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Money is better than poverty, if only for financial reasons.” – Woody Allen

Money is tight. Improving your finances improves your happiness, in general, so I thought it would be important to share stuff that’s works for me.

Here’s what I found works. I’m not saying they’ll work for everybody, but they are pretty good. Share your tips and tricks in the comments!

Use cash. Instead of charging things to credit cards or debit cards, use cash for non-bill spending such as eating out, gas, groceries. Spending cash makes the spending more real, and there’s an added advantage of knowing when you’re out of cash, instead of spending more than you can afford.

Small weekly savings transfers. I automatically deduct money from my checking to my savings. It doesn’t have to be a large amount, but even $10/week adds up and you hardly notice it.

Stay home. Going out makes you more likely to spend unnecessarily. You eat at restaurants, go to the mall, stop at the gas station for snacks. It’s hard to avoid spending when you’re on the road. Instead, stay home, and find free entertainment. It’s also a great way to bond with your family.

Don’t get catalogs. Or emailed announcements from companies trying to sell you stuff. Their announcements of sales or cool new products make it very tempting to buy something you don’t need. Instead, stop the catalogs and emails from ever getting to you in the first place, and you’ll spend less.

Keep a 30-day list. If you have an impulse to buy something you don’t absolutely need, put it on a 30-day list. You can’t buy anything but necessities — everything else goes on the list, with the date that it’s added to the list. When the 30 days are up, you can buy it — but most likely, the strong urge to buy it will be gone, and you can evaluate it more calmly.

Cook at home. I know, it seems more difficult than eating out. But it doesn’t have to be hard. Throw together a quick stir-fry with frozen veggies and either boneless chicken. Make home-made pizza with a ready-made crust, some sauce, cheese and veggies. Put some spices on something and throw it in the oven while you cook some brown rice. Not only is this much cheaper than eating out, but it’s healthier.

Exercise. Staying healthy is the best way to avoid costly medical bills later.

Use the envelope system. It’s the same idea as using cash for spending, but in addition you use envelopes to split your spending cash into categories. My non-bills categories are groceries, gas and miscellaneous spending. Three envelopes, and when they’re empty, I’ve spent my allotment.

Talk with your SO. It’s important that you and your significant other be on the same page. You should have the same financial goals, and from there you should agree on a general spending plan and a policy for impulse buying that won’t have either of you wanting to choke the other. Make sure you both know what bills have been paid, what your balances are, etc. A weekly meeting of just 20 minutes accomplishes that. Communication is key.

The spreadsheet tracker hack. There are expensive programs like MS Money, Quicken, and the like that will do amazing things with your financial information. There are even free ones, on your desktop or online, that can do all kinds of things. Trouble is, I don’t need all that. All I want is a way to track my money easily, with no other bells and whistles, and a way to access that online so that I can view it from anywhere. The best way I found to do that is through Google Docs and Spreadsheets. I created a simple spreadsheet to track my bank accounts. It has the date of each transaction, the title and amount, a little field for memos, and a running balance. What more do I need? Keep it simple.

Pay savings and debt first. When you sit down to pay your bills, make the first bills you pay be your savings transfer and your debt payments. If you pay them last … you’ll often end up shortchanging them. But if you pay them first, you’ll make sure you still pay your rent or mortgage, utilities, groceries and gas … so you’ll just cut back on other spending.

Cut out cable TV. I’m not saying I don’t watch TV — I watch DVDs, so that I’m sure that what I’m watching is something great, rather than the useless stuff you find on TV most of the time. And there’s a lot of it online for free if you look. Not a huge savings, but it adds up.

Declutter. By getting rid of all the excess stuff in your home, you not only make your life much simpler and more peaceful, but you make it harder to buy stuff that will just clutter things up again. Once you’ve simplified your home, you won’t want to go back.

Lend and borrow. Give books and clothes and toys you don’t need anymore to your friends and family. If you need something, send out an email asking if anyone has it. Chances are, they’ll give it to you for free if they don’t use it anymore.

Barter. It’s a lost art, but lots of people will take your services or goods instead of money, especially if you’re friends or at least know each other. Get into the habit of offering to barter, and you’ll find yourself saving a lot of money.

Some habits really add up… and not in a good way. To put things in perspective…

That latte you get every day……………………. about $1825 a year

Going out to lunch everyday at work…………about $2555 a year

ATM fees (unless its a co-op credit union)…..about $1095 a year

Gym Membership that isn’t used often……….about $360 a year

A diet coke run (my weakness) everyday……about $1460 a year (I’m not particularly happy about this one)

THIS ALL ADDS UP TO $7295/year!!!!!

I’m not saying to not spend your money on something you really want, I’m simply stating to be more self conscious with what you are buying… These things add up!

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