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Friday, November 26, 2010

Little Ways to Save Money

The big step my husband and I have taken lately (me becoming a stay at home mom, or SAHM), I have become more aware of ways to save money now that we will be living on just one income. A few of my favorite ways to cut back on spending include:

1) Make a budget. It's hard to stick to a budget, but it's well worth it and even necessary if you don't have a lot of leftover money each month. One of the easiest ways to stick with a budget is to set up utility and bill payments online, then use a cash system for groceries, gas, and entertainment spending. Keep that week's allotted amount in cash and resolve not to turn to the debit or credit cards if it runs out.

2) Cut back on eating out. Stopping for coffee on the way to work, grabbing a sandwich at the deli, or ordering pizza when you don't feel like cooking really adds up and eats at your budget. Just think: if you spend $4 on coffee every day on the way to work, you're spending at least $80 a month just on coffee!

3) Teach the kids about saving too. You can make saving fun and teach your kids the value of money by encouraging them to save. For example, get each of your kids a piggy bank for spare change and allowance. If they want something, like a new Apple Bottoms pair of jeans or a video game, they will appreciate it more if they had to earn the money for it.

4) Eliminate your debt. Debt eats away at your hard-earned money in the form of interest. Pay more than the minimum amount each month wherever possible and don't charge anything unless it's an emergency.

These are my favorite tips for saving money.

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