10 Tips to Save Money

Today, many people are accepting the fact that saving extra money is the only way to live a stress free life. People with significant amount of savings are said to be better off financially than people with huge amounts of debt. Many people often find themselves with extra cash but do not know what to do with it. Such people end up spending all their money and are left with nothing to save. Listed below are 10 money saving tips.

1. Save automatically

Setting up automatic contributions is one of the best ways to save money. When your monthly income is remitted to your bank account, a certain amount of money will be deducted automatically and deposited into your savings account. That way, you never have to worry about failing to remit your monthly savings. As your income increases, you can increase your monthly savings and vice versa.

2. Refinance Your Mortgage

The mortgage rates are always changing. If you took out a mortgage when the rates were high and now the mortgage rates have gone down significantly, you can refinance your current mortgage and take advantage of the low mortgage rates. That way, you will save thousands in interest payments.

3. Telecommute

People who work from home save on transportation costs, day care costs and other costs associated with working in the city. If your employer can allow you to telecommute, don't hesitate to do it. A recent survey shows that people who telecommute save an average of $11,000 per year. Therefore, if you have the chance to work from home, take it and utilize it to the fullest.

4. Go green

An average family spends more than $2000 per year on energy bills. If you use solar power to energize your home, you will save over $2000 per year. On top of saving thousands of dollars every year, you will be reducing your carbon print and contributing towards a greener society.

5. Cable TV

Many people pay for channels that they will never watch. If you are certain that you will never watch the history channel, why should you pay for it? You should only pay for what you are sure you will watch. In so doing, you will free up extra cash that can be set aside as savings.

6. Switch to public means of transportation

Commuters who use public transportation save an average of $8,500 every year. Therefore, if you live near the city, there is no need to drive to and from work every day. Just take the bus or the train. In so doing, you will be saving a significant amount of money every year and you will never have to worry about gas prices. Moreover, when you use the train, you won't get stuck in traffic for hours.

7. Get rid of high interest rate credit cards

If you are in possession of one or more credit cards with an interest rate of 30% or more, you should get rid of those cards and replace them with cheaper cards. High interest rate cards mean that you will be paying off the interest as opposed to paying off the principal amount.

8. Don't spend to impress

Many young people want to buy expensive products so that they can show off to their friends. Spending a lot of money on things that you cannot afford is main cause of debt. Therefore, you should live within your means. Do not go overboard just to show off.

9. Avoid impulse buying

Impulse buying is the leading course of debt among the young people. It would be advisable to plan what you want to buy before going to the store. That way, you will only buy what you had planned for.

10. Avoid expensive habits

This includes smoking, drinking and many more. These habits can cost you a lot of money but since you are used to it, you barely realize the amount of money spent. For instance, if you smoke a packet of cigarettes every day and one packet costs about $7, that is $196 every month or $2,352 every year. If you quit smoking, you will be saving $2,352 every year.

There you have 10 tips to help you save more money. If you take action and follow through with one, you could find yourself with $100s of dollars more in your wallet each month.