How To Save Money In A Recession

Here's some tips on how to save money in this current recession. Some are common sense and others thing we don't think too much about. Learn to stretch your dollar so you can save.

Stop Going To The ATM

Every time you withdraw money, you are not accounting for it. Its too easy to take out cash and go spend it. You need an audit trail of where you are spending your money.

I use Quicken to keep track of my expenses. Every month I generate a report knowing where every penny is going. That way I can make better financial decisions on my lifestyle.

Pay Full On Your Credit Cards

I admit I use to be one of those that only paid the minimum on my credit cards. But I found over the years, its bad idea and where most people get caught up in a spiral of debt.

Most people do this to put off the inevitable and its really a matter of discipline in spending and saving. A credit card makes it too easy to be irresponsible and we end up out of control running up debt on high interest rates and late fees.

Pay off your credit card bills in full first before you go out spending on more things.

Stop Paying Too Much For Auto Insurance

As your car gets older, take on a higher deductible to lower your premiums. Your goal is to pay less premium for that older car. After say 10 years the value of the car is near worthless. Live with minor damages because you will pay a deductible anyway.

In event of total damage to the vehicle, you will have to pay full price for a new car if you get into a wreck. In most cases, the salvation value plus the value of the old car is what your auto insurer will pay you. This is where people fail to understand - you are not going to get a brand new car for replacement.

Auto insurance as your car gets older is really about covering injuries and property damage. Forget the car, it will have to be replaced.

Buy Only Items At The Grocery Store On Sale

The markup on grocery items is big - often 100-200% over their cost. Why do you want to be a sucker and pay those kind of prices? Don't. When you go into a grocery store, only buy the items you really need and the things that are for sale.

When Driving In The City, Drift To A Stop

Instead of speeding up to a location and then pulling to a stop, drift to a red stop light or intersection easing off the gas pedal. You don't need to use up more gas as you slow down, silly.

Buy A Cheaper, More Fuel Efficent Car

There's really no need for buying an expensive luxury car or SUV anymore just to look good. Think about this. Aren't you just trying to show off just like you did in high school?

Stop Having Food Delivered

How many times do you order out for pizza delivery? While it may save you gas and time, you still have to tip the delivery boy $5-$10. Do that twice a month, 24 times a year and you are throwing away anywhere between $120-$240. Thats money to pay off the telephone and garbage bills. Think about it.