365 Ways to live cheap!

Looking for a new book to start next week, I found this in my pile. So I thought that I would share some of the tips so far this year.

1. Make small steps. With every new year many people make a list of things they want to change. If you try to change to many things at once you get overwhelmed and you give up on all of your new years resolutions. So start with one or two small items. Then add more throughout the year.

2. Realize that you're not alone in the journey. If this blog doesn't prove that, then look at the 20,000 other blogs that people have started for the same reason.

3. Spend less than you earn!!!. This is a big one. The best way to start off the new year is to stop using credit cards and figure out where to cut spending. Two things you have to do to accomplish this tip is to put together a budget and write down every penny you spend in a month. With these two items in front of you, you will be able to figure out where you need to cut out some spending in order to pay the bills.

4. Calculate how much you really make. Calculate how many hours you work in a year, add the hours spent driving, time spent shopping for clothes and work supplies. Then calculate how much money you earn in a year including benefits. Using that total, subtract taxes, cost of gas, oil changes, wear and tear on the car, other maintenance, the cost of work clothes, child car, any other supplies. Then divide the amount you actually earn by the number of hours that you really work.

5. Record every penny you spend for a month. I mentioned this one in tip 3.

6. Master the ten-second rule. When you are in a store and you pick up an item hold it for ten seconds. During those ten seconds, ask yourself if you really need it and if it is really worth the money.

7. Master the Thirty-Day Rule. When you pick up an expensive item, use the thirty second rule to see if you can wait to purchase the item. If you put it back wait 30 days before you actually make a decision. Most of the time I forget that I even wanted to buy the item.

8. Keep track of your progress. How do you know if you are making any progress if you don't keep track. I use a number of different programs, but the easiest and less complicated is an Excel Spreadsheet. I have a sheet for each months budge, one sheet for the year, one sheet to keep track of everything I pay with cash, one sheet to keep track of the coupons I use. Yes, this takes some time to setup and keep updated, but I feel it is worth the time.

I think this is enough to get the year started off on the right track.