Ways to Save Money

My experiences in my childhood made it evident that money does not grow on trees. I watched my mother struggle to make money and my father work to waste money. My mother had two kids to feed and cloth with no help from our fathers. My father would spend money on cars, women, and other flashy things. Watching this as a child, I often wonder if there was a middle ground. When my father remarried and I met my stepmother, I finally got my answer. I watched her budget and work overtime so that we could live a comfortable lifestyle. She also helped my get over my fear of spending money. If I went out and bought, something I thought was irresponsible she would say, "You could have spent it on drugs, diapers or bail money". I know that may not make sense to you but it always eased my mind. She is definitely my role model when it comes to my financial aspirations. Over the years, my friends and family have said I am good with my finances. I am money conscious because I believe that people who waste their hard-earned money are being counterproductive to their own cause. Therefore, I decided to write this article to share some of my tips. Some of the tips are the same ones everyone tells you and some maybe new to you.

Develop a budget

First you should start with a setting your budget. Write down all of your revolving bills and recurring expenses. (I.e. rent, gas, hair appt, etc) I use Microsoft Excel worksheets to map out my bills. Microsoft Excel has the ability to calculate figures and display a clear picture of your finances. You can purchase or download that will serve the same purpose as Microsoft Excel. It does not matter what you use just as long as you use something.

Here is an example of a finished worksheet

Example

Example

Pay check $ 1,600.00

Credit Cards $ 67.00

car insurance $ 145.00

cell phone $ 163.00

Food $100.00

car note $ 450.00

PSE&G $ 112.00

Cable $ 149.00

Savings $ 100.00

Total $ 1,286.00

Remainder $ 314.00

Calculation for total: =SUM (D4:D13)

The D represents the column that holds the figures. The digit represents the row of the figures.

Calculation to subtract your total bills from your paycheck (Remainder): =D3-D14

D3 is the column and row that contains the figures of your paycheck amount

D14 is the column and row that contains the figures for the total amount of all of your bills. This amount is the total amount of remaining from your bills.

Pay Yourself

Setup your direct deposit to send a pre-determined amount of funds directly to your savings account. This will eliminate the responsibility attached to you transferring your money into your savings account. I know your thinking that is not a tip. Well to some people it is helpful to remove the funds before you notice its there. We spend without checking our accounts and then before you know it, the money you planned to save has transformed into those fabulous shoes on your feet. If you can practice some self-control, make a rule that the money that is in your savings account is 'Untouchable'. If self-control is an issue, I would suggest setting up a separate account that you do not have easy access too. (i.e. an ING account)

401k

This is a tip that is familiar to most of us. As soon as you are eligible, I would contribute to your company's 401k. Most companies provide 401k matching to offer additional savings for our retirement. If your company has a match program, I would at least contribute enough to receive the match. The funds allocated to your 401k will provide an additional savings in the form of a tax break. Monies that are stored in a 401k account offers to benefits:

Savings for your future

The tax deduction will reduce your taxable income helping you during tax time.

You can borrow on this account without penalty for: home buying, tuition, computers etc. (Check the federal guidelines for specifics.)

Credit Cards

Initially a credit card is a young persons dream, but if misused it quickly becomes a nightmare. If you have made this mistake, I would start paying off the credit cards with the highest APR and move down the line. Once you have paid off the credit cards, I would remove the cards with the higher APR from your wallet. Do not close the account because you may need the card for an emergency and it establishes a good credit history. If you can demonstrate restraint, leave one card in your wallet for emergencies. From this point on, when you purchase something with your credit cards make sure to pay the card off in full at the end of each month. If that is not possible, make sure to keep the balance below 30%. Please use your head and better judgment with the credit card balances you accrue. I have fallen victim to high balances and I did not like it. It always felt like I had a monkey on my bank that kept scratching me. HORRIBLE thought well so is a high credit card balance. Some of us use our cards to buy gifts or that fabulous outfit to snag the cutie at work. Just remember this:

Love is temporary Bills are forever.

Eating out

If you add up the money you spent for breakfast and lunch, I am sure we will find some lost funds. Lunch on the average is 5 to 10 bucks a day. Breakfast on average is 3 to 6 bucks a day. Try bringing your breakfast, lunch at least 3 times a week, and save 24 to 49 bucks a week. Not to mention, the food from home is probably not loaded with grease and calories. Some may call me weird but I store a huge box of cereal and a loaf of bread in my credenza for my breakfast and bring my lunch to work. The savings are amazing.

Save those coins, you are not rich

People I swear by this tip. I save all the coins I receive from the bills I break after a purchase. It will take some time to accumulate funds but if you stay with it, you will accumulate a nice amount. By placing the money your piggy bank, it is out of site and out of mind. Once you have enough coins, take them to Commerce Bank and count your money. I will share my coin experience with you. I was planning a trip with a friend to Vegas and needed spending money. My boyfriend suggested I cash in my saved coins for spending money. Well I cashed in my coins and to my surprise, I had saved $250 in coins. That may not seem like a lot of money but that was mostly pennies, imagine your savings if you saved nickels, dimes, quarters or dollar bills. This is a great way to save money for a vacation or shopping spree.

Bargain Shop

Transform yourself from an impulsive buyer and begin shopping for the bargain. Clothes are a necessity but you do not have to spend an arm and a leg on everything. When you are trying to save money, you must buy what you need and not what you want. We can splurge from time to time but it is important not to do it often. Online shopping has opened a door for those who love to shop. I am an avid online shopper and I find that some of the online stores offer higher savings then at the stores physical location. I have also find discount online stores that sells designer clothing, handbags, jewelry and accessories.

The extras

This portion is called "The Extras" because we spend a lot of money on luxuries. If we were mindful of the luxuries that are unnecessary and wasteful, we could find more savings. Here are a few things that some deem wasteful

Bottled water

Try purchasing a faucet filter or water pitch with a built in faucet. This will reduce your finance cost and help reduce the amount of waste you contribute to the environment.

Cell phones

Try reducing your plan and maximizing the "off peak" hour savings

Utilities

Research the various offers in your area. Several cable providers offer package deals on phone lines, cable modem and cable televisions that could save you money.

Voice Over Internet Protocol is new to the telecommunication market and has a few bugs but it is a great way to save on your phone bill. If you already have a cell phone, you are probably not using the house phone that often anyway. Heck, I have friends that don't even know I have a house phone. (LOL)

Electric

Remember what your mother use to tell you, "Turn off the lights when you leave a room."

If you are not washing a full load of clothes, do not set your washer for a large load of clothes. This is a waste of water and money.

There are so many ways you can cut back to save. You have to pick a method that is less painful to you and your way of life. I do not suggest picking something that will cause you misery. Life is too short to be miserable. Select items you really don't need and you know you can do without. I hope these tips are helpful and fruitful.