Money Saving Tips

You may be surprised to learn that just a few practical money saving tips can add up to substantial savings at the end of each month and help you avoid wasted spending.

If cutting back every month, even just a little bit, can be difficult for you, here are a few household money saving tips that are easy to apply and can go a long way to helping you have more money to spend at the end of each month. 

Distinguish between Wants and Needs:
Really think about what it is you need, not what you want. Our wants always influence our needs, so be aware of the difference.

Let your fingers do the walking.
Before you run to your favorite Home Depot or Best Buy for the tenth time, give them a call first.  Not everyone carries what you need at the time you need it.  It not only saves time and money, it can save you gas.

Credit Cards
To avoid late payment fees and possible interest rate increases on your credit cards, make sure you send in your payment a week to ten days before the statement due date. Late payments on one card can increase fees and interest rates, and believe it or not, on other cards as well.

Avoid Interest charges. Credit card interest charges can be considerable. so strive to pay off your entire bill each month. If you are unable to pay off the balance, pay as much as you can, in other words pay more than the minimum amount. Try to shift the remaining balance to a credit card with a lower annual percentage rate (APR).

You can find listings of credit card plans, rates, and terms on the Internet, in personal finance magazines, and in newspapers. Most importantly, don't let credit card pitfalls ruin your good credit. Be aware that credit cards with rebates, cash back, travel awards, or other perks may carry higher rates or fees. Here's some credit card advice that you can use.

Checking Accounts / Debit Cards
You can save more than $100 a year in fees by selecting a free checking account or one with no minimum balance requirement. Be sure to request a complete list of fees that are charged on these accounts, including ATM and debit card fees.

Low cost checking. See if you can get free or lower cost checking through direct deposit or agreeing to ATM only use. Be aware of charges for using an ATM not associated with your financial institution.

Home Mortgage savings
Your mortgage will likely be the largest single expense in your budget, so getting the best deal is to your advantage.  Not comparing could cost you thousands of dollars over the term of the mortgage.

An excellent resource for comparisons is Lending Tree.  There you can submit one easy and quick loan request form and within 3 business days get up to 4 offers from competing lending institutions.  

Home Equity Loans
Be careful when taking out home equity loans. The loans reduce or may even eliminate the equity that you have built up in your home.  If you are unable to make payments on home equity loans, you could lose your home.

Shop around and compare with at least four reputable lending institutions. Consider the interest rate on the loan and the annual percentage rate (APR), which includes other costs, such as origination fees, discount points, mortgage insurance, and other fees. Ask if the rate changes, and if so, how it is calculated and how frequently, as this will affect the amount of your monthly payments. An important note is that most home equity lines of credit don't offer fixed interest rates, they are fluctuating. 

Electricity Savings
Use energy-efficient appliances.  Enrolling in load management programs and off-hour rate programs offered by your electric utility can save you up to $100 a year in electricity costs. Call your electric utility for information about these cost-saving programs.

Car savings
Right behind your mortgage expense will most likely be your car. If you think about the car you currently own you may find that you could downsize and save money.  Downsizing could bring savings in your monthly payment, maintenance, insurance, yearly tune ups & maintenance. It's also a good idea to check into repair maintenance and insurance of the vehicles you currently own.  Even if you can't lower your monthly car payments you may be able to lower other car related expenses.  

Home, Car or Life Insurance Savings
The insurance business is a competitive one, that's because there are hundreds of them all competing for your business, but competition can be a good thing, it gives you an edge in finding the best insurance quotes possible, particularly with home, auto and life insurance. You could potentially save $30 or more a month on insurance costs. If you live in the U.S. benefit from free insurance quotes  for your home, health insurance, car or medical.

Save on Food
Here's where good planning comes in.  Make a list each week. If you can, make a two week list. You'll not only save on groceries, you'll save on gas as well.  Plan out your meals for each day and the ingredients needed.  If you have left-overs use them to take for lunch at work.  Consider store brands and generics. I've found some of the generics to be just as good, if not better. Buy more and pay less for things such as paper products or things your use often.  Don't waste money by buying more of the things you use less. This will waste your money.

Use Coupons!  They might be a pain but they will save you money. I've seen women save as much as $30 and many times much more on one grocery trip. Those darn things add up. Check out the coupon savings.

Save on clothing
Buy clothing that is out of season.  For example, buy your bathing suit for next summer at the end of this summer.  Buy separates so you can mix and match.  Plan your outfits by thinking about what things can go with what.  Buy quality shoes that last.  Paying $80 on a pair of shoes that will last longer is really a better deal than buying 2 pairs for $50. 

Save on Telephone
In most areas of the country, your local phone service is currently regulated and has a fixed price, however there is often a big difference in long distance costs.  Many consumers simply stick with their current long-distance carrier because it is convenient and they feel that it would be a hassle to change. Don't do that. Shop around. You could save as much as $200 a year or more just by checking out the options.

Winter Savings Tip
Make sure that the flue on your chimney is closed tight when it's not in use. Leaving it open can clear out all the hot air in the house in a matter of hours making your heating system work harder and wasting money.
For More Practical Money Saving Tips at Saving Money Advice

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