We used to empty our pockets at the end of the day, toss the change into a bowl or piggy bank. This loose change could quickly add up to a few hundred dollars that could then be used on groceries, entertainment or even placed in a retirement savings account.

The problem is that fewer and fewer of us actually use real money to buy things. Plastic has become the norm, and piggy banks are all but obsolete. Some banks have come up with an easy solution to this problem. It’s a great tool to use called “Keep The Change” accounts.

The first bank to offer this came up with an account that allows customers to create a virtual piggy bank. When a consumer uses their check card to make a purchase, the bank rounds the total purchase price of the item up to the nearest dollar. The difference is then transferred to their savings account. For the first three months, some banks even match your virtual change deposits.

If you have kids, an easy way to add to their education savings is through a “Upromise Account”. Membership is free and it will allow you to effortlessly squirrel away savings just by making regular consumer purchases. Retailers participating in the program agree to match a portion of the purchase price and contribute it to an education savings account. Currently more than 550 companies participate including McDonald’s, eBay, Barnes & Noble, JC Penney and Office Depot. After you buy from a participating merchant, you then receive 1- 25% (depending on the purchase) of the money. The money doesn’t come back to you, but rather into a 529 account reserved for your child’s education.

Merchants like the program because it provides cheap advertising and breeds customer loyalty, but what’s really important to consumers is this is essentially free money if you were going to make the purchase anyway.

Use direct deposit. Arrange with your employer to have your paycheck deposited directly into your bank account. This will eliminate the possibility of lost or misplaced paychecks, and the money reaches your account even if you can’t get to the bank. In addition, many banks and credit unions offer free or lower-cost checking accounts for customers with direct deposit.

Get overdraft protection. If you overspend your account, you face large fees from both your financial institution and the payee. Overdraft protection an account either to your savings account, a line of credit or a credit card to cover any overcharges you make. The small fee and interest you may pay will be a lot less than the bank’s coverage of an overdraft. You can also put your own overdraft plan into place by keeping a secret $100 or more in your account and exclude it from your current balance. If you make a careless error in the future, you’ll be covered.

Utilize online banking services. You already check your email and other web sites at least once a day. Why not add your bank account to the routine? Once you register at your bank’s site, you’ll be able to get current account information. Not only can you follow daily account activity, you can detect errors or fraud in a more timely manner.

When considering applying for a line of credit, the pros include diversifying your credit sources, which has a positive impact on your credit score. It also allows you to access funds you may need for large purchases, like buying a car. Conversely, a line of credit is too often treated like free money. Such easy access to funds leads some borrowers to rack up consumer debt for things they don’t really need. In addition, outstanding balances will limit borrowing power on other loans, such as a home mortgage.

If you are considering withdrawing from your 401(k) or retirement savings to pay down debt, there are a few things to ponder. If you have a big debt to pay off, you may choose to either put off contributing to a retirement or savings fund, or to withdraw money from an existing fund. On the upside, paying down debt is a good thing, and the sooner it is paid off, the greater the savings in interest expenses for the borrower. However, withdrawing funds set aside for retirement will rob you of the benefits of compounding. Also, pulling the money out of your savings could leave you in a very bad position should something unexpected, like a job loss or illness. The earlier you start saving, the more money you will be able to accumulate for retirement. Properly invested, money saved now is almost always better than more money saved later.

When making choices on investing your money, there are a few things to look at. If you are nearing retirement age, a better option might be investing in invest in risk-free or nearly risk-free vehicles. This way, the risk of losing your hard-earned cash is extremely low. Although you are missing out on the opportunity to have your money work for you, the closer you are to retirement, the more conservative you should be in order to protect your investment. The younger you are, the riskier you can afford to be, because you have the time to make up any losses, and the higher risk may be warranted because it helps combat the effects of inflation on your portfolio’s gains.

