Let's try and list here some tips for saving money. We'll all contribute what we can and maybe we'll get some nice ideas put down on the "virtual paper" of the forums.

I will start with what I have personally learnt:

Don't keep the money at home, use a bank account

I think it's the main advice. I am lazy. I don't like going to the bank, waiting in queue for minutes just to take my money. This helps me NOT spend it as I would if the money was at home. I don't bother thinking that much of the protection side of this (at home my money is more vulnerable) since we don't have such a bad neighbourhood, I do have 2 dogs in the house and also not too much money to lose.

When you have a raise, some unexpected money, don't spend it.

We had some changes made at my job and they gave us some money after this. I also got a raise. The first thing I did with this supplement was to go to the bank and leave it there. My consum money was already scheduled and I didn't have too many unexpected payments to do. Instead of spending the surplus on crap, I just saved it till I'll really need it.

Don't expect to save 300 USD at once. 50 is great too.

I think one of the big mistake I made all these years was to not put money into my bank account if it was less than 200 USD. Well, even 30 USD is a good thing. If I do have something to do to the bank, I also try to leave some money into my account. Imagine it does amount nicely after some time. Even the 50 USD you are not reluctant to save there will add up nicely to other 50 USD, and other and so on.

Come on girls, be creative

I take full advantage of my companies 401k match. If I put 5% of my salary towards retirement they add 4% of my salary.

I put $300/month into my savings account ever since I graduated from collage and got my first full time job. This has financed my first laptop computer, a month long trip to Chile, and a down payment for my future home.

I also pay off my credit card in full every month and drive an old car that I don't have to make payments on. Avoiding paying interest allows me to save more money.

When I had a roommate I put the money they paid me directly into savings.

I shop around for good interest rates on Certificates of Deposit (CDs) to maximize the interest I earn on my savings.

I make sure I have a small amount of pocket money every month. That way I can spend money on frivolous little things I enjoy but are not necessary without guilt while not going crazy and overspending. I can occasional have drinks with coworkers after work, go out for dinner or a coffee shop. People with impossibly strict budgets never can stick to them and often figure if they can’t be perfect then they should just go crazy and not even try.

This post was last modified: 05-04-2008 07:06 AM by indigo.