When my boys were really small, I was living paycheck to paycheck - sometimes it seemed more like hand to mouth.  I decided to save up money for a vacation, without going into debt.  There was no way anybody was going to give me a credit card anyway. 

I tell you this story because for some people it might help you save up for a down payment on a home.  In this tight credit market, you MUST have a down payment, some money towards closing costs, and some money in reserves.

Here are a few of the things I did to save money.

1. I used coupons, lots of coupons, but learned quickly I was only "saving" if it was something I would use anyway (that's another blog someday).  When I got home from the store, I would add up my savings from the coupons, and put that money in a coffee can.  Eventually it went into a special savings account.  Because I didn't use cash, I usually had to write the check for the "before coupon" amount on the bill.

2.  One of the stores in town offers these stickers, called "Price Smashers".  When you buy groceries, you get a sticker for each dollar spent.  When you fill out a card with Price Smashers, you get 50 cents off special purchases.  The money saved was also put in the coffee can or the savings account.

3.  When I wrote a check, I always wrote it in the register rounded up to the next dollar.  I did not have a computer then and I wasn't really good about reconciling my bank statements regularly.  Honestly, I only started this to make sure I didn't bounce a check.  My mother taught me this trick because eventually you get a cushion that helps in an emergency.  Eventually this was a habit and once I started watching my finances more closely, this money would also be put into savings.  Since I'd been doing this for several months before I opened the savings account, I was surprised there was over $350 in my "cushion".  Granted, it took days to reconcile, but it was there, and it was mine.

4.  I saved my change, even though I rarely had cash to carry.   Sometimes  I did have to use the quarters for laundry, but nickels, dimes and pennies were always saved.  Unless I was desperate, I didn't use change in the store.  After a year, I had almost $200 in small change.

5.  Any money found when doing laundry went into the savings account.  This was especially hard one time around my birthday when I found a $20 bill, but it went there anyway.

6.  I got a small raise from my job.  It was pretty insignificant, but the difference was automatically transferred from my checking account to savings so I wouldn't be tempted to spend it.

7.  All cash birthday gifts, rebates, even a penny lying on the street was treated as "found money".  All found money - money you were not expecting - goes into savings.

8.   My savings account was moved into a separate bank so it wasn't so easy for me to spend.  I made this decision once it was over $500. 

When my boys were 4 and 5, I took them on a trip to Seattle.  Keep in mind, we have to fly to Seattle.  We stayed in a hotel part of the time, and stayed with my brother the rest.  We rented a car and we even ate in a few restaurants - not fancy restaurants, but I was travelling with little kids anyway.  We spent 3 days at Seattle Center and visited the top of the Space Needle.  We also visited several museums and art galleries and spent a day at the Seattle Aquarium.  When I came home, there was no dreading the bills from our vacation.  The rent and utilities were paid, we had money for groceries and gas, and we all had a good time.

Imagine - I saved $4000 between 1991 and 1993.  If I'd have saved another year, I would have had the down payment on my first home.  At that time, the average starter home price in Juneau was $80,000.

I hope someone can learn from my experience and my mistakes.  If there is enough interest in this subject, I will post more ideas on saving money.