The Top Five Ways to Save Money

Determining the top five ways to save money first requires determining the ways you typically spend money. This can be easily done with the help of an electronic spreadsheet or budgeting software and should be used for at least one month. Very often this reveals hidden patterns of excess spending that you can turn into an emergency savings fund, the lack of which is a common cause of getting into debt in the first place.

Here are some typical ideas on the top five ways to save money.
1.Phone service savings
One of the major expenses that can be most easily pared down is the money spent on telephone service.
There are so many choices in telephone carriers nowadays and so much competition that the consumer can
definitely be the financial winner if they choose wisely. The first step to save money is to know precisely how much you are paying to your phone carrier and what options you are getting.

Take a look at the number of long distance calls you make. If they are few and far between, it may not
be wise to continue the monthly long distance fee. You might be better off going to a membership based
discount store such as Sam's Club or Cosco and purchasing a low cost phone card. The other alternative
might be to make your cell phone your standard phone. Even should you choose to keep your landline phone,
long distance calls could be made from your cell phone, especially during free night and weekend hours.

Should you find yourself making many long distance calls, an inexpensive plan that offers unlimited long
distance may be the right thing for you. The other option could be to shop for an internet phone provider
that lets you make free long distance calls. You'll have to really comparison shop as there are many
different competing plans.

2.Save big on your food budget
In this day of busy lives, more and more people eat out, especially in fast food restaurants. This
is much more expensive than making meals at home. More than ever before we buy prepackaged microwavable
foods and even fewer do organized grocery shopping. If you hate grocery shopping and so get there
without a list and throw all sorts of extras in the cart, one way to save on food might be to have the
food delivered for you.

Safeway, for example, delivers for $9.95 no matter how much you order. Organize a detailed list and
have them deliver every other week. You'll save that $5 a week in gas more than likely, and you won't
be buying any more than what you absolutely need. If you don't want to have your groceries delivered,
at least make sure you make a grocery list before you get to the store and stick to the list.

Store brands are usually cheaper than the top name brands, sometimes even after factoring in their
savings from coupons. Products above or below eye-level items may be lower in cost.

Don't go grocery shopping when you are hungry. You will often subconsciously spend more than when you are full.

3.Insurance
If you are 40 years old or younger, buy term insurance rather than whole life. It is much less costly.
Some people say whole life insurance is the way to go because you accrue cash value and it doesn't
run out at age 70. The amount you will spend all those years in excess of what you would have to pay
for term insurance doesn't add up to an overall savings if you are under 40.

4.Enjoy high interest rates with an internet bank account
One of the best buys in the list of top five ways to save money is to invest in an internet bank.
The rates are phenomenally better than any brick and mortar financial institution. What they save
in overhead they pass along to the consumer. It is fairly standard for an internet bank to pay well
over four percent for a one year CD. Whoever you go with, make sure that they are legitimate and
that your deposits are insured by the FDIC.

5.Vehicle maintenance
The last of the top five ways to save money is to keep your car in tip top running condition.
According to the Car Care Council and government sources:
*Under-inflated tires can decrease your gas mileage by up to 3%
*A vehicle that is out of tune can cost you up to 38% of your gas mileage
*Dirty air filters may reduce your gasoline mileage by up to 9%
*Even oil that is thicker than the recommended kind may mean 1% to 2% higher fuel expenses

While some of these percentages don't seem like much, when combined with other factors and accumulated
over a years' period of time, the consequences of poor car maintenance habits can be very expensive.

If you don't practice self-control in managing your savings, you will sink back into the same old financial
rut you were in before. Keep your goals in mind and use a daily "to do" list to keep you on track.

Remember, financial freedom is closer than you think.

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