Americans are spenders, not savers.  Everywhere you look we are buying and spending.  We believe we need all of these “things” to make us happy but this is not true.  Unfortunately, the one thing we really need in our lives is financial security and very few of us have attained it.  This is as good a time as any to refocus on our “wants” versus our “needs” and form a solid definition of each.  Once that is accomplished, maybe we can begin to address our inability to save and start to correct that situation.

Consider trashing many of those catalogs we all receive in the mail.  The main purpose of these catalogs is to show us what each company can provide to improve our world in one way or another.  Maybe it’s time we start spending our time doing things we enjoy, such as going for walks or visiting with friends, rather than looking through catalogs at items we don’t need and can’t afford.

When you are tempted to make a purchase based on the justification that you deserve the item, try visualizing a month without a credit card bill or making an extra savings deposit to your account. 

Choose an extravagance that will make you feel good.  Also, begin evaluating those that are really not necessary in your life.  Everyone needs a treat regularly, so choose what you want yours to be.

Consider changing your lifestyle to adjust to both the economy and your new habit of saving money.  Instead of a night out at the movies, rent one and invite friends over.  You might be surprised at how much they, too, will enjoy an evening’s entertainment that easily fits the budget.

Hold family meetings to discuss the spending plan that will enable everyone to save more.  Consider what sacrifices can be made that will result in additional savings.  Working towards a common goal will be good for everyone.

Discussing your finances with others is very good therapy.  Many people keep their money problems a secret but reality is that most of us have them and sharing them with another makes them easier to deal with them.

Everyone today is concerned about the economy and inflation. We are all trying to find ways to cut our expenses and still maintain a similar standard of living. There are several approaches we can take that might help us trim our expenses.

The first suggestion is to write down every single item we purchase. This is similar to keeping track of your calories in a diet and it actually can work. Do not generalize your list but record each and every item. You will most likely buy less because you realize you will have to go home and list everything purchased. This should be done for several weeks. Each week, review every purchase made and you will soon be aware of a number of them that you could do without. Skipping a few items each week can result in substantial savings. This will take discipline, but could be well worth the effort. Remember, you must list every item from a carton of eggs to a major purchase.

The next step to consider is paying for every item you purchase, even the large ones, in cash. I am referring to dollar bills, not debit or credit cards. This can be an amazing step towards spending less. Statistics have shown that a person using cash in place of plastic will cut their spending an average of 26 percent. When your cash has been spent, you must go to the bank and get more because you are not using any form of debit or credit card.

Of course, in order to cut expenses, you need to establish a budget. This will enable you to purchase the items you and your family really need while avoiding the unnecessary expenditures.

It is very important to know the difference between credit and debt. Credit is something over which you have some control. A purchase on a credit card, or a loan, which can be paid off at anytime is a credit. Debt is something you are unable to repay which eventually controls you, such as a mortgage higher than your home value. Think about this every time you are tempted to purchase something that you can well do without.