Firstly, it is important to make sure that you are clear about your budgeting goals. How much are you aiming to save each month, and where will the remainder be spent? After all, even if you’ve got a great credit card deal from somewhere like lovemoney.com, you will still need to prioritize your outstanding payments above the money which you might otherwise allocate to various leisure activities. Rather than being vague and simply suggesting that you ‘budget’ in order to ’save’, you are far more likely to achieve your aims if you set specific goals and limitations on your overall spending.

Another good way to stick to your budget is to try and use cash wherever possible. Paying by card can sometimes be much too easy, and you are more liable to forget that the money which comes out of your account can be eating into your budget. By handing over physical cash, you will be automatically more aware of exactly how much money is changing hands each time you make a purchase.

Rather than just wandering around various stores when you are picking up your family’s groceries, make a list of what you actually need while you’re at home, and then stick to it. It is also a good idea to hang on to your receipts, so that you can keep a record of exactly how much of your budget has been spent, and where.

• Allow yourself time to change gears- If you have been on spending fast track for years, it will be difficult at first to adjust to a slower pace. Going back to the days before credit cards became popular, people were forced to save money before they made a purchase. Over the years, as credit became more readily available, this practice became almost obsolete. As you adjust to this change in your spending “mentality”, remember in some cases slow and steady does win the race.
• Start slow- If you are dealing with a financial hardship or trying to pay off debt, it may be difficult to find a lot of money to put toward your savings goals. It is important to remember that every little bit helps and even if you are only able to put a few dollars away each week, that amount will eventually add up.
• Build momentum as you go- As you eliminate your debt, you will be able to increase the amount of money you put in your savings. Do not feel tempted to absorb that money in your day-to-day spending. If you lived without it while paying your debt, you can live without it to build your savings.
• Different financial goals require different saving strategies- Once you feel comfortable saving money in general you will be able to fine tune your savings goals. This will include having both short and long term goals which will require different saving strategies to achieve.

In many cases the hardest thing about saving money is getting started. For many people living paycheck-to-paycheck trying to squeeze even a few extra dollars into the budget may seem impossible. In most situations it is possible to find the money to save, and once you get started you will see how quickly small contributions add up. Whenever possible automate your savings so you are not tempted to spend that money in other places. Reaching your financial goals is not something that happens overnight, in fact for most people it is a lifetime endeavor, one that is well worth the effort in the end.

Trisha Wagner is a freelance writer for DepositAccounts.com, where you can compare rates of checking accountsfrom dozens of banks in one place. Trisha writes regularly on the topics of personal finance and savings accounts.

I DON’T think that it is a foregone conclusion that our country is headed for a “depression.”  A depression in economic terms is loosely defined as a countries Gross Domestic Product (GDP) dropping by about 10% or more in a given year.  WHAT I MEAN by GDP is the total value of all goods, services, and investments spend by EVERYONE…individuals, businesses, and governments…in a given year.  The GDP of the Untied States of American as just under $14 Trillion last year. 

HERE IS WHY I’m Concerned…

Our country has survived economic downturns in the past, many times in fact.  This one is different though in my opinion.  The reason is this:  Individual Americans and our Federal Government has a CRUSHING AMOUNT OF DEBT that is growing bigger and bigger every day.  The interest alone that we must someday pay on our national debt is growing rapidly and is currently estimated at $45,000 PER SECOND!!!

I read recently that 80% of Americans would potentially be bankrupt and homeless if they simply missed 2 PAYCHECKS!

The reason for this is because of the huge mortgages, auto loans, failed business loans, student loans, credit card loans, etc. that we are all required to make huge payments on each month.  AND ALMOST NONE OF US HAS AN EMERGENCY FUND that would last more than two months. 

SO WHAT CAN YOU DO?

• Stop spending your money like the village idiot!  American currently save less than 2% of their yearly earnings! 
• Quit going to the mall every time you are bored!
• Build an emergency fund!  Do this with the dollars you are not blowing at the mall.
• Buy JUNK SILVER COINS.  Do this with about 25% of your emergency fund.  Silver has proved to be a good store of value for thousands of years.
• Get rid of unnecessary debt.  And do this as soon as possible.  If you just bought an ATV and took a 12% interest loan…sell that sucker, and get that debt off your back!
• But conserve cash too!  It can be unwise in uncertain times to spend every penny of cash you have to par down your debt.  This is where the concept of EMERGENCY FUND is important!
• Stock up on some food with very long shelf life!  I’m not trying to alarm you, but if you understand the gravity of the numbers I’m just shared with you, some extra food in the basement seems attractive.
• Keep having faith and working hard!  With all the doom and gloom out there, I still believe in power much bigger than ourselves and our economic worries.  Keep focused on ALL THE GOOD BLESSINGS in your life, because they are abundant, even through our struggles.  Just look at the birds outside, they don’t seem to worry where their next meal will come from…and aren’t us people more important than the birds?  I believe we are!