If you are contemplating paying off a major loan, that’s a wonderful accomplishment that will save you months, or years worth of interest. But if you are thinking of going this route, make sure you take a look at your interest rate. Some loans have such a low interest rate that you’d be better off putting your money in a savings account that earns you a higher return and paying off your debt monthly. This is a good idea if your savings interest rate is higher than your debt interest rate and you are disciplined enough to pay the debt off on time, every month, and not to spend your money on luxuries instead. Remember, responsibly paying off monthly debt helps you to establish a good credit history. This is especially helpful if you don’t have a credit history or you are trying to rebuild a bad one.

Financial choices often have hidden consequences. Make sure you do your research so your financial situation will be the best it can be.

Maintenance manuals for many cars suggest you should fill the tank with premium fuel. Often you can get away with a lower grade without hurting your engine or your performance. Check with a mechanic to see if you can downgrade; the savings of 10-20 cents per gallon can easily add up to $100 or more for the year.

There are several other things you can do with your car to save money that can add up to a hefty savings over the span of a year.

Properly inflate your tires – Check them once a month; otherwise, you’re wasting gasoline, risking a blowout and wearing them out more quickly. This simple move can help prevent an accident and provide you with better traction. It could also give you better gas mileage. Underinflated tires can cost you 1-2 miles per gallon.

Replace your air filter – A dirty air filter causes an improper fuel-to-air mixture, which ruins fuel efficiency. Replacing your dirty filter can improve mileage by as much as 10%, or 15 cents per gallon. It’s easy to replace your filter yourself. Buy it on sale at a discount auto-parts store rather than having a garage or dealer replace it. Replacement is simple, a 5-minute job. A good schedule for new air filters is every other oil change in a dusty climate; elsewhere at least once every 20,000 miles.

Don’t drive aggressively – Hard accelerations and aggressive driving can cost you as much as 33% of your efficiency on the highway and 5% in the city. That adds up to 7-49 cents per gallon. Keep it under 60 – Gas mileage suffers badly at speeds above 60 mph. Every 10 mph above 60 mph costs you an additional 10 cents per gallon.

Clean out your trunk – Those golf clubs you pack around every day (despite the fact there is snow on the ground) cost you. Every 100 pounds of extra weight costs you 1-2% fuel efficiency.

Check your gas cap – About 17% of vehicles have a gas cap that is either damaged, loose or missing the Car Care Council estimates. Without a proper cap the gas in your tank vaporizes, and so, too, does your money. (For more tips on turning your gas guzzler into a sipper, see Getting A Grip On The Cost Of Gas.)

One line item should be savings. To get ahead you should start paying yourself first. Some suggest 15% of your income, but if you can’t afford that, start with what you can afford and increase it over time. Many people think they can’t afford to pay themselves first. Why work all the time and have nothing to show for it? If you think you don’t have any extra money for this, take a look at what you have been spending your money on and see where expenses can be cut.

Live within or below your means. If you constantly spend more than you make each month, you will continue getting in deeper debt.

One way to get your expenses under control, is to track your expenses. For one week, write down everything you spend money on each day. At the end of the week, you will see where your money is going and can determine if there are ways to cut expenses.

Saving is a discipline and needs to become a habit. Have the discipline to wait until you have the money saved to purchase something you want. Too many people give into the instant gratification of purchasing items that they want that they cannot afford. Live below or within your means. It’s also important to have an emergency fund in the event of unexpected medical expenses and job layoffs, etc.

Once you get in the habit of making a monthly budget and living by it, it will get easier and not feel as restrictive as you may think.

However,  goals don’t work for most people. The reason goal setting fails is because the goal setter has not followed the steps necessary to establish clear, focused goals that create a roadmap for success. Avoid these mistakes to create powerful goals that lead you to wealth, success, happiness and prosperity.

