A Money Saving Strategy

A money saving strategy for good times and bad.yourself and your family far more financially secure. It
There are hundreds of money saving tips I couldstarts with looking at every regular expenditure
offer, and many of them might be useful in yourwhich cannot easily be eliminated. This means rent or
particular situation. But there is a strategy forhouse payments, utility bills, debt payments, car
spending less which will make you far more securecosts and anything else which you can't easily choose
than any number of tips on how to buy things forto stop paying next month.
less can. That is what this article is about.List them all, and then look at every possible way to
Suppose Tim and his family spend money everycut the cost of each. If you can refinance to lower
week to eat out, and they go to the moviesyour home payments, do that. If you can set the
regularly as well. They also like to take trips forheat a bit lower in the house and replace lights with
picnics or to go to events on weekends. Nowmore efficient ones, get going. Pay down debt
suppose Hank and his family avoid eating out, andstarting with the highest interest accounts. Apply
they watch whatever movies are on the television,your money saving efforts to all of these regular
and instead of trips out on the weekends, they takeexpense before you even start to think about
walks. Which family do you think would be moreclipping coupons or shopping at thrift stores. Then
financially secure?start banking the savings.
It's impossible to say until I introduce some moreYou see, once you have enough money in the bank
information. For this example, we'll assume that Tim'sto handle six months without a job, and once you
family lives in a home that costs just 20% of theirare living on just 75% of what you are taking home
income each month, they've replaced all light bulbs inin income, you'll be more financially secure than most
the house with low-watt fluorescent bulbs, they haveof the people you know. Not only that, but if you
no credit card debt, drive a high-mileage car, andachieve this level of control over your financial life,
have $8000 in savings in the bank. Meanwhile, Hank'sgoing to the movies when you feel like it or eating
family lives in a nice home that eats up 35% of theirout twice every week will no longer be fiscally
income each month, pay high utility bills, have $15,000irresponsible. It will be the reward for your efforts.
in credit card debt, drive a big SUV, and have a fewBy all means clip coupons and shop sales if you want
hundred dollars in the bank.to save even more money, but these are not the
With this additional information, we can see that forcrucial steps. If your living costs are low and you
all their easy-spending habits, Tim's family is probablyhave money in the bank, you are prepared for rough
safer in the event of a lay-off or other costly event.spots in the future. And when they come, you can
If Hank loses his job, his family could face losing theirstop those trips to the movies or the restaurant.
home and even declaring bankruptcy within a coupleThose who spend all of their money just on the
months. There is an important lesson about moneyessential living expenses cannot easily cut any costs,
saving habits in this story. It suggests that instead ofand so will face much tougher times. That's why it
knowing how to shop well and get a good price, it ismakes sense to start not with looking at per-ounce
far more important to keep your regular and fixedprices of tomato sauce, but with a basic money
living expenses low.saving strategy that better prepares you for any
With that in mind, here is a strategy that is simple -eventuality.
but not easy - which you can implement to make