Financial Tips for Frugal Living

As banks tighten their purse strings, the trickle-down effect is reaching consumers.  Whether they're battling inflation or scared of a more restrictive lending environment, people are trying to find ways to spend less and save more.

For the Americans who were flying high during the loose credit times of the last few years, Ben Franklin seemed like a miser.  A penny saved might very well be a penny earned, but who really cares when you've got a $15,000 credit limit?  

It's been decades since cash has been a real problem for Americans, but a dangerous mix of inflated energy prices, the slowing economy, and a financial banking crisis have people reconsidering the notion of stuffing their mattress with Franklins, Jacksons, and even Lincolns (in both paper and coin formats).

Money-saving tips

Efficiency usually prevails during downtrodden times, and you may find that there are easy ways to improve your cash flow with some frugal living.

Start budgeting. As painful as frugal living may be, it literally pays off.  Begin by evaluating your household's monthly expenses.  Set your priorities-which expenses are "musts" (mortgages, retirement savings), and which expenses you can do without ($4 lattes, pedicures).  There's no need to go cold turkey. You can reward yourself from time to time with a little luxury, but find ways to trim back on frivolous items.  It could result in significant savings.

Focus on your energy expenditures. Energy costs have been a hot topic during the presidential campaign, and for good reason.  While prices have dropped at the pump, the recent foray into $4 per gallon territory has rocked Americans to the core.  Car pooling is much more in vogue, and people are consolidating errands as much as possible.  

Energy savings don't need to stop there. Evaluate your home's energy consumption.  Your utility company most likely has a website that's filled with energy efficiency tips and evaluation tools.  Take a look at them, and apply them to your home.  An energy-usage makeover could save you big bucks at the end of every month.

Moderation, not elimination. Consider downgrading some of your services.  Instead of a $4 cup of latte, could you buy yourself a good blend of coffee at the grocery store and brew it at home instead?  What about your auto expenses:  Do you need a decked-out SUV, or can you buy a simple economy car that gets good gas mileage?  Products and services that deliver exceptional value should be at the top of your list.  If you moderate your own habits, you can save a bundle.

Frugal living seems counter-intuitive to our consumption society.  As gut-wrenching as the prospect may seem, saving money is an attainable feat.  Consider these money saving tips as you re-evaluate your personal budget.  Remember, Ben Franklin's common sense advice can yield some extra dollars at the end of every month.  The challenge will be up to Americans to see if they can resist blowing all those bucks at Starbucks