Simple Ideas For Spending Less And Saving More

Almost everyone wishes for just a little more money in the bank. With these ideas for reducing your spending and increasing your savings, you may find feeling a little richer sooner than you know it.

1. Keep your savings account and checking accounts at different banks. Maintaining accounts at different banks reduces the ease of transferring money between accounts; while they may still be linked, transactions generally take a bit longer between different banks, making impulsive spending decisions more difficult.

2. Bring lunch and coffee to work. It's easy to nickel-and-dime your way into the red by purchasing lunches out, and even that morning cup of coffee from the coffee shop can cost you in the long run. Invest in a lunch box and a good travel mug or Thermos. You can prepare lunches the night before to save time in the mornings, and brew a pot of coffee while you're getting dressed for work. These small steps could save you $5 to $20 each work day.

3. Track every penny you spend. Whether you use a notebook or a program like Quicken or Mint, tracking your spending helps you stay accountable to your budget. Knowing that you have to log a purchase may help you think twice before frittering away your money on frivolous expenditures.

4. Look for coupon codes or discounts prior to significant purchases. When shopping online, use a site like RetailMeNot to search for codes for free shipping, 10% discounts, and other deals. Use coupons from your local newspaper and other sources for meals at restaurants, discounts on automotive services and groceries. Your savings will add up!

5. Don't carry cash...or carry only cash. Whether or not to carry cash is controversial among money experts. While some people feel more tempted to fritter away their money when they have cash in their wallets, others feel that cash is more finite, leading them to think twice before spending it. If you do carry cash, consider using an envelope system to help you stay on budget. When the cash for a given budget category runs out, you will be forced to borrow from another envelope or forgo the purchase.

6. Always keep the idea of an emergency in the back of your mind. If you know your fridge is on the fritz or that your home will soon need major work, you may feel a little less tempted to buy small, unnecessary items. If you need a more visual reminder, tape a note or photo to your wallet to remind you of why you are saving. Ideally, you should have an emergency fund to pay for such occurrences anyway; if you don't, seeing that note every time you open your wallet can help prioritize your spending.

Saving more while spending less is certainly easier said than done, but the benefits of having money in the bank far outweigh the temporary discomfort of going without little luxuries. Use these ideas to help you get into the saving groove, and watch your pennies pile up.