DAY
TO DAY LIVING
- Kitchen
- Laundry
- Clothing
UTILITIES
- Electricity
- Heating and Cooling
- Telephone
- Food
TRANSPORTATION
- Travel
- Airline Fares
- Car Rental
- New Cars
- Used Cars
- Auto Leasing
- Gasoline
- Car Repairs.
INSURANCE
-
Auto Insurance
-
Homeowner/Renter Insurance
-
Life Insurance
BANKING
-
Checking/Debit Cards
-
Savings/ Banking/Credit
LOANS/MORTGAGES
-
Auto Loans
-
Mortgage Loans
-
Mortgage Refinancing
-
Home Equity Loans
HOUSING
-
Home Purchase
-
Renting
-
Home Improvement
MISCELLANEOUS
-
Prescription Drugs
-
Funeral Arrangements
Back to LifeSkills International
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BASIC HINTS TO SAVE MONEY
(The information in this article and associated information is presented in good faith to assist you in saving money. However LifeSkills International has no control over conditions surrounding the application of this information. Betty Eddy, Echod Enterprise and LifeSkills International do not recommend any links, are not responsible for results nor can they guarantee the results and disclaim any liability associated with this information.) If you have any suggestions you would like to add to this information, email me
DAY
TO DAY LIVING
Kitchen
Reuse
plastic baggies. Buy strong baggies and wash when used. When dry, place
back in box to be used again. As you are ready to pull out a plastic baggie,
consider if you have a more permanent container you could use.
When buying food items in potentially reusable containers, consider what
size containers you could reuse. A smaller size may be slightly more expensive,
but if you could use that container over and over again, it is worth it.
Buy reusable glass and plastic containers. The firmer plastics don't leach
chemicals as readily as softer plastic.
Use oven and appliances that heat a room in the evening when temperatures
are lowest.
Cook large quantities at a time.
Do not use your oven to heat rooms.
Wash full dishwasher loads only. Air dry if you don't need to sanitize.
Use licorice to save money on straws by biting off the ends.
Laundry
Take
clothes out of the dryer as soon as they are dry to avoid the need to
iron. If you have wrinkles, hang the garment and spray with water to remove
most wrinkles.
Wash and dry full loads of laundry. Wash in cold water unless you need
to sanitize.
Hang clothes on a clothesline
Clothing
Buy
expensive items for children in the off season on sale for later. Buy
a winter jacket for next year based on the size you think he will wear.
If you see prices going even higher, you may want to consider 2 years
out.
Buy separates that coordinate.
Buy quality. It will last longer. When buying shoes, be certain they are
comfortable before you walk out the door. A nice pair of shoes that hurt
your feet are a needless waste of money.
Stick with basics that don't change from year to year.
UTILITIES
Electricity
Buy
energy star appliances.
Keep a slow cooker or crockpot filled with water in the winter to keep
moisture in the air and make the room feel warmer.
Keep
a dehumidifier going in summer to help you feel cooler.
Overhead fans help you feel cooler, but don't actually cool a room. Turn
fans off when no one is in the room.
Turn lights out when leaving a room
Schedule your highest usage during non-peak hours and during the coolest
time of day.
Do not leave your laptop or computer in sleep mode. Turn it off instead.
Consult Consumer Reports, available in most public libraries, for information
about specific appliance brands and models and how to evaluate them, including
energy use. There are often great price and quality differences. Look
for the yellow Energy Guide label on products, and especially for products
that have earned the government's ENERGY STAR, which can save up to 50%
in energy use.
Once you've selected a specific brand and model, check the Internet or
yellow pages to learn what stores carry the brand. Call at least four
of these stores to compare prices and ask if that's the lowest price they
can offer you. This comparison shopping can save you as much as $100 or
more. This applies to small appliances as well as large.
Heating
and Cooling
A
home energy audit can identify ways to save up to hundreds of dollars
a year on home heating (and air conditioning). Ask your electric or gas
utility if they audit homes for free or for a reasonable charge. If they
do not, ask them to refer you to a qualified professional.
Enrolling in load management programs and off-hour rate programs offered
by your electric utility may save you up to $100 a year in electricity
costs. Call your electric utility for information about these cost-saving
programs.
Telephone
Once
a year, review your phone bills for the previous three months to see what
local, local toll, long distance, and international calls you normally
make. Call several phone companies which provide service in your area
(including wireless and cable), to find the cheapest calling plan that
meets your needs. Consider a bundled package that offers local, local
toll and long distance, and possibly other services, if you heavily use
all the services in the bundle.
The difference in long-distance costs varies. Shop around. MagicJack
charges $20 for the USB connection and $20 a year for service and long
distance is free in the USA. It also works well as a backup for a cell
phone.
Check your phone bill to see if you have optional calling features or
additional services, such as inside wire maintenance, that you don't need.
Each option you drop could save you $40 or more each year.
If you make very few toll or long distance calls, avoid calling plans
with monthly fees or minimums. Or consider disconnecting the service altogether
and use dial around services such as 10-10 numbers or prepaid phone cards
for your calls. When shopping for dial around service, look for fees,
call minimum, and per minute rates. Treat prepaid cards as cash and find
out if there is an expiration date.
If you use a cell phone, make sure your calling plan matches the pattern
of calls you typically make. Understand peak calling periods, area coverage,
roaming, and termination charges. Contracts offered by most carriers will
provide you with a trial period of 14 days or more. Use that time to make
sure the service provides coverage in all the places you will be using
the phone (home, work etc.). Prepaid wireless plans tend to have higher
per minute rates and fees but may be a better option if you use the phone
only occasionally.
Before making calls when away from home, compare per minute rates and
surcharges for cell phones, prepaid phone cards, and calling card plans
to find how to save the most money.
