How to Earn Regular Income from Stock Investing Via Dividends

Investing for dividend income is a time-honored strategy that can prove lucrative for the individual investor. The investor must commit to monitoring his or her investments carefully to avoid big losses. Dividend investing can work very well not only as a retirement plan but as a way to build steady income.

Part 1

Choosing Stocks that Pay Dividends

1. 
   1
   Research stocks that that have a history of paying steady dividends. You can find this information in the Saturday edition of the Wall Street Journal where the stock quotes have a "YLD" caption. The number found in this column is the annualized percentage rate. Other sources include Morningstar's DividendInvestor, the online newsletter Dividend Detective and weekly updates in the Value Line Investment Survey that can be found at your local library.^[1]

   • The dividend yield is not the same as the dividend rate. The dividend yield is a percentage based on a calculation of annual dividends divided by the current price. The dividend rate is the total amount of money you can expect to receive from an asset over the course of a year.
2. 
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   Invest in stocks that pay a high dividend regularly. Buy stock in companies that have generated good profits over a five year period and have a history of paying consistently high dividend. Companies that are still rapidly growing may reinvest earnings in order to promote further growth, but mature companies such as 3M, Coca-Cola, or Procter & Gamble issue dividends as a way to encourage investors to buy stock.^[2]

   • Let’s look at AT&T, for example. Recently a share of AT&T sold at $24.83 and paid a dividend of 40 cents a share every three months. An investor buying 1,000 shares at that price would have spent just short of $25,000 to acquire those shares but would have received in return $400 quarterly per share in addition to any price appreciation on the stock (which you could expect from a company you invested in after diligent research). If AT&T's dividends remain steady, in ten years they would pay the stockholder $16,000 in dividends.
   • The board of directors can choose to raise or lower a company’s dividends. That’s why you want to choose a stable company with a solid history of paying rising or at least consistent dividends.
3. 
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   Research other factors. Aside from making sure the company pays high dividends, there are a few other important hallmarks of a strong company worth your investment.

   • Invest in a company that has a lower debt load (liabilities) than its peers or its industry average. This offers the flexibility to borrow if needed to support operations and a dividend. This information can be found on the company's balance sheet in their annual report.
   • Look up a company's earnings per share. This can be found in the annual report on their website. Then compare it to its dividend per share also found on the annual report. The company's dividend per share should be no more than 80% of its earnings per share. If a company earns $0.25/share and is paying a dividend of $0.50/share, for example, this is not a sign of good financial health.^[3]
   • Check a company's current ratio. This is the ratio of current assets to current liabilities and it measures its ability to meet short-term obligations. This can be found on the company's balance sheet in their annual report. You want to invest in a company that has a lot of cash. If a company's current ratio is greater than 1, it's in good financial shape.^[4]
4. 
   4
   Purchase the stock. You can do this by setting up an online trading account with sites such as Scottrade, OptionsHouse, Motif Investing and TradeKing. Be sure that you are aware of any transaction fees or percentages that will be charged before you decide on a site to use. You could also work with a stockbroker in a large investment firm such as Fidelity or TD Ameritrade.^[5]
5. 
   5
   Calculate dividend yield and track it over time. This is the annual dividend divided by the current stock price. For example, if stock ABC had a share price of $50 and an annualized dividend of $1.00, its yield would be .02 or 2%. This information can be found on the company's website. Don't select a stock based solely on dividend yield. The yield may only reflect a momentarily low stock price, which could be the result of a company's temporary problems. Pay more attention to their long-term dividend trend.^[6]

   • A company with a history of paying a consistently growing dividend is best. Next-best is a company that pays a steady dividend. Be wary of an outfit that has had to cut its dividend. That doesn't mean you should avoid it completely. Just look at it closely before you buy.
6. 
   6
   Calculate the dividend coverage ratio. Take the company's 12-month net profit and subtract the dividend paid on irredeemable preferred stock shares. Then divide it by the last 12-month dividend on ordinary shares(or expected annual dividend). This information can be found on the company's annual report on their website. A company with a ratio of 1.0 or better is generally considered "safe," and a 3.0, for example, means that a company has enough earnings to pay dividends amounting to 3 times the present dividend payout.^[7]

Part 2

Managing Your Investment Funds

1. 
   1
   Spend much less than you earn. Pay yourself first. In other words, devote as much of your income to investing as you possibly can, but not more than you are earning. You'll want the investments to return substantially more each year than you need to spend so you can reinvest in more stock.

