Ideas for spending less

"Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well." - Warren Buffett

As the stock market plummets, banks fail, and prices rise due to high fuel costs, you might be looking for ways to save money. The consumerist.com has a great article 5 Expenses To Cut Right Now If You're In Debt. In fact the story is better than the title - the story has five links to five other stories each with a list of ways to reduce expenses. Suggestions include:

1. Get your life organized and stop paying late fees on bills, overdraft fees on your checking account, fines on overdue books or parking tickets, ...
2. Cut out the extras - the deluxe cable TV package with premium movie channels, meals at restaurants, gym membership, an expensive car, ...
3. Use Coupons at the grocery store, don't pay extra for pre-chopped food, try generic products, compare prices at different stores, ...
4. Watch out for the cost of the information age: Cell phones, Internet service, etc.
5. Create a budget and follow it.

Bottom Line

I heard a story recently about a friend of a friend, let's call her Betty. Betty would go through mood swings and spend wildly when up but then become depressed when the money was gone and she was unable to pay for rent and other essentials. My friend has tried to convince Betty (unsuccessfully) to pay her bills and groceries FIRST thing when she gets a paycheck. Then she can party with what is left over. NOT the other way around. It amazes me and my friend that not everyone understands this.