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How to Budget and Save Money

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In this down economy, learning how to budget and save money can make the difference between paying the mortgage and living on the street, having food or being hungry, and being able to retire versus working until you die.

If you think about it, no matter how hard things get, there is always a way to save money for those that are willing to put in the hard work. It’s those that refuse to compromise that end up suffering.

To start with, if you really want to learn how to budget and save money then you need to accept the reality that you won’t be able to buy everything you want. You often hear of people saying to cut out the latte or eating out, but I find that it’s those experiences that make budgeting worthwhile.

The trick to setting a budget isn’t in cutting out every pleasurable item in your life, but in finding ways to pay for those items, which means you can do two things:

  1. Earn more
  2. Spend less

Today, we’ll talk about the second point, because it’s the easiest to fix. My strategy is to find the sweet spot between having fun and still having enough money to pay the bills.

Analyze Your Buying Behavior

Start by analyzing your purchasing behavior to look for moments of weakness. When do you spend more than you can afford to? Is it when you are hungry, or after a few beers? Do you spend money when you’re depressed, or when you are happy?

Learn to isolate and eliminate the types of behaviors that put you in the hole.

Make Small Cuts

Rather than dropping cable or satellite TV all together, why not cut down to the next smallest plan to see how you get by. If you’re paying for cell phone minutes that you don’t use, then look into a lower rate plan.

Are you paying for high speed Internet when something slower will do?

Essentially, make small changes that don’t hurt as bad, and see how they effect your morale. It’s important that you don’t cut too much, which usually leads people to over-react and binge-shop.

Save First

The best way to save money is to start putting it away before you have the chance to spend it. If you really want to learn how to budget and save money then it starts with the actual saving.

Put aside as much of your paycheck as you can afford to, and try to pretend that it doesn’t exist. I like to use a separate bank account for that reason, and check it so little that I rarely remember the password. This is a nice way to keep my money away from my own dangerous spending habits.

Relax

Just remember that what goes down, must come up. If you budget well and live below your means for a time, you are bound to bounce back up and find a renewed vigor. The trick is making it through the tough times without going broke.

How to Save Money on Groceries

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I remember a day when a 2 Liter of Pepsi was 99 cents, and you could get a gallon of milk for just a buck or two. These days, prices haven’t just increase, they’ve increased big time.

So it comes as no surprise that a family once able to stock the fridge and cabinets with food might now be struggling just to keep a few shelves full. The average family now pays over $1,000 for groceries per month, and it seems like costs are only continuing to rise.

So today, to help you fix that dent in your wallet and keep the fridge full of not junk, but healthy food, we’re going to talk about how to save money on groceries without going on a starvation diet.

  1. Coupons
    You might have seen the new show that’s all the rage lately – Extreme Couponing, which presents case studies and personal stories of renegade shoppers that have become so good at using coupons that they often walk out of the grocery paying less than 1% of retail cost.

    Now, I don’t expect you to become a crazy couponer, but just using coupons period will show you how to save money on groceries instantly. Start getting the Sunday paper, and clip coupons. Also, keep the circulars and browse them for good deals. It’s instant cash back in your wallet.

  2. Buying in Bulk
    I realize that buying in bulk can be costly, but one of the tricks people use when showing others how to save money on groceries is buying what’s on sale now, and stocking up. It’s counter-intuitive because logic tells you to only buy what you need, but if you get in the habit of buying lots of what’s on sale, then your average bill will slowly decrease until you’re paying less than ever.
  3. Not Shopping Hungry

    I realize this isn’t a trick, but it’s important that you show up to the grocery with a full belly so that you don’t get suckered into buying things that you don’t need. When you’re full, you move fast and avoid distraction. When you’re hungry, even the boxes look good.

  4. Use a List

    When you go grocery shopping without a list, you end up walking through the store and waiting for something to stick out and say “buy me.” The problem with that is that like shopping hungry, you get sucked into endcaps and displays that trick you into spending more than you want to. This is why they put the milk in the back!

  5. Buy Store Brands

    Many store brands are just as good as the original, and if you really want to know how to save money on groceries than you can start here and save as much as 50% right off the bat.

The trick to saving money on groceries is in buying smart, and paying attention to store patterns. If you learn how to master the coupon, bulk, and store brand game, then you’ll win every time.