We all know it: money is tight, the country is in a recession, tens of thousands of people have been laid off. And we're all looking for ways to save a few bucks. FOX23 has dug up five money saving secrets. And the experts say they're easy to incorporate into your daily life to put cash back in your pocket.
Money Saving Secret #1: Write It Down
Every penny that you spend, every penny that you make, keep a log. Writing it down will help you set a realistic budget.
Credit counselors tell us one thing that catches people off guard and gets them in debt are so-called "impound expenses." They're the costs that come around once in awhile: car tag fees, repairs, shopping sprees. You should be able to have this money set aside.
One way to save: don't overspend on little things, and know exactly how much money you're working with.
"The most important thing I can stress is that a person put their finances down in paper. When it's in their head,we can play games with it, we think we've got things under control," says Harold Hendricks of Christian Credit Counseling.
Credit counselors suggest writing down each time you buy a soda or coffee on the way to work. Those are small expenses that you don't necessarily need to spend and that add up over time. Credit counselors say what you spend should never exceed what you make in a month.
Money Saving Secret #2: Use Credit Wisely
It's no secret that most of us use credit cards to get what we want and pay later. But credit is the one place where you can easily over-extend your budget.
Credit counselors say many of their clients are $10,000 to $50,000 in credit card debt. That means sky-high interest rates that only get higher if you can only pay the minimum balance month-to-month.
"If you can't pay off your credit card every month you ought to cut it up or put it in a drawer, or do something with it, and not use it again until you get things under control. Because what that means is you've overspent that month," says Hendricks.
Counselors say you should be able to pay off your credit cards monthly. If you do that: no interest.
That may sound impossible, so here are some options: get on a payment plan with your credit card company. Sometimes you can talk down your interest rate, but don't keep spending on plastic as you pay off the bill.
If your spending and debt seems out of your control, credit counseling services can help get you on a payment plan. For a minimal fee, these companies work on your behalf with the credit card companies.
Also use credit cards for emergency expenses. Make sure you define an emergency: that pair of shoes you can't live without probably is not an emergency while a child's doctor visit probably is.
Finally, choose a credit card that "goes to bat" for you; one that's willing to drop a late fee, or that will work with you if you're mistakenly charged twice.
Money Saving Secret #3: Be Cheap
Sounds simple enough, right? But you can scrimp and save in lots of ways, especially on services. You can go to a beauty college, such as Clary Sage in Tulsa, for cheaper hair cuts, massages, pedicures, manicures. No need to cut these luxuries out-- especially if you have a job interview.
"It's about half the cost of normal salons and spas. And we also have licensed instructors that have been in the field for many years that are on the clinic floor to supervise so people don't have to worry about having some botched haircut or something like that," says Christen Brummet, Clary Sage campus director.
Other beauty colleges in communities throughout Green Country offer hair cuts for as little as six dollars on certain days.
Also.. look for cheap entertainment: matinee movies, free festivals, or discount roller skating nights.
You may get packs of coupons in the mail. Don't use them "just because" you have them, but if your kid has a birthday coming up, you might keep a bowling coupon handy. You can also get discounts on car repairs, or even half price meals.
You may also want to check out Dining Rewards or Style Rewards on FOX23.com. For a small fee, you can get all kinds of gift certificates and coupons.
Money Saving Secret #4: Shop Smart
Going to the grocery store: we all have to do it, but you can get out of there for a lot less.
Shopping smart doesn't just mean clipping coupons, there are more ways to save at the supermarket.
Buy generic: usually it's just the exact same product with a different label. Don't buy bagged or already cut produce; take an extra few minutes to wash and prep your own produce, and you'll save big that way. You can eat healthy for less. Buy frozen fruits and veggies and go for cheaper fillers and proteins, such as beans.
"Oatmeal is not only incredibly economic, but versatile. When you get the instant oats you can use it as a filler for burgers and meatloaf to extend the meat, you're gonna save money there," says nutritionist Tanya Zuckerbrot.
There is also a Tulsa-based website called Grocio that lets you type in your grocery list, and find out which store will give you the best deal. Membership is free and earns you coupons.
One woman who calls herself the "Coupon Queen" says you can save $300 to $500 a month on groceries. Michelle Jones lists savings by the aisle on her website. For instance, you can learn how to predict when Pepsi products or Coke products will be on sale. She says it is usually not in the same week.
Money Saving Secret #5: Shrink Your Refund
You might want to take a close look at your tax refund. You may want that check to be smaller. Sounds depressing, but financial experts say getting thousands of dollars throughout the year, instead of in one lump sum, can help you and your family save. Getting that money throughout the year may keep you from unwise spending, such as on a big purchase you don't really need.
"Look at how much you're getting back in taxes. If you're getting back $5000 every year in tax money refund, if you divide that $5000 by 12 that's how much you could be getting every month on your paycheck," says Harold Hendricks of Christian Credit Counseling.
Claim "1" or more on your W-4 form to get more money throughout the year. This is normally reserved for people with a family.
Also, look for ways to get extra money back when you file your taxes. Some households that meet certain income requirements could qualify for an earned income tax credit, from $400 to more than $4000.
The IRS says this year, look for other tax credits such as the child tax credit and the retirement savings tax credit if you contribute to a 401-K or other retirement fund. Remember-- the tax deadline is April 15th.
First time home buyers, too, could be eligible for an $8000 tax credit for the 2009 tax year.