   • For example, if you earned $2,000 in a year in dividends from your stock investments, don't spend more than approximately $1,800 on buying new stocks.
2. 
   2
   Keep up to a year's worth of living expenses in cash and money market funds. This isn’t just for an emergency fund. It will help smooth out the ups and downs of your investments. If they don’t return as much as you’d like for a quarter or two, your emergency money will give you some breathing room.

   • For example, if you determine you spend $50,000 per year for living expenses (not including funds for stock trading), keep another $50,000 in the bank or in a higher interest money market account for emergencies.
3. 
   3
   Roll the excess back into your investments. Whenever you start to build up more than a year’s worth of expenses, roll the excess into additional investments. Take care to track your spending so you'll be able to estimate the next year's expenses. If the amount in cash and money market funds gets over fifteen months' worth of living expenses, cut it down to twelve months, and put the difference into more investments.

   • For example, if your living expenses are $50,000 per year or $4,166 per month, once you accumulate $62,490 you will have $12,490 to spend on stock trading. This assumes your living expenses will not increase the following year.
   • Consider setting up a retirement account. Depending on your age and financial situation, set up a traditional IRA or a Roth IRA and start contributing.^[8]
4. 
   4
   Keep detailed records. An Excel spreadsheet will be most helpful in tracking all your stock purchases. Here you can record prices paid for stock, dividend yields, prices your stock sold for and any other information you will need for tax and planning purposes.
5. 
   5
   Prepare a monthly cash flow budget. This will detail all your expenses, both fixed and variable, and projected revenue from dividends and other sources. Then you will be able to see if your revenue will cover all of your expenses each month and how much you will have as profit to reinvest.

How to Get a Credit Limit Increase on a Credit Card

Credit limit increases are beneficial to you in more ways than one. Not only do you have more available credit to work with, but raises in your credit limit can also improve your credit score by lowering your credit utilization ratio. Follow these steps to get a credit limit increase.

Part 1

Demonstrating reliability

1. 
   1
   Pay your bill on time for at least 6 months. Of course, you should always pay your credit card bills on time, as late payments could result in credit limit (and credit score) decreases. Six months is simply the minimum amount of time you will have to make timely payments on your account before creditors will even consider raising your credit card limit.
2. 
   2
   Lower your credit utilization. Your credit utilization is pretty much how much money you have on your credit card compared to your overall limit. For example, if you have $4,900 worth of debt on a card that has a $5,000 limit, your credit utilization is extremely high. If, on the other hand, you have $300 worth of debt on a card that has a limit of $5,000, your credit utilization is extremely low. A low credit utilization is what you want.

   • If you have multiple credit cards, don't be hesitant to move debt from one card to another in order to massage your credit utilization. If one card has a higher limit, for example, move debt onto that card and off the card with the lower limit. Do this so that both credit utilization ratios more or less balance out.
   • Shoot for a credit utilization rate (debt to limit ratio) of about 10%. A 10% credit utilization rate is ideal, however, so if you happen to have a rate of 20%, or even 30%, that's okay. Your credit utilization is 30% of your credit score, which itself is a factor in getting a limit increase.^[1]

Part 2

Choosing which card to increase

1. 
   1
   Figure out which credit card you'll ask for a limit increase on. Why, aside from the obvious reason? Asking some credit card companies for a limit increase can cause the credit issuer to check your credit score, known in the business as a "hard pull."^[2] A hard pull can cause your credit score to go down, only about five or 10 points. If your credit score is teetering on the edge of solvency, however, those 10 points can be very significant.

Part 3

Making an application

1. 
   1
   Gather supporting documentation. In some cases, it may be necessary to prove that you are worthy of a credit limit increase, even if you have paid your bill on time for 6 or more months. You can just ask for an increase in your credit line and hope for a favorable response, or you may want to better your chances by compiling information that supports your ability to commit to higher credit card payments before you implore about changes in your credit card limit.