Do not set generic goals. Many people set very generic goals that do not create a vision of what they are trying to accomplish. Goals such as, “buy a new house,” “increase my profits,” “save money for vacation,” do not inspire action and do not give you a specific target to achieve. If you want to buy a new house then set a specific goal for what kind of house your want to buy, where it is located, how much it will cost, what it will look like, how big it is and what amenities it has. Create a very clear picture of what you want and write your goal accordingly. Determine what your goals are and be specific. That is the key to avoiding the mistake of generic goals. Be as specific as possible. Create a clear vision of what you are aiming for. Whatever it is, be specific when setting the goal. If you are trying to increase the profits of your business – decide exactly how much more you want to produce. Pick a dollar amount or a percentage increase you are determined to make. If you are planning a vacation and want to save for the vacation, then determine an exact amount, where you will go and what you will do. No matter what the goal is, the more specific you are the better chance you have of achieving it. The more clearly you define what you want the more solidly it will be locked into your subconscious mind. Locking your goals into your subconscious is a critical component of achievement. Once you have created a clear vision of the goal and locked it into your subconscious then you will find that the actions you take tend to lead you toward the accomplishment of the goal.

Make sure you can measure  your results. If the goal you set does not allow you to measure your progress then how will you know if you are getting closer? Specific goals will make it much easier for you to measure progress. Generic goals that cannot be measured are doomed to fail. Measuring your progress allows you to make adjustments along the way so you stay on track. Make your goals measurable and they will be more powerful.

Make sure the goals you set are attainable. If the goals you set are so outlandish that you simply cannot reach them in a reasonable time period then you will become discouraged and give up. Establish stretch goals but not unachievable ones. It is good to establish goals that make you learn and grow and challenge you to reach them. However, don’t hurt your chances of succeeding by being unrealistic. Strong goals are those that are realistic and achievable.

Set goals that are relevant. Make sure the goals you set tie into your long-term plans for your career and life. Too many times people set goals that sound good in the moment or are relevant to someone else’s plans but not their own. Make sure your goals support what you are trying to accomplish, don’t waste your time chasing unimportant goals.

Set a timeframe for achievement. If you set goals that are not time bound then it is easy to let yourself off the hook and not take action. Setting a timeframe to meet the goal creates an accountability to take action. It also allows you to adjust your activity and make corrections along the way. If you create a goal to save enough money for a dream vacation in June two years from today then you can regularly check your progress and adjust as needed. If you didn’t set a timeframe and waited until you were ready to go then you may be surprised by not having the money and have to delay your dream.

Goal setting can help you discover that you can accomplish more than you thought possible. Make sure you put your goals in writing. Once you commit your goals to paper they move from a thought to an action and you create a commitment. Share them with someone else and the accountability increases dramatically.

Plain and simple: switch off. Everything contributes to the final bill and the more you switch off, the more you save – so turn off things when you’re not using them!

For retaining heat in cold months and air conditioning in hot ones, insulate your home and you could save as much as one hundred dollars per year, or even more. Utilize window coverings like curtains and blinds. Air can escape through glass far more easily than thick curtain fabric, so close your curtains and you’ll stay much warmer in the winter and cooler in the summer, without having to switch on the heat or air.

More tips for saving energy include ensuring your equipment is well up to working standard. Have you furnace and central air units serviced on a regular basis.

You can save water and the energy used to heat it by taking showers instead of baths. Not only are showers more efficient, but they use a fraction of the water – meaning there’s far less water to heat, saving more energy. Find other ways of relaxing like exercise or meditation.

Once all those energy saving measures have been completed, you can sit back and relax with the knowledge that you’ve done your bit. Use only what you need – it saves energy!

It’s also important to evaluate your insurance needs. For example, increasing your out-of-pocket deductible from $250 to $1,000 can save you 15% or more on your car insurance. Also, consider using the same insurer for your home and auto insurance — you could save up to 15% for a multiple-line policy.

Also, make sure you’re not paying for insurance you don’t need. Take life insurance, you need it only if someone is financially dependent upon you (such as a child).

by miltedflower

There are many ways to throw your money away. Take cars for example, they lose most of their value in the first few years, meaning thousands of dollars down the drain.

On the other hand, recent used vehicles (those that are less than five years old) can be a real value because you get a car that’s still in fine working order for a fraction of the new-car price. You’ll  also pay less in collision insurance and taxes as well.

Cars aren’t the only things worth buying used. Pre-owned clothes, books, toys, exercise equipment and furniture can offer vast savings.

There are some things you’re better off buying new, including mattresses,linens, shoes, computers and safety equipment (such as car seats and bike helmets).