To build on the Friday Financial Fitness from two weeks ago, we have included 5 more every day tips to save money.  Taking simple steps to save money has a chain reaction that improves the quality of your life in more ways than one.  First, additional money in your pocket will help you pay off those bills faster, thus decreasing stress and anxiety that often accompanies debt.   By decreasing your debt at a faster rate, you will also be well on your way to improving your credit score; improving your credit score impacts your borrowing opportunities.  Below, we outline 5 more ways to save money on a daily basis.

5 More Everyday Tips to Save Money

1. Cook at home; then bring your leftovers to work for lunch

Every day, millions of Americans spend a minimum of $5.00 a day when going out to lunch during the work day.  If you live in a more expensive city, the price of a single lunch can skyrocket to $10 or more per day.  When you’re working 5 days per week, that adds up to $50 per week, $200 per month, and $2400 per year.  That $2400 could be used to pay off outstanding debt, or put away for a rainy day!  Though the work week is often busy, try to set aside some time (maybe even on a Sunday) to cook for the week.  Buying groceries is much cheaper than buying your lunch every day; cooking in bulk for the week will help you pocket that much more money over time.

2. Make personal calls on your cell phone during evenings and weekends

Many of us find that every month, our cell phone bills seem to skyrocket.  One call here, another call there-and suddenly you have exceeded the total number of minutes included in your plan.  If you have a plan that offers free phone calls in the evenings and on the weekends, try and schedule your personal calls during these times. Month to month, this will reduce your bills, helping you pocket a substantial amount of cash over the course of a year.

3. Avoid ATM Fees

When you’re in a hurry and you need cash, it’s convenient to withdraw money at the closest ATM you can find.  If you are withdrawing money from another bank’s ATM, the average fee each time you do is around $1.97.  Fees can even go up to $4.00, depending on where you are.  Banks make a fortune charging non-customer surcharges and consumers spend a fortune filling banks pockets.  Next time you’re in a hurry to get cash, take a few extra minutes to figure out if your bank has an ATM nearby that you may not know about.  If you really want to stop spending on non-customer surcharges, plan to get cash before you go-those few extra minutes of planning will save you money over time!

4. Track every dollar you spend for 2 weeks

This simple, 14 day exercise will bring more awareness to your personal spending habits.  Get a small notebook that you can carry around with you; for 2 weeks, simply record every dollar you spend and what you buy.  After the 2 weeks are up, it will be interesting to see where all your money has gone.  Take a close look at every purchase and then figure out ways to cut corners.  You may be surprised to find that you may not need that $5.00 magazine after all.

5. Leave your credit card at home

During this financial crisis, it is crucial to not only limit the amount of cash you are spending, but also to limit the number of times you swipe your credit card.  Though there has been a recent push to regulate credit card companies and the fees and interest rates they charge, racking up credit is a dangerous habit that all too many Americans have developed.  Simply stated, if you cannot afford, don’t buy it!  Help yourself resist the temptation to swipe that credit card by leaving it at home.  If you don’t have it with you, you can’t use it

In response to the financial crisis, Americans need to be well-aware that changing our frivolous spending habits is crucial; however, this week, Congress is holding credit card companies responsible for their practices as well.   Consumers are subject to credit card companies’ terms and conditions upon signing their detailed agreements; however, what happens to consumer rights when these credit card companies change terms at their own discretion?  The results have proved disastrous for everyday Americans’ bank accounts, as abusive credit card practices find new ways to create endless amounts of monthly fees.

Credit Card Companies’ Abusive Practices

To understand both the importance and potential impact of laws that protect consumers against credit card companies, it is crucial to be aware that credit card rates change unexpectedly.  Fees often appear on your monthly statement out of nowhere, even when you pay your bills on time and have made serious efforts to be in good credit standing.  These companies raise interest rates and dramatically cut credit limits, with little or no regard for how these changes affect loyal customers.  Struggling consumers are left with a large bill and little support-until now.

Senate Banking Committee Approves Bill to Regulate Credit Card Companies

Good news: the Senate Banking Committee, led by Chairman Senator Chris Dodd of Connecticut,  approved legislation that will begin the fight against unfair credit card company practices.  Below is what was outlined in the bill:

• “Protect consumers from “any time, any reason” interest rate increases and account changes.”

• “Prohibit unfair application of card.”

• “Protect cardholders who pay on time.”

• “Limit abusive fees and penalties.”

• “Prohibit issuers from using a consumer’s card history with another creditor to raise interest rates.”

• “Prohibit issuers from charging interest on debt that has already been repaid.”

• “Ensure that cardholders are informed of the terms of their account.”

• “Protect young consumers from aggressive credit card solicitations.”

What will the Credit Card Accountability, Responsibility, and Disclosure Act do for Everyday Americans?