   • Income. If your employment situation has improved and you are now making more money and/or working more hours, provide check stubs or tax returns.
   • Change of occupation. It is also useful to know that different occupations carry different credit risks, and that a change in occupation, even without a raise, may improve your ranking with creditors and qualify you for credit limit increases.
   • Debt. Perhaps you've paid off a car or other credit accounts and your debt to income ratio is now lower. In this case, you may be able to provide proof of your closed accounts in order to receive a credit card limit increase.
   • Loyalty. Tell them how long you've been a customer with them. If you have an outstanding credit history, low debt, and you've been a loyal customer through thick and thin, it's worth something to publicize that information.
2. 
   2
   Get an idea of how much of an increase you would like to request. If you ask for too high an amount, your account could be flagged for further review; if you ask for too low an amount, you could be denying yourself of valuable credit. Examine your circumstances to determine how much of a credit limit increase is realistic for you (i.e. how much you want, how much you need and how much of a payment you can afford each month).
3. 
   3
   Contact the creditor to make your request. This is where the rubber meets the road.

   • Some credit card companies provide their customers with an online option for requesting credit limit increases. If this is the case, you simply need to sign into your account and make the request through the creditor's automated system.
   • Call the phone number on the back of your credit card to speak with someone directly about raising your credit card limit.
4. 
   4
   If your request fails, consider sneaking through the back door. If your request for an increase doesn't work out as planned, consider this sneaky little trick if you absolutely need the increase. Apply for a different, second card from the same company. Next, re-allocate the credit limit to your old card.^[3] If you don't get caught, this is a decent — but very backhanded — way of increasing your limit.
5. 
   5
   Don't go overboard. Just because you have a more credit at your disposal doesn't mean that you need to go crazy with it. The good news is this: the less money you spend on your credit card, the better your credit score and the higher your chances of getting a limit increase in the future.

How to Increase Your Business Sales

When it comes to running a business, your sales are likely to move in one of two directions: up or down. Obviously, you want them to go up. If you simply try to "hold serve" and just remain profitable without actively trying to grow your top line sales figure, you're likely going to see that number drop over time. That's why it's important that you pursue an aggressive strategy that will increase your sales.

Part 1

Promoting Your Business

1. 
   1
   Use content marketing. A great way to promote your brand online is to post useful articles that will appeal to people in your target market. Digital marketers call that content marketing.^[1]

   • Good content marketing attracts people to your website who might purchase the product or service that you're selling.
   • If you're not a very good writer, you might have to hire someone to write and post articles for you. That will require an investment.
   • Be sure the articles that are posted to your website are optimized for search engines. You want people to find those articles when they're searching for keywords relevant to your niche.^[2]
2. 
   2
   Create new demand for your product or service. How can your product or service appeal to people in a way that you haven't thought about yet? Try marketing it with that angle and see if sales grow.

   • The classic case of Arm & Hammer advertising from decades ago is a great example of how to multi-purpose a brand.^[3] The company advertised its baking soda product as a means to deodorize drains once it had outlived its usefulness as a refrigerator air freshener.
3. 
   3
   Raise prices. You might think that, to increase sales, you should lower prices in an effort to attract more customers. While sales and discounts often lead people to purchase your product or service, sometimes raising prices is also the right move.

   • If you keep the same number of customers after your price increase, then you'll definitely raise your top line sales figure.
   • Higher prices often lead to a perception in quality.^[4] That impression could send more business your way.
4. 
   4
   Advertise your product or service. If your customers don't know about your business, you won't be able to sell to them. Build brand-name awareness by reaching people in your target market with messages about how your product or service will benefit them.

