Spending less and saving more is a new year's resolution for many. Here are ways to not only keep that resolution but to save more than you ever thought possible.
Save more, spend less. Easy to say, not so easy to practice. Tips on how to keep your new year’s resolution and have more money in your pocket by the end of 2008:
- Pay down those credit cards. Every financial guru offers sure-fire ways to eliminate debt. But the bottom line is: spend less and save more. You can do that by paying down those cards with the highest interest rate first. Start by whittling down that debt little by little. Pay 10 percent more each month than the month before. For example, if you only made the minimum payment last month, pay 10 percent more this month, 10 percent more next month and so on, until you pay off the entire bill. Sounds easy enough, but here’s the catch: You need to spend 10 percent less each month as well.
- Cut spending on the little things. Spending less is easy if you track small purchases. These are the ones that really add up. A latte here, a pack of gum there. Start eliminating those expenses and you’ll start realizing big savings in no time.
- Find a credit card that pays you back. As soon as your credit card debt is gone, don’t cut up the card. Exchange it for a credit card that pays you in back in cash, mileage, gift cards, whatever you can use most. Then pay the entire balance at the end of the month and watch those bonuses grow! You need to change the way you view credit cards. Look at them as a vehicle to earn more money, not as a way to amass more debt. As long as you pay the entire balance at the end of the month and continue to earn rewards from the card issuer, you are in a win-win situation.
- Eliminate your after-Christmas debt next year by opening a savings account, Christmas club account or certificate of deposit now. Instruct your bank to automatically transfer money from your checking account into your savings every month. What you don’t see, you won’t spend.
- Buy a smaller car. Dealers are offering terrific incentives right now. Trade in that SUV for a compact sedan. Not only will you save money on gas, you’ll help the environment as well. Check out used cars that still offer a factory warranty. Better yet, start taking public transportation and walking. Even if you don’t live in an urban area, most communities offer some sort of bus system.
- Buying a home? Consider purchasing a condo instead of a house. Less maintenance, less cleaning and less hassle all around. Condos have taken the fall with the housing market. Make a low-ball offer and see what happens. But don’t forget to consider increasing condo fees when you calculate your monthly expenses.
- Eat out less. You’ll save money, possibly lose weight, and spend more quality family time if you eat at home. Look for free recipes online and get cooking and saving in 2008!
The copyright of the article Cut Back on Spending in 2008 in Consumer Education is owned by L. Marie Dubuque. Permission to republish Cut Back on Spending in 2008 in print or online must be granted by the author in writing.
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