One of the best ways to save money the fastest is to clip up all of those expensive credit cards.
Credit cards are perhaps one of the most expensive forms of money. A very good rule of thumb is, unless you pay off your credit card bills each month, don’t use the cards for anything you can either eat or wear.
Another good rule of thumb is to consolidate your debt. If you have several credit cards, each at different rates of interest, why not fold them into a home equity loan and then write off the interest payments? This is a good way to begin an emergency savings fund.
Here are some good suggestions for budget trimming that can work for just about everyone:
When mortgage rates are especially low—consider refinancing your mortgage and, while you’re at it, your car loans, too.
When you live in an area that has good public transportation, see if you can get by on one car instead of two.
Make your current car last. With good maintenance, you will be able to replace it every six to eight years instead of every three years.
Do a periodical energy check on the house. Replace all essentials such as cracked storm windows and renew the weather stripping.
Cancel subscriptions to magazines or newspapers that you’re not reading.
Eat out less often and learn to be creative using leftovers. If you stop for a morning cup of coffee at the local Deli, make coffee at home.
For the kids weekly allowance cut it back. Explain to them that every member of the family needs to contribute to the emergency fund for it to work.
Remember, too, that you will be teaching your kids to be frugal and to develop good spending habits.
Saving money on your own brings many rewards, and like most other things, it becomes easier over time. In the end, your entire family will have peace of mind that comes from knowing you have financial resources set up and ready for when times are the toughest. The sacrifices you make now will be realized when you need the most comfort as a family.
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