   • It's easier to track the effectiveness of online advertising campaigns than it is to track the effectiveness of "old school" media campaigns (such as radio ads). That's because your online advertising platform can provide you with analytics about how many people visited your site from a particular ad, something about the demographics of those people, what kind of ads they clicked on, and more.^[5]
   • Obviously, advertising requires an investment. Be sure to validate the effectiveness of your campaign so that you can determine if you're receiving a good return on investment.
5. 
   5
   Offer (and publicize) special deals and discounts. Customers love great deals, so special one-time offers are a great way to raise your sales in the short term. However, to take full advantage of the sales "spike" a special deal can provide, make sure as many people know about it as possible. This may mean mentioning upcoming deals to your existing customers, distributing flyers or handouts, paying for advertisements, or more. Balance the costs of publicizing your deal with the benefits you're likely to gain from it.

   • Flat or percentage price cuts for certain products (e.g. $20 off all microwaves)
   • Percent discounts for purchases over a certain price (e.g. 10% off on purchases over $70)
   • Buy x, get y free deals (e.g. buy 3, get 1 free)
   • Limited-time bundles (e.g. buy a computer by the end of the month and receive a free keyboard)
   • Free shipping for orders over $50.
6. 
   6
   Make the process of buying your products a safer bet (and publicize this). Customers are more likely to buy from you if they're confident that their money won't be going to waste. Demonstrate confidence in the quality of your products by "insuring" the customer's purchase.

   • Offer a money-back guarantee
   • Have a generous return program
   • Have a "satisfaction guaranteed" policy
   • Use social proof.^[6] One of the best ways to use social proof online is to provide testimonials about customers who've loved your product or service. It's best to include full names and even pictures of the people who've given you rave reviews.
7. 
   7
   Build a presence in the community. One great way to build positive recognition for your business (especially if it's a small business) is to become an active player in the community. ^[7] Look for opportunities to promote your brand by sponsoring or underwriting local events and charitable causes or by participating in gatherings and festivals. As an added bonus, you may even have a chance to sell your products at the events you participate in. Below are some of the types of events and organizations you may want to be on the lookout for:

   • Charitable causes (dinners, auctions, fundraisers, etc.)
   • Non-profits with a large potential audience (college radio stations, etc.)
   • Local entertainment venues or organizations (community theaters, sports teams, etc.)
   • Large outdoor gatherings (street fairs, music festivals, etc.)

Part 2

Upselling

1. 
   1
   Offer an opportunity to "upgrade". Why sell a product for $100 if you have a chance of selling a different product for $150? By offering customers the chance to buy a better version of the product they want to purchase, you boost your sales and the customer gets a better product.^[8] Everybody wins.

   • If, for instance, your customer is purchasing a 21 inch (53.3 cm) television set, you might give him or her an opportunity to upgrade to a 24 inch (61.0 cm) television at the check out, for only a little extra. The customer may or may not take the bait, but you'll never lose the original sale unless you push very hard, so it's very difficult to lose money with this trick.
2. 
   2
   Offer "companion" items. Don't settle for selling one item if you can get away with selling two! When a customer is making a purchase, you may want to offer him or her another item that complements an item in the shopping cart.^[9] Recommend something your customer is likely to need to make the most out of the purchase, like some sort of optional accessory. You can even offer a discount on the second item to sweeten the deal!

   • For example, if a customer's buying toys, you might upsell by offering your customer a pack of batteries. Or, if the customer is buying a printer, you might offer $10 off of a pack of ink cartridges.
3. 
   3
   Offer pertinent services and plans. Another great way to make a little extra money is to upsell optional services or plans when the customer makes his or her purchase. Optional warranties, protection plans, and subscriptions to services or publications related to your customer's purchase are all things you can recommend to make a sale more profitable.

   • For example, if you're selling a customer a car, you might offer a warranty that covers any problems caused by the car's workmanship as part of a package deal.
4. 
   4
   Offer small, inexpensive items for sale near the point of sale. One way that businesses frequently practice "passive" upselling is by positioning small impulse-buy products near the point of sale (cash register, checkout line, etc.) Because these small items are relatively cheap and offer instant gratification, customers will frequently add these to their purchase. Over time, the profits from these tiny sales can add up.

   • You have probably noticed this method of upselling in practice at the grocery store checkout line, where gum, candy bars, and beverages are frequently for sale.
   • If you're running an e-commerce business, you still have a virtual checkout line. Advertise small, inexpensive items within the shopping cart screens so customers can buy additional items they might like.

