How to Save for that Big Purchase in this Economy

In this economy most people believe there is no such thing as “savings,” but there are some easy ways to start putting money away to make that big purchase. No, I don’t mean hiding money in your mattress. Start with the simple things and work towards the more difficult.

For starters, take your lunch to work and make lunch for your family. Instead of going out to dinner every night or driving through the fast food joins, cook at home. Each of those things can be enjoyable and allow for quality time with your loved ones or an opportunity to do something fun for yourself (i.e. Julie & Julia). Just eliminating daily lunch costs and evening meals out, can save you over $300 a month. Have a garage sale. Go through your entire home and eliminate anything that has not been used in the past 6 months (unless holiday related), your whole family can get in on the act.

If you have a habit, like smoking or Starbucks, quit. Smoking alone it can cost as much as $5 a day, that’s $1,800 a year! As for Starbucks addicts, you can now purchase their coffee in the grocery store and brew your own or invest in a great coffee maker. Don’t be afraid to use coupons and take advantage of purchasing items in bulk (Sams Club and Cosco usually are the best places to shop). Make lists whether you are going shopping for clothing, school supplies, or groceries prior to going into the store and that will keep you from buying things you don’t need or can’t afford Tip . If you enjoy reading or books on tape, join your local library and get those items for free. As for renting movies, forgo the big chains and use the new Mini 1 day 99cent booths popping up everywhere. Take a look at your monthly bills and breakdown what areas you can cut back (usually food , entertaining, heating and cooling are the biggest money saving options).

Finally, and most importantly, cut up your credit cards, but save one for emergencies. It may seem like a great idea to charge now, but it will come back to bite you much like the housing bubble.

By just following some of the tips, or coming up with some of your own the average consumer can save over $12,000 a year. If you take that money and place it in a savings account that will give you some very nice cushion to fall back on. Please share some of your favorite “money savings tips”.