Taking Better Care Of Your Money

In these hard economic times, it's more essential than ever for individuals and families to get a hold of their financial situation and make every dollar count. Here are some ways that you can avoid common pitfalls and take better care of your money.

-- Don't assume that every "advertised deal" will save you money. For example, one of the ways that big box discount stores lure customers in is by offering gas for about 10 cents less than you would pay at your local gas station. However, if you have to drive across town to get that discount on your gas, it may cost you more in the long run than if you had just paid a little more by staying closer to home.

In addition, by purchasing gas at such a place, you may be tempted to "run in" and get a few things you might not otherwise have bought. What started out as an attempt to save money turned into a spending fiasco that saved no money and may have even cost you more.

-- Every family and individual should have a realistic budget, and do everything possible to stick within its bounds. However, budgeting too strictly can have an opposite effect and result in a shopping-deprived spending binge! Make sure to include fun stuff in your budget and don't sweat it if you go over just a little bit from time to time. Life is meant to be enjoyed: budget so that you can take the kids to the movies or out to dinner once a month.

-- Speaking of eating out, did you know that it can cost a family up to four times as much to eat out as it does to stay at home? Eating dinner around the family table brings members closer together, is generally more nutritious, and saves tons of money. Instead of making eating out the norm, make it a special occasion.

-- It's easier than you may think to cut out non-essentials and save a lot of cash. The last decade's culture of extravagance saw a whole generation spoil itself by purchasing designer coffees from expensive outlets. Your parents used to make their own coffee at home every morning, and it didn't cost them an arm and a leg. Finding ways to cut back on luxuries will save money in the long run: but if you must have that special mocha latte-- how about once a week instead of daily?

-- Make saving a habit that lasts a lifetime. No family or individual should go in the red each month. It's essential to save even a little bit each and every month. Most people can put up to $3,000 in an IRA tax-free every year: over time, the interest earned will go a long way toward giving you a cushion to fall back on and retirement money to enjoy in your old age.