Here's the Best Way to Save Even More

Need to spend less? Here's the best way to go about it. Hint: It's not just the little things that add up

Joe Raedle / Getty

As the U.S. descends from its decades-long, debt-fueled, free-spending high, Americans are finding ways to save more money. In March, the average person saved 4.2% of disposable income, compared with just 0.2% a year earlier. Thanks to a deep recession, our buy-it-now-and-buy-it-big culture is moving into a lower gear, at least temporarily.

Downshifting on consumption is tough, when the intuitive way most people think about cutting back is to trim daily cash expenditures--especially the petty indulgences--on the fly. There's a danger, though, in forcing yourself to save $4 a day by passing up Starbucks every morning. "If you feel like you're...

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