If we were all honest with ourselves, we probably all wish that we were rich. Filthy, stinking, abundantly rich. My husband and I are no exception. A few months ago, we–rather I–gave birth to a perfect little baby boy. Our sweet little man is the most wonderful addition to our happy twosome, but my goodness…he ain’t cheap. Little Man often causes us to have conversations that go something like this:

If we won the lottery, we’d pay off the house, pay for college tuition, and travel the world. Oh, and we’d buy houses and set up college funds for all of our friends and family. And we’d never have to worry about the price of gas again. And we’d buy a lifetime supply of Haribo Gummi Bears.

Hubby and I may never actually win the lottery (probably because we don’t play), but we have determined that we don’t have to have million dollar incomes to live well, provide a good life for our son, and build wealth. Tightening the purse strings on the monthly budget so that we can save money and reduce debt along the way is our primary strategy. My ol’ pal Dave Ramsey puts it this way: Live like no one else so that later you can live like no one else.

So how do we spend less so we can save more? Couponing is a personal fave. I’m aiming to spend $200/month on groceries with a little help from the Sunday newspaper, and online coupon sites like Coupon Mom and Coupon Cabin.

What ideas do you have to spend less?

My dad is a cool guy and I’m very glad that I grew up to be just like him. My dad and I love cleanliness, sarcasm, the weather, and saving money.

We are both ‘natural savers’ and he taught me to think twice before I bought something, anything. He taught me to save for the future, that debt is usually a bad thing, and to not buy something just because it’s “cheap”.

My dad and I are not in the majority when it comes to finances, however. Credit card debt is is how some people get by and saving money is most likely an afterthought for the average family.

Call me crazy, but this recession could have a benefit or two. We could be learning that it is possible to live a simpler, more conservative life-style and still be happy. In fact, personal finance trends have already begun to change.

This article in the Wall Street Journal talks about how the U.S. savings rate could be going up for the first time in years. Since 1980, the savings rate has declined every year until about 2005 when the savings rate actually went to zero. This means that people have dipped into their savings account to pay for everyday things and have relied on credit to get by.

According to the WSJ article, household debt actually declined in 2008 for the first time since the Federal Reserve began tracking it in 1952.

Now that people are getting rid of some debt, they have more money to save. People are seeing the necessity of an emergency fund for unexpected expenses since jobs have become so unstable.

How about some saving strategies to help us jump on the savings bandwagon? Here’s what my lessons from Dad have taught me:

• Set up automatic withdrawal to my savings account. Some people do this in a Christmas Club account, but you can automatically withdraw money into a regular savings account too. The trick is to forget that money exists and live on only what’s in your checking account. You’ll be saving for your future in no time.
•  Budget. This is the step that most people skip over because it seems too difficult. But it’s worth it. If you aren’t a natural budget-er, get a little help from a software like Quicken or a free website like mint.com. Having a budget will help you see where you spend too much and it will be easier to see where you can cut back.

So, turns out, my Dad played a huge role in how I handle my finances. Not because we sat down and had a lesson everytime he balanced his checkbook or made a big purchace, but because I watched him. Kids see more than we think and I’m thankful for my Dad because he passed great lessons on to me, sometimes without even knowing it.