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If you’re trying to save money, whether to pay off debt, save for a purchase, or live debt-free, you can create new frugal habits to help you achieve your goal. Although many people think of living frugally as depriving yourself, it doesn’t have to be. Instead, you just have to think ahead and make small adjustments that can save you money each month, which can add up quickly. Here are some tips to help you achieve your money-saving goal.
-Buy food and other items in bulk.

-Don’t eat out. This means you make your own meals and take your lunch to work. (Don’t buy coffee or other food when out, but try to stick to food from home whenever possible. This requires a little extra planning, but saves you a substantial amount of money.)

-Order basic TV service and a basic Internet connection rather than more expensive services. You can always rent movies for a $1 or borrow movies from friends.

-Set the thermostat to 63-65 degrees in winter, and the air conditioner to 75-59 degrees in summer. (In winter you can always put on more clothes.)

-Buy energy saving light bulbs and appliances to reduce electricity bills.

-Hang clothes to dry.

-Create a budget. Allow yourself some extra spending money, but when it’s gone don’t spend more.

-Create shopping lists and stick to your list. Buying excess items can sap your cash quickly.

-Buy in cash. Many people spend more when they use debit or credit cards. Once the cash is gone, you don’t have anything left to spend.

If you want to get out of debt, here are some tips to cut costs on your budget.-Apply any bonuses or extra money toward debt.

-Keep the credit cards at home.

-Budget and look for coupons wherever possible.

-When shopping for appliances, buys last year’s model.

-Change your cell phone plan to “pay as you go” or to a less expensive family plan.

-Plan meals to avoid additional shopping trips, and properly utilize all your leftovers and available food.

-Sell excess items, like clothes, DVDs, etc. on eBay or at a yard sale.

-Go to the library for books, CDs, magazines, and DVDs, or borrow from friends.

-Make sure you are with the right bank that doesn’t charge extra fees for everything.

-Lower your interest payments on your credit card or transfer balances to a lower interest rate card.

For those of you looking to buy a home, I’ve heard that the website LowerMyBills.com is great for comparing the best mortgage rates from banks and credit unions.  Once you get your mortgage and have a few years of equity, be sure to try for an early mortgage payoff to live truly debt-free.

As mentioned in the previous post, you can save money by driving the right way and keeping your car running efficiently so it lasts longer.  Newer cars are more expensive, and cost you more money than driving a reliable, older car. Here are some tips to make your car last and be frugal at the same time.

-Change the oil regularly.  Do it yourself, it’s not that hard.

-Change the air filter.  This is incredibly easy for everyone to do.

- Flush the fluids and cooling system every two years.

-Monitor your brake pad thickness.

-Rotate the tires.  Check with your mechanic or user manual to find out the estimated times to do this.

-Keep the tires properly inflated. Check your tire pressure every month, which will save you gas and wear on your vehicle.

-Keep the front end aligned.

-Start slowly to save gas money and help out your car.  This is particularly necessary when the car is cold.

-Use your parking break to help your transmission last longer.

-Wash your car.  Your car will be less susceptible to corrosion if it’s clean.

-Read your owner’s manual.

-If you’re handy, try to fix common car problems on your own.  Otherwise, try to find a family friend who’s a mechanic or really good at fixing cars to save you mechanic fees.

     Since most of us in America spend a large amount of money on gas (with prices rising), cars, and insurance, it’s beneficial if we can save money in this area.  Although you can’t change gas prices, you can drive the right way to save money on how much gas you use.  This will also help your car last longer if you treat it with TLC.

-Don’t speed.  Going the speed limit, particularly on the freeway, will help your wallet and your car.  Go below 70 mph at all times.

- Go easy on the brakes.

-Never idle. Know your route so you can time the traffic signals.

-Don’t keep things in your car.  They add weight, which reduces fuel economy.

-Remove excess weight on the outside of your car too, such as racks.

-Don’t reverse unless you have to.  Pull into parking spots facing out.

Most homeowners would love to pay off their mortgage early, thus eliminating their largest debt and monthly expense.

However, many financial advisors say that you must be free of significant debt and have money in savings to start paying off your mortgage.  Rather than paying off your mortgage, you could try a few other routes with your extra money.  By not paying off your mortgage, you may get tax benefits.  Or you could invest the money and earn more money than you would save on interest by paying off the mortgage early.  Or you could put your extra money towards home improvement to increase your home’s value.

If you are in a debt-free position, it can be very rewarding to pay off your mortgage and live debt-free.   Naturally, you may want to consult your lender, but if you’re paying down your mortgage alone, use a mortgage calculator and a spreadsheet to keep track of your payments.  You may want to choose bi-weekly payments.  Or you can take your money from bonuses and make lump sum payments.  Another idea is to refinance your loan for a lower monthly payment, or refinance your 30-year mortgage to a 15-year mortgage. For some help, here’s how a UK couple paid off their mortgage in 1.5 years.  They have great tips on how cut costs to apply to the mortgage payment.

If you have debt, or just want some help paying off your mortgage, it’s wise to consult with a financial expert.  You can use a HELOC or type of home equity loan to consolidate your debts and achieve an early mortgage payoff with little adjustment to your regular lifestyle.  This type of program also helps you be more disciplined, which many people need to complete their dream of living debt-free.  It also gives you more financial flexibility and cushion room, so you have money for emergencies if you  need it.

Talk with your lender and a financial consultant to determine what is the best option for you to achieve an early mortgage payoff.

Everyone can save money on common expenses, such as clothes and groceries, the latter which takes a large portion of your money each month. Here are some tips to save money by living frugally.

-For women cut back on beauty costs, such as nails, hair, new clothes, and costly makeup. Buy generic brands or wait for a sale to buy (take advantage of free samples too). To save even more, cut your family’s hair or visit hair training schools, which cost less for haircuts and coloring.

-Buy a frugal cookbook to make financially-friendly, but still delicious meals.

-Don’t go out to eat, and learn to creatively use leftovers.

-Cut coupons for groceries. Look for rebates, which can give you common products like toothpaste for free after online or mail-in rebates.

-Look through ads you receive in the mail and choose the store that has the best deals that week.

-Plan your meals and shop once or twice a month to save on impulse buys. Freeze food or use leftovers to avoid waste.

-Buy frozen or canned vegetables and fruit rather than fresh.

-Turn off the heat or a/c during the night or during other times to save money on utilities. Make sure you turn off lights that don’t need to be on to save on electricity.

-Walk places to save on gas or carpool to work with co-workers.

-Cancel your gym membership. Or join a less expensive, family-friendly community center.

-Buy generic products, whether it’s cleaning products or generic clothes. Try the dollar store, you may be surprised what you find.

-Buy items at wholesale stores or on classified ads like Craigslist.org. You can find gently used or even new products that have no or little slight flaws that aren’t noticeable. You don’t pay for retail mark-up this way.

-Buy an older car that costs less. Or if you have a new car, pay if off and direct your former car payment into savings.

-Don’t buy items on credit or carry debt to avoid paying extra through interest. If you do use your credit cards for bills and groceries, pay them off each month and reap the bonus rewards that some credit cards offer (cash back, travel rewards, etc.)

Cut back on everyday expenses and you’ll have more money to pay off your debt.

If you’re interested in finding out more about the money merge account, there’s a great blog that explains the program in detail. It even has a video that you can watch. Overall, you get the facts so you can decide for yourself if the money merge account is the best way to achieve an early mortgage payoff and live debt-free!

I recently watched an Oprah episode that featured the famous financial consultant and author, Suze Orman. (I’ve briefly read through her book Young, Fabulous & Broke that I received as a gift from my parents.) During the show, she told two couples who were deeply in debt how to repair their financial life. Both couples were close to the point of bankruptcy, and avoiding calls from collections. They needed to completely change their lifestyle to keep their homes and help their family.

For instance, one couple had the wife controlling the budget. Unfortunately, she hid her out of control spending from her husband, taking cash advances on his credit card without him knowing. Her overspending left the children with few clothes and no health insurance, which one of her daughters desperately needed. It also left them close to losing their home.

Suze Orman explained to both couples that they need to live within their means. She told each of the couples that they need to be financially responsible, checking that each person doesn’t overspend.

For those looking to get out of debt, Suze Orman does offer some good advice. Most people try too hard to keep up with the latest trends. Everyone can live frugally, without buying the new car or big TV. You can save your money to buy these items, which eliminates paying more interest on items than they are really worth. Most people need to consider if the interest they will pay is worth the item. More often than not, it’s better to have  patience and appease the appetite of “always having more” that is common in the world today.

The mortgage and foreclosure crisis throughout the nation is on the rise and showing no signs of stopping.  In 2005, the net of new mortgages skyrocketed to a record $1 trillion, many of them adjustable rate mortgages (ARM).  An ARM is one in which the interest rate of the loan (based on an index) is intermittently adjusted to make certain the lender has a steady margin. 

Due to federal interest rate increases, now homeowners are struggling to pay their mortgage and many are losing their homes to foreclosure.  Further more, the increases have dampened loan demand, discouraged home buyers from borrowing, and thus slowed the housing industry even more.

If you are having trouble paying your monthly mortgage payments or possibly facing foreclosure, read on…

Ignorance is NOT Bliss

Do not ignore the problem!  Much like credit card debt, the more you ignore the problem, the worse off you are.  With a mortgage, the further behind the loan you get, the more difficult it will be to reinstate the loan, making the possibility of losing your home very real.

Contact Your Lender

Keep in mind that lenders do not want your home and they would rather avoid foreclosure altogether.  They are will work with borrowers who are willing to sacrifice a little to keep their home.  Many lenders have a range of options to help you through financial difficulties.

Respond to the Mail

This advice correlates with the first one…don’t ignore and not open the mail!  First notices from lenders often include valuable information about how to prevent foreclosure and options that are available.  Later mail may consist of notices of impending legal action, so make sure your respond to all mail from your lender.

What are Your Rights?

Make sure you know what your lender is entitled to do if you do not make your payments.  Since every state is different, learn the foreclosure laws and deadlines and due dates of your particular state.  Ignorance is never a valid excuse in foreclosure court.

Keep a Budget

Many people seem to have a hard time curbing their spending despite growing financial problems.  Establishing and maintaining a budget is necessary in order to weather financial problems. Your first two financial priorities should be healthcare and then your home, followed by credit card debt.  Create a budget based on your income and figure out what areas you can cut back on.  You will be surprised to find how little purchases here and there can add up.

Contact a Credit Counseling Agency

Non-profit housing and credit agencies can provide substantial information, help, and support.  They can help you establish the aforementioned budget to pay your mortgage and other monthly expenses and refer you to other local services that can provide financial, legal, and other help.