by Roman Y

Created on: November 16, 2009   Last Updated: November 25, 2009

Every time I ask for savings tips, I hear things like throw out credit cards, shop at Costco and do not turn on that light if you do not need it. Though I do see a point there, I do not totally agree.

1. Do not eat too much out. There is nothing wrong with bringing your own food for lunch to work. At the same time you may want to invite your friends over for a dinner. You cook, which chances are will be cheaper than in the restaurant, plus your friends are likely to bring that bottle of wine.

2. Do not be a shopaholic - agree to some extent. I usually go for less known brands. My underpants do not have to be Calvin Kline. The ketchup I use does not have to be Heinz.

3. Buy in bulk - strongly disagree. On a contrary do not buy in bulk unless you only shop once a month. First of all the savings on bulk purchases are not necessarily big. At the same time the more you buy the more chance that you will throw some food out or it will go bad. And that is costly, not saving.

4. Stop using credit cards - strongly disagree. If you use your credit cards wisely, you can actually earn money and other freebies. Using credit card allows you not to pay for a purchase right away. This means that cash that you were to use is actually in the savings account earning you interest. Also, credit card can earn you cash back or earn you points towards free hotel stays, flights and/or other discounts and freebies. But, you have to use your credit card wisely and pay balance on time and in full.

5. Do not be ashamed to use those coupons! + Do sign up to store memberships for benefits (as long as there is no fee for the membership)

6. Do put a set amount from your pay check away the day you get paid. This way you have less money to spend.

7. If not credit card, use debit card. If you have $20 and spent $17, you are more likely to spend the rest $3. If you happen to have some change, put it away into the piggy bank that you won't be able to open.

There is no need to stop living just to save, but spending and saving wisely will help you live better (financially).

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