The Hard Working Dollar

5 Ways To Save Money In This Economy

Over the last year, lots of people have said that saving money in this economy is difficult, if not impossible.  However, there are several small things you can do to make it easier for you to save.

#5 – Cut back on new purchases

Minimizing new purchases is often times easier said than done.  Especially, when we as a society have been raised to believe that “newer is better”.  However, the majority of new purchases are unplanned wants versus actual needs.  Therefore, by cutting back on new purchases, you not only save money, but also train yourself to distinguish between what you want and what you need.

#4 – Sell your old stuff

This is quite possibly the easiest way to save money.  That is because we all have clothes we haven’t worn in years or things that we haven’t touched in months sitting around our homes taking up space.  Take a second now to visualize your living room and/or bedroom and make a mental note of all the stuff taking up space that could be sold for a few dollars.  Now think about how good it would feel to see the money from these items sitting in a savings account earning more money or being used for a future vacation.  Also, keep in mind that by selling your old stuff, you not only receive money, but also make more room available in your living space.

#3 – Plan meals and outings

While planning meals and outings may sound like a difficult task, it is not as complicated as it seems.  It won’t be necessary to take out a calendar or even write anything down.  Just think of foods you would like to eat in the coming week(s) and things you would like to do on the weekend and make a mental note of them.  This mental planning will help you get a better idea of what you will be spending on food and on entertainment/hobbies.  When it comes to meal planning, it helps when you remember that you haven’t had pizza in a while and may want to have a few slices with friends or family on Wednesday night.  That way, you can go to the grocery store and buy enough pizzas and side items for the meal without spending money on delivery and while knowing that the expense is accounted for.  And when it comes to weekends, if you have an idea of what you would like to do and have planned on spending a certain amount, you won’t be as surprised when weekend related expenses come up.

#2 – Minimize your current bills and financial obligations

This step is one of the more difficult methods of saving money in this economy, simply because most individual’s bills and obligations are not that flexible.  However, if there are any bills or obligations you are in doubt about having, eliminate them if possible.  Also, keep in mind that if you do get rid of a service you like, you can always pick the service back up should you realize that you are better prepared for the expense in the future.  Another suggestion is to call your various service or product providers, and ask them if they have less expense plans or rates.  Granted, 9 out of 10 companies will say “no”  and that they don’t have a less expensive plan, but the one company that says “yes” is worth the time spent.  Plus, the worse they can say is “no”.

#1 – Save money before accounting for personal expenses and bills

This is by far the hardest way for most individuals to save.  That is because it requires people to be more selfish than they usually are.  When saving this way, you will take a portion of whatever money you make or receive and save it prior to paying bills or accounting for personal expenses.  However, while this method is the most selfish, it is the best method of saving because it is built on the principle that as long as you are taken care of, everyone else that you are responsible for and to will be taken care of.  Simply put, if you are not okay and can’t take care of financial emergencies, should they come up because you don’t have any savings, then every other responsibility and obligation won’t be okay either.  Therefore, by saving first you ensure that you will always be at least somewhat prepared for life’s little surprises and as a result can take care of any responsibilities and/or obligations you have accepted.

#0 – Do something NOW to save

I know I am cheating by having a zero, but the most important thing to do in order to save in this economy, is to actually save money in this economy.

Knowledge becomes wisdom only after it has been put to practical use. -Anonymous

(Image Source: Flickr user Juju Inspired)

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1. The Economy As Told By Bugs
2. The Hard Working Dollar Weekly Roundup 08/09/09 – 08/15/09
3. Separated at Birth: Investing, Saving, Trading and Gambling