Part 3

 Using Smart Business Strategies 

 

1. 
   1
   Let your customers try your products before they buy them. If a customer can experience a product's benefits firsthand, he or she is more likely to remember (and eventually purchase) the product in question. If possible, try to give your customers a chance to "sample" or "try out" your product or service for free.

   • This option isn't suitable for every business, though. You can't "try out" a life insurance policy. However, it might be suitable for your business model.
   • For example, if you run a grocery store, you may want to have an employee distribute small samples of new products to your customers. This principle applies to non-food industries, too. Car dealerships are best known for using the "try before you buy" method by offering free test drives.
2. 
   2
   Teach your salespeople how to demonstrate the value of your products. By explaining or showing your customers how your products can make their daily lives better, you can strike a personal chord with your customers and boost your sales in the process. You may want to direct your salespeople to make reference to common uses for hot products in their sales pitches or even have them actually show the customer your products in use.

   • For example, many large department stores like Costco have employees give product demonstrations on the floor. They show customers how to cook with electric grills, how to clean soiled carpet with steam cleaners, and so on.
3. 
   3
   Offer sales incentives to your employees. Finally, one time-tested way to boost sales is to give your salespeople a reason to work extra-hard. Offering incentives to employees who make lots of sales is a good way to maximize the selling power of your company. Below are just a few of the types of incentives you may want to offer to high-sales members of your workforce:

   • Commissions (a small percentage of each sale's cost awarded to the employee who made the sale).
   • Reward packages (e.g. extra time off, gifts, etc.)
   • Promotions
   • Achievement awards (e.g. employee of the month, etc.)

How to Calculate Net Income

Net income is your total income after taxes, deductions, credits, and business operating expenses. There is a slightly different process for calculating your personal net income, and calculating your business net income. It involves looking through some records and doing a bit of math, but calculating your net income is simple once you know the process.

Method 1

Calculating Personal Net Income

1. 
   1
   Calculate your gross annual income. Your first step to calculating your net income is finding out your gross income. Gross income is the total amount of money you make in a year before taking taxes or deductions into account.^[1] It serves as your starting point for calculating net income. If you are on a salary or work stable hours, this should be fairly easy to calculate. ^[2]

   • Take a pay stub from one of your pay periods. If your employer takes out taxes, look at the total amount before the deductions. This is your gross pay for the period.
   • Figure out how often you are paid, and multiply the gross pay accordingly. If you're paid monthly, multiply the number from your pay stub by 12 to get your gross annual income. If you're paid weekly, multiply it by 52. If bi-weekly, multiply by 26.
   • If you work irregular hours, you'll have to add up all your pay stubs for the year to get an accurate measure of your annual income.
   • If you work multiple jobs, take all of them into account in this calculation.
   • In most cases, gifts and inheritance do not factor into gross income. These are still taxable, however, so remember to account for them when filing your taxes.^[3]
2. 2
   Subtract any deductions you have. Since net income refers only to your income after taxes, you have to subtract any deductions you have from your gross annual income. After you subtract any deductions from your gross income, then you'll end up with your total taxable income.^[4]

   • For example, if you had a gross income of $50,000 and $5,000 in deductions, then your taxable income is $45,000.
3. 3
   Deduct your retirement contributions if applicable. Under certain circumstances, your individual retirement arrangement (IRA) can be deducted from your taxable income.^[5] This will vary depending on your particular arrangement, so consulting the IRS webpage will help you discern if you can make any deductions based on your retirement savings.

   • Let's say, for example, that you're allowed to deduct $2,000 from your taxable income. That means that your taxable income falls from $45,000 to $43,000.
4. 4
   Deduct your medical and dental expenses if applicable. As with retirement savings, you can sometimes deduct medical and dental expenses from your taxable income.^[6] This varies depending on your particular situation, so consult the IRS webpage for information on whether or not you can deduct your medical expenses.
5. 5
   Subtract what you owe in taxes from your annual pay. After you've found out what your total taxable income is, then you have to subtract the amount you owe in taxes.^[7]

   • Add up all taxes you owe, including federal, state, local, Medicare and social security. If your employer takes out taxes, then the total deductions should be on your pay stubs.
   • Subtract the total taxes from your income to get your net annual income.
   • Sticking with the previous example: if your gross income was $50,000, you had $5,000 in deductions, and you deducted another $2,000 for retirement, your taxable income is $43,000. Then if you owe $10,000 in taxes, that makes your net income $33,000.
   • If at any point you're confused about your taxes, consulting an accountant will help clear things up.

