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SEVEN TIPS ON SAVING MONEY

When tasked with the challenge of saving money, we naturally cringe at the thought of living behind a presumed wall of new constraints. Surprisingly, though, saving money doesn't mean we have to sacrifice all the things that make our lives great. Below are seven different ways to make more out of your income.

1. Become a minimalist. It's easier than it sounds and not only will choosing to consume less help to simplify your life, it will help you to need less - and, therefore, spend less. Consider small daily changes - like using four sheets of toilet paper instead of six, dime-size portions of shampoo or toothpaste, etc. While that may seem insignificant on a small scale, the effect in the long run can be beneficial to cost savings.

2. Be energy conscious. If you've never been one to acknowledge the importance of turning off lights or turning down the furnace, now is a good time to enroll in Energy Conservation 101. Consciously choose to run only full loads of dishes or laundry when necessary. Not only can this benefit your bank account it can also help benefit the environment - and that's always good.

3. Create a simple budget that you look forward to following. It doesn't have to be elaborate or complex, it just has to be realistic and achievable. Set financial goals for various time frames and plan to reward yourself in small ways when you reach those specific goals.

4. Open a high interest savings account. If you have any amount of money available to put aside for savings, do so and make it work for you while it's there. Many financial institutions are offering interest rates of anywhere up to 4.5% - and at the end of the year, this becomes yet another reward for not spending your money.

5. Cancel your cable and apply for a library card. It may seem difficult with so many great TV shows on these days, but 100+ channels really isn't necessary nor is it conducive to a healthy or productive lifestyle. If you can't simply live without catching your weekly episode of 'Lost', make arrangements to hang at a friend or family member's house for the show. You'll find you have much more time to lead an active and interesting life when you don't depend on TV for entertainment. Obtain a membership at your local library and there you'll find thousands of amazing books instantly available. Not only are they free of charge - they're good for the brain.

6. Restrict yourself to one phone number. If you're running both a landline and a cellular phone choose one and cancel the other. Many cell phone providers offer great, tailored packages that cater to the needs of your lifestyle (more long distance minutes, less evening minutes, etc). If your family members also have cell phones, consider a family plan that can help to minimize your monthly communication expense.

7. Give yourself an allowance and make it last. You likely did it as a kid, so you should be able to do it as an adult. At the beginning of each week, withdraw a specified amount of cash to 'live on' for that week. Be strict with yourself by leaving your debit and credit cards at home. If the means to spend aren't available, then - almost like magic, you probably won't spend.

While these ideas may not make you a multi-millionaire, they will help to stretch your income and lead you down a road toward increased financial flexibility. Remember, it's not about getting what you don't have; it's about efficiently and effectively using what you've already got. Good luck!

Learn more about this author, Kelly Jamieson.
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