Money Saving Tips for 2008 & Beyond

With all of the economy issues being discussed in the news it’s important to learn the best money saving techniques to protect yourself. A better credit score combined with a high amount of savings will give you the financial future you desire. It’s estimated that an average 69% of Americans admitt they want to save more cash this year. Saving money involves much more than monitoring your spending habits. It takes discipline and the proper financial knowledge for true success. There are nine excellent tips that can lead you towards being financially stable.

• Clip Coupons. I know it sounds too simple but clipping coupons actually makes a huge difference. Food prices are constantly on the rise. Clipping coupons reduce the amount of money you spend on groceries every month. The extra cash you earn can be placed in a savings account or go towards your transportation expenses.
• Keep your Car. Trading in your vehicle every three years does not save you any money. Try to keep your automobile as long as possible through regular maintenance.
• Know the Numbers. Most people have no idea what their earned interest equals. Make a point to know all of the interest amounts for your accounts. Remember, if you’re only earning a mere 1% than there is no reason to keep adding your hard earned cash into that account. It’s not going to yield any results. Opening a money market account is a wise investment. Banks such as Capital One has money market accounts with a minimum set at $1.
• Never Max Out Your 401K. Your 401K is not the answer to financial freedom. Many people believe they can rely soley on their 401K plan. This is not the case. Only add what you need to in your plan. Then place your extra money in a Roth IRA account. Earning and withdrawls from Roth IRA’s are tax free which saves you more cash.
• Don’t focus on 529 Plans. Although, it is important to save for your children’s higher education you should not place all of your savings in a 529 only a portion. If you ever have a financial crisis taking any money out of this type of account will cost you fees and taxes.
• Record your Worth. The world we live in is constantly changing with natural disasters becoming a regular occurrence. It’s crucial for the financial safety of your family to take pictures of your items. Recording everything you own and becoming insured is the best way to protect yourself.
• Utilize Money Management Software. Being organized is essential to accomplishing your goals. Keeping accurate records of your finances will make management easier. Programs such as Microsoft Money or virtually any brand can help you track where and how much your money is used.
• Correct your Credit. Mortgage companies current financial crisis is increasing the importance of good credit. Maintain your older credit cards to extend your credit history. Pay off your debts as much as you can and correct any errors on your credit report for a better score.
• Get Insured. To secure your family financially and protect all of the money you’ve saved get insured!