Can't seem to find any money to set aside for saving? Then it's time to take a serious look at your spending habits -- the less you spend, the more money you'll have for saving. Consider these tips if you need to control your spending:
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Analyze your current spending practices for a month. Are you surprised by how much you spend on eating out, groceries, entertainment, or clothing? Give serious thought to your purchasing patterns, trying to find ways to reduce spending.
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Go over your major expenditures as well. Cutting back on luxuries is not the only place where you can find savings. When is the last time you comparison shopped your auto or homeowners insurance? Have you checked mortgage rates lately to see if you should refinance? Have you talked to someone about strategies to reduce your income taxes?
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Throw out your credit cards (or at least hide them for a while). Many people find it much more difficult to spend cash than to charge a purchase or write a check. So, for the next couple of months, only make purchases with cash.
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Resolve to only purchase items over a fairly low dollar amount on your second shopping trip. How often have you purchased an item on impulse because you loved it at the store, only to realize when you got home that you really didn't need it? To control these impulses, compare price and value on your first shopping trip. Then go home, think about whether you really need that item, and purchase it on a second trip.
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Think carefully before making major purchases. Many of these types of purchases include upkeep and maintenance in addition to the purchase price. Do you really need a motorcycle, boat, or vacation home? Consider a less expensive car or at least one that gets better gas mileage. Keep your car for four or five years instead of two or three years.
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Figure out how expensive a home you can afford and then buy one substantially less expensive than that. Not only will you save on your mortgage payment, but other costs associated with owning a home will be lower.
