There are 2 ways to save money. One is to cut back on expenses and the other is to put more into savings.
Cut Back on Expenses:
I would define my Top 5 as being the ones where you get the biggest bang for the buck. Thus they would have to be:
1. Re-examine your mortgage to see if you can refinance or better yet, do a readjustment.
2. Look at your car insurance policy and aim to take advantage of as many discounts as you can (safe driver course, etc.)
3. Buy 1 car, pay with cash and then drive it into the ground. No frequent trade-ins, etc.
4. Pay your credit cards in full each month.; If you can't pay it in full, reduce spending! This is a cardinal rule.
5. If you are easily seduced by the latest advertising/marketing, avoid watching TV, reading the paper or otherwise coming in contact with pitches aimed at getting you to buy something.
Top 5 Money Saving Ideas:
Again, the ones with the biggest bang for the buck would be:
1. Contribute as much as you possibly can into your 401k
2. Fully fund your IRA
3. Pre-pay your mortgage
4. Make regular savings a part of your everyday budget, meaning, pay yourself first; spending discretionary income should come last.
5. Consider a side job
I realize not everyone will be able to do all these things, but in in ideal world if you could, these would maximize your savings.
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Wisdom begins in wonder.
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