You can start saving more money today by using the following tips found in ”Increasing Your Spending Power” from the Mind Your Finances booklet series. The booklets offers 46 ways to cut your expenses and advice on how to create your own spending plan. You can order “Increasing Your Spending Power” online for $4.95.
1. Pay off credit card debt.
Every responsible financial plan begins with paying off credit cards, and the one that has the highest rate comes first. This saves you money because you’ll be paying less interest (assuming you don’t charge the card back up). Think of it as a guaranteed investment. If you are paying double-digit interest rates, let’s say 14 percent, paying your balance is like making an instant 14 percent on your money. Where else can you get a return like that these days? Nowhere.
2. Know exactly how much you have and how much you owe.
In fact, write down your income each month and all of your fixed and variable expenses. The more aware you are of your situation, the less likely you’ll be able to spend more than you have.
3. Always shop with a list.
Lists focus your buying habits and help prevent you from impulse buying and squandering your hard earned-money. Remember, spending just one extra dollar a day adds up to $365 in a year.
4. Don’t go grocery shopping on an empty stomach.
If you’re like many people, you sometimes shop when you’re hungry, and, list or no list, you end up buying lost of stuff that looks really good to eat at that moment. Look over your last grocery bill. Not your list–your bill. How many items on your last grocery bill are things you didn’t need?
5. Don’t buy what you don’t need.
For each purchase you make, ask yourself the following question: Do I really need (fill in the blank) or do I just want it? Often, if you walk around the store for a while asking yourself this question, you’ll be able to put whatever it is back where you got it from and walk out of the store empty-handed. The quicker you pick something up and rush to pay, the less time you have to think, and the more likely you’ll be to buy things you don’t need.
1. Pay off credit card debt.
Every responsible financial plan begins with paying off credit cards, and the one that has the highest rate comes first. This saves you money because you’ll be paying less interest (assuming you don’t charge the card back up). Think of it as a guaranteed investment. If you are paying double-digit interest rates, let’s say 14 percent, paying your balance is like making an instant 14 percent on your money. Where else can you get a return like that these days? Nowhere.
2. Know exactly how much you have and how much you owe.
In fact, write down your income each month and all of your fixed and variable expenses. The more aware you are of your situation, the less likely you’ll be able to spend more than you have.
3. Always shop with a list.
Lists focus your buying habits and help prevent you from impulse buying and squandering your hard earned-money. Remember, spending just one extra dollar a day adds up to $365 in a year.
4. Don’t go grocery shopping on an empty stomach.
If you’re like many people, you sometimes shop when you’re hungry, and, list or no list, you end up buying lost of stuff that looks really good to eat at that moment. Look over your last grocery bill. Not your list–your bill. How many items on your last grocery bill are things you didn’t need?
5. Don’t buy what you don’t need.
For each purchase you make, ask yourself the following question: Do I really need (fill in the blank) or do I just want it? Often, if you walk around the store for a while asking yourself this question, you’ll be able to put whatever it is back where you got it from and walk out of the store empty-handed. The quicker you pick something up and rush to pay, the less time you have to think, and the more likely you’ll be to buy things you don’t need.
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