Save Money--Get Financially Fit--Part Two

Get Fit Financially
Tips for saving money in 2008
Put half your raise in your 401(k) or savings. You still get an increase in cash flow, but you start putting money aside.
Select mutual funds in your 401(k). If you don't, your money will go into your plan's default option, typically a low-yielding money market account.
The simplest choice: Pick a target-date or life cycle mutual fund if your company's plan offers them . These funds adjust their holdings to coincide with your expected year of retirement. As you near retirement, the fund will move out of riskier stocks into more conservative ones and into bonds to preserve your cash.
If your plan doesn't offer those funds, select a mix of mutual funds, making sure to have a little bit of everything- stocks(international and domestic) and bonds.
Manage your debt. Work towards paying off your credit card balances on cards with the highest interest rates first or consolidate credit card debt onto one low-rate card.
If you have a house, you could roll consumer debt into a home equity loan that will likely have a lower rate. The average credit card rate is 15.82 percent, according to Card-Web.com. Home equity loan rates are typically a percentage point above prime, which currently is 7.25 percent.
Have you recently paid off your car or will you this year? Keep making monthly "payments" into your savings account.
This should be painless because you are conditioned to pay the bill, and a good way to save money.
Trim your social tab. One big budget buster: eating out. One potential solution: Form a supper club with friends. Each month a different friend or couple cooks dinner and supplies the beverages that quickly run up restaurant tabs.
But you don't have to deprive yourself of the occasional restaurant meal. Look for coupons for your favorite restaurants or find out what nights they have specials (often slower nights like Mondays)
Another money saver: Borrow movies from the public library. It's free!!!
Hope these tips help you get financially fit and start saving money!!!
Personal note:
Grocery day:
Savings as of 1-15-08 $106.97
Savings today $ 31,97
Year to date $138.94
Happy Savings!!!