How to Save Money Everyday in Tough Times – Part 3

Today is day 3 of learning how to save money in tough times.
Be sure to check out Day 1 – Tip #1 Quit Watching TV & Tip #2 Drinking Water
And Day 2 – Tip #3 Don’t Smoke! & Tip #4 Use Energy Saving Light Bulbs
Every little bit counts and I want to help you save money to survive these rough times that we’re going through right now. If you can make it through and continue to keep these habits in place, it will definitely help you in the long run.

Tip # 5 - Buy Used Instead of New
Now this doesn’t go for everything, but for a lot of things we can buy used. A car is a really good example, if you can buy from a reputable dealer, you could save tons of money on a one-year or two-year old car instead of buying the new things. This money saved can be put away or used to buy other necessary things. In the case of a car, just make sure you do your due diligence and possibly take a mechanic with you and do a test drive and be sure you have a decent warranty with the car. You want to spend some money upfront so you won’t have to worry about getting ripped off. There are many other things you can buy used and you should take advantage of every opportunity that you have to maximize your savings. You don’t need everything new if it’s something that you’re only going to be using for a short amount of time. Be smart about your purchases so that you can save money.

Tip # 6 - Pay Down Your Debt First!

A lot of us have debt whether if it’s credit card debt or loans from the bank. Before you put money away to save and invest you should be paying this debt down as much as you can since the interest on debt is usually higher than the interest you can earn from your investments. Paying down your debt can also improve your credit rating, it’s all about being financially responsible and by paying down your debt on time and sometimes more than you need to shows that you are responsible. If you save money in any way such as the tips that I’m giving the past few days, pay down your debt.

Mo2 Thinks
Buying used can be tough sometimes especially if you don’t know if you can trust the person you are buying from. That’s why it’s always good to have insurance or a warranty if you’re buying. Buying from friends and relatives are a good way to save money too as I’m sure they have things that they don’t need or they might be thinking of upgrading. Paying down debt is important but sometimes it can be stressful to think that all of your savings are going to paying debt. That’s why I like to put some money away in investments while paying down debt. That way you are decreasing the amount you owe while increasing your net worth at the same time. It really depends on what you want to do, but I like to have money saved away just in case I can’t make my payments down the road.