Everyday Money Management

Smart Spending Tips

• Devise and execute a spending-plan.
• Stop use of all credit cards.
• Close credit card accounts by returning charge cards to issuers along with a letter terminating charging privileges.
• Do not take on new debts - including a "consolidation loan".
• Pay yourself first. Set up a separate savings account once you get paid and immediately transfer a portion (start with 5% of your regular deposit amount) to the savings account. Attempt to forget about the account in order to prevent unnecessary withdrawals. Only access the funds upon emergency.
• Collect and write notes on your cash purchase receipts. This will help you track spending and raise awareness of your spending habits.
• Closely examine all expenses looking for ways to increase value or save money.
• Sell items that are losing value.
• Put all extra income towards paying off debts.
• Maintain written account of all income and expenses, especially cash.
• Review all insurance coverage for duplication, raise deductibles, etc.
• Begin saving one dollar-a-day and all pocket change, everyday.
• Review spending practices and habits, begin comparison shopping, etc.
• Wait for sales. Comparison shopping can save you more than 50 percent.
• Make two shopping trips. The first trip compare prices, value, etc. Avoid carrying credit cards, too much cash or a checkbook on the shopping trips. The second trip is when you will actually make the purchase after having determined the best value.
• Use coupons wherever possible and send in for rebates.
• Take advantage of consignment shops, rebuilt, and used items.
• Start doing things yourself and do not pay for services you can perform.
• Have weekly meetings on how to improve spending habits with family members.
• Make getting out of debt a family activity.