Visualize your future. If you want to start saving money you need to know why you are doing it. Unless your aim is to become a scrooge, save a million and hide it under the mattress, you need to know why you need to be saving money. In my case this is a big nice house, for somebody else it can be a good vacation, college education, new business, you name it. Decide what you want, how much it costs and when you want to get it.

Be smart with credit. I came from the country where credit cards are just now being forcefully pushed into the masses and most people do not even know what they are. People use credit only in business, to buy a house or to buy a car. I understand that sometimes you need some sort of assistance from the bank for these big and important goals, but other than that you can stay away from credit and live a happy life. Today’s economy forces a lot of people to use credit as the only means to stay afloat. But before you take your credit card out of your wallet ask yourself whether whatever you are going to buy with it will be used in 5 years or not. If not, then put your credit card back into your wallet.

Eliminate your debt. I don’t have and never had a problem with debt, but my husband had an unpleasant experience dealing with credit card debt in his early 20s. As I have no experience in this area I would like to point out to you a much better resource where you can find everything that you need to know about debt: 73 Great Debt Elimination Tips. Enjoy It!

Keep a spending diary. It might sound boring but just one week of this useful activity will show you how much money you waste in vain. It will be much easier to cut down on your spending once you know where your money goes.

Pay cash. It’s easy to spend a little bit more than what you were planning to when you go shopping and use your credit or debit card. This is the main reason why I prefer to pay cash. I decide what amount I can spend today on presents, clothes, shoes etc. and put only this amount into my wallet. This helps me to think more before I purchase anything and avoid marketing traps like “Buy one, get one half-price”, “40% savings when you buy 3 or more” and others that want you to buy products that you don’t really need in an amount that you cannot possibly consume.

Use automatic service to pay your bills or pay them in advance. Paying bills can be a very stressful and time-consuming thing to do. It’s a good idea to pay some bills online or to set up automatic payments for some services. My husband and I also like to pay some bills in advance like paying for certain service on a yearly basis instead of a monthly basis. It may seem like a lot up front to pay these large chunks of money but in the end it will save you from having your paycheck picked to nothing every month. It can really save a lot of time and headaches.

Create emergency savings. In order to feel financially secure it’s very important to know that you have an emergency fund that you can use in case you lose your job, have a medical emergency, or traveling (that’s especially true for me because it’s important to me to be able to travel to my family in Ukraine in case of an emergency). The reasons can be different and are really not that important because the thing that needs to be focused on most is to know that you have some savings that will help in a difficult situation. It’s recommended to have enough savings that can provide for you as well as your dependents for 6 months. You can put this money in a savings account or invest it into some dividend paying stocks such as AT&T, Bank of America, or Wells Fargo.

Ensure your financial security. This one is very closely related to the previous paragraph. When I am talking about financial security I am talking not only about my security but also about my family. In case something happens to me or to my husband or to both of us we want to be sure that our children will be well taken care of. Financial security includes life insurance, a living will, a power of attorney as well as health insurance. You won’t need all of them if you are not married and don’t have any dependants. Talk to knowledgeable people and make a sufficient investigation before you sign up for any plan and make sure that you choose the best option for you and for your family. It might not be the cheapest one but the most important thing is that you feel secure with the coverage that you are getting.

Write grocery lists every time before you go grocery shopping. Food is one of the most essential and most expensive items on my spending list. I figured out that I spend less when I know exactly what I need to buy and the exact amount that I need to buy. Using coupons is a good idea too and if I have some coupons then I put the discounted items on my list and make sure that I don’t forget to use the coupons when checking out. Having a grocery list helps me to save money and time and to make better food choices.

Discuss big purchases with your partner. My husband and I have a rule to discuss any purchase that costs more that $400 with each other. Often a second opinion (and not a salesman) can help you realize if you really need this item or not and if it’s the right time to buy anything like this or not. If it’s a big purchase then go look at the item without carrying any credit cards or money with you at all. Leave it all at home. After looking at the item then go home and think about it for a day or two. Most of the time you will not go back and purchase this item if you wait a few days because you will realize that you really don’t need it.

Discuss all your finances with your partner. If you are just living together or if you are already married it’s always a good idea to discuss your finances and decide how you spend your money. Financial indiscretion is one the major reasons for divorces or break-ups all over the world. You can be sure that you have control over your money only if you and your partner have the same financial goals in life and if you can support each other both emotionally and financially.