Refining your habits trims costs

You needn't search the couch for the nickels and dimes you need for this evening's movie. Instead, try turning off the light when you leave the room.

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	Buying bulk at places like Costco can save you big bucks.

All that harping you heard when you were young finally hits home when you encounter your first utility bill that eclipses $100. With little prompting, that usually gets most people to pay more attention.

Another major utility issue is heating and cooling. Adjusting your thermostat up and down just a few degrees in the summer and winter can save you dollars a day. In the winter, that might mean turning the temp down to 64, and in the summer, that means shutting off the air conditioning while you're at work.

Here again, the most important thing is just remembering to do it. Saving a few cents here and there is how many people become very, very rich, so next time you're envying the Mr. Macho in his Mazerati, just remember he probably saves his pennies elsewhere.

Other potential everyday savings include:

• Lower interest payments. Having debt costs you money, and you don't even get to enjoy it. So get rid of it first!
  
• Cutting coupons and buying bulk. There's usually a way to get what you want cheaply, but that might mean looking around a little. Remember, at your age, you probably have more time than money, so make informed decisions.
  
• Use public services. Libraries are a much cheaper way to get the books and movies you want, and public transportation is a lot cheaper than owning a car, so use them if you can, and if you can use them, do so often.
  
• Stop buying frivolous crap. You don't need fuzzy dice, 10 pairs of shoes or anything that Martha Stewart recommends. Common sense is a priceless commodity, so buy more of that.
  
• Buy generic instead of the name brand. This particularly applies to non-prescription drugs and cereals. The only thing that differentiates the name brand from the generic is marketing. So just remember you're playing the sucker next time you buy Advil instead of the store brand.

But cost-cutting is more than just trimming here and there to make your household run more efficiently. You're going to need to determine your means, and then force yourself to stay within them.

The first order of business is figuring your fixed costs for each month. These are things like rent, food, insurance and gasoline. It's generally a good guideline to try to keep these expenses between half and three-quarters of your income so as to leave yourself some breathing room. If you're spending over three-quarter of your paycheck on the bare necessities, you may want to think about finding a roommate or cramping your style some other way, at least until you can afford to up the ante.

The next step is to figure out how much you hope to save each month. From whatever remains after you sorted out your fixed costs, you're going to need to take this amount away first, not hope that it's there at the end of the month. It never will be unless you put it away from the outset, so it's a good idea to open a savings account expressly for this purpose.

Finally, you're going to have to start looking to reduce your spending. Living within your means is human, living beneath your means is divine. So next time you're wondering whether or not to buy something, remember that the road to riches begins with a few frugal moves.