The following post is a guest post by Cassie of MrsJanuary.com.  Enjoy!

Was one of your New Year’s Resolutions to save more and spend less?

If so, you’re not alone. Saving more and spending less has been one of the top 3 resolutions for years now.

Unfortunately, many people fail or give up on their resolutions by the end of January. So if you’re still at it in February – good for you! You’ve made it past the hardest part of your journey to financial happiness.

One of the best ways to save money is to adopt a frugal lifestyle. Frugal does not have to equal boring – you just have to be creative with the free and low cost resources that you have available.

Below are 5 ways that you can become more frugal in 2012.

1.  Learn to say no.

This is something that a lot of people seem to have problems with. They say “yes” to every opportunity that comes their way, without first thinking about whether or not they truly want to spend the money to do whatever it is that was suggested to them.

If a friend invites you to a movie, suggest watching one at home. If a relative wants to spend the day at an amusement park with the kids, suggest a free museum. If a co-worker thinks a trip to the book store would be fun, suggest the library.

In addition to enjoying time at home, there are many free activities available in your community. Consider them before you go out and spend money on entertainment.

2. Switch to homemade coffee.

Are you one of those coffee drinkers that picks up a cup of caffeine on the way to work each morning? If so, stop! Coffee shops have over-inflated prices and you will end up paying way more for your coffee than you would if you just made it yourself.

There are many great coffee brands on the market (Van Houtte, Melitta, even Starbucks and Tim Hortons sell their coffee in stores) that taste just as good – if not better than the kind you will pay 10x the price for at your local coffee shop.

3. Stockpile groceries.

I’m a big fan of stockpiling. I believe that in addition to using coupons, stockpiling is one of the best ways that you can save money off your grocery bill each and every month. It’s a fantastic way to avoid paying full price at the grocery store!

Set aside a bit of money each month for stocking up on great deals. When those bargains come around, pick up as many as you need and can afford, and add them to your stockpile.

4. Invest in energy efficient products.

There are some things you should spend your money on, such as energy efficient products.

If you’re in the market for a new dishwasher, refrigerator, washer and/or dryer or chest freezer – take a look at the energy efficient models available. They may cost a bit more, but considering all the money they will be saving you in the future, they are well worth the investment.

Don’t forget about smaller energy efficient products, such as CFL light bulbs. These do cost more than traditional incandescent light bulbs, but they last much longer and are much more environmentally friendly. Our hydro bill was cut in half (and no, that’s not an exaggeration!) when we switched from incandescent to CFL light bulbs. I’d say that was well worth the extra bit of money we spent to make the switch!

5. Buy used.

One way to save a ton of money this year is to buy used for everything you possibly can. Do you need new clothes for your kids? Check out thrift stores in your area. Need a new couch? Online classifieds are great for that!

Just because something is used, doesn’t mean that it’s garbage and that it can’t be used and enjoyed by someone else. Before you head to your local big box store, check out all of the alternatives – try to buy used instead.

I’m often told that people who are frugal are just “cheapskates” that are boring and never fun. I have to laugh, because of all my frugal friends, none of them are boring and they are all a ton of fun (some more so than my friends who choose NOT to be frugal!).

Being frugal does not mean you live a life of deprivation. You are simply being smart about the resources that you have and learning to love the simple life.

Cassie Howard is a stay at home mom living in Mississauga, Ontario. She writes daily on her personal finance blog, MrsJanuary.com – a website dedicated to frugal living. She’s what many would call an extreme couponer and saves a minimum of 50% off her grocery bill every week by using coupons.

Statistics Canada released its inflation numbers for the 12 months to March 2011.  At that time the Consumer Price Index rose 3.3 per cent, the largest year-over-year increase since September 2008. If inflation continues to trend high and interest rates start to rise it will become even harder for people to make ends meet. The Bank of Canada has been advising Canadians to take control of their spending and start saving since the Fall of 2010.

One area Canadians need to take a more aggressive approach to reducing their spending is at the grocery store. Putting together a money-saving strategy for grocery shopping will have a positive impact on your finances and allow your savings to increase at a faster rate.

Focus on your household budget as if you owned a business and the bottom line is your savings. Every spending decision you make affects your household’s bottom line.

Try to implement these strategies to save money at the grocery store:

Menu planning: 

• Save money by planning a weekly menu
• Keep track of the staples in your larder; be careful not to over buy
• Create a grocery list

Weekly Flyers

• Review the flyers from the stores in your area
• Match sale items to your grocery list
• Look for key words – ‘save’, ‘2 for 1’, ‘price dropped’, ‘price match’
• Use coupons on sale items to save even more money
• Buy fruits and vegetables in season

Do it yourself

• Bake your next birthday cake: a cake mix and tin of icing can save at least $10 over a store-bought cake-turn it into a family activity
• Avoid unnecessary vegetable spoilage by:  Washing lettuce and peeling carrots as you need them – the pre-washed, bagged vegetables spoil quicker once the bag is open
• When ground beef is on sale make your own hamburger patties and freeze them for future use

Be a Price Conscience Shopper

• Prices vary between grocery stores; make sure you are buying the sale item at the lowest price
• Buy store brands instead of national brands especially if they are the same
• Check the non-traditional stores, such as drug stores, for price comparisons
• Buy in bulk when it makes sense
• Don’t use your credit card to pay if it means going further into debt
• Don’t invest so much – it leaves you short for other purchases
• Purchase non-perishable items, ie paper products

For more everyday money-saving strategies Consolidated Credit has free PDF versions of their booklets available at: http://www.consolidatedcredit.ca/personal-finances/money-management/smart-spending

Jeffrey Schwartz is the Executive Director of Consolidated Credit Counseling Services of Canada and President of the Credit Association of Greater Toronto (CAGT).  Consolidated Credit is a national non-profit credit counseling organization that teaches consumers about personal finance through web-based budget and debt analysis tools, financial literacy community outreach programs and in-person or telephone counseling.  CAGT is a non-profit association with a mission to provide a dynamic forum in which members can share information and expertise. 

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