New Year, New Beginings: Ways to Save All Year Long

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New Year, New Beginings: Ways to Save All Year Long Posted: 05 Jan 2011 04:00 AM PST Like everyone else this December, I made some not-so-smart purchases. It's the season for giving and all, but it's easy to go overboard with gifts right at the end of the year. I'd been saving up over the months because I knew it was in my best interests to have an emergency fund, a savings account, and careful plans for spending my money (yes, a budget). But then came December with less time working, more time spending money on gifts, and the same monthly expenses I'd been paying all year. I had to withdraw just under half of my savings in an effort to keep up with the exorbitant gift-giving of the people around me who had more to spend than I did. I fell into the trap of "keeping up with the Joneses" and paid for it – quite literally – but I'm eager to resolve never to do that again. Next December will see my savings account intact and my gift recipients content, one way or another. Saving More Money If you've committed any financial faux pas this year, you might consider making a New Year's resolution too. It can be related to something specific that's given you trouble, or it can be something based on the ideas below. No matter what you choose, make sure you stick with it and reap the benefits of staying on the financial highway. Resolution #1: Cook at Home Eating out is convenient, fast, and usually tasty. But it's ridiculously expensive if you compare it to the price of cooking at home, and it's also unhealthy unless you're hitting up the salad bar every time. Don't pay for convenience – do the work yourself, and you'll save money while learning valuable skills. There are myriads of websites that can offer you quick, easy and frugal recipes to keep your wallet and stomach full. Try Mama's Fast and Frugal Recipes to get started and be sure to search for more once you've gorged yourself on these delicious dishes. You'll enjoy the variety, the fresh ingredients, and the health benefits as well as the extra cash. So don't hesitate to make this resolution for your budget and for your body. Resolution #2: Get Efficient Lower your monthly bills with these helpful tips: Shorten showers and catch the excess water. To do this, turn off the water and use it only to wet your hair and rinse off. Keep a bucket in the shower to catch any excess water, using it to shave and/or water plants. Don't run water. Fill the sink and use the collected water to rinse your razor in the bathroom or clean veggies in the kitchen sink. Pour the excess onto your house plants or use it to water your yard. Fill your washer and dishwasher to their full capacities. This helps you take advantage of the most efficient way to clean your clothes and dishes. Use a programmable thermostat so you don't waste energy when no one's home. Use weatherstripping around your doors and windows to keep conditioned air inside. Replace your furnace filter every month during the winter to make sure heat isn't being trapped before it warms up your home. If you need to replace an appliance this year, make it an Energy Star appliance. Avoid leaving appliances plugged in if you don't use them every day. Even when an appliance isn't in use, leaving it plugged in leaches energy, so keep seldom-used appliances unplugged. Resolution #3: 10% Savings Plan Each month, pay yourself 10% of your income before it's taxed. Now, put it straight into a savings account and make do with what's left over. This will help you if you have trouble finding money to save at the end of the month because you'll be saving a fixed amount before expenses are paid. It sounds like a difficult plan of action, but you'll find ways to stretch the other 90% of your income – and you'll have a steadily growing savings account. You'll get savings, peace of mind, and frugal skills all at once, so why not make this resolution for the New Year? Bio: Lisa Shoreland is currently a resident blogger at Go college, where recently she’s been researching grants for college and blogging about student life. In her spare time, she enjoys creative writing and hogging her boyfriend's PlayStation 3.  To keep her sanity she enjoys practicing martial arts and bringing home abandon animals.

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