1. Forget about owning a new car. If you can’t forget it, stop reading now. You can eliminate up to $800 a month in payments if you don’t have a car payment and its ensuing expensive insurance.
2. Buy the minimum coverage for car insurance. Take a risk. It’s worth it.
3. Pay off all your debts (other than mortgage) before you consider it.
4. Save for retirement in a 401K, 403b, or whatever you can. It may be the only money you save for a while. But it’s something.
5. Take advantage of refinancing when the interest rates are at their lowest.
6. Eat at home 90% of the time.
7. Bike or carpool to work.
8. Use your tax returns wisely: pay off debts, save a little, use the rest for a small vacation.
9. Speaking of vacations: drive. It’s better for the environment, less scheduled, and more up to you. Have kids? Drive at night. They’ll sleep, you’ll be happy.
10. Buy used. Buy used. Buy used. I just bought three sweaters, a hat, and two nice pairs of pants for work at the Goodwill for $22. Brand-name products that look brand new. Craigslist is a great place to find virtually anything you need, from kids’ toys to bikes.
11. Create a monthly budget. Stick to it as much as possible.
12. Expect the unexpected. Cars (especially the old one you’re driving) will break down. It’s better to put it on a credit card you can pay off in a few months than to pay a car payment.
13. Do a babysitting exchange with another family. Enjoy an occasional night out without the extra cost.
14. Look for sale items at the grocery store and stock up.
15. Cancel your cable. You can watch a variety of things on the Internet, and Netflix is much more affordable. There’s nothing on TV anyway.
16. Get books and audiobooks from the library. Music too.
17. For gift giving, take advantage of after-Christmas sales and stock up on kids’ toys and Christmas wrapping paper. Flip the wrapping paper inside out to wrap gifts for every occasion.
18. Give up hair dyeing, manicures, pedicures, and salons. You’re beautiful the way you are.
19. Weather-proof your house as much as possible to save money on energy costs. Use cold water for washing clothes.
20. Decide what you really need to buy versus what you want to buy. Make sound choices, and you’ll have extra money (occasionally) to blow on fun items.