1. Go on a Diet! This is a great tip for your physical health and well being, but it is also a great tip for fattening up your pocketbook and not your gut.  The average American spends over $1500 per year eating out.  By cutting this in half and eating healthy stuff that is probably already in your pantry, you can save money and calories!
2. Go on a Budget!  This seems oversimplified and common sense BECAUSE IT IS!  Everyone knows they should track their spending, but few of us actually make a budget and stick to it.  Make 2009 your year to actually do it.  Sarah and I did it for all of 2008, and we cut our spending by almost $30,000 when compared with our 2007 spending.  We are looking to trim the fat even more in our 2009 budget!
3. Carpool or Ride Your Bike!  With gas prices at 4 year lows, it would be easy for me to take the H2 out of storage and drive it all over God’s green earth.  No Way.  I’m looking to keep the fuel costs down as much as possible in 2009, and lower my carbon footprint in the process!
4. Read More!  Knowledge in power, so if you don’t read, your knowledge base is growing at a slower pace than it should be.  There is tons of great information out there to help you spend and save wisely, but you must invest the time to get the knowledge!
5. Increase Your 401K Contributions!  If you have more than 10 years until retirement, this is a must.  I am bullish on the world economy over the long term.  We will have our ups and downs, but I believe we will continue to grow and innovate.  Don’t stop investing now because of fear, stay the course!  If your retiring soon, or are a nervous investor, talk to an expert.  Advice is always worth what you pay for it!
6. Start A Business!  Technology and the Internet has made it SO EASY to start your own Home Business, and be successful at it!  Turn your hobbies into cash flow.  If you like knitting, sell your stuff on ebay.  If you collect things, learn how to buy, sell, and trade them for a profit.  Use your imagination, it is easier than you think.  This will be extra work, for sure, but it beats wasting time in from of the TV every day!
7. Pinch Pennies!  I suggest that in January of each year you revisit every bill that you pay on a monthly basis.  I promise you can find savings very quickly and easily.  Maybe scale back your cable bill, renegotiate your auto and homeowners insurance, use Blockbuster Online instead of driving to the video store every weekend, make your home more energy efficient, find a better rate for any credit card balances you are carrying.  These actions and many more will pay off BIG in 2009
8. Unclutter You House! Get rid of everything that you don’t at least use once a month.  Sell it on Craigslist or E-bay.  Then make an inventory of all your important possessions and make sure you are properly insured via a homeowners or renters policy.  Make sure you are not overpaying for stuff you no longer own!
9. Start a Blog!  Blogging is a great way to get your thoughts organized and keep you motivated to make the changes that you need to make.  It is fun and easy to do! 
10. Work Harder!  Times are tough and many great people are losing their jobs.  My suggestion to you is to work that much harder at whatever it is you do to bring home the bacon.  Become the “we cannot lose, period” employee at your job.  This is often thankless extra effort, but it is worth it in the long run.  I believe great effort is always richly rewarded over the long haul!

Blessings on all your endeavors for 2009.  Let’s make this a year to be smart and move the ball down the field as far as we possibly can!

With so much fine print in each credit card offer, I believe you need to work hard to educate yourself on what card features and benefits are going to best fit your needs.  For example, right now the most important credit card feature for me is a low balance transfer rate.  I’m juggling a bit of debt, and my job as a credit card user is to get myself the lowest rate that I can find.  In the future I may need a card with a low purchase rate, and that will cause me to investigate further. 

All that said, good luck using credit wisely!  That is the only way to do it, especially given the current state of our economy!  Get as much information as you possible can, and then make a great decision.  And make sure you do your best to get a card with great rewards too!

With gas prices back down to $1.36 at the Sam’s Club in Jackson, MI, I’m wishing that I would not have set fire to my H2 (Kidding)

But seriously, those crazy $4.00 plus gas prices changed something inside my brain in regards to consumption.  I have actually dropped insurance on the H2 to “storage only” and it is currently parked in my garage until it is called back into active duty.  I also got rid of my Dodge Durango (15 MPG) and got my wife the Dodge Grand Caravan that she had been wanting (24 MPG)  I also bought myself a nice little Ford Focus (39 MPG) I now officially own all of my vehicles!  This is huge, bucause up until recently I’d been leasing something new every two to three years…money down the tubes.  For the first time in a long time, I really feel like I’m making smart decisions with my finances, and I don’t ever want to go back to the “I’ve got to have the latest and greatest thing” mentality that I’ve lived with for the past 10 years. 

Anyways, I’m sure enjoying these gas prices, but I don’t think they will last long.  I also PRAY that these cheap prices don’t derail our attempts to create better alternatives to oil based transportation!