5 ways to save $500 every month

Challenged by the current financial crisis and recessionary woes? While the world is watching Wall Street, many of us are struggling to preserve our own checkbook on Main Street.

There doesn’t appear to be a quick fix for the economy, but there are some things you can start doing today that will have a real impact on your personal finances as well as the health of the environment.

We’ve found five easy changes that you can make which will save you $500 or more each month, all while helping to conserve energy and reduce waste.

1. Share a ride: Save $50.

Car-pooling can save a boatload of money, and you don’t have to own a new model hybrid to realize the savings either (although it would be a big plus).

Let’s say your current vehicle gets a fuel mileage that’s middle-of-the-road for today’s averages or about 23 miles per gallon. Let’s also assume that your daily two-way commute is 40 miles per day, five days per week.

At today's gas prices, your average cost of solo driving is about $94 per month. However, if you share the task of driving to work with just one other person, you could save as much as $50 each month. Commute with three people and your savings will go up to more than $60 per month.

Here’s how:

Locate available commuters at work through the use of email lists and company bulletin boards. Check with your neighbors and friends to see if you can coordinate scheduling. In addition, see if your employer will allow you to work from home one day a week or stack your schedule to work 40 hours in four days instead of five.

2. Go with a lower flow: Save $48.

The average American household runs four, eight-minute showers per day, requiring about 20 gallons of heated water at the rate of 2.5 gallons going down the drain per minute per person. Instead of turning the main water valve off on your kids when eight minutes are up, you can reduce the water output from your showerhead to save on energy costs.

Here’s how:

Install a newer low-flow showerhead to reduce your hot water consumption to 1.59 gallons or less per minute per shower. If you’re concerned about sacrificing water pressure, don’t be. Today’s efficient low-flow showerheads preserve water and pressure by mixing air with the water flow. They’re also easy to install yourself, so there’s no need to hire a professional.

3. Brown bag your lunch: Save $60

Buying your lunch every day during the workweek can seriously dent your budget. Even when exercising frugality, the average cost of a meal and drink comes to at least $6 per day or $120 each month.

According to the U.S. Center for Nutrition Policy and Promotion, bringing lunch to work costs about 45-50 percent less than buying it. That means you can pare down your workweek lunch expense to less than $15 per week.

Here’s how:

Buy only what you’ll consume during the workweek to avoid wasting food by the weekend. In addition, select a variety of sandwich fixings, whole grain breads, and ready-to-go fresh fruit and vegetables to avoid boredom. Rinse and reuse sandwich bags to reduce waste and save even more. Alternately, tote your lunch in glass or reusable containers whenever possible. Use a cloth bag or a shopping bag that’s easy to reuse.

4. Wake up, smell the coffee: Save $98

Wake up, smell the coffee, and save almost $100. However, do it in your own kitchen. If you begin your daily grind by picking up your morning brew from a coffee shop, you’re spending about $2.45 per day for most foamy concoctions, more if you typically go for super-sized or signature varieties. The second cup to get you over the afternoon hump brings this spending figure up to $98 each month.

Making your coffee at home will run about $0.12-0.28 per cu -- small beans compared to store-bought. Assuming the higher end of that estimate calculates to just $1.40 per week or $5.60 each month. For that sweet price, you can afford to take a refill to the office in a reusable travel mug ($11.20 per month) for a later pick-me-up.

Here’s how:

Invest in a no-frills coffeemaker ($15 and up), if you don’t already own one. Coffee prices vary, but even fair-trade, organic coffee can be found for less than $15 a pound. The cost of a splash of milk or flavored creamer is minimal. Keeping the disposable coffee cup out of landfill: priceless.

5. Stay home for dinner: Save $252

Stay home for dinner and save $252. According to the U.S. Census Bureau, American households spend an average of $3,034 a year on take-out food and dining at restaurants. Curbing this habit will not only save you money, but will also reduce the amount of plastic and Styrofoam containers being tossed into the trash.

Here’s how:

Plan meals ahead. You should know what’s for dinner before lunchtime rolls around, or you’ll be more likely to pull out the take-out menus. Also, take advantage of leftovers from home-cooked meals by freezing them for another night’s meal. However, you may be able to realize even greater savings.

For instance, if there is more than one person in your household taking coffee and a bagged lunch each day, or carpooling to work, then the additional contributors will increase your monthly savings.

You can also feel good about the fact that these simple strategies are good for the environment. For each money-saving action you commit to undertake, you’ll be helping to reduce energy and disposable waste every day. And, if you can save this much each month doing it, just imagine the effect your actions will have year after year.

