Favorite personal finance tips

Leave your debit/check card at home.

Bring lunches to work. If you spend $1 or $2 to make your lunch at home instead of buying lunch at $5 or so every day, you'll save a lot of money in the long run. This is such a simple tip but it can save a lot.

umm...i agree Jon

i write down everything i spend in excel
i also note things i want to buy and try not to buy it right away, just see it listed and figure out do i really need it? after a month sometimes i buy it sometimes not

this writing everything down took some time. first it was the monthly bills, then i added everytime i used my debit card, now it is everything
it was over i year between the monthly bills and everything

I've develop a monthly-yearly budget control tool on excel. I record my daily spending in different categories and put a budget for each month. Than I try to keep my spending for those categories inside the budget limits.

However I am not disiplined to keep my spending inside the limits since I used to use credit card. This month I've stopped using credit card and now I am only taking my debit card with me and cash money just enough to live the day. That way I limit my spending. (I only use my debit card if something very important happens and I need money immediately... Otherwise I just say "ok the money I've right now is not enough, so I will not buy".

It works.

LBMY, that is, Live Below Your Means. (Spend less than you earn).

I tend to get carried away sometimes when I'm in a store: "Ooh, I can use that for that, and this for that, and ... "
Especially when it comes to my personal productivity system. No wonder I got confused. Is moleskine better than
Miquel Rius? should I use a HipsterPDA or a pocket notebook? I ended up with all of them and most of them were
never used. What a waste!

What I find helpful with this (and my other non-life-supporting purchases) is to let it slide at first. Don't buy it on
first sight. Take notes on the product, price, store and other important and let it go for a week or 2 to 3.
(If it were that important, it would be on your todo list) If you still want it that bad, It's probably worth it.
If not, perhaps you didn't need it anyway.

If you're like me, letting it slide for 2 to 3 weeks will save you some money.

Jon it right! Taking along your own lunch saves money too!

This is one I use most of the time... I just ask myself 2 simple questions.

- Do I want it?
- Do I need it?

After the answers I usually see that what I was going to buy was just because I wanetd one and it had no meaning.

I also write everything I buy and it's price and rest it to my income. It works like wonders and I have been able to save a lot of money. If you have a credit card you could use it but pay the debt the same day or the next day. I use it mostly to buy online.

I've been reading MSNMoney this afternoon. Pretty motivating site for those of us trying to save and change our spending habits.

This is one I use most of the time... I just ask myself 2 simple questions.

- Do I want it?
- Do I need it?

After the answers I usually see that what I was going to buy was just because I wanted one and it had no meaning...

-"XIIIzen"

I'll add one question, where am I going to put it, and what will it replace. I have a very small house and to keep it uncluttered for everything that comes in, something must go. That little bit has saved me tons of money!

I have $250/week automatically invested--into a roth IRA and a portfolio i can only touch to buy a (needed) car or a house. The investing goes into a lazy index fund portfolio.

I also have 4-6 month in savings set aside in case there is a job loss or unforeseen expense.

Aside from that, i let myself spend whatever i want as long as i don't go into debt. I do use credit cards ( i get miles, cashback, etc ) but i don't spend more than i would were i using cash.

The two practices I incorporated to save more were to:

1. find fun free things to do. I've started using the library more often and looked for fun, time consuming hobbies that have either minimal costs or are free. This way I'm not in or around places where their is a temptation to purchase

2. make a game out of saving. I keep a spreadsheet of monthly expenses and enjoy seeing where I can improve. It has become a bit addicting.

Don't shop/stay home.

We reduced our spending considerably by staying home a couple nights a week. On those nights, nothing short of an emergency will get me out of the house. We spend a lot less because if I run out of something I improvise or do without. We also use less gas, eat at home and that's a couple more days a week free of impulse buying.

Plus we have more time to write, read, walk, play games - the good stuff.

Another good one:

Limit internet shopping.

We homeschool and I spend a small fortune each month on Amazon. Since it was for school we considered it "free" and outside our budget. Now, I never spend change and I keep it all in a jar. When the jar is heavy I drop it in Coinstar and get an Amazon GC. That's my budget for books etc. until the jar is full again. It works like a charm. Coinstar doesn't charge a fee if you get a GC instead of cash and they are affiliated with a lot of companies - iTunes, Home Depot, Starbucks etc.

I recommend reading "The Richest Man in Babylon." Read it again and again until it is locked into your subconscious. I cleared out $11 000 of debt in 14 months since reading it.

Hi

In Canada we have coins for $1 and $2. I always pay with bills, put the change into a jar. They really add up, especially if you picking up coffee. The $1 coins look like gold so you feel really rich :)

I only take out the cash I can spend. If I have 6 bills to pay monthly, and I get paid twice a month, I pay 3 bills a paycheck. No if ands or buts. If its in my account I tend to spend it easily with the debit card, where cash I tend to hold on to more. Especially if I saving the $1 and $2.

I follow the "Consume Less, Work Less" Philosophy.

Basically it's living below your means. I started by making a list of my current monthly living expenses. And then I analyze each item and think of ways to reduce the cost. I also consider the idea of eliminating it if it's totally unnecessary. I've started a few months ago and I'm still doing it today. So far it's working out great for me.

hi,
just wanted to contribute - we've been able to get rid of credit card debt this way.

It's the envelope system. Can't remember where we got it from, but here's how it works (generally):

SUPPLIES - pen, 6-10 envelopes, paper

1. Estimate your monthly expenses and break them down into categories
2. For those categories that do not get mailed somewhere else, write the category name and monthly amount on the envelope
3. At the beginning of the month, withdraw cash to fill the envelope(s)
4. Leave your debit/credit cards at home, but bring the envelopes with you when you go out.

The nice thing is that we see the green stuff dwindling away in the envelope and realize we're either spending it really fast or not at all. We often find ourselves pulling from other envelopes to cover shortages in other envelopes. Main thing is don't go back to the bank until next payday.

Takes awhile to get it right because one is forced to master cash flow (payday comes, which bills get paid and which wait 'til next time, and when do I have free cash to finally go shopping) in order to get it down. One drawback is that you are forced to make one (or two) large cash withdrawals each month.

Spend less than you earn. <----best advice ever

And the only other money mantra I live by "will spending this add value to my life" before I buy, enroll, subscribe, rent or whatever. I work hard for my money. Previously I'd developed a habit of spending on whatever whenever. Then for big purchases I started giving myself a "time out" (having kids changes ones vocabulary lol). I'd make a note of the item, put it in my wallet for at least a week before buying. I'd say 95% of the time if it wasn't a subsistence purchase (food really) the "want" went away or I found an alternative.