5. Involve Your Partner

Many times one partner in a relationship will be more careless with money than the other. Discuss your money-saving goal with your partner and involve him or her in your new spending habits. Try to negotiate purchases and plan ahead when spending is foreseen. Frequently, the simple task of making a person aware of their spending habits is all it takes to create change. If you are met with resistance, try keeping a separate account and begin your savings alone. Eventually, when you demonstrate how easy it is to put a few dollars away, your partner might just come around.

6. Reduce Your Debt

It’s not as difficult as it seems. Make it a goal to get rid of your credit cards, student loans, and car payments. Find out how much interest you are paying by either looking at your monthly statement, coupon book, or by calling the creditor. Then, make a list of each debt, including name, interest rate, and monthly minimum amount due. Pay the most each month to the creditor with the highest interest rate. Before you know it, you will greatly reduce your outstanding debt and have even more money to save.

7. Pay Down Your Mortgage

Making one extra mortgage payment each year can save you thousands of dollars in interest. If you cannot afford to make an extra payment at one time, divide your mortgage payment amount by 12 and add that to your monthly payments. Make sure you include a note with your payment that instructs the lending institution to apply the overage to principal. Increasing the payments on your mortgage not only saves you money but increases the equity in your home, as well.

8. Invest

There are many ways to save your money. Opening up an IRA, contributing to the 401(k) plan at work, buying a Certificate of Deposit (CD), and investing in Money Market or Mutual Funds are just a few ways to put your cash in a safe place for future use. The interest rates and tax benefits on these investments are greater than the average savings account. Plus, since your money cannot be withdrawn for a period of time without penalty, it greatly reduces the temptation of dipping into the account.

© 2005 DebtGuru.com®. Michael G. Peterson is the Vice President of American Credit Foundation, an IRS 501 (c)(3) non-profit consumer credit counseling organization that has assisted thousands of individuals and families with their financial situations through seminars, education, counseling services, and, debt management plans. For more information, and free consumer resources visit www.debtguru.com