How to Save Money in the Coming Year

Recently Ray Martin, financial consultant for CBS News, asked a select group of people what their New Year’s Resolution was going to be for 2008. Almost every person that answered him told him they wanted to save more money next year. Saving money is hard, but cutting back right now is imperative with the economy faltering. Seems we all got used to the economy being stable - good, and now we are all having to relearn what most baby boomer's parents already knew! You’ve got to understand how to save money for tomorrow, so you don't spend it all today.

It really made me think about how to save money this year. What can I do to save money? What could be cut back on? Below are some of Ray Martin’s and some other top suggestions, but I want to hear from you too please. Do you know how to save money? This could be a really great resource for other people wanting to save $$ in the new year. Help me help them, won’t you? Please use the form below to submit your ideas on how to save money!

Ways to Save Money in the New Year

#1) Stop Eating Out - If you want to know how to save money, this one tip can save you a bundle! The average American spends $2700 yearly per person, on fast food or dining out. Just stop it! My son and I rarely eat out. This is a definite reflection of how I was raised and how we stay healthy and trim. Fast food will make you fat and possibly sick. Just the thought of someone else having their hands on your food or breathing all over it, should be enough to break this bad habit for you. Eating out all the time is down right unsanitary!

To make a point: One of the last times Lars and I ate out, we went to McDonalds. Our favorite meal there is a fish sandwich and a chocolate shake. The guy took my order and we waited. When our order didn’t come up promptly, the guy went into the kitchen, pulled our buns from the bread bag and tossed them into the microwave with NO protective gloves on. He had just been handling cash out front and now had his dirty hands on our bread. He proceeded to finish fixing our sandwiches and brought them out front to us. I just looked at him and then asked him if I could speak to the manager…..

#2) Tax Refund - Most people like to have a big bundle of money coming in with their tax refund. Thats not really how to save money though. The bad part of getting a big check is that people are not paying bills with the money they get from their refunds. They are taking vacations instead. Why is that bad? It’s bad if you aren’t making ends meet during the year. If you increase your withholding taxes, you will have more money in your pocket during the year to spend on bills. No, you won’t get that one big fat check after your taxes are done, but you will catch up on your bills!

#3) Cut Insurance - Raise your deductibles on your insurance policies. Chances are you are paying out too much on insurance and never using it. You can raise your deductibles and lower your payments if you feel relatively safe where you live, drive defensively, and are relatively healthy.

#4) Don’t Speed - Not only will getting a speeding ticket cost you more money, you will also burn more gas by speeding. Cut your speed back to 55 mph on the highways and you’ll reap the monetary rewards in gas savings.

#5) Digital Converter Box Coupon Program - I wrote a blog about this one, but decided it was too important not to post on a web page too.

With less than 14 months till the digital waves hit the air for good, you won't be able to view TV in analog after the end date.. You can apply for up to 2(two) $40 coupons per household the way I understand it.

What they're saying: Go to the NTIA.gov site. Look 3/4 of the page down and you’ll see:

Press Release: Commerce’s NTIA Announces More Than 100 Retailers Certified to Participate in TV Converter Box Coupon Program for Digital Television Transition:

Look Under that link for another link:

Application Form Simply download the file and then 'save as'. Print out the form, fill out the form, then follow the directions on it to apply for the boxes. Each house is eligible for two(2) converter coupons. What you'll see: * A simple one-page application only requesting name, address, one or two coupons and if the household subscribes to cable, satellite, or pay TV service. * Coupons planned for distribution to consumers beginning February 17, 2008; * Starting January 1, 2008, households can request coupons when the programs toll free number, Web site, fax and P.O. Box. 1) * Apply online at www.dtv2009.gov. This website will be active on Jan. 1, 2008. 2)* Call the Coupon Program 24 hour hotline 1.888.DTV.2009 (1.888.388.2009), TTY 1.877.530.2634 3) * Mail a coupon application to: PO BOX 2000, Portland, OR 97208.2000 4) 4) * Fax a coupon application to 1.877.DTV.4ME2 (1.877.388.4632) You will save money on the box converter's by utilizing this program!

#6) Don't Stop - Whatever you do, don't stop working harder to earn income. Sometimes a downturned economy can stifle people to 'not act'. When you don't act, you don't earn. Do everything you can to contribute to a strong economy by sticking to your goals and going after them. You might cut back on frivolous items you don't need right now, but don't keep all your cash in your pocket. To keep the economy rolling, consider your needs vs. your wants. Keep buying what you need to buy, and cut back on the stuff you just want.

#6) Give to Live - In order to get back, you have to give. Thats the law of reciprocity. The more you help others, the more rewards you are destined to get.

#8) Long Term - They should have given us all a course on financing in high school! Long term investments are necessary if you want to have some savings for when you retire, therefore, understanding the concept of compounded interest is something you must grasp. A recent study found that most folks underestimated how much savings would grow and how much debt would end up costing. Thats one reason why folks don't save. They just don't know how to save money!

People think in terms of simple interest, not compound interest. For instance, if our investments are 8% a year for 10 years, we don't earn 80%, as many people assume.

Rather, we would notch a cumulative 116%. The reason is that our returns are not only on our original investment, but also on the investment gains earned in earlier years. Similarly, with credit-card debt, we pay interest both on our original purchases and on any monthly interest charges we didn't pay off in full.

"People use simple interest because they don't know to use anything else," says Prof. Eisenstein, of Cornell University's Johnson Graduate School of Management. "The higher the interest rate and the longer the time horizon, the worse the error." He argues that this basic math mistake helps explain why people delay saving for retirement and why they postpone paying off credit-card debt.

#9) Your Turn! - This is your chance to make a statement and tell me how to save money. How you save money is important information! What can you live without, what are absolute must have's, and what are some ways to cut back on spending. Share your ideas about how to save money below. If you own a money saving web site and want to give your site's URL, please do so!

How do you save money? Share your thoughts!

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Save Money - support American farmers 



America is a great country for producing food. Do you really want to buy imported food from a country that does not have such high standards of hygiene ...

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