10 secrets - Millionare Money Management

Start early to avoid financial pitfalls. Adrian Cartwood, 49, author of the blog How to Make 7 Million in 7 Years, made his fortune by living frugally while he built his technology-related business. People often get into trouble, he says, by racking up personal debt early on, which acts as a big drag on their earnings. "Learn how to live within your means and how to delay gratification; these are the habits that you need to maintain on the way up, so you can keep your millions when you get there," he says.

Believe that you can do it. Before investing in real estate and becoming a millionaire, Alan Corey, author of A Million Bucks by 30, read as many biographies and autobiographies of millionaires as he could find. He says he was searching for a common characteristic that could help him in his own quest. "What I found was they all had an incredible self-belief that they would be financially successful," he says. Corey says that embracing that level of self-confidence helped him get to the top.

Articulate your vision for success. Jen Smith, author of the Millionaire Mommy Next Door blog, says that the saying, "I want to be rich," is too vague. Instead, she recommends imagining what your ideal life as a millionaire will look like. Smith offers this example: “I want to have $2,000,000 invested so that I can live off of the interest. Then I will quit my job so that I can volunteer, travel, learn to play tennis and watercolor, and enjoy picnics at the beach with my family.”

Smith's vision involved becoming financially-free before becoming a parent. She cut out images from magazines of beautiful places she wanted to visit and people doing fun things and put them near her desk to help her keep that vision in mind.

Insure against life's risks. Bankruptcy is often caused by divorce, a death in the family, or a disability that renders someone unable to work. Conversely, protecting against those risks through insurance protects wealth. In The Quiet Millionaire, financial planner Brett Wilder writes that many people either fail to get adequate insurance or pay too much for it because they don’t understand it.

Work hard—and you'll get lucky. In his new book, Think Like a Champion, Donald Trump attributes his success to his hard work, which to outsiders often appears to be luck. But Trump says luck only comes from working hard. "If your work pays off, which it most likely will, people might say you're just lucky. Maybe so, because you're lucky enough to have the brains to work hard!" he says. That same concept, of course, was advocated by Benjamin Franklin in the 18th century. He said, "The harder I work, the luckier I get."

Practice smart budgeting. Smith recommends tracking how much you spend each month, something she does religiously. Every month, she downloads her transactions into a spreadsheet to keep her spending on track. Smith also says that, as prosaic as it sounds, maintaining a good credit score is essential to becoming and staying a millionaire. "A good credit score can save you thousands of dollars over the course of your lifetime," she says.

Do what you love. Sure, a career in finance might come with a hefty annual salary, but you probably won't excel at something you don't enjoy. That's why Corey recommends going into the field that you find yourself reading about in your spare time. He asks, "Do you read fashion magazines? Get a job in fashion. Do you read gossip blogs? Get a job in celebrity-based enterprises. Do you read Car & Driver? ESPN.com? Yahoo Pets Forum?" Even if the field doesn't seem lucrative, there are ways to make it to the top—something that's more likely to happen if you love it.

Decide how much money you really want. For many people, $1 million won't be enough. "For most Gen-X and Gen-Yers, retiring with a couple million when they are 65 won't be anywhere near enough to maintain even an average lifestyle, because that little pup called inflation is constantly nipping at your heels as you try to run towards building your own retirement nest-egg," says Cartwood. A more reasonable goal might be $3 million— an amount that Cartwood considers the minimum to be a "bare bones millionaire" these days. Consider your ideal lifestyle and what you would like to be able to fund. A mortgage of a certain size? Exotic vacations? College tuition for your children? Having a concrete goal in mind makes it easier to get there, says Cartwood.

Invest against the grain. Corey recommends making investment decisions based on the exact opposite of what everyone else is doing. Right now, for example, stocks are relatively cheap because so many people have sold off shares, which means anyone buying can get them at a discount to their values from a year ago. Corey's rule of thumb doesn't just apply to stocks. "Buy a foreclosed house, fill it up with roommates, and you can get a pretty good passive income," he suggests.

Live below your means. Even Eminem, a celebrity and millionaire, scales back his purchases out of concern for frugality. In February, London's Independent newspaper reported that as Eminem considered buying a $15,000 watch he liked, he started worrying that he should save his money instead. Eminem reportedly said, "I don't want to run out of money; I want my daughter to be able to go to college." And so far, at least, Eminem hasn't fallen victim to the financial challenges so many other stars, from Aretha Franklin to Annie Leibovitz, have faced.

On the same note, Smith says that even though she's a millionaire, no one would know it—and that's the point. She recommends saving at least 10 to 25 percent of your income. She also suggests avoiding buying "status" items, such as fancy sports cars or mansions. After all, bling doesn't make a millionaire—and in fact, too much of it can prevent you from ever becoming one.