3 of 151

Write now Article Tools

In the middle of this recession, living within your means is the new "lean" fashion. For Americans used to ready credit, trimming down the budget involves both personal and practical decisions. Saving money isn't just a short-term project, it's an act of long-term personal empowerment. By deciding to live more economically now, you can ensure a stable, debt-free future for yourself and for your family.

1. Hold yourself accountable.

Accountability takes many forms and includes such things as:

- using a household budget. - tracking expenses. - using cash instead of credit cards. - shopping with a list developed from a week of meal plans.

Each of these things takes an unconscious habit and makes it conscious by ensuring that you are:

- aware of what items and services cost. - controlling what you spend. - spending actual money, not piling debt on a card. - getting a handle on impulse buying and waste.

2. Review all service agreements, credit card agreements and insurance policies.

Paying for things not being used is a common American flaw. Keep three months of cell phone bills and average the minutes used. Does your service provider offer a roll-over plan for minutes? Can you opt down a service level? Could you survive with a pay-as-you-go phone?

When was the last time you reviewed your homeowner's insurance? Did you know that a new, efficient air conditioner could get you a discount? Are personal items listed on the policy you no longer own? Did you tell the insurance company you have a monitored alarm system and get the discount?

What's the APR (annual percentage rate) on your credit card? Is it time to consider transferring the balance to a lower interest card and getting it paid off? (If you feel that you have to have "plastic" in the day-to-day world, use your debit card. The best way not to over-spend is watching a balance number dwindle every month.)

3. Inventory your habits.

Many of the wasteful, expensive things we do in our life, we do from habit.

- If no one is in the room, why does the light need to be on? - If my cell phone isn't charging, why does the charger need to be plugged in? - Why am I buying a more expensive name brand when the store brand is just as good? - Why am I buying a book I can get for free at the library? - If we never watch the premium movie channel, why are we paying for it?

4. Make luxuries luxuries again.

When a luxury becomes a habit, it isn't special any more. Don't go for your mocha vanilla latte every day at three. Go on Saturday with

• 1
• 2
• next page >>

Add your voice

Know something about 7 tips on saving money?
We want to hear your view. Write now!