How to Save Money Everyday

Saving pennies makes more sense in an age where an hourly job is a commodity.  Unemployment is still high and consumer spending is down.  It can be hard to earn money even by running a small business, simply because crunched budgets forces people to focus on the staples.  In this day and age, it pays to learn how to share and how to save a buck.  This means finding ways to do without or improvising to avoid having to buy a product.

1. Overpay Much?
The most important frugal skill is not overpaying on the things that are bought on a daily basis.  This means food and gas, as well as the various little conveniences that add up.  To save money on food, consider buying basic things in bulk, such as oatmeal and eggs, and then cooking at home.  Homemade meals are much cheaper and generally healthier than fast food.  Otherwise, when shopping for packaged food, take a close look at unit price.  This is the best way to make a cost comparison.  Generics are often as good as brand name products, and 2-liters are more economical than aluminum can drinks.

The reason why many things cost more is just because of shipping weight.  Truck drivers have to be paid, and freight is a premium.  While this affects the cost of all goods, it again is most important when shopping for groceries.  Powdered milk is often cheaper than fresh, and dried fruit is often cheaper and lasts longer than the equivalent of fresh food.  Buying frozen packages of juice concentrate is only a fraction the price of buying bottled juices, which are also often from concentrate.

2. Transport
Moving away from food, transportation is a major daily expense.  Owning a car can cost a person at least a few thousand dollars a year. Cars are poor assets, because they always sell for less than the original purchase price.  Insurance must be paid as well as gas.  For many people, it pays to use a bicycle or public transportation. Good friends will carpool or even share a vehicle.  Doing without a car might seem too drastic, but a little math reveals the intelligence of it.  For someone living in a city with many alternatives, rather than in a small town or rural area, alternate transportation makes sense.

Frugal skills are important for parents, who must budget for people besides themselves.  The modern world offers many conveniences, because everyone wants a buck and some people have the money to afford them.  The most important lesson for anyone on a budget is to say no to all the little things that catch our interest in a moment.  Many closets are filled with gadgets that are hardly used, purchased on a whim that is never carried through.  Learn to use basic equipment before purchasing something that reinvents the wheel.  Very often, the problem was already solved a long time ago.  Taking advantage of traditional knowledge is perhaps the most rewarding way to save.

Ashley Homes likes to write about finance and economics, live green and visit http://www.lifeinsurancequotes.org/.