This bill will give a voice to consumers that goes beyond the 24/7 customer support that most credit card companies offer.  The consumer’s voice will now have legal backing, as the government is taking the first step to acknowledge the role credit companies have played in the US financial crisis.  According to The Consumer Federation of America’s Legislative Director Travis Plunkett, “Congress is taking a strong stand against the traps and tricks that many credit card companies use to increase their profits at the expense of financially vulnerable consumers.” With a July 1, 2010 deadline to implement the bill’s outlined changes, Americans can begin to feel good about the progress we are making towards fixing the credit crisis.  The crisis certainly cannot be fixed overnight, but bills like this make accountability a priority for both businesses and consumers.  With legal backing, credit card companies will be forced to take an active role in getting our economy back on track.

For the time being it seems that stocks are responding well to Geithner’s plan to rid banks of toxic assets.  The Dow Jones Industrials are up nearly 500 points, a strong indication that not only is morale about the state of the economy on the rise, but the actual economy may be beginning to legitimately heal itself.  Furthermore, a surprising report was released that home sales are beginning to increase.

Let’s take a look at the numbers more closely to gain a better understanding of where this optimism regarding the financial crisis is coming from.  According to the Washington Post, companies like J.P. Morgan Chase and Bank of America climbed more than 18 percent, while Boeing and General Motors also displayed unexpected growth.   The S&P 500’s 7.1% rise is the fourth largest daily advance since the 1930’s, adding to the glimmer of positivity that has been shining since Geithner’s announcement a few weeks ago.

Things are not only looking up here in America in terms of the stock market’s response to Washington’s plan to get the economy back on track; several Asian stock indexes also rose 3% or more.  Malaysia’s main index rose 2.5%, Philippine shares went up 2.5%, Indonesian shares climbed 3.4% and Thailand’s SET added 2%.  The positive effects seem to be spreading throughout the world in the past few weeks.  Though the climbs in these stock markets are only the beginning of what needs to continue, these positive changes in response to Washington’s policies are steps in the right direction.

So what does this positive movement in the stock market mean for everyday Americans?  First, let’s take a look at your 401K.  As a result of the financial crisis, average Americans lost anywhere from 20 to 40% of their 401K.  When stocks are recovering, this inspires confidence that recovery of these funds in the future is possible.  With housing sales beginning to increase, this means that in selected areas, the bottom may have been reached for falling home values.  Perhaps we are beginning to see the positive effects of Obama’s housing plan, as everyday Americans are beginning to get access to much-needed loans again.

We all know that saving money is important, especially during these tough economic times.  Ideally, putting away large chunks of money every time you get paid will build that savings account in no time; however, with a multitude of bills to pay, doing so is not always possible.  In this entry, we take a look at the everyday things consumers like you can do take small steps towards saving money.  In the long-run, when these everyday actions are put together, they will certainly help you fatten your wallet.

1. Call your credit card company and ask them to lower your interest rates

By placing a one-time call to your credit card company, the interest rates you pay on your credit card can be lowered.  Credit card companies want to keep your business; if you mention that you are considering taking your business elsewhere, you have a good shot at getting them to lower your overall interest rate.  Month to month, even a slightly lower interest rate will put additional money back in your pocket that you may not have had before.  Make the call-you have nothing to lose-except the extra bucks you could be saving each month!  Our past post explains other tips you can use when credit card rates change on you.

2. Bring your own caffeine to work

Stopping at Starbucks once, twice-or for all you hard-core coffee drinkers, even three times per day-is nothing abnormal in today’s world of long days and endless projects.  The problem is, the overpriced coffee that coffee chains sell can wreak major havoc on your wallet over time.  By bringing one pound of coffee beans that you buy from the store, you can get 40 cups of coffee.  Even the gourmet coffee beans run at about $4.00 per bag.  Now consider that you’re spending anywhere from $2 to $4 per cup by stopping at a coffee shop every day.  At $10 per week, that’s $40 per month and almost $500 per year.  By bringing your own coffee, that $500 will go straight back to your wallet.

3. Cut your cable bill in half by downgrading to basic cable

With tons of fancy cable packages out there to choose from, it’s no wonder Americans are spending an arm and a leg every month on cable.  Think about it-if you’re really serious about saving money, will cutting out the 300 plus channel plan really make a huge impact on your entertainment life?  You can still watch your weekly shows, you just may not have access to all of the fancy channels.  What will you have instead? An extra $50 to $100 in your pocket each month-over a year, that could lead to an extra $1200!

4. Cut out the lottery tickets

Sure, we all have the faint hope, somewhere in the back of our mind, that one day we will “hit the jackpot” and win that $20 million lottery.  The truth is, if you’re really looking to save money, consider this:  the odds of winning the Mega Millions are 1 in 135,145,920.  With people spending up to $150 per year in some states on lottery tickets, the odds that you will get that $150 back are slim to none.  Anything is possible, but when you’re serious about pinching pennies, play the odds that are in your favor-and skip on the lottery tickets.

5. Ask yourself where you get your news-online or via the paper?

Many Americans enjoy the morning ritual of reading the morning paper; however, many people find that their morning paper goes straight to the recycle bin.  As the world has moved to the Internet, more and more people get their news via websites that they check on a daily basis.  Ask yourself this important question-do you really read the paper every morning?  If you find yourself using the Internet for your daily news updates, consider canceling your subscription.  Over time, the money you were spending to actually fill your recycle bin will start to actually fill your wallet instead.