Saving On the Small Expenses

The first items many people look to cutting back on in a depressed economy are those large expenses like car, appliances and furniture. But they often neglect to address those small expenses that quietly slip through their fingers but make a great hole in the pocketbook.

Despite today's economic climate, saving becomes more of a necessity as those luxuries we want have to be placed on the back burner so there is money to fall back on should the economy stay sour for some time to come.

Reducing debt is the first step for many families. But reducing debt doesn't lead to much savings. While being frugal with what you have and what you buy makes good financial sense, most of us tend to overlook many of those small purchases that eat away at the pocketbook. Saving that small change can make a big difference. The price of that morning cup of daily coffee does add up over the year. Most of us would rather dispense with that small change than carry it around in the wallet and purse. But rather than spending that useless change on items that do nothing more than provide temporary satisfaction, that money could fill up a cookie jar until it is full and ready for deposit into a savings account. That cookie jar can teach a valuable lesson as you watch it fill up rapidly from those pennies, nickels and dimes you throw away. Add a dime or quarter every time you use a coupon at the store. If you have a food budget and have planned to spend a certain amount of money on your shopping trips, you can save what's left over.

If you have received a bonus this year, a raise in pay or a rebate, the first thing you usually think about is spending some or all of it. But with today's economy the way it is, it might be more prudent to put that extra money away and continue spending the same way you have before you received those bonuses.

Bank accounts are good places to keep your money though they don't offer much in the way of interest. But one way to discipline yourself is to have two separate accounts preferably in two different banks, one for checking and one for savings. Your savings account can be opened in a bank that takes some time to get to. In this way you won't be so easily tempted to withdraw that money. While the bank may issue a bank card on your savings account to use at ATMs, cut it up like you would with a credit card. If easy access is a problem, put that savings into a GIC or savings bonds. Another idea is simply get a joint savings account with your spouse.

Everyone is paying for some service they aren't using regularly. Those phone calling features are an expense but likely you use very few of them. Cutting them out means paying less on your telephone bill every month. If you're buying videos and books from a club, you can do better renting or picking up the same books at the library. Unless you're actually using a gym to get into shape, having a membership is just not worth it.

Take a look at the cost of dry cleaning, having a maid to clean your home or have the garage change the oil in your car.

Getting serious about saving doesn't mean you have to be fanatical about how much you spend or live in an unheated home for the winter. But it does mean taking a close look at those unnecessary expense in order to save where you can. That extra cash will help get you richer and tide you through any economic storms to come.