Tip of the week: How to start saving money

Use cash. It’s tempting to “whip out a credit card” to pay for that morning cup of coffee, but that’s also a good way to rack up debt. Use plastic for monthly bills and big-ticket purchases, and stick to “cash and cash only” for everything else.

Think domestic. It’s easy to cut costs at home without making major lifestyle changes. Unplug “energy vampires,” such as TVs and computers, when they’re not in use, and switch to energy-saving fluorescent light bulbs.

Switch IRAs. Though you don’t pay taxes on contributions to a traditional Individual Retirement Account, you will eventually have to pay them when you withdraw funds. Instead, consider a Roth IRA: While contributions aren’t deductible, they “grow tax-free”—no matter how much is gained through stocks, bonds, or mutual funds.

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Source: Family Circle