7. Comparison shopping

Shopping around saves you a lot of money. I wouldn't recommend buying anything expensive without doing some research.

Rule number one is to decide what exactly you would like to purchase. Let's say you are buying a new PC. First you must make a decision on basic characteristics such as disk space, RAM, operating system, types of CD and DVD drives. Once you made your mind, you are ready for comparison shopping. You can shop around by visiting store sites on line ( keep in mind that sometimes on line prices are different from those in stores ), studying store catalogs (usually major local newspapers carry catalogs from your area biggest stores ) or going there in person.

Whether you are buying PC, washing machine or a car, you must compare prices from at least 3 or 4 different places before making a decision.

8. Take a closer look at your bills

It certainly pays to study your bills item by item. Of course it is rather a boring reading, but one can discover many useful things. Is it a repeat bill for something you already paid? Did they still cahrge you for service you already cancelled? Did your credit company raise your interest rate? Is it a bill for a service or item that you didn't order?

Even if there are no irregularities in your bills, you can find an important information such as your spending habits. Most people believe they know they know where their money is spent, but sometimes numbers tell a different story. Taking a close look at your bill will help you cut on unnecessary expenses.

9. Cut your store visits

Consumers spend millions on unplanned and often unnecessary purchases. This is called impulse buying. We are all guilty of buying things we don't need.

Many impulse purchases are made when we visit a store without planning to buy something in particular. As you walk around the store, you will often find a product that attracts your attention. All of a sudden you spend money on something you didn't plan to.

How do you avoid this? It's very simple – don't visit a store or shopping mall just for fun. This simple advice can save you hundreds of dollars.