Do The Math

The third "R", 'Rithmatic...

Last but certainly not least, when making any financial decision sit down and figure up the total cost of what you are doing. Compare all of your options and settle on the one that makes the best sense. A good example of where a lot of people are paying too much is a cell phone plan. When was the last time you shopped around for a different cell provider? How about your cable service?

What I do with any monthly bill I have is I look at what the service is costing me annually. It's a much bigger figure and saving a few dollars each month adds up to big savings at the end of the year!

Tip of the day: Buy a prepaid phone at Wal-Mart and switch the SIM card. Unless, of course you're getting a free phone from your carrier. Chances are you may save money not having a two year contract...