This time of year, my jealous streak kicks in. While most of my friends are getting money back from the IRS, as a self-employed sole proprietor, I’m paying in. That said, if I’d more mindfully set aside money throughout the year, I could have my own chunk of cash come April 15 to spend, invest, or save any old way I choose. If you can relate, perhaps you’ll join me in stepping up your savings plan:

1) Automate your savings account. I’m covered here, as my bank automatically transfers $35 from my checking to my savings every month. Note, this isn’t a decision I made, or even an amount I chose, but one required by my bank in order for me to maintain a free checking account. Still, I don’t much as I’m forced to save, like it or not!

2) Pay off your credit card balance every month. I don’t use credit cards anymore, but if you do, be sure to pay off your balance every month. That means charging to your cards only as much as you can afford to cover with cash within 30 days. Otherwise, you’ll be throwing good money away on interest fees that represent nothing but lost revenue.

3) Shop smart:

• Make lists and stick to them.
• Take only as much cash to the store as is in your budget, leaving the plastic at home so you’re not tempted by impulse buys.
• Use coupons. You can still get them in the Sunday paper or search for them online.
• Comparison shop between name brand and generic. Though conventional wisdom says generic is always cheaper, that’s not necessarily the case anymore, especially when coupons come into play.
• Shop with a friend who knows your goals and won’t cave to your most persuasive of compulsive spending arguments.

4) Track your spending. Though the physical act of writing down what you spend won’t put money in the bank, it can certainly influence the spending choices you make in the future. For instance, if you’re buying a fancy blended coffee drink every day, that’s $150 a month you may decide is better spent on something else.

Assuming you also have a separate account set up for setting aside money for your quarterly tax payments (which every self-employed tax payer should do), then you’re sure to see dramatic changes in your financial situation come tax time next year.

Related posts:

1. Tips for Saving 6 Months Living Expenses Only 24 percent of us have 6 months living expenses...
2. Inspired Tax Tips for 2012 Whether you're a procrastinator like me, or your taxes will...
3. Will Dip in Unemployment Fuel More Spending On Black Friday? With news that unemployment has fallen in the majority of...
4. 5 New Year’s Resolutions for a Financially Fit New Year Fitness goals usually top the list of New Year's resolutions,...
5. 2011 Marks Increase in Credit Card Spending For all the kudos we've been giving to Americans for...