Money Saving Tips

Pay cash to avoid overspending; it is more 'personal'. By using cash instead of a credit card, it becomes a more emotional event and therefore you are less likely to spend your money frivolously. For large purchases, sleep on it, tell yourself you'll come back and buy it later in the week, if for the next 2 or 3 days, the item keeps 'calling your name', and you have the cash to buy it, go get it.

Limit your purchases to to the cash you have on hand or better yet; what you have budgeted. Use envelopes to store the money and/or receipts that have been budgeted for groceries, gasoline, personal items and blow money. I must contradict myself here, since I am very uncomfortable having so much cash on hand, I don't put the cash in the envelopes; I have the amount budgeted on the envelope and use my debit card only. Then the receipts go in the correct envelopes and I keep a running total so I know, at a glance, where I am in my budget.

For more tips on saving money and becoming debt free, check out Dave Ramsey.