Method 2

Calculating Business Net Income

1. 
   1
   Add up your gross income for the last year. For businesses, net income refers to profit after expenses and taxes. To start, gather your records and add up your total income for the past year, before taxes or expenses.^[8]

   • Subtract returns and discounts from your gross income.
   • Self-employed people should follow this method because they have to deduct their own taxes from payments.
   • Let's say that your net gross income, before expenses, was $100,000. That will serve as your gross income for this part.
2. 2
   Add up the cost of goods sold. If your business involves selling products, then you have to account for what those products originally cost. Multiply the price of each unit by the number of units sold. Then subtract this total from the total income.^[9] The result is your "Operating Income."

   • If you sold 1,500 products and each cost you $10, then your cost of goods sold is $15,000. Remember this total for the example below.
   • If your business provides a service, you can skip this step. Any materials you use to provide the service falls under operating costs.
3. 3
   Add up your administrative costs. In this step, you will add up all of your expenses in operating your business. They may vary from business to business, but there are a few costs that are common and must be accounted for.^[10]

   • Rent and utilities. If your business has a storefront, then you probably pay rent and utilities.
   • Paying employees.
   • If you use a vehicle for work, the cost, gas, taxes, insurance, and maintenance on it goes into your operating costs.
   • Purchase of any equipment you used.
   • Depreciation on equipment. Depreciation refers to an asset that loses value over time. For example, if you buy a piece of equipment for $10,000 and expect it to last five years, then it depreciates by $2,000 a year.^[11] Factor this into your calculations for gross income. For more information on calculating depreciation, read Account For Accumulated Depreciation.
4. 4
   Compute your taxable income. After you add up your product cost and administrative expenses, you can come to your taxable income.^[12]

   • Add up your cost of goods, administrative expenses, and other deductions. Then subtract that number from your net gross income. That should leave you with your taxable income.
   • The numbers given in this part were $15,000 for your product cost and $2,000 in depreciation. This is a total of $17,000 in deductions.
   • Since your original net gross income was $100,000, an $17,000 deduction would give you a taxable income of $83,000.
5. 5
   Calculate what you owe in taxes. Based on your taxable income, you can figure out what you owe in taxes. This number will vary widely depending on your income, the size of your business, the amount of equipment you have, and so on. For help, it is best to refer to guidelines from the US Small Business Administration.
6. 6
   Add up any tax credits you have. Federal and local governments grant numerous tax breaks for businesses. Things like having an energy-efficient building, providing benefits for employees, and using renewable energy sources may qualify you for a tax break. Visit the IRS site for a complete list of tax breaks from the federal government.

   • Let's say the federal government gives you a $1,000 tax credit for having an energy-efficient building. You can subtract this amount from the total of taxes owed.
   • It will make this step much easier if you have an accountant. She will be well-versed in tax law and know how best to calculate your taxes.
   • For more tips, read Prepare for Small Business Tax.
7. 7
   Subtract your tax obligations from your taxable income. After you figure out what you owe in taxes, subtract that number from your taxable income. Once you do this, then you've arrived at your business net income.^[13]

   • Let's say that you figure out you owe $10,000 in taxes, but you have that $1,000 tax credit, so you owe $9,000. Subtract that from your taxable income of $83,000 and you get a final net income of $74,000.

How to Increase Your Bank Balance

Increasing your bank balance is obviously important for your financial health. Yet it may seem an impossible task when your salary is stuck where it's at and there is no likely increase in your financial stakes in the foreseeable future.

Achieving decent savings on a tight budget is possible by taking more notice of the small expenditures that tend to seep away money unnoticed. While it may seem challenging at first, it's nice to know that there are quite a few savings over which you do have complete control. To discover how to use your small savings to increase your bank balance, follow these suggestions.

