Tuesday, December 18, 2007

Money Talks

Money Talks

5 Steps to Start Saving Money Today

5 Steps to Start Saving Money

TodayThere are many ways to save money on a day to day basis,but to consistently save money over time there are somesteps that you can take. At the end of the year, thesesteps can save you hundreds if not thousands of dollarsdepending on your spending habits and your current debtsituation.Here are five steps to help you save money:

1. Create a budget

By creating a budget you designate where your money isgoing to be spent before you actually spend it. Your budgetshould include necessary items such as rent or mortgage,utilities, car payments and insurance, credit card bills,food expenses, amount to be put into a savings account orretirement fund, and a miscellaneous amount forentertainment, clothing expense and any unforeseen expensethat might come up in the course of month. You should stickto your budget. As for the miscellaneous amount, if youdon't end up spending it, put it into your savings.

2. Limit Credit Card spending

Credit card spending puts you into more debt and actuallyhas the opposite effect of saving money because of theamount of interest you pay in the long run. You shouldadopt the attitude that if you are unable to pay cash, thenyou cannot afford it. Only in real emergencies shouldcredit cards be used. Additionally, you should limit thenumber of credit cards you have.

3. Keep Your Receipts

You should keep all of your receipts and look at what youare spending your money on. You might be surprised at allof the little unnecessary items you spend your money on.Just how much are you spending on those double tall latteson a monthly basis? By identifying those items you spendyour money without need and eliminating them, you can savea significant amount of money.

4. Consolidate Debt

By consolidating your debt you can end up saving money onthe amount of interest paid. Consolidating debt can alsoreduce the amount of money you have to pay out monthly andallows you to limit the number of outgoing payments eachmonth. In the long run, consolidating debt will help youtrack how much you are actually spending on a monthly basis.

5. Get your Credit

ScoreYour credit score determines how much interest you will endup paying on any loan. By knowing your credit score andunderstanding how you can raise it and taking the steps toraise your credit score, you can effectively lower theamount of interest you will pay on loans you take out inthe future.

Taking these five steps will help you save money not justtoday, but also in the future. You'll be amazed at how muchyour savings will add up over time.

About the Author:For more ways on how to save money and manage your debt, goto http://www.creditmanagement101.com/The author runs http://www.creditmanagement101.com/ - awebsite dedicated to issues concerning debt and creditmanagement. Learn about responsible credit management, yourcredit score, debt management plans and credit counseling.Also find ways to save your money by maintaining a livablebudget that reflects your means.

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