Five simple ways to save yourself hundreds of dollars a month
We are a country of spenders who must learn the hard way to practice what our grandparents have always known: A penny saved is a penny earned.
Consider that about 43% of Americans spend more than
they earn, according to estimates from the federal government, and the
average household carries some $8,000 to $10,000 in credit-card debt.
To make matters worse,
the average American no longer saves money. That's tumbled from a 10.8%
average savings rate in 1984 into negative territory today. It's no
wonder that many of us have been living way above our means for some
time.
But that is getting
harder and harder to do. Available credit for people to finance their
lifestyles has shrunk if not dried up altogether and many Americans are
standing by in shock watching their mortgage payments surge while the
value of their 401(k)s drop.
It's clear
Americans need to start spending less and saving more. That may sound
easier said than it's done. The key is to be aware of your where your
money is going and take steps to stop the leaks. Here are five simple
tips that could save you hundreds of dollars a month:
1. Cash back at the pump
In the past five months gasoline prices have dropped 56%, from an
average price of $4.11 to $1.80 a gallon. Somehow, households found the
money to pay the higher price and survive so now people should take
that excess money they are saving and bank it.
Jean Chatzky, author
and personal finance expert suggests using the money you were spending
on gasoline to build up that rainy day fund or to pay some your holiday
expenses instead of racking up more debt.
2. Supper savings
Another great way Americans can cut costs each month is to eat at home,
says Jonathan and David Murray, twin brothers who are financial
advisers.
According to a recent
Zagat survey, Americans will spend an average of $34 this year every
time they go out to eat dinner, that's for one dinner, drink and
gratuity; $76.00 if they live in one of the 20 most expensive cities.
If a couple does that four times in a month the expense is close to
$300 in low-cost areas and $600 in higher-cost regions, and if you have
more than one drink or are treating family or friends, costs can add up
quickly.
Plan a dinner or party
at home and ask guests to bring a dish. If you're big on getting
together with friends, family and work associates, this could save you
hundreds of dollars a month.
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