Anyone can turn their financial life around.  Anyone can cut spending and save money.  Anyone can get out of debt.  Anyone can accomplish their goals and dreams. And yet, even though ‘anyone’ can do these things, the realization of such accomplishments requires great discipline, consistency, and effort.

Below are listed 40 practical and painless ways you can cut spending and save money. However, do not let the simplicity of these tips deceive you. Do not read these tips and think in your mind that ‘I know that,’ because knowing something and not implementing that knowledge is, well, stupid! And let’s admit it – we are all guilty of not acting on the knowledge we have, even when we know it will benefit us (thus I guess that makes us all stupid).

So, the real difficulty in the simplicity of these tips is making sure we take this information and discipline ourselves to implement it, be consistent, and put in the effort necessary to accomplish our goals (that of getting out of debt) … because ANYONE can do it.

1. Automatic Withdrawal to Savings:

10% of all your earnings should go to savings. You must set things up such that when you receive your paycheck, 10% is automatically withdrawn into your savings account (before you can even touch it). Additionally, a portion of all earnings should go into a retirement or 401(k) account.

2. Trust Your Records … NOT Bank Balances:

How often do you overdraw your account because online banking says your balance is a certain amount, so you spend based off that balance, but forget there was an outstanding check or purchase that had not hit / cleared your account yet, so you go overdrawn. Overdraft fees are not cheap! Solution: carry a simple notepad with you at all times, record every expenditure, update your balance, and make decisions off your up-to-date records, not the bank’s balance.  Also, create a (strict) budget, and stick to it.

3. Banks Care About the Bottom-Line:

Sorry to be the bearer of bad news, but your bank is not just a place where your money sits and they pay you interest… it is a business trying to make money off of you. Ever had an overdraft fee? Point proven! Did you know that many banks will actually process charges/debits before they process deposits/credits? Some banks actually process those charges/debits with the highest dollar amount first. They do this intentionally to boost revenue by overdrawing consumer’s accounts and collecting overdraft fees. (Don’t believe me? Read the recent news of Wells Fargo doing this very thing:). As a way to combat this, link your savings account to your checking so that if in the event your account does go overdrawn, money is pulled from your savings account to avoid being charged an overdraft fee.

4. Earn Interest:

Do not leave the bulk of your money sitting in a checking account. Open an interest-bearing savings account, and make sure that even the money needed for your daily expenses sits in an account that is earning interest (vs. a typical checking account that won’t). This savings account is separate in that it is not your retirement account or emergency-funds account (that, as referenced above in point #1, will have 10% of all income going into), but this account will act as an account where the bulk of the funds in your checking account will temporarily sit so you can earn interest on that money (but it is liquid so you can easily access it).

5. Minimum Payments on Credit Cards:

Do not fall for the trap of paying minimum payments on your credit card debt. Pay as much as you possibly can afford up and above the minimum payment amount.

6. Rate Deduction:

Call your credit card companies and ask for a rate reduction. Tell them that you want an interest rate reduction or you will take your business elsewhere. Understand that the first person you speak with will be a customer service rep. who most likely will not be in the position to make such a decision, so demand to speak to a supervisor. (Same advice applies for any other loan: student loans, home equity lines, etc.)

7. Refinance Your Mortgage:

The reduction of 1-2% will save thousands of dollars over the life of the loan.

8. Eliminate Private Mortgage Insurance:

If you are paying private mortgage insurance (PMI), then that means you spent less than 20% on your down payment. Whether you have paid the loan down or the equity in your home has increased, if you have 20%+ equity in your home, get rid of PMI insurance.

9. Consolidate Your Debts:

If you can qualify, there are several legitimate companies out there that can help you consolidate all your debts into one payment, and ensure that that one payment is significantly less than the combined payments you currently have. Likewise, there are plenty of companies out there who promise such, but will only put you into debt further. Do your research!  (If you’re considering hiring a debt consolidation company, here are some tips from the FTC on choosing a company).

10. Cut up the Credit Cards:

Just do it!

11. Term Life Insurance:

First, as should be obvious, you need insurance (including: auto, health, life, disability, etc.). However, buy term vs. whole life insurance. Because you are going to implement all the tips on this list, by the time your term life insurance runs out, you’ll have your own nest egg of retirement money and won’t have to continue paying for a whole life insurance policy that often is double the monthly payment amount compared to term life insurance. And never ever forget that insurance is NOT an investment.

12. Fees are Negotiable:

Whenever you sign up for a new service, always ask for the fees to be waived (or reduced). It does not hurt to ask.

13. Use Credit Cards Wisely:

Never spend money on a credit card unless you have the money to pay off the balance in full at the end of the month. Make all payments, and on-time (to avoid late fees). However, if you are in credit card debt, pay off high interest balances first, and always pay more than the minimum payments.  Read more on using credit cards wisely.

14. Pay With Cash:

Related to the point above, if you don’t have money to buy something, don’t buy it. Use cash for everything. (If you are using credit cards to build credit, then ensure that whatever you buy, you can pay off in full at the end of the month).

15. Education Pays & Save on Education:

As should be obvious, the more education you receive, the more your income-earning potential is. Going into debt for education is an investment. Thus, if you are thinking of going back to school, ask if your company has an education benefits program / tuition reimbursement. Look into whether you qualify for financial aid. Also, take the time to research and apply for as many scholarships as possible. Sites like these are incredible resources:

a. www.fafsa.ed.gov
b. www.scholarships.com
c. www.fastweb.com

16. Pay Insurance Bills Annually:

Do you realize that insurance companies charge you more if you make payments monthly? If you can afford it, pay your life and auto
insurance premiums annually or semi-annually.

