Start Saving Now

1. Make a menu. Knowing what will be fixed for each meal and what needs to be done to prep that meal will make buying groceries easier and much less expensive. Easy, quick meals will also keep you from giving in to the need to get fast food or eat out.

2. Wash the rags. Today I was putting one of the last rolls of paper towels up when it dawned on me that we go through one roll every two days. Choosing to use towels that can be washed to do most of the work will save us quite a few dollars in the end.

3. Turn down the heat. The colder it gets the lower the thermostat needs to go as well. Heat pumps in particular will use up much more energy when they are set to a temperature that is over 40 degrees above the outside temperature. Use the fire place during these times if at all possible.

The little things can make a big difference. Cutting down or cutting back can give you the extra money you need to begin building up your savings. What are the little tricks and tips that you use to save?

It is important to save money in this economy. Experts have been saying that everyone should have three to six months of expenses saved up but recently I heard that the number should be EIGHT months.

Our household lives off a freelance income. That means that the paychecks come when the paychecks come and there really is not guarantees when (or if) they will arrive. We have been living off last month’s income for a couple of years now and it has made us more aware of our spending habits. Last week I decided to push our finances to the limits and begin to save aggressively. We are aiming to save $3000 in just 10 weeks.

Tips for Saving More Money

1. Eating out is one of the quickest ways to eat up discretionary spending. Over the next ten weeks we will eat all of our meals in home or we will pack sandwiches and a picnic if we must eat at the ball field or other outing.

2. Turn off extra lights and equipment around the house and turn the air up to 74 degrees. I can save any of the overage from the budget for the electricity.

3. Sell something I don’t need, use or love. It may be something big like a piece of jewelry or something small like a toy or collectible that could go in auction.

4. Work one extra job each week – as a freelance writer I can take on as many jobs as time allows. One extra job each week could be dedicated to savings.

Saving $3000 in ten weeks is not an impossible task. It only takes finding ways to save just $300 each week or around $60 each day. Putting back that extra money will get me well on the way to a comfortable emergency fund and it will help me become even more aware of how we spend money as a family.

1. I will write down every penny we spend. I bought a ledger to be able to keep up with all the monthly expenses by category. I have already marked in that ledger what is allotted for things like groceries, gas, etc. Every time a check gets written or a card gets swiped, I will record it in that ledger. You can’t save money if you aren’t aware of what you are spending and where you are spending it.

2. I won’t spend money that isn’t in the budget. That means that if I run out of grocery money then I have to make do with what is in the pantry (it’s not like the pantry is any where close to empty). If I see the perfect shirt on sale, it will have to wait. I don’t have money in the budget this month for mommy clothes. If I don’t feel like cooking – tough. I’ve laid out a menu for the month and there is no excuse for not putting the food on the table.

3. I will put the extra in a savings account. I always SAY I’m going to save, but if I leave it in the general fund then I’m generally going to use it. Today I am going to open an account specifically for this money.

4. I will continue to push my writing so that more money continues to come in. My goal is that I will be earning the same paycheck as my husband. If we continue to set all that money aside then we will be in a position to pay off our mortgage in the blink of an eye.

5. I will set aside certain funds from my writing for my writing. Anyone who works from home knows there are expenses that will come up. I have determined that all money I make from print work will go specifically into my writing account. That way any expenses I incur I can pay.

Our budget doesn’t have to expand just because our income expands. We have been living a good, comfortable life over the last year. Instead of throwing the new money away, I am going to work harder to make sure that money makes its way into savings.

1. Turn off the cable. Even if you just do it for one year, you will be able to save around $50 per month (more for most people). If you HAVE to watch the game or that special show, make it a night with friends or family. Other wise, find some new interests besides the television. Totals saved in our family will be $600.

2. Stop eating out. Take the time to pack your lunch or pack a picnic if you have late practices or games. Fast food for a family adds up quickly. Doing it every week (or twice a week for most of us) will break your bank. Savings for our family will be $1000.

3. Make your own coffee. Stopping at the local coffee shop is more expensive than you might realize. At $3 a day, you could save $750 just drinking home brew.

4. Cut the cars – especially if you don’t need them. There was a time when having more than one car was important for our family, but not anymore. If we can bite the bullet and only have one car we will be able to save $1000 in insurance and $350 in car expenses.

5. Ditch the clothes. If you’ve never purchased clothes at a thrift store then you are truly missing our on an adventure. Even in our small town, the second hand shops offer great selections of quality cloths at incredible prices. Instead of spending $50 on a pair of jeans, stop by the second hand shop and get some for $5. The savings for our family is $550.

6. Make it from scratch. If you don’t know your way around the kitchen then it is high time you learned. Pre-made meals will cost you 10 times what a scratch meal would cost. Another benefit of scratch cooking means you can double the recipe and give some away (instead of buying expensive gifts). Savings for our family is around $1200.

7. Shop in bulk – when you need it. I even buy children’s gifts in bulk through Oriental Trader. It means that I have gifts for unexpected parties or last minute projects (limit your self to one bin or shelf). I also use these gifts for treats when the kids are extra helpful. Savings for bulk buying is about $300.

8. Learn to freeze. IF you package food right you will be able to buy large quantities and use them through out the year. This is great when you stumble on a meat sale at your grocery store (or your neighbor, who hunts, offers you some of his kill). I have also discovered that many vegetables freeze great – for use in cooking. So does cheese and butter. I even freeze sandwich fillings (meat and cheese together) when I can find good deals on those items. Savings for our family is $500.

9. Turn down the heat/ turn up the air. These bills alone (especially during extreme weather) can be overwhelming. Saving just $10 per week (by adjusting by two degrees) will make a HUGE long term difference. Savings for our family $520.

10. Give the gift of creativity. When our money was so tight we couldn’t afford an idea, much less actual items, we gave our son a rope for his birthday. It was to be used to make a rope swing for him on his playground. Something we did together. Five years later, it is still being used. He has also used pieces to make several other swings in the same tree. All the great remote control cars and gadgets have been broken or discarded, but this $10 rope has lived a long and joyful life! Savings for out family is $300.

Saving money doesn’t have to be something you do during a crisis. If it becomes a way of life then you can do things that you would never have dreamed possible. What would you be able to do with $7,000 each year? Odds are pretty good that you already have that money available; you are just choosing to spend it in different ways.

Start today making choices that will give you and your family the life you have been dreaming about.

1. Pay it back. If you only tithe or donate off of you net income then you should give 10% of your refund to other causes (the church, Red Cross, or other charitable organizations). Giving to others with a joyful heart has a way of coming back to you in big ways.

2. Pay it off. Use the refund to pay off credit cards or other revolving credit. If you ever stop to figure what the interest is costing you then you will never borrow another dime in your life.

3. Pay yourself. Start an emergency savings and don’t use it unless it truly is an emergency!

4. Pay to play. Do allow yourself some frivolous spending, but be wise with that spending. Get something the whole family can enjoy and that you probably wouldn’t get otherwise (like a new couch or membership to the water park).

5. Pay it forward. Take a portion of the money and invest it into your retirement plan or for future use.

6. Pay to work. Bring your dream of having your own business to life by using the funds to begin your own business.

Getting a refund is always great. Depending on the size of that refund, it can also be life changing. Take some time to plan for the money before you have the check in hand. That way you can use the refund to benefit the family and your life.