Easy Tips to Reduce Spending and Save Money

Over the years, people have tested all sorts of ways of saving money, but most of them fail. Here are 10 super-simple tips, all of which you’ll use every day, that will actually help you save.
1. Stop using credit. This tip might seem counterintuitive, but credit cards are a bad deal for most people. Here’s why: Credit cards are charging you 15 to 25 percent interest just to borrow the money.

2. Start using cash. Once you’ve gotten into the habit of carrying around cash, you’ll feel a lot better about not spending it. It’s easier to avoid temptation when you have a physical bill in your hand. Plus, cash will help you stay away from loss leaders — those low prices that businesses use to encourage you to buy. You could be saving yourself hundreds of dollars a year just by sticking to cash.

3. Pay yourself first. Most people pay their bills first and then save whatever is left. That’s backward! Instead, the first thing you need to do is pay yourself first. Use the first portion of every paycheck to pay yourself first by depositing it into a savings account. Then, pay your bills.

4. Make saving automatic. You can set up automatic transfers from your checking account to your savings, and that will reduce the temptation to spend.

5. Don’t get emotional. If you have good intentions to save — “I’m going to sock money away for a new car” — but find yourself spending it, try to identify why that happened. Was it because you noticed a price drop? A new sale? Did I miss out?

6. Set a goal. Start small. Set a goal for how much you want to save each month, and when you reach that goal, start upping it. Remember your goals. When you sit down at the end of the month, remember your goals.