Wouldn’t it be nice if you could get a discount on every single dollar you spend? You might not be able to achieve quite that goal, but you should certainly be able to come close. Using a variety of methods, you can make discounted purchases the norm. Here are a few of the methods I use.

Always Compare Prices

Price comparison sites like Google Product Search (formerly Froogle), Shopzilla, and even Amazon.com are among the greatest innovations of the Internet. I rarely buy anything, other than groceries and recurring household supplies, without checking prices online first. Occasionally the best price is available at a local retailer, but usually I find the best price through an online supplier.

Use Coupons and Advertised Discounts

It should be obvious that using coupons and advertised discounts is a great way to spend less money, but it’s worth a reminder. A simple change in your habits (such as eating out on nights when restaurants offer 2-for-1 specials) can have a significant impact on your budget.

Check Company Websites

Before going out to eat, dropping clothes off at the dry cleaner, or getting a haircut, I always visit the website of the company providing the service. It’s amazing how much money you can save with online coupons from these sites. Even fast food restaurants and coffee shops have discounts worth taking advantage of.

Use Your Rewards Card

To get a pseudo-discount on any full-price purchases, I pay with my rewards credit card and then pay off the balance in full each month. While the discount only amounts to 1%-5% (in the form of a cash back reward) it’s still better than nothing.

Other Forms of Discounts

One final method I use is to take advantage of deals offered as a result of other purchases. For every $50 I spend at my grocery store, I can get a 10-cent per gallon discount on a gas fill-up. With my 15-gallon tank, that’s $1.50 off each full tank of gas.

Other than a few bills that charge a convenience fee if a credit card is used, virtually all of my spending includes some form of discount. Many purchases incorporate several of the above strategies, such as finding the best price online, then applying a manufacturer’s coupon, and paying with my rewards card. To see how much of your own spending can be reduced through discounts, try this simple experiment: For the next week, consciously try to get a discount on everything you buy. You may find a few items that must still be purchased at full price, but you’ll be surprised to find how often some form of discount will apply – and remember to check into discounts for seniors, students, AAA members, etc.

What kinds of discounts have you been able to find?

Most of the personal finance advice regarding the payment of credit card bills focuses on the negative effects of only paying the minimum balance due. While these discussions are certainly worth having, paying your bill on time, regardless of the amount, is at least as important.

When your credit card bill gets paid late, a number of things will happen. First, a late payment fee generally applies. Second, interest will be charged on the outstanding balance. Third, a late payment flag may be added to your credit report. Lastly, your interest rate for the card in question (and other forms of credit that use universal default) may be instantly raised to a very high default rate. A single late payment could cause your interest rate to double or worse.

To avoid late payments, you should either automate the process or send in your payments with plenty of time to spare. Sending in at least the minimum payment by the due date is better than sending in a larger amount after the due date. If you are waiting for an upcoming source of income before paying a large amount to your credit card bill, you can always send the minimum by the due date and then make an additional payment once you receive the expected money.

Paying off your entire credit card balance each month is the most responsible way to use a credit card. But regardless of how much you are able to pay, paying at least the minimum by the due date will reduce the significant number of negative effects a late payment can have on your financial situation and credit history.

Do you always pay your credit card bill on time?

Americans are famous for acquiring lots of material possessions, and I'm sure you've heard the quote that "He who dies with the most toys wins." Obviously this isn't true, but people continue to rack up possessions whenever they can. It's not a complete surprise when American shoppers trample each other for discounts on consumer electronics. But if we can't take it all with us, what's the point?

I've been traveling for the last year, and I discovered that I didn't really need that much: basically, everything I could fit into a couple of suitcases was sufficient for over a year of traveling. What did I bring?

• A few pairs of shorts
• 2 pairs of jeans
• A few T-shirts/long-sleeve shirts
• A few important books
• My guitar

Even then, I realized I don't need everything I brought with me. I brought less clothing on my second adventure (to Argentina, where I am currently), and I am buying them here. It saves me money (I don't have to check in as many bags) and it makes traveling much cheaper.

Trent at TheSimpleDollar had a similar idea: he wrote an article about The Suitcase Test. The Suitcase Test is essentially this: if you had to pack up and leave tomorrow, what would you bring with you? What are the most important things to your survival?

If you are about to buy some items, think: how much do you need it? If you wouldn't put it in your suitcase, do you really need it?

The best way not to overspend is to only buy things that you absolutely need. The Suitcase Test is a good framework to help you see what you really need.

Do you have similar strategies for limiting the number of things you buy or accumulate?

In total, I placed 11 orders with Amazon.com in time for Christmas this year. One of the reasons why I shopped there so often was that shipping was free. When shipping is free, it really doesn't matter that I ordered so many times. Orders of $25 or more for items sold directly from Amazon (and a few select partners) qualify for free super saver shipping. This shipping method takes longer to process and ship, but since it's free, is a favorite choice of shoppers. Those who want to save money gladly endure the potential for an additional 3 to 5 business days for the item to ship from the fulfillment center and another 5 to 9 business days for the item to arrive.

An alternative way to save on shipping is the method I employed: becoming an Amazon prime member. For an annual membership fee of $79, Amazon Prime members get:

• Free Two-Day Shipping
• Upgrades to Overnight Shipping for $3.99 per item
• Free Standard Shipping for eligible items shipped to P.O. boxes in the continental United States and APO/FPO addresses with U.S. zip codes

No minimum purchase is required and the membership may be shared with up to four family members.

Whether it’s worth $79 for a prime membership depends on how much money it can save you. In addition to the savings in shipping, you also save a lot of time over the other free shipping method and you may be more inclined to purchase from Amazon (and get a better price than from local merchants). My membership more than paid for itself this Christmas and I still have 11 more months to use it.

A combination of a wide selection of products, amazingly low prices, and free shipping options from Amazon.com made my Christmas shopping easy and affordable. I'll enjoy the benefits of my prime membership throughout the year whenever Amazon offers what I'm hoping to purchase.

How much of your shopping did you do online this past holiday season?

Given the state of the economy, it should come as no surprise that many retailers have chosen to position themselves with a frugal theme, a trend they began during this holiday season. Some efforts are subtler than others, but all push the idea of doing more with less.

That phrase “doing more with less” is actually the theme in a series of Target commercials that have seen a lot of airtime recently. The ads feature the song More Where That Came From by Dolly Parton and contrast what you get more of and how it costs less.

The first ad features these comparisons, with appropriate images:
More Yummy, Less Money
More Natural, Less Nickel
More Purr, Less Purse
More Bottom, Less Dollar

The second ad continues the theme with these comparisons:
More Dinner, Less Dollar
More Soft, Less Cents
More Splash, Less Cash
More Bread, Less Dough

The third ad compares:
More Cats, Less Coin
More Bulbs, Less Buck
More Cheer, Less Ching
More Slice, Less Price

Personal finances are on the minds of most consumers at this point. Advertisers realize this and are wisely looking to appeal to the frugal side of their potential customers. While the Target ads hit the appropriate mark, others fail in their attempts to market thriftiness. Gift-wrapping an Accura instead of a Lexus may save you money, but it shouldn’t be considered frugal behavior. Spotting the differences between ads that inspire you to save money versus those that get you to spend more will be an important part of surviving the current crisis.

Has the shift towards frugality in advertising influenced your spending decisions?