Tips on saving money?

Question

Does anyone have any good tips on how to save money? My husband and I would like to purchase a house in the next year or so, but it seems almost impossible to save the money we earn. We do not splurge on huge things, we live and buy what we NEED. Only once in a great while do we really treat ourselves. Any tips on a good way to save money?

Answer 1

Put aside some money in a High Interest Savings account. Use one like ING Direct where it takes a few days for you to get it in case you need something. It won't be linked to your checking and since it's not right in front of you, it is easier to save that way.

Answer 2

For the next several days, each of you write down every cent you spend on anything, whether cash or credit. Do it right away, so you don't forget anything.

After a few days look at the list and see where your money is going.
I am sure you will see some things that are unneccessary. Morning coffee and donut, lunch, cell phones, cable tv etc.

There is always something you can live without, especially if it is only temporary.

You don't need to splurge on huge things. Little things can eat up your money just as fast.

Next look at your lifestyle. Do you have cars when you can take a bus?

Do you have any assets you can sell?

Can you earn more money?

Start a mutual fund account and have money debted every month directly from your checking account. Invest as much as you can spare, even if it hurts a bit.

Make believe it doesn't exist and forget it's there.

Answer 3

Always pay yourself first. If you both have direct deposits, have payroll set it up where a portion of your paychecks (% or certain amount, say $50 a pay-period) go straight to your checking account. That way you never really see it. When you get a reasonable amount in savings, maybe transfer it to a short term certificate of deposit @ the bank- you'll make a little better interest rate and will be less likely to pull it out. The longer the term of the CD the higher the interest rate you will earn (unfortunately ,not a lot still). I also find that if I only take cash to the store- I spend less. Having my debit card or checkbook with me makes it too easy to buy more than I need. Also- pay down those credit cards!!!!

Answer 4

Are you aware that buying a home will have costs above and beyond what you're paying for rent? There's not only a mortgage payment but taxes and insurance, maintenance costs, more gas and electric costs based on space, water and sewer, sometimes trash removal, etc. Make sure you are able to cover unforeseen expenses like roof, hot water tank, etc. should such a need arise. Shop around for a fixed mortgage rate and don't get into the adjustable game... you'll end up losing. As for tips on saving money, your local library will have all kinds of books on the topic. I like Mary Hunt's tips (debt proof living series) but have seen alot of other books and magazine articles that can help you get more for less and cut costs. Check Family Circle and Woman's Day archives, also at your library.

Answer 5

Well, you may not save a ton of money this way but my husband and I collect all of our change in jars, instead of spending it. After a few weeks we have quite a bit saved. Also, you could try a different budget. Place the money you need for food, bills, etc in seperate envelopes and only spend what is in that envelope. Once it is gone, you have to wait for the next paycheck for the stuff you need.

Do small things around the house to save as well. Dry your clothes on a line instead of in the dryer to cut down on electricity or gas. Bump the thermostat down to 68 instead of 72. In the summer keep it at 72 instead of 68. Only run the dishwasher when it is full. Cut out cable or satellite TV. If you have cell phones, get rid of the house phone. Cook at home. Pack lunches instead of eating out. Clip and use coupons. But in bulk and freeze for later. Negotiate your credit card interest rates. IT never hurts to ask for a lower interest rate!

Check out Suze Orman's book "The Money Book for the Young, Fabulous, and Broke". It even has a specific chapter on buying your first house.

Check out the Federal Trade Commission on saving money http://www.ftc.gov/bcp/conline/pubs/general/66ways.htm

Answer 6

You know this is so hard to do but you have to change your perspective on what a NEED is.

for example do you need to pay $900 a month for the place you live.......or.......how about a less desirable place for $600.

There is always some one who lives on less. Your perception of your standard of living is what it's all about.

Another example: I need my car to get to work so i have a $300 a month car payment. Well a $2000 car paid off will get you to work too. It may be ugly and have a greater chance of breaking down but with no payment and lower insurance it will be much cheaper to operate even if it does break down once and a while.

Answer 7

I have been using personal finance software to help me budget & keep track of the money I earn, spend, invest etc.
I use Personal Finance Associate by Parcus Group.
The product is very easy to use - you do not need to be an accountant. Simple templates will guide you - but you have to be disciplied and stick to the plan. For $29 it costs, you get budgeting, financial planning templates as well as advanced features that typically cost loads more as separate software packages such as investment real estate calculations (mainly based on rental cash-flow analysis) as well as some value based shares valuations (based on Warren Buffet's stock valuation methodology)
Their website is http://www.parcusgroup.com
For anyone interested in their own money managment this product is definitely worth looking at.

Answer 8

Like it has already been said here, pay to yourself from your income before you do anything to it.

It doesn't have to be much, if you have a monthly income of 5 and you always pay to yourself 2,5 percent of it, then in a year you would have paid 1,5 to yourself.



Also remember that what you think you need might not be what you need.

Just remember the basic three needs:

- Food and drink

- Clothes

- Housing

The rest are luxuries.

Answer 9

coupons could really save you a lot of money. Start clipping; I was getting a lot of things for free. Especially when it's triple coupons; definitly look into it! Also watch for sales; purchase the things you need when they are on sale.

Answer 10

When you get your paycheck and before you spend any money or pay any bills. PAY YOURSELF FIRST! PAY YOURSELF THE SAME RATE EACH TIME, CONSISTANTLY WITHOUT FAIL.

Start with what you can. $50 per paycheck. 10% per paycheck. Do what you can. BUT PAY YOURSELF FIRST!!!!!