This tip is especially helpful for large families. Although it is fun buying for and receiving from everyone, it can be very expensive. Make an agreement with your family that you will continue to buy for the children but that the adults will go with a name exchange. This way the children are not disappointed and you can spend a little more on one or two people rather than spreading your money thin. For the members that you did not pick to exchange with, bake a loaf of their favorite homemade bread or cookies.

2. Reuse

When you shop, look for items that can be reused. Rechargeable batteries are a perfect example. Even though the initial purchase may be more than non-rechargeable batteries, there is a definite savings over a long period. Another option would be to purchase a nice artificial Christmas tree. Many of the current artificial trees look amazingly real and with the right lights and ornaments, you can change the look from year to year.

3. Budget

Everyone should create a budget. If you are not sure how or just not good with money, many businesses such as H&R Block, offer free financial consulting to help you put a budget together. Knowing where you are spending your money is by far the best way to save. In most cases, people have no idea where their money is really going and once they see it on paper, not only are they surprised but eager to change their spending habits.

4. Allowance

Do not forget to give yourself an allowance for things you enjoy. Even if on a tight budget, buy something that you enjoy, which could be as simple as buying a new shirt or grabbing lunch at your favorite café. If you do not allow yourself this small “splurge”, you could find yourself in the same position as if dieting. Total deprivation leads to overindulgence.

5. Setting Goals

Break your goals into short-term, intermediate-term, and long-term. Being able to see your accomplishments is a great motivator for you to work hard at saving. If you set a short-term goal of saving for tickets to the symphony and reach that goal, you will be encouraged to keep saving for the intermediate and long-term goals.

6. What Matters to You

Make a list of the 10 most important things in your life. Next to each item, rank them in order of importance using numbers 1 through 10. The purpose of this exercise is to help you see the things you consider the most and least important and to provide you with a visual of why you need to save. Some examples of things that a person might put on their list include new home, car, special trip, artwork, starting a business, or pay off debts.

7. Insurance

Shop around for insurance and work with a good agent that can provide information on discounts such as good student, multi-car discount, etc. Some people think the price of insurance is the same from one company to the next. However, prices can vary dramatically and to ensure you get the best deal, you need to consider all your options.

8. Coupons

Okay, maybe you used to laugh as you watched people pull out their coupons at stores but the truth is that using coupons can save you hundreds of dollars every year. Coupons can be used at grocery stores, retail chains, any store where the item is sold. Some stores offer double coupon days, which is an extra bonus. On average, you could easily save from 5% to 15% on a bill for $100 simply by presenting a coupon. Coupons are not just for food items and by scouring your local newspaper you can find coupons for all sorts of merchandise.

9. Credit Cards

Use credit cards only for emergency. Although convenient, credit cards are dangerous and damaging. In addition, if you have a credit card that has a $1,000 balance and you pay only the minimum payment each month, it will take you between 20 and 30 years to pay off that $1,000 balance since the majority of money is going strictly toward the interest and not the principal amount.

10. Mortgage Payment

Paying one additional mortgage payment each year, whether in a lump sum or monthly increments, can lower a 30-year loan down to 18 years. If you pay more than one extra payment, the number of years will decrease even more. Since this additional payment will be applied only to the principal and not the interest, you end up saving thousands and thousands of dollars once the home is paid off.

11. Credit Card Interest

If you have credit cards and your credit is in good standing, call your credit card company, and ask for your interest rate to be lowered. It is truly that simple. Unfortunately, most people do not even realize this is an option so they never make the call. Just tell the representative that you want a better rate on your credit card and they will take care of your request.

12. Patience

Be patient when it comes to saving. This means that you need to accept that it will take time to save and good planning. Be patient and remember that just because you want something, do not rush to buy just to satisfy your urge. Instead, wait for sales in order to get the best price, which in turn will save you money.

13. Financial Consulting

Many financial companies and even churches offer outstanding classes on how to manage money. While some of these programs are free, others may have a nominal fee of around $35 to attend but the money is well spent. Another great option is consumer-counseling services. This is a great option for people in over their head with debt. The counselors will work directly with your creditors to lower your balances, interest rate, and establish workable payments that you can afford.

14. Break old Habits

Take time to learn the various things that “trigger” your spending. When you are depressed, lonely, sad, anxious, excited, whatever it may be, do you spend more? Once you can identify these triggers then you can learn how to control them. As an example, if you were just laid off from your job, although money is tight, you may have an overwhelming “need” to spend money. Perhaps you notice that when you are bored, you head for the shops. Knowing what affects you will help you to discipline yourself to find other ways of comfort.

15. Avoid Temptations

If you have a particular weakness, stay away from it. If you love to gamble, stay out of the casinos. If you have a weakness for shoes, drive past your favorite shoe store. While avoiding temptation is hard, it is also necessary in order to save money. When you want to give into your temptation, this is the time to use your “allowance”.

