One of my all time favorite bloggers, and an all around awesome lady, posted a kick-ass blog about saving money. While I don’t adhere strictly to all the points, I can’t say I disagree with them. (I put a little * next to the ones I currently do, with my own little notes)

1. Don’t get into debt in the first place. NO KIDDING! But no one ever mentions this! Save up for large purchases, and never use your credit card unless you can pay it off at the end of the month. Common Sense!

*My only “debt” at the moment is my vehicle, which is going to be all paid off soon! I’m a real stickler about this one.

2. Pay yourself first. My husband loves this one. But there’s truth to it. Save 10% off the top every paycheck. Have a direct transfer to a savings account, or to your financial advisor, such as Edward Jones. Pay into your 401K, the maximum you can contribute.

*I currently have a “buffer” system which allows for spending cash off the time, then anything else that’s excess down to a certain amount goes to savings. It’s usually around 20-30% of the paycheck!

3. Make extra debt payments. Check your mortgage and credit card documentation carefully first, but if there’s no penalty, then make extra payments. It really cuts down on the interest you’ll have to pay in the long run.

*I don’t really have a lot of debt, but these next few months of paying on my truck will include double or triple payments on the loan.

4. Live beneath your means. Another common sense one, but oh so helpful if you can force yourself. If you think you need something, really put thought into the differentiation between NEED and WANT. If it’s simply a Want, consider taking that money and investing it in something really useful. You’ll thank yourself later.

*I couldn’t agree with this more. I see too many people start out buying everything under the sun, because they want the nicest things on the block. What they don’t realize is that the people with the nicest things, have either worked 30 years to buy them free and clear, their rich mommy or daddy bought them, or they are so in debt that they are miserable and stressed all the time. Buy secondhand if that’s what you can ACTUALLY afford (and I don’t mean, afford the monthly payment stretched over months and months so that you end up paying 3 times what it’s worth), and save up for the nicer things over time.

5. Direct Deposit your earnings. Cash will burn a hole in your pocket. And if you direct deposit, you can also have a portion transferred immediately to savings. You won’t notice the transferred money, but it will grow over time effortlessly.

*I wish my employer did a direct deposit option. As it is though, my spouse and I deposit everything, take out a pre-determined amount of spending month, then transfer everything down to our amount for bills and our “buffer” to a savings account. This set up works wonderfully. We can save up for purchases fairly quickly, and we have never been over-drawn on our bank account.

6. Ignore your raise. Congratulations on that raise, now as soon as it takes effect, take the extra income to pay off debt, save for a rainy day, or save for retirement or college.

7. Downgrade things you don’t use anymore. Got a membership to a fancy gym that you never use? Or do you never come close to your minutes on your phone? Do you really watch all those premium channels? Cut back on these kinds of expenses to save without impacting your lifestyle too much.

*I try to take stock of what I’m not using every few months, and weed out what I’m not using.

8. Sell what you don’t need. For instance I have tons of books that I am never going to be interested in again. I can sell them on eBay or through Amazon and make some spare cash. De-clutter while creating a bit of money for yourself. So go through the house and get rid of old gadgets, clothes, toys, etc.

*That’s exactly how I bought my iPod! Selling junk I wasn’t using, and buying/selling phones on eBay. I still have a lot of stuff I could trash though.

9. Never a borrow nor a lender be. (the original list says keep a black book and ask for your money back. But I humbly disagree). Don’t lend it and don’t borrow it. It’s not worth it. I know this sounds cold, but it only leads to resentment and trouble, especially among family and friends. If you do decide to help someone out financially, write that money off and never expect it back again. If you get paid back, consider it a bonus.

*Amen, Amen, Amen. Loaning and borrowing is bad business. So is buying or selling things with people you know personally on a credit basis. If you buy or sell something, and the statement “I will pay you X amount now and the rest later!” comes into play, you are in for a lot of stress, resentment, and probably a lost friendship. I’ve only purchased something once this way, that I can remember, and I made damn sure that I paid the person exactly when I said I would. I don’t think I would ever put myself in that situation again though, because it’s bad business all around. The easiest way to lose a friend or alienate a family member is to loan them money. Ever. Period.

10. Weatherproof your home. Insulate doors, windows, attics and garage doors. The small outlay of money to do this is made up with smaller heating and cooling bills all year long.

11. Use a digital thermostat. Get the kind that can be programmed so that you change the temperature when you are either sleeping or not home. The formula for savings is 3% of your bill for each degree that you change your thermostat.

12. Plant trees in your yard. Deciduous trees chosen correctly for your climate will provide shade in the summer to lower cooling costs. In winter they will lose their leaves and let in the sun.

13. Switch to compact fluorescent bulbs. Don’t skimp, though. I’ve found that cheap CFs don’t last very long. Get the name brand. It’s worth it. The consumption of electricity is significantly lower. Also, Mythbusters proved that it’s much cheaper to turn the light off when you leave the room, every time. So turn it off when you’re not using it. This helps the environment as well.

