Do You Wonder Where Your Money Goes Each Month

Do you run out of money before you run out of month?

Do you struggle to find money to invest for retirement, emergencies and other financial goals? Do you wonder where your money goes each month? Here are 10 tips to cut your spending and stretch your dollar to the max: Consider dropping your home telephone line. You could save$ 30 or more per month by dropping your" land line" . Your cell phone is probably all you really need, and most likely it has free long distance. Cut back on trips to Starbucks or other premium coffee shops.

For example, if you spend$ 4 for a cappuccino five times a week for 50 weeks out of the year( you' re on vacation the other two weeks) , you would spend$ 1, 000 in a year. Often called the" latte factor" , spending several dollars per day on luxuries like premium coffee can really add up. Try treating your trip to Starbucks as a treat instead of a habit. Pay your mortgage payment bi- weekly instead of monthly. You' ll save money and probably lose weight too! You' ll pay less interest and pay off your mortgage faster. Psychologically it's harder to spend cash than it is to use the credit card.

Carry cash instead of credit cards. You' ll spend less and save on interest charges. This will help you track how much you spend in these categories as well as prioritizing your spending. Use the" envelope system" for groceries, entertainment, dining out, and other discretionary spending categories. Raise the deductible on your homeowners and auto insurance policies. Buy regular gas instead of premium. It's not wise to file claims for small losses anyway( insurance companies love to raise rates after you file a claim) , so a higher deductible will save you money now and in the future.

Most cars don' t need premium gasoline. Take advantage of" park and ride" and carpooling options. Also, take public transportation if it's available in your area. Plan your purchases to avoid impulse buying. Studies show that impulse buying can add$ 10- 50 to your grocery bill- ouch! Take a list with you to the grocery store and stick with it. Go to the library instead of the bookstore.

Check out all the local sites and happenings. If you' re an avid reader, give yourself a book budget for books that you will want to keep, and go to the library for everything else. 1Take a vacation at home. You' ll rediscover your hometown and save on travel and hotel costs. These are just a handful of ways you can cut spending and stretch your dollars, but if you follow these tips you' ll discover you have more money at the end of each month to apply to other financial goals, such as saving for college, retirement or just for a rainy day.