We live in a world that tells us we can have it all, all the time. But, if we are truthful with ourselves, we’ll soon realize that we don’t need it all, at all.

Experts predict that most Americans easily squander 10% to 15% of their salary. What’s your money drain… a gym membership you seldom use, 170 channels of television you never watch or paying excessive bank fees?

The key to reducing spending is to simply your life. As the New Year unfolds, take the time to find out what truly gives you and your family satisfaction and avoid debt, if possible.

When we take on debt, the power of compound interest starts working against us. The thousands of dollars we pay in interest over a lifetime could be better spent accumulating assets. Remember – easy credit is seldom easy.

Here are a few simple tips to help you reduce spending and start saving.

Pay your bills on time.

Paying your bills online through your bank’s or an independent bill paying site will save you a lot of time and money. You won’t have to pay postage and you’ll have an electronic record of your banking activity.

Ease Up on Your Dishwasher.

Save heat and water in your dishwasher by washing only full loads and choosing the air dry option. Don’t pre-rinse dishes. To save even more energy, hand wash your dishes in the sink.

Grocery Shop with a List.

A grocery shopping list is your game plan. The food industry spends billions of dollars a year to weaken our resistance to spend more money with fancy packaging and compelling displays. Create your list according to the layout of your grocery store, only buying those items that you need.

Keep a Daily and Weekly Spending Record.

Seeing where your money goes keeps you from lapsing into a spending coma. A spending record makes you really think about your spending habits. It will provide proof of your challenges and progress. Keeping a daily and weekly spending record is the first step toward establishing a monthly budget.

Stop Unnecessary, Impulsive Shopping.

Your spending should become a planned act, purchasing the goods and services you need. Strolling through the mall, window shopping, or surfing online stores with nothing particular in mind, simply looking for great bargains and things that happen to strike your fancy is a very dangerous thing to do. Avoid it at all costs.

Bottom Line:

Strive to get the very best value you can for each dollar and fully enjoy the things you have or make use of. Happy New Financial Freedom Year!