Absolutely Best Saving Money Tips

[jeffrey]

OK, this one is going to be a challenge. I know that there are a ton of money saving tips out there, but I am looking for the best of the best in your opinion. if you could only pass along 5 money saving tips to someone else that was just beginning to learn about how to save money, what would they be? Along the same lines, what are the top ways to save money that have been most effective for you?

[moneybags]

#1 do not live beyond your means

#2 pay yourself first

#3 don't grow into your income, if you get a raise, save it

#4 don't rack up credit card debt, if you can't pay if off monthly, don't charge it

#5 educate yourself on finances - life insurance, wills, investing, etc.

I learned this on my own by reading a lot of books. My parents struggled financially, charging a lot, buying new cars when they shouldn't, etc. Following these rules, we have done quite well saving for retirement, and we are about to start paying for college number 1 of 2. We are going to fully pay for college without sacrificing our retirement, starting with DD at $50,000+ per year.

[jeffrey]

I have found that probably the most effective tool I have had is learning what is most important to me. Because I know traveling is important (in my case) it is easy for me to not spend money on other things. I have a goal of where I want to use my money and that helps me avoid spending in other areas. I think a lot of people spend money on things that they think will make them happy simply because they haven't taken te time to figure out what really does make them happy.

The other one is knowing myself well. I think I am strange in a lot of ways because a lot of typical personal finance tips don't work for me and actually would cost me money if I didn't know myself better. One obvious example is that I never bulk buy because if I hae food around me, I eat it. I simply don't have any willpower in this area. So I buy only what I need each day and although it is more expensive to shop this way, it saves me a tone of money because I don't eat nearly as much.

[twest]

1. Pay yourself first
2. When you get a raise try to save the majority of it.
3. (This one has been very important for us) When we do borrow money we always pay more than the monthly payment to pay if off as quickly as possible.
4. Never carry a credit card balance
5. When something is paid off make that payment to yourself.

[Stump1000]

#1 do not live beyond your means

#2 pay yourself first

#3 don't grow into your income, if you get a raise, save it

#4 don't rack up credit card debt, if you can't pay if off monthly, don't charge it

#5 educate yourself on finances - life insurance, wills, investing, etc.

I learned this on my own by reading a lot of books. My parents struggled financially, charging a lot, buying new cars when they shouldn't, etc. Following these rules, we have done quite well saving for retirement, and we are about to start paying for college number 1 of 2. We are going to fully pay for college without sacrificing our retirement, starting with DD at $50,000+ per year.

I think this nails it for me.

Like Jeffrey said, there are things that work different for everyone.

My example: We don't buy a ton of groceries at the grocery store. When we do, I always end up throwing stuff away. After we both have worked all day, we don't always feel like cooking and cleaning a kitchen. We end up eating out a lot. We are having a kid soon, so I hope this gets easier to change. I don't want my daughter started on this bad habit!

[cypher1]

Need vs want. When I was younger every time I was about to purchase an item I'd first ask myself if I really needed the item. Or did I just want it.

[fe2o3ez]

#1 do not live beyond your means

#2 pay yourself first

#3 don't grow into your income, if you get a raise, save it

#4 don't rack up credit card debt, if you can't pay if off monthly, don't charge it

#5 educate yourself on finances - life insurance, wills, investing, etc.

These are great financially savvy comments, and I wouldn't dispute any of them in a discussion for personal finance. However, when I look at the original post, it seems as if we are looking for money "saving" tips, which to me means how do I avoid paying more than I should.

With that in mind, let's look at a few major expenses:

Tips that have helped me
Groceries - always shop with a list and only buy what is on the list; don't shop on an empty stomach; review the store ads and purchase bulk\heavy use items when offered at a significant discount, whether or not they are immediately needed. (these tips trimmed about 20% off monthly purchases)

Utilities - shut everything off when leaving a room, especially lights; purchase progammable thermostats and learn how to use them (trimmed 10-15% off annual expense)

Vacations\Holidays - shop for items immediately after the end of busy season for significant discounts (saves significant amounts each year)

Car Purchase - arrange for financing before stepping foot in a dealer; buy at the end of a month (or better, year); negotiate trade-ins separately from the purchase; negotiate price, not payments

Home Purchase - don't purchase a house until you can pay for at least 20%, PMI will kill you (can cost 1-2% of your mortgage annually)

...

[PetMom]

1) Establish an emergency fund immediately. Even if you have to eat beans and cornbread and not spend on anything but essentials. This will free you of needing a credit card.

2) Spend on healthy food (once you get your ef established), don't buy expensive junk food that is bad for you.

3) Get books, visit blogs, and read up on driving your old car forever. Those car payments are high - keep a 'repair fund'. Or save up and buy free and clear.

4) Use your library - you already pay for it.

5) Pets really do end up being cheaper than kids - no college fund. Absolutely amazing how much college costs now. It will be where only the wealthy or indebted will have a degree.