Creating Surplus Cash For Savings and Investments

You know you should be saving money, but at the end of the month, you never have enough or, worse, you have more debt.

It takes more self-discipline to live on less than you make. A few small changes here and there might be all it takes to get the money you need to save and invest.

Some mutual funds can be started with as little as $200, and the least you can put into them is about $50.

Here are some ways to spend less and save money.

1. Get bank accounts with low or no fees for service. Keep a cushion so that your checks don't bounce by accident. These things can kill you. Be sure to keep at least the minimum balance on your account to avoid service fees.
2. Paying off the full monthly balance is the best way to avoid paying extra interest. You can avoid spending hundreds of dollars a year on interest fees.
3. Don't choose a card based only on rewards or incentives. Some of these are auto reward points and air miles. You might spend more money than you can afford over time if you use these cards.
4. Avoid charge cards from specialty stores because their interest rates are often six or seven points higher than those of major credit cards.
5. Think about getting a car that is one to three years old when you buy one. A car that is one year old will cost about 20% to 30% less than a new car. A car that is three years old is a good deal because it might cost about half as much as a new car. Cars lose the most value in their first three years. After that, it will stop going down in value as quickly and lose less of its value.
6. Try to stay away from banks that charge you a fee every time you use your debit card. If you have no other choice, figure out how much money you will need in a certain amount of time and then take it all out at once to avoid paying too many transaction fees.
7. Make a list of credit cards. Look for ones that don't charge much or any annual fee. It's not hard to find ones that don't cost anything every year.

When you buy a used car, you'll also pay less for insurance, which is a good way to save money.

1. Look around for cheaper rates on auto insurance. It can be very different.
2. Avoid big cities and tourist traps. You'll save a lot of money by staying away from places where it costs more to eat, drink, sleep, and get around. If you do choose to go to a big city, you might want to stay in a small town nearby.
3. Don't just buy something because it's on sale.
4. Cut down on your phone bill by not making as many long-distance calls.
5. When you go on vacation, you might want to stay in your home state instead of going far away or even to another country. It's often cheaper to travel within your own country because you don't have to pay for a visa or passport, deal with border crossings, change money, get shots for tropical diseases, buy medicine, or get extra health insurance. People often go thousands of miles to see things that aren't nearly as interesting as what's right next door.
6. Wait until something goes on sale before you buy it. Write down the dates when things go on sale. Some things will go on sale when the time is right. Ask stores when they will put certain things on sale.
7. Cut down on how often you eat out. When we go out to eat, we often have to pay a lot of money for meals that are both too expensive and too big. Eat at home to get healthy food and save money.
8. Get a lower rate on your mortgage or other debt by refinancing.
9. Don't try to beat your friends and neighbours at something. Sometimes, a life that seems to be going well can be a lie. These dreams cost a lot of money. Having peace of mind is much better.
10. Put the most you can into your 401K or IRA each year.
11. To make long-distance or international calls, use a phone card.
12. Don't buy things on the spur of the moment. Exercise self-discipline.
13. Don't forget that paying off debt is another way to save money. If you can pay more on your mortgage or get a 15-year mortgage instead of a 30-year mortgage, you should do so. The money saved is huge.
14. Instead of going to the movies, watch videos or DVDs at home. Instead of paying a lot for popcorn at the movie theatre, pop your own.
15. Consider consolidating your debt at a lower rate if you have a lot of high-interest credit card debt.
16. When you shop, use coupons.
17. Think about the things you do for fun and relaxation. Many of them are very expensive to join. There are a lot of other things that are just as fun and entertaining and cost a lot less.
18. Buy non-name brand, or generic, goods. Most of the time, both are just as good.
19. Get a better rate on your car loan by refinancing it.
20. You should think about taking a vacation out of season. If you travel when most people are at work or school, the staff will be happy to see you. You could also save up to 50% or more on normal travel costs.
21. Stop smoking. This is a very expensive habit.

Be alert. It's always possible to save money. Soon, you'll have money you didn't know you had. The key is not to spend that money but to put it to work for you.