How to save money

It goes without saying that last year was a beyond tough financial year for far too many of us. Some things have simply been out of our control, such as the flailing economy or total lack of jobs during this horrible market; however, the good news is that with a little self-discipline we can still retain at least some control over our own personal finances. Whatever financial mistakes we made last year can be eliminated and even made up for beginning now. It's a new year and time for a fresh start. Now while you may still find yourself unemployed and floundering in debt, the good news it that you can begin to turn your situation around with several small and seemingly insignificant savings tips which can ultimately lead to that much needed financial turn-around and ideally, even eventual complete financial freedom.

   The key ingredient to financial peace of mind according to financial author and motivational speaker Dave Ramsey is to "live like no one else now so that later on you can live like no one else."

   What does this mean?

   It means taking control of your hard-earned money and not allowing it to control you. It means living within and perhaps even below your means for the time being-- shortcutting if not all together giving up certain capricious luxuries that you have been used to spoiling yourself with in the past, so that you may obtain full financial freedom to live as you please in the future.

   For example, a Starbucks grande latte only costs $3.00. However, imagine if you were to purchase one for every weekday for an entire year, you would have spent a grand total of $3,120 per year in coffee alone! Now imagine what we must spend per year in other more costly products and services such as hair, nails, clothes, bar hopping, and clubbing, to name a few-- products and services which will inevitably add up quickly and deplete our hard-earned savings even more quickly .

  Making certain small yet crucial changes now will lead to even bigger and better change in the future: complete financial freedom-- and all the Starbucks lattes you want. :)



                Here's how (listed alphabetically by category):



Beauty:

1. Prolong the life of your lipstick by using a lipstick brush.

2. Switch to slightly cheaper hair care products and make-up for the time being. Many stores carry their own store brand products that are just as good and are slightly cheaper as the same name brand products.

3. Buy two-in-one products such as a blusher/brozner or a primer/lipstick or primer/mascara.

4. Turn bottles upside down to get maximum usage as opposed to throwing them out when they are not yet entirely empty.

5. Do it yourself. Save manis, pedis, waxing, and facials for special occasions only. If you don't know how to do these things on your own, it's super easy to learn. Many beauty supply stores sell products and kits worth investing in that come with complete instructions. With a little practice, you'll be pro in no time, not to mention you'll save a grip of cash. For more information, refer to at-home facials in the 'beauty' section of this blog.



Cell phones:

1. Switch to a cheaper monthly plan. Cut back on excess minutes, texts and applications.

2. Try to find a plan with roll-over minutes.

3. Get on family plans as servers often offer package deals at a significantly reduced rate.

4. Find carriers that offer mobile-to-mobile specials and try to recruit the people you talk to the most.

5. Save the majority of your lengthy phone calls for nights and weekends, which servers typically offer for free.


Clothes & shoes:

1. Nix your insatiable shopping addiction by canceling catalogue subscriptions, both online and in snail mail.

2. Only buy things that are on sale. Many girls don't like to do this (including me!) as they feel that the only things that go on sale are the items that no one wants. Fortunately contrary to popular belief, many stores place items on sale in order to push them out before the upcoming season's worth of clothing arrives (which usually happens way before the season itself actually arrives). So you will be able to score a ton of sweaters, boots, and a lot of other cute winter finds as early as February, which is when many stores are beginning to prep for spring lines.

3. Shop at second-hand stores. I'm not suggesting you go on a spree at Salvation Army (unless you like the selection, then go for it!); however, there are a many second-hand stores that sell only name brand items that have been in style for the past six months or less, such as Buffalo Exchange (http://www.buffaloexchange.com ).

4. Get creative. Rediscover items in your closet that you haven't worn in a while and find a new, fresh way to make them work.

5. If you come across stilettos or boots that are super cute yet have been completely worn out due to repeated usage, pay to have them repaired as opposed to buying the same ones new. It will come out cheaper, and you still get to keep your styling shoes without having to go through the effort of breaking in new ones.

6. Host a clothes swapping party. Get all your girlfriends together and score some new clothes without spending a dime. Swaps can be temporary or permanent, depending on you and your girlfriends' preference.

Entertainment:

1. Set a monthly entertainment budget for yourself and stick to it.

2. Read magazines online or at the bookstore. Most publications are online these days, so you can enjoy all the perks of catching up on weekly celebrity gossip without paying an average of $3.50 per magazine.

3. Rent DVDs for a dollar each at Red Box (www.redbox.com), which are increasingly popping up inside major supermarkets. They have almost all the same hits as Blockbuster or Netflix.

4. You can also rent DVDs and CDs for free from your local library.

5. Look in the local paper for free concerts to satisfy your live music fix.

6. Download iPod music from friends who have similar music tastes (totally legal!) as opposed to purchasing each individual song on iTunes.

Food & beverages:

1. Avoid dining out at all costs. If you must for whatever reason, avoid ordering appetizers and drinks, which will quickly amount to mass money rapeage. If you can, order from the lunch menu, as prices are generally lower since the portions are slightly smaller. Also, share dessert with everyone present in order to divy up the cost.

2. Brew your own coffee and tea. Why pay $3.00 for a drink when you can spend that much for on an entire week's supply?

3. Pre-party at a friend's house before hitting the bars or clubs where drink prices are painfully high.

4. Grocery shop with a pre-made list of all the things you need. Stick to the list. Eliminate all excess junk food you don't need. On top of saving money, you'll start to shed your 'winter coat' as well. :)

5. Clip coupons. Even if it's just for a couple dollars, doing so on a regular basis will really start to add up in terms of savings.


Gas:

1. Create a gas budget. Try to stick it to as much as possible, which will force you to find alternate means of transportation if you find you are way over your pre-designated budget.


2. Carpool as much as possible to class, work, or to go out. Work out a schedule with friends and co-workers, allowing for everyone to cut back on gas.

3. If carpooling is not an option, rely on public transportation. Sure, it may be a minor inconvenience as it might take slightly longer to arrive at your destination, however,  you'll realize how much it's paid off once you realize how much you've saved in the process.

4. Fill up at independent stations as they are usually cheaper than franchises.

5. Start walking/riding your bake/skating to places that are within a reasonable distance.


A few last tips:

1. Create a budget each month for each thing you spend on money on, including all your bills.

2. Separate out in individually labeled envelopes the exact amount of money in cash you will need for each expenditure. Once the money in each envelope is gone, consider yourself done for the month.

3. Avoid using your credit cards at all costs!!! If you absolutely must, get rid of all your cards except for one!!! And only put on your card what you can pay off in full at the end of each month!!!  I cannot stress this point enough. Credit card companies are so deceitful in making you feel as though you can 'deal with paying later' when really all you're really accomplishing is piling on debt that will have to be dealt with at some point. Even if you simply pay the minimum due each month, interest rates are so insane that they nearly qualify as usury. These plastic little monsters have singlehandedly lead to the financial downfall of many young women.

I hope these tips have helped, if even just a little....If you have any additional ones, please do share! Happy saving! Here's to 'living like no one else now so that we can live like no one else tomorrow!'