Five Ways to Save Big Money in 2012

The beginning of the new year offers new opportunities to save money. By adopting a healthier attitude towards finances and spending habits, further financial burdens can be alleviated. Here are 5 recommended methods to saving money:

1. Conserve Energy

Start with simple things like turning off lights in rooms when they are unoccupied, then consider changing your light bulbs to compact fluorescents—doing both can save a bundle. You can also save electricity by plugging your gadgets into power strips and then turning the whole power strip off when the gadgets aren’t in use. This will keep the electronics from sucking electricity day and night. Also consider making an investment in new windows, which will save serious money in the future as they make your home more air-tight. Keep in mind that these changes are not only good for the pocket book, they’re good for the earth. Everyone wins!

2. Condense Services

Bills for services like cell phones, internet, television and even car insurance can be reduced by switching to cheaper plans through other providers. But if you want to really get in the spirit of saving, consider getting rid of some of these services. By canceling your land line and using only a mobile phone you’ll cut a substantial amount from your monthly phone expenses. By cutting cable and watching television only on the internet, you can cut another major expense. You can even use your Wii or X Box with Netflix and Hulu Plus. These changes to your TV and phone habits can be made without much inconvenience.

3. Dine Out Less Often

We all know it—eating meals in restaurants can be expensive, especially if gratuities for service are factored into the equation. If you’re serious about saving money, you’ve just got to buckle down and make the change. Many similar foods can be purchased in a local grocery store for a fraction of the cost. Exquisitely crafted meals can be prepared in home kitchens. As an added touch, home dining rooms can be adorned with candles and other fancy decorations to give the meal an added touch of sophistication.

4. Collect Coupons

Couponing has evolved. In addition to pulling coupons from the Sunday paper or the mail, you can also find tons of coupons online and use coupon apps on your smartphone. By using any of these forms of coupons, it is amazing how much money can actually be saved. The key is to focus on goods and services you would have purchased with or without the coupons. Grocery costs and other bills can be drastically reduced to almost nothing if coupons are used wisely. And if your friends and family haven’t discovered the utility of couponing, get them to give theirs to you and save extra!

5. Purchase Second Hand Goods

Many people think of the items available at thrift stores as having a substandard quality. This notion, however, is not always true. Many gently used brand name clothing items in good condition can be purchased at a reduced price. Other household items can be found at bargain prices.

Second hand stores are also a great option for avid book readers, as most of these stores offer a large collection of books and other media items at unbeatable values. Also keep in mind that buying second hand is very eco-friendly. By buying things that other people no longer need, you prevent them from ending up in a landfill.

The year of 2012 does not have to be remembered as a financially straining year if steps are taken now to reduce costs. By making a conscious effort to save money through the year, these steps can be followed in subsequent years to ensure better financial harmony.

Author Thomas Hathaway is a financial consultant and suggests there are times when short term loans may come in handy while waiting for your regular paycheck date.