV?
Can I cut down my Utility bills?
Can I stop eating out? Could I cook more at home? Cooking at home is a lot cheaper than eating out.

Subtract your expenses from your take home pay. What is the difference? Does it match up to your saving goals. If there's absolutely no way you can fit your savings goals into one budget, maybe you need to put off buying that car or that huge TV.

Once you can balance your earnings with your savings goals and your spending, write down how much you have to spend on one given thing and say I only have say £20 dollars a month for it.

STOP using credit cards. Pay for everything with cash. Do not even use a check. Is to easy to over spend as you do noy know exactly how much there is. If you have cash you can easy see your supply running low. If you take your money from a jar you can easily see how much remains. If you do need to carry credit cards. Hide them well away. Credit cards are not evil. Its all about self control. If you use them responsibly you can benefit from them. Remember most credit card companies make money. This is because people are using money they do not have.

Opening an interest- making account is the best way to keep track of your savings. You can usually make more interest on saving accounts than checking accounts. Know where your money is at all times, and how much there is too. If you accidentally over draw from your bank account, you'll receive huge fees. Always no when your money goes in and out of a bank.

Have the right attitude. A penny saved is a penny earned. Do not be afraid to be called cheap.

Sharing with friends is a good thing to do also. If you can afford to share things like food or living space, try to do so. What comes around goes around between close friends. Soon your friends will be helping you.

Making the right decision and sticking to it. This can be hard as sometimes personal preference means big money. Find out if your an in door or out door person. Some of us like to spend money on cars, some of us on furnishings. Do not try to do both. Decide whats cheaper for you. Cable. Renting DVDs or going to the cinema. Don't get cable or satellite if you are never in. Learn how to get cell phone minutes.

Do not buy clothes you all ready have. Find a hobby for yourself. This helps you stop spending money.

If you win or receive extra cash, put all or most of it into a savings account. Continue with your goals, but this may help you reach them sooner.

Try thinking over to yourself. The more money I save away. The less I will have to work.

Never go window shopping with money on you, and unless you are about to be evicted with children do not cut corners connected to health. By skipping it will lead to heartache and expensive problems down the road.

We could all save money if we just looked more carefully at what we really need to buy each day.