*We’ve just started switching to the CFs, and already I notice a difference in the longevity of the bulbs. As far as turning off lights, I can’t handle bright light anyway, so my lights are off 90% of the time. :)

14. Cook your own meals at home. Pack a lunch. This one isn’t only better for your wallet, it’s much better for your body. Learn some good nutrition and make your own lunches. Eat at home for healthier, much more affordable meals. Plus you’ll know exactly what’s on your plate.

*This is something that’s a struggle for me. I like to cook, hate to clean and have a tiny, cramped kitchen, so I eat fast food and expensive restaurants far too much. Something I will need to work on.

15. Plan ahead. Keep a rainy day fund. If you want a vacation or have a big purchase in mind, start saving for it today. Plan ahead for gift giving, holidays, birthdays, car and home maintenance, etc. Why pay interest on a credit card for these purchases if you know they’re coming? Instead put your money into an interest bearing account and actually be rewarded for saving.

*Again, amen. Following the plan of an awesome financial adviser, our ongoing goal is to keep enough cash in a rainy day account to cover all living expenses for 3 months if we both were suddenly unemployed. Also, putting gifts or other big purchases on a credit card is just not wise. I’ve know a couple of people who would completely remodel a house or pay for a car on a credit card account, then nearly drowned in the payments due to high interest.

16. Identify your debt. Write down on paper or in a spreadsheet, exactly how much you owe to whom, and the interest rate you’re paying. Pay off the highest interest rates first. You’ll save a significant amount of money on interest this way.

17. A necessity list. This is a great idea. Write a list of things you really have to have, like that new gadget, those cute shoes, that hot new golf set, whatever it might be. Make yourself wait a month. Check back a month later and see if you still have an unbearable craving for the item. Chances are it was a passing impulse that you would have been bored with in less than a month anyway.

*I’ve put myself on a similar plan for any big decision, such as moving to a bigger house or doing something nutty like getting a tattoo. If I want it now, will I still want it in six months? Usually I can answer that question with a “no” immediately, but if I wait even a month, I can usually logically say “no” before that time is even up. :)

18. Like-minded people. Find groups or clubs of like minded people to hang out with. Such as a finance group, or a get out of debt club. You might make some friends and learn new stuff and enjoy fun affordable activities that you’d never thought of before.

19. The last model, not the latest. Personally I love having the latest and greatest in computers and gadgets. But these things depreciate so fast, do I really need it? Look at the previous model, which probably is only a few months old, and get that instead. You’ll pay a lot less for something that is still great and new.

20. Shop smart. Avoid overpriced stores and shop around before you make big purchases. Check out different places online to see what the average price is. Don’t forget to factor in taxes and shipping as well. I still find that I can get better prices online in most circumstances than buying from a big name brand store where everything is marked up exceedingly high.

21. The Latte Principle. Stop buying that candy bar in the vending machine, as well as those 3 sodas every day. Don’t stop and get that fattening latte that costs an arm and a leg every morning. Instead put that money aside and invest it. From the article, here’s an example: Your $5 cappuccino sacrifice will save you $25 in one work week, which equals $100 in a month and a whopping $1200 a year! At a conservative 7% interest rate of return, you’re saving a significant amount of money by making your coffee at home.

22. Have a monetary goal. Write it down and put it where you can see it. Whether it’s for retirement, college, vacation, a great new car, or whatever you are aiming for, define your goal clearly. This will help you stay motivated and focused.

*Again, having a financial plan, such as a goal for a rainy day fund, a vacation package, or anything along those lines is always wise.

23. Save your change. Do you think it doesn’t add up? It does. Ask your bank if they have a coin machine, like mine does, because it’s free and easy to have them count it and add it right to your account.

*Heck yeah, it builds up. I had extra spending money on a vacation last fall from change saved up over about 8 months. After dropping it in the nearest Coin Star, I had over $140!!!

24. Car tips. Insist on great gas mileage on your next car. Think diesel, bio-diesel, or just a gas car with great fuel consumption. Carpool if possible. Do all your errands at once, and plan out your trip to reduce driving. Keep your tires properly inflated and have your oil changed when appropriate to keep your car running well. Also make sure your air filter is clean. This will also make a difference.

25. Avoid Temptation. Don’t go to the mall where you might be tempted to spend money impulsively. Keep a healthy snack in your car, in your briefcase or purse so you can avoid fast food.

*Impulse buying is often followed by guild, in my experience. Therefore, even when I am tempted and hit my favorite clothing store on the way home, I make myself focus on bargain racks and give myself a mental spending limit. It really helps.

26. Get rid of addictions. This may seem boring, but your addictions to tobacco, drugs, alcohol, gambling, soda pop and junk food cost a great deal to your wallet, health and time.

*My husband and I stopped buying soda and bottled water a long time ago for our house. Now, if I could just kick that “Ben and Jerry’s” addiction…:)

Via ZeNeece

These are some pretty awesome tips for saving your pennies.

My advice for everyone who is on a budget: If you struggle to pay your bills, or are eyeball-deep in debt, make sure you focus on what you need, on the necessities before you buy the things you want.

Peace. :)