17. Raise Your Deductible:

Call your insurance company and see how much you can save if you just raise your deductible.

18. Call Before Submitting Claims:

If you are in an auto accident, for example, call your insurance company and ask how your rates will be effected by this claim. If
your accident will cost $1,000 out-of-pocket, and your deductible is $500 and the monthly bill will increase by $15, over time you will save a lot more by just paying the bill and not submitting a claim.

19. 401(k) Employer Match:

If your employer offers a 401(k) match, you are a fool not to take advantage of it.

20. Flexible Spending Accounts:

If you are one that spends quite a lot on medical-related bills, consider a Flexible Spending Account (FSA). Simply put, you can pay certain medical, child-care, and dental costs with pre-tax dollars. Check with the HR dept. of your employer to learn more about FSA’s.

Now, the tips above are absolutely necessary – you should be implementing each of the 20 listed. The 20 below, however, will not result in as much savings, but they certainly will save money if applied.

21. Bottled Water … Really?

Last year Americans spent over $15 billion on bottled water. Advertisers are getting more clever in convincing the public that somehow bottled water is a healthier, more sanitary, and better option than tap water. Really? Has it ever crossed your mind that bottled water is just packaged tap water with a label slapped on it?

22. Have You Ever Heard of the Internet:

I can’t understand why people still buy newspapers and magazines? Do people not realize that there is this thing called the internet and ALL the newspapers and magazines they buy are on the internet? Stop buying them.

23. Use Coupons:

If you go online, you can find a coupon for just about anything. Whether it is for groceries, oil changes, haircuts, or entertainment, you’ll find a coupon for it. Check out sites like: http://www.ebates.com or http://www.groupon.com

24. Bundle the Phone, Internet, & Cable:

Most companies offer a substantial discount for bundling your phone, internet, and cable bills into one bill and one company. And who uses a land line anymore – do you really need to be paying for a cell phone and a land-line each month?

25. Library & Red Box:

Before you head to Barnes and Noble to purchase that next book, or to Hollywood Video for the next DVD rental, see if the library has it? Ever heard of Red Box? Why rent a movie for $4-5 when you can do it for $1.

26. Programmable Thermostat:

Typically, people can save anywhere from 10-20% on their monthly heating and cooling bills by simply purchasing a programmable thermostat.

27. Stop Making Starbucks Rich:

Do you absolutely have to buy a cup of coffee every morning on the way to work? Can you not get up 5 minutes earlier and make your own? If not, drive a different way to work that does not go past a coffee shop!

28. Shopping List:

Before going shopping, make a list of what you need, and stick to it. Don’t put anything into that cart unless it is on the list. And decipher between wants and needs, because I know there will be some clever people reading this thinking: “well, I’ll just put all my ‘wants’ on the list then.”

29. Clean Your Car’s Air Filter:

Did you know that having a clean air filter can improve your gas mileage by up to 7%.

30. Maintenance on the Appliance:

Regularly check and clean all of your appliances. Pull the appliance out away from the wall and dust it off and clean the vents. Simply cleaning the vents on your fridge, vacuum, washer/dryer, heating and cooling units, etc. will make them run more efficiently and ensure they last longer.

31. Fill Up Your Tires:

Did you know that you lose 1% on gas mileage for every two PSI that your tires are below the recommended level? Most car tires are anywhere between 5-10% below the PSI level they need to be at, so keeping them filled could save up to 5% on gas mileage.

32. Community Events:

Every city across America has websites, libraries, or city halls filled with information about community events that are extremely fun and entertaining, and much cheaper (if not free) than most entertainment.

33. Buy Generic:

Don’t be fooled into thinking that generic bands are not as good of quality. In most cases, you are paying for a brand name, not a better product. This applies to everything ranging from toothpaste to over-the-counter medicines.

34. The Brown Bag:

If you are embarrassed about bringing a sack lunch to work, get over it … it’s all in your head.

35. Don’t Call the Repairman:

I understand that time is money, but in most cases, when something needs fixing, it is so easy to go online and figure out how to fix it yourself. Before calling the repairman, try to fix it yourself first.

36. Utilize Your Dirt:

As old fashioned as it may seem, start a garden. Stop paying $1.50 for 6 tomatoes at the store, when you could spend $1.50 and have a whole summer’s worth of tomatoes.

37. Take the Red-Eye Flight:

Just bring a pillow and do it!

38. Exercise & Eat Right:

Yes, if you want to save on current and future medical bills, make the disciplined effort now to exercise daily and eat properly. Doing so will cut down on expenses because you won’t go out to eat as often, won’t buy as many unhealthy mid-day snacks, you’ll eat smaller proportions, you’ll eat less fatty foods, and you’ll exercise so you take care of your health. The average American household spends $2,211 each year eating out (source & to learn more: http:www.ehow.com/how_2146393_eat-out-less-often.html)

39. Wholesale & Grocery Store Memberships:

Take advantage of the savings you get by getting a membership or rewards card at your grocery store. Ideally do this at a store that has a gas station in connection with the grocery store so you save on gas as well.

40. Carpool & Take Public Transit:

You’ll save money!