Saving Money

Shopping & Saving

Where does your money go?
Budgeting is perhaps the best way to save and spend more wisely. To monitor your spending habits better, keep a record of the money you spend during a one month period.

Then answer the questions below:
   1. What patterns can you see in your spending habits?
   2. How do you decide what to purchase?
   3. What factors influence your purchasing decisions?

Before you spend your hard-earned money:

• Do I really need this item?
• Is it worth all the time I spent making the money to pay for it?
• Can I use my money in a better way right now?
• Do I really need to buy the priciest item or will a lower-cost item serve me just as well?
• Can I really afford this right now?
• Will the item be on sale soon? Should I wait?
• Do I really need a name-brand item, or will a store brand serve my purposes-and save me money?
• What do consumer magazines say about the item I'm considering?
• Do I know anyone who already owns this item? Do they think it was worthwhile to buy or do they regret their purchase?
• Is there a warranty and/or service contract on the item?

Tips

• Pay yourself first. Set up a separate account for savings, and immediately transfer a portion of your salary to the account each pay period. Consider this account to be off-limits, except in the case of an emergency.
• Apply any extra income toward paying off debts.
• Try to save on insurance. Review your policies to avoid duplicate coverage. Consider raising your deductibles; talk to your insurance agent about other ways to save.
• Start saving $1 per day. Save your pocket change too. You'll be surprised how quickly it adds up.
• Don't buy on impulse. Purchase only the items you originally planned to get. Limit the amount of cash you carry as well as the number of credit cards.
• Wait for sales, and comparison shop. You can save 50% or more by doing so.
• Make two shopping trips before you buy. On your first trip, compare prices. Then, after you have made a thoughtful decision as to an item's price and value, go back to the store a second time and make your purchase.
• Use coupons and rebates as much as possible.
• Shop at consignment shops, and consider rebuilt and pre-owned items.
• Save money by doing things yourself. Cut your own lawn, for example, or wash your own windows.
• Conduct family meetings each week to discuss ways that you as a family can save money and get out of debt.