Saving Strategies

When it comes to saving money, there are a number of techniques one can employ. Some people claim less deductions than they are entitled to in order to get a windfall come tax season. Others collect spare change in penny jars. Others squirrel away their money in their mattress (and given the alarming rate of bank failures this year, one can hardly blame them!). Some strategies are more effective than others if you're truly serious about bolstering your bank account.

Here's a look at the pros and cons some techniques that are certainly a better bet than stashing your cash in a Posture-pedic:

1. Planner/Manager: Creating budgets, tracking expenses and analyzing cash flow is the most methodical technique when managing your money. Personal finance management tools like moneyStrands can make the daunting task of itemization a breeze. The one thing planner/managers need to watch out for is remembering to add a budget line for "fun" in their plan.

2. Minimalist: Get Rich Slowly had a great post about simplifying your finances using this technique. The strategy often involves a "Just Say No" attitude when it comes to spending. Instead of an overflowing closet, the minimalist counts on classic "investment" pieces. They don't buy in bulk. Waste not, want not and less is more is their mantra. While the minimalist is genius at avoiding clutter, they may miss out on the opportunity to take advantage of a killer deal due to lack of closet space.

3. Pay As You Go: This technique relies on a "cash only" policy. No credit cards, no impulse spending. Although it's a great strategy for not overspending and staying out of debt, it doesn't necessarily translate into saving money. And, for some odd reason, more and more businesses are not accepting cash.

4. Bargain Hunter: Price comparison, coupons, promo codes, clearance sales are the tools of this technique. Spending money wisely by getting the best price and value is the upside of this strategy. As long as the deals and discounts are on things one actually NEEDS. To maximize the effectiveness of bargain hunting, these smart spenders should put the money they save into an interest bearing bank account.

5. Wheeler Dealer: This strategy requires mastering the fine art of negotiation. Haggling and bartering are not just money-saving methods to the wheeler dealer, they are an adrenaline-rush. While this technique can be as much fun as participating in a sporting event (for those of us who actually LIKE participating in sports...), it can be quite time intensive so that needs to be weighed against the cost benefit.

6. Freegan: It might start as collecting free samples, then progresses to cruising Costco for food samples or perhaps salvaging that abandoned sofa for your rec room. If you end up squatting in abandoned buildings--or worse, your parents' basement, then you may have taken your passion for freebies just a bit too far.

Which strategy defines the way you save money? Choose the one that describes you best in the poll below: