It is so much easier to spend money, even money you don’t have, than it is to save money isn’t  it? But you may have big reasons to cut back on your spending right now and it’s time to start increasing your savings.

The number one place to start is with considering why you want to cut back on your spending. What is your motivation? Do you want to buy a new house or retire early? Maybe you’d like to get out of debt, put your kid through college, or take a trip to Europe. Whatever the reasons, write them down so you can refer to them at moments you’re feeling challenged.

You don’t have to go cold turkey. If you’re used to grande double chocolate chip frappaccinos every single day, cut them back to every other day. That’s a savings of $702 per year. Resist cutting your spending so far back you feel deprived. Even though you have good intentions, it will backfire.

If you have debt issues, put your debts down on one sheet of paper. They look worse all in one place, in black and white, and this might help motivate you, or at least remind you of what you need to be doing.

Watch out for impulse buys. Implement a 72 hour rule or a 30 day rule before you buy something you suddenly need but didn’t need before you first laid eyes on it. After the time period is up you may find you don’t have to have it after all.

Try using cash. Cash looks, feels, and acts like real money. Credit cards don’t always seem quite real. When you spend cash it’s a little more painful and real than whipping out a small piece of plastic.

Plan ahead for big purchases so you can use time- time to shop for the best deals or time to wait for the sales. Some items always go on sale at certain times of the year; cars right when the next year’s models come out, air conditioning units in late fall, gas grills at the end of summer, and ranges and washing machines in September or October. Search for coupons online for an item you want to purchase. You may be pleasantly surprised if you take a few minutes to do some legwork.

Take a good look at your eating habits. Lots of take out = lots of money out the door. Plan your menus ahead of time so you have the ingredients on hand to make dinner. Not only is this good for your wallet, it’s good for your health too. In addition, have lunch items on hand and give yourself a little extra time in the morning to pack your lunch.

Plan your errands. You’ll save on gas if you hit several places on one trip, and go in a clockwise loop. Right hand turns mean you won’t be idling at lights. It saves gas and time.

Turn down the heat a notch and the a/c up a notch. Programmable thermostats will definitely help you save because you can program them to be at a different temperature when no one’s home or when sleeping. Cutting back on your spending doesn’t have to be an all or nothing proposition. You can still have some luxuries that are important to you, as long as you’ve made a conscious decision as to which luxuries those are. Keep in mind why you’re cutting your expenses . The more you cut your spending, the faster you’ll reach your goal.

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Tags: bank, budget, cash, currency, cutting back, debt, finance, financial, impulse buys, money, people, purchase, shop, spend, spending, wallet

This entry was posted on Monday, January 11th, 2010 at 9:50 am and is filed under Diva News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.