Steps

1. 
   1
   Prepare to move away from poor spending habits. The best way to increase your bank balance is to not dwell on past mistakes or to repeat them. Instead, look towards your savings-inclined future. Above all, action is more important than anything else. Take one single small step, and never quit focusing on the smaller things until your bank balance has increased healthily. And hopefully by then, you'll have developed some good ingrained habits so that the balance keeps on increasing regardless of your greater spending power.

   • Adopt a savings mindset instead of a spending one. It will take time to curb a spending habit if you have one but it's nothing more than a habit, so you can break it. Every time that you go to buy something, have a phrase or a question to make you think about whether or not you really need to make that purchase.
   • Realize that minor spends tend to be "off the radar" of many people. This is why they can be so damaging because little by little, they add up to quite a bit and eat away at your chances of increasing your bank balance.
2. 
   2
   Start your day with breakfast and coffee at home. If you have been in the habit of grabbing a latte and cinnamon bun on the way to work, it's time to stop. Eating on the run is unhealthy and if you're eating fatty and sugary foods, you're not giving your body good fuel for the day. Save money by eating a healthy breakfast at home and enjoying your coffee there too. If this means getting up a bit earlier, then do so––the extra sleep will have to come from an earlier bedtime, which won't hurt you!
3. 
   3
   Brown paper bag (or thermal lunchbox) your lunch. You can save a lot of money by making your own lunch every day. Try it for a week and compare the savings. You'll find it's not just money but also time spent in waiting lines too. You also have more freedom about where to eat and more time to exercise, walk around or run errands when you brown paper bag your lunch. Put the cost difference into the savings account.
4. 
   4
   Switch to your library for reading material. Books, magazines and newspapers soon add up if you're buying them a lot. By borrowing reading material more often, you can put the money saved straight into the bank instead.

   • Some libraries allow you to download e-books to an electronic reader. If you have an electronic reader, use the library's borrowing rights rather than purchasing your own copy.
5. 
   5
   Revamp your existing wardrobe instead of tossing it out and buying all new clothes each season. Look for ways to improve the clothes you have, including adding embellishments, dying them, changing their shape or function or swapping them with a friend. If you really love clothes, set a tight budget for clothes and once it has been reached, buy no more. Put all the savings you have made into the bank––compare the amount spent now with the same time last year and put the savings straight into your account.

   • Wait for the sales. Unless you're working in a fashion house (in which case, let's hope they're subsidizing your clothing purchases), there is no need to be wearing things straight off the catwalk. Sales come quickly these days, so be patient and wait for one.
   • Some clothing stores or brands let you join their discount clubs or membership for free and then offer you sale weekends or days now and then. Be sure to make use of these by giving them a current email address, so that you can be alerted to the best deals. However, don't fall into the trap of buying just because there is a discount on! Buy what you need and no more.
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   Reduce your travel costs. Traveling to work or studies by car can be expensive, with fuel, maintenance and car parking costs to cover. Can you ride your bike or walk instead? Perhaps there is public transportation with good deals on multi tickets. Another option might be car-pooling. While it's convenient to have your own car, it's expensive. By finding cheaper transportation methods, you will make a lot of savings for your account.

   • Try to have only one car per the whole household; this can save an enormous amount of money if everyone shares the one car and relies on other transportation methods to cover the gaps.
   • Any form of going from A to B that involves walking or cycling will improve your health. Just be aware of road safety and air pollution issues and take appropriate action as needed.
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   Improve your waistline at the same time as fattening your bank account. Reduce or even cut out the candies, sweets and other sugary treats that you've been indulging in. By stopping the purchase of cakes, chips, chocolates, candies and other snacks, you will save money and not fill yourself up with empty calories. Save them as real treats for once in a while rather than as daily "must-haves". Put the savings straight into the bank so that you don't risk feeling deprived!
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   Stop buying lottery tickets. Your chances of winning are astronomically tiny. Your chances of throwing away a lot of money that could have been placed into the bank instead are huge. You may feel that "just one win" will solve all of your problems but it won't. Even if you did win, you're still going to have to deal with whatever personal problems are bothering you––within a year of winning lottery, most people's lives are back to how they were before the win. Get real and let compound interest do some real increasing of your fortunes instead.

