02 Jan

10 Best Ways to Save Money in 2009

The year 2008 has been financially difficult and from the looks of it, the situation is likely to get worse, as the global economic meltdown continues unabated. But, just as every dark cloud comes with a silver lining, this financial crisis has opened our eyes to the large sums of money which can be saved simply by careful planning. In times of prosperity, a large sum of money gets spent or wasted unnoticed, but in times of financial crisis, it is important to identify and curb our wasteful expenditures. Here are some innovative methods to save money, especially suited to help you face the financial crisis of the upcoming year 2009.

1) Debt Reduction
Most of us have loans and mortgages and we pay large interests to banks and financial institutions for availing the money when we needed it. When we need cash urgently, we tend not to worry about the high interest component attached to it. But, in this financial situation, it is important to cut down on the interest that we pay in addition to the principle sum we borrowed. One of the methods of doing so is debt consolidation. If you have a number of different loans taken at different interest charges, it may help you to consolidate all your loans and pay a fixed interest on all of them. Additionally, if you can close your small loans quickly by repaying it before time, you will save yourself the interest you would have paid otherwise.

2) Electrical Appliances
Financial crisis is not the only one looming on the horizon. Global warming is another such crisis that is likely to impact our lives further in 2009. Consider buying or replacing your current electrical appliances with energy efficient ones. These days a number of rebates and discounts are offered to promote their sale and you are likely find energy efficient appliances at a cost just marginally higher that the regular models. In the long run, they will have a huge impact on your utility bills and you will save money on them on a monthly basis.

3) Cars
If your current vehicle guzzles a lot of expensive fuel, consider trading it for an electric or hybrid model. The purchase of these vehicles may be expensive, but in the long run, they will save you thousands of dollars you spend annually on fuel. If buying an electric or a hybrid car is not a practical options, consider reducing the number of cars in your household. Also consider options like carpooling and using public transport. Also look up tips to make your car as energy efficient as possible. Tips include having the right amount of air in your tires, driving at optimum speed, etc. and are not difficult to comply with.

4) Traveling
Consider your travel options carefully. In recent times, traveling has become a lot cheaper and more options are available than ever before. For instance, did you know that renting a private jet for your family vacation may actually work out to be cheaper than buying multiple individual tickets? On the other hand, you can get a number of cheap deals and discounts on commercial airlines simply by booking your tickets at least three weeks in advance and choosing a weekday to travel on instead of a weekend. If you are a frequent traveler, subscribe to newsletter from low budget airlines in the sectors you usually travel in to stay abreast of all available discounts.

5) Credit Cards
A number of people use their credit cards for the sheer convenience of not having to carry cash around. You need to be aware that you are charged a service fee for every single transactions and this add up to large amount annually if you are a frequent credit card user. Avoid using your credit card for small purchases. Also, if you have multiple credit cards, dispose off all except one or two. This will help you curb your unnecessary expenditure and reduce the amount you pay as transaction fees.

6) Online Payment Methods
Online payment methods are not just a convenient way of paying for things; they are also immensely cost-effective. You not only save on the check leaves, envelopes and postage, you also get a real-time picture of your current finances. Whether you believe it or not, not knowing your exact state of finances is a leading cause of over-spending.

7) Discounts & Offers
In recent times, manufacturers and retailers are prone to offering many discounts, offers and rebates to entice customers to buy their products. When you need to buy anything, look out for discounts and rebates offered by different retailers before you choose the store to buy from. Generally, buying online works out to be cheaper as overhead costs of storage and display are avoided. Subscribe to newsletters of websites you regularly buy from. They will keep you abreast of the latest discounts and offers.

Eating Habits
A large part of our income is spent on dining out or ordering in. Not only is this expensive in itself, it also leads to a number of health-related expenses that arise from not eating nutritious food given the choice of food we are most likely to order. Cook at home as often as possible. If necessary, cook for multiple meals at a time and freeze them to be used over the period of a week. This will not only keep your expenses down, but will also promote better health and eating habits in your family.

9) Personal Financial Management Software
Investing in personal financial management software can lead to immense savings and help you stay within your decided budget. You can keep tabs on every penny spent and avoid wasteful spending that goes unnoticed every month. This software will also pay your monthly utility bills automatically and avoid you the nuisance of late payment charges that are incurred due to missed payment due dates.

10) Old-Fashioned Saving
There is no substitute to actually saving money. Try and keep money aside every month and be determined not to touch it. Consider investing in a retirement plan or have your money get automatically transferred from your checking account to a savings scheme.

This week’s new discount codes: