• Get that emergency savings account started. That way you won't have to pay credit card interest when the washing machine dies.
  • Learn to use credit cards only as a convenience. Pay off all balances at the end of each month.
  • Pay off credit cards or move balances to cards with lower interest rates.
  • If credit cards are a problem for you, avoid using them altogether; cut them up. If you want a new stereo or TV, put money into savings each payday until you have the money to buy it.
  • When you get a raise, put 10, 25 or 50 percent aside for investing or paying off bills.
  • Shop around for the best deals and the best prices, especially on major purchases (TV, car, computer, kitchen appliances). Use the Internet to do this and you'll cover a lot of territory in a short amount of time.
  • Don't tie up too much money in your mortgage -- not more than 28 percent of your gross monthly income is a good rule of thumb. All debts -- mortgage, car payments, credit cards, etc. -- shouldn't take more than 36 percent of your gross monthly income. Reduce those percentages if you can. Just because the bank will give you a mortgage that's 28 percent of your monthly gross doesn't mean you should take it. A smaller mortgage might give you more cash to spend. Don’t be “house poor,” it’s not fun.
  • Set you own priorities and stick to them. Don’t change your priorities just to keep up with the neighbors. The only reason you should buy something is because you need it or want it for yourself. “Don’t buy stuff you don’t want with money you don’t have just to impress people you don’t like.”
  • Look at your daily lifestyle and see where you can cut costs. Clip coupons, and don't forget to take them to the store. Don’t pay full price for something when you don't have to. Eat out a little less often. Pack a lunch for work a couple times a week.

Broad based and common areas:

  • Cut down on convenience. Change your own oil. Wash your own car. Bar-B-Que at home instead of hamburgers out for little league. Shampoo your own carpet. Look at all areas of your life. If you want to save, start here with personal spending.
  • Share a newspaper or get Sunday only. If you take a Sunday paper, do you need a separate TV Guide? How many cable premium stations, movies, and "pay events" do you have? How many do you need? Would renting videos be a better option?
  • How many phones do you have? How many do you need?
  • Bring your lunch from home instead of buying.
  • Go to your last 6 months check register and find out where and how much you spent. What can you change?
  • The average person spends 112% more on a credit card than they would if paying cash. Never go to a Mall (or anywhere else) with a credit card without knowing EXACTLY what you are after--- use a list.
  • Compulsive buying items are gold mines for a retailer and are right at the checkout stand. Get in the habit of putting your hands in your pocket or at least off everything else when approaching the checkout.
  • Late fees cost money. Pay bills on time.
  • Do not carry cash in your pocket. Cash spends itself. If you have to go through the trouble of cashing a check or withdrawing from the bank, you might think twice about the purchase.

Cut up Your Credit Cards
As you pay off your credit cards you may want to destroy most of them so you won’t be tempted to use them again. You may even want to cut them up prior to pay off so you won’t be tempted to use them. If you do decide to cut up your cards, be sure to call or write the credit card company and cancel your account.