   • If your workplace makes you feel obliged to participate in contributing toward an office ticket each week, make a decision whether it's worth the angst of begrudging your fellow rainbow chasers or whether to take a stand. You can always mention that you've seen the light and no longer participate in any form of gambling. Don't feel pressured into doing it just because everyone else thinks they're going to win big some day.
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   Review all of your subscriptions to magazines, gyms, websites, what have you. Are you getting full value out of them or have you managed to forget all of the things you're subscribed to? It's important to make the most of any subscription; if you're not, cancel it and put the money into your bank account instead.

   • Do a small calculation to see if your gym membership is worth it per visit. If you are going every day, chances are it's paying for itself nicely. If you're only going once in a blue moon, it's possible you're paying something awful like $100 a visit!
   • Instead of paying for a membership to go to a gym, just go jogging or walking every morning. Schedule other exercises that are free.
   • Check out your local charity store for backdated magazines and some great book reads. You can get a bundle for a dollar in some places!
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    Review your telecommunications and energy contracts regularly. Are you getting the best possible deals for your phone, internet access, electricity or gas, cable TV, etc.? Check out the competitors to your current suppliers to see what is on offer.

    • Always read the fine print before leaping from one service to another and before signing up with a new service. You don't want to be lumped with paying fees for breaking a contract early or for having to sign up for longer than your attention span.
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    Be savvy with your food shopping and eating choices. Eat in more often, eat healthily and eat things you've cooked yourself. Grab some menus from your favorite eating places and reproduce the meals at home. Put the savings you've made straight into the bank account.

    • Non-brand name food is often as good as brand name food. It's worth trying to see what's okay for your palate; you may save a lot.
    • Don't deprive yourself of eating out totally. Some eating out is essential for meeting up with friends, catching the buzz of being around other people and for simply enjoying yourself. Saving money isn't about completely denying yourself of some joys like this!
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    Stop smoking and either reduce or quit drinking alcohol. These two items can waste a lot of money and they're not doing a lot of good for your health. Smoking isn't at all healthy, while excess drinking isn't either. One compromise for alcohol might be to stop weekday alcohol drinking and just enjoying it in moderation from Friday to Sunday night. A bottle of wine with every meal soon adds up!
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    Curtail the shopping for leisure and substitute it with real leisure activities. Treat shopping as the necessity it is and purchase only what you need, within a limited time frame. If you really do love shops, do some window shopping rather than actual purchasing. Then, find some good leisure substitutes to take the space of aimless spending, such as playing a sport, taking a bike ride by the river, taking someone's dogs for a walk, visiting the beach or going for long walks in nature or your local urban environment. Put the savings into the bank.
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    Slow down on the upgrades. Do you really need to have the latest computer/MP3 player/cell phone/electronic device upgrade? How good is your existing item right now? If it's doing all that you need it to and it's running just fine, consider holding off until the upgraded version is much cheaper or on sale. If it's just about keeping up or status, then you don't need to waste the money.
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    Actively plan to shift the savings you have made from your wallet to your bank account. Saving on the small stuff won't work unless you can see actual results. You must move the savings into your account on a regular basis. It's recommended that you physically record or even count out the savings and either add real money to a jar or piggy bank for regular deposit or transfer between accounts online. After a few months of doing this, you should notice the increase as being quite substantial.

    • Doing this will remove the temptation to shift your cash somewhere else.
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    Embrace your frugal mindset. Being frugal, thrifty or a conscious consumer isn't about deprivation. It's about knowing when too much is too much and enough is enough. It's about leading a life less cluttered and having more time to socialize, exercise and be creative instead of having to fret about bills and overdrafts.

    • Build small bonus spends into your savings. It shouldn't be all saving and no treating. On special occasions, allow yourself a little indulgence to prove to yourself that saving by paying attention to all the small things pays dividends.
    • When your spendthrift voice gets a little too loud, remind yourself that good feelings come from having saved enough for the things you really want in life rather than frittering away money here and there on this and that.
    • Do things that make you happy rather than spending to try to find happiness suspended inside an object.