16. The Right Time to Shop

Studies have proven that when shopping while hungry, depressed, tired, and stressed, you buy more. Before you head to the grocery store, eat something. If you are upset or feeling a little blue, calm yourself down or wait until you feel better before you head out to shop. As funny as it may sound, having a clear mind is important when it comes to shopping and spending money.

17. Stop Competing with the Jones’

You do not have to compete with anyone. Be proud of what you have and who you are. If you can only afford an inexpensive sofa from a thrift store, find a nice throw, make a few pillows, and be proud and thankful. Competitiveness is a part of nature and to a degree, healthy. However, when competition creates a buying war to see who can have the “best” when they have no business buying at all, then it becomes damaging. Stick to what you can afford regardless of what anyone else has or pressure you might be feeling.

18. Dollar Stores

Many years ago, dollar stores offered only off brand products or poorly made merchandise. However, that has completely changed. Now you can walk into a dollar store and find the same name brand laundry soap, cleaning supplies, clothing, school supplies, everything for a fraction of the cost. Where a store name brand bottle of laundry detergent might cost $6.50 at a grocery store, you can find the identical product and size at the dollar store for $2.50. Check out your local dollar store and enjoy the mountains of savings.

19. Written Plan

When a person goes into business, they create a Business Plan, which becomes the blueprint of their business. The same should apply if you are trying to save money. Create a master plan that the entire family can get involved with and learn their role. When you start to spend too much, go back and look at your plan to see where you are messing up and how you can fix it.

20. Company Stock / 401K

Contributing to employee stock options or a 401K plan is a wonderful opportunity to save. Most companies will match your contribution, sometimes dollar for dollar, up to a maximum, generally 6%. From each paycheck, you can have a small amount of money deducted (1%) and up. Over time, that money grows and since the business is providing a match, you get free money.

21. Go Generic

When buying food, try some of the generic items. Unless you or your guests are connoisseurs of fine dining, they will not know if the green beans were generic or a top name brand. Once you add some butter, salt, and pepper, no one will know the difference except you - $79 per can versus $33 per can! People do not realize that many generic brands are actually manufactured by name brand companies, just branded with a different name. In fact, companies such as those that make snack foods will have conveyor belts that run side-by-side – one for the name brand and one for the generic brand. This is quite common and the only difference is the label and price.

22. Pay on Time

For every payment you pay late, you are charged a late fee, which can range from $25 to $50 or more depending on the company. Therefore, if you just made a $50 payment but it was paid late, nothing was paid toward the debt. Instead, the entire $50 went toward an unnecessary fee. To avoid spending unnecessary money, be sure you mail your check in time to avoid these fees.

23. Sell your Stuff

Go through your house and pull together all the items you no longer use. These can include small or large appliances, gardening tools, clothing, makeup, and sporting equipment, whatever you have, and then list them on eBay.com or Halfoff.com. Take the money earned from these sales and put it in your savings account not to be touched.

24. Turn your Hobby into Money

Everyone has a skill – find yours and turn it into money. For example, if you have a skill for woodworking, start creating children’s toys, or curio cabinets to sell. Perhaps you are computer savvy and could teach a class at your local community college. Find something you enjoy and sell it.

25. Consignment Shops

Rather than throw out or sell slightly worn clothing or other household items in a garage sale, consider selling them through a consignment shop. You will get a better price for your items and consignment shops are always looking for quality merchandise. Check out Half.com, which is an online consignment shop offering books, movies, computer software, and much more in either new or used condition.

26. Plan Menus

Although it will take some time initially, after you have planned a week’s menu once, it will become much easier and best of all, it will save you money. Knowing exactly what you will be making helps you to shop for foods that can be used more than once. As an example, if you are going to have spaghetti on Tuesday, you could buy bulk ground beef at a better price and then use the other half for tacos on Saturday. Another option would be buying round steak where one night you fix Salisbury steak and then a few days later, you use the leftovers for breakfast hash. This will help you stretch meals and avoid last minute or impulse buying.

27. Overdraft Protection

Almost everyone has at one point or another had an insufficient check. Most banks charge $20 per returned check, which if not careful with your account, can quickly add up to a lot of money. If you have a savings account, consider adding overdraft protection onto your checking account so if you ever go into a negative balance, the money would automatically be covered by your savings. Most banks offer this service free.

28. Live Within your Means

The quickest way to get in debt is to live beyond your means. Sure, most people want more than they have but life is not all about spending money. Be thankful for what you do have and learn how to enjoy the financial position you are in. This is where your budget will help identify the amount of money coming in against the amount of debt going out.

29. Appropriate Deductions

Rather than spending money just for the sake of spending, change the amount of deductions you have taken from your paycheck for your 401K or stock options. This is especially great if your company offers a competitive matching program. Increasing the amount you have deducted can quickly add up to a nice savings and is especially nice for retirement.

30. Pocket Change

Keep a jar or some type of container handy and each time you come home, drop in your change. Every time you break a bill, put the change in your container. You will be amazed how quickly your money will build.