Dial your long distance calls directly. Using an operator to place the
call can cost you up to $10 extra. To save money on information calls,
look the number up on the Internet, or in the directory.
For free calls to information call 1-800-373-3411. You may have to listen
to an ad, but the call is free.
Food
Many
restaurants are offering specials because of the economy.
You
can save hundreds of dollars a year by shopping at lower-priced food stores.
Convenience stores often charge the highest price.
Substitute Turkey for chicken. It's even healthier.
If you must have beef, consider the cheaper braising steak. Also try and
buy from your local butcher. They have prime cuts at good prices AND will
pack and prepare your meat in the right sizes for you and your family.
Many stores reduce prices late at night. Look for meat that is ready to
expire and is now marked down. It can last up to 6 months in your freezer.
Avoid take outs. It is cheaper to buy and cook the meal yourself.
Don't buy something you won't use just because it's on sale. Three of
something not needed is a waste of money if you only need one and cannot
store the other 2.
Saving $20 a week on your grocery bill saves over $1000 a year.
Make a list and follow it. Eat before you go grocery shopping and promise
yourself you will not impulse buy.
Make your weekly menu based on sales for that week.
Wal-Mart honors sales in other grocery store flyers. If a store is selling
their generic brand, you can buy Wal-Mart's generic brand for that price.
Stock up on what you often use when it is on sale. Perishable foods and
canned goods should be placed in back and older items used first.
If you use national brands, use coupons. $1.50 invested in the Sunday
newspaper could save you $20 or more at the checkout. Be aware of the
expiration date. Businesses are using shorter periods when coupons can
be used. Organize the coupons by type, so as you develop a shopping list
and make a notation if you have a coupon.
Store brands or generics are usually equal to the national brands in quality,
and are less expensive.
Shop at the store that is the cheapest overall and plan on going to more
than one store. Surveys have shown that there is sometimes as much as
10-15% difference on identical grocery orders at 2 different stores in
the same area. This can apply to the same company. If you spend $500 a
month on groceries, that can equate to $600 to $900 a year in savings.
You may find that driving slightly farther can save you money in the long
run. (I bought something at Wal-Mart for $59.95, found it at HEB Grocery
for $49.95 and even cheaper at another grocery, Kroger's for $35.95.)
Start a garden. Use seeds that are not hybrids because hybrid foods are
sterile. Non-hybrid fruits and vegetable seeds from the vegetable can
be replanted and produce a crop again.
If you don't have room for a garden, grow plants in pots. Use hydroponics
which is a plant grown in water instead of dirt.
You may be able to go together with other people or rent a plot of land
for a garden.
Start a compost pile with coffee grounds, peelings. Look up on the internet
on how to have a compost pile.
Buy fruit and nut trees instead of ornamental trees.
Can or dry your food.
Buy large sections of beef grown in your general area. If you cannot freeze
it all, can it. If you cannot afford a large section, go in with others
and share.
Consider having meat only once or twice a week and filling in with other
protein foods such as beans and rice or beans and corn. These are complete
proteins and, if you have a problem with gas, the more you eat gassy foods,
the more your body acclimates to it and the gas becomes less of a problem.
You can save hundreds of dollars a year by comparing price-per-ounce or
other unit prices on shelf labels. Stock up on those items with low per-unit
costs.
TRANSPORTATION
Travel
Price
differences vary extensively. Travel off season can help defray expenses.
The difference in costs on the same trip--same airline, same hotel, same
car rental--between two travelers can run into the thousands of dollars.
Take a little time to comparison shop to assure the best possible deal.
For air, hotels and cruises go to Travelocity.
Airline
Fares
Compare
low-cost carriers with major carriers that fly to your destination. Remember,
the best fares may not be out of the airport closest to you.
You may save by including a Saturday evening stay-over or by purchasing
the ticket at least 14 days in advance. Ask which days of the week and
times of the day have the lowest fare.
Even if you are using a travel agent, check airline and Internet travel
sites, and look for special deals. If you call, always ask for the lowest
fare to your destination.
Car Rental
Since
car rental rates can vary greatly, compare total price (including taxes
and surcharge) and take advantage of any special offers and membership
discounts.
Rental car companies offer various insurance and waiver options. Check
with your automobile insurance agent and credit card company in advance
to avoid duplicating any coverage you may already have.
New Cars
You
can save thousands of dollars over the lifetime of a car by selecting
a model that combines a low purchase price with low depreciation, financing,
insurance, gasoline, maintenance, and repair costs. Ask your local librarian
for new car guides that contain this information.
Having selected a model and options you are interested in, you can save
hundreds of dollars by comparison shopping. Get price quotes from several
dealers (over the phone or Internet) and let each know you are contacting
the others.
Remember there is no "cooling off" period on new car sales.
Once you have signed a contract, you are obligated to buy the car.
Used Cars
Before
buying any used car:
- Compare the seller's asking price with the average
retail price in a "bluebook" or other guide to car prices which
can be found at many libraries, banks, and credit unions.
- Have a mechanic you trust check the car, especially if the car is sold "as is."
Consider purchasing a used car from an individual you know and trust.
They are more likely than other sellers to charge a lower price and point
out any problems with the car.
Pay cash for any vehicle you buy. Consider maintenance, insurance and
operating expenses.
Auto Leasing
Don't
decide to lease a car just because the payments are lower than on a traditional
auto loan. The leasing payments are lower because you don't actually own
the car.
Leasing a car is very complicated. When shopping, consider the price of
the car (known as the capitalized cost), your trade-in allowance, any
down payment, monthly payments, various fees (excess mileage, excess "wear
and tear," end-of-lease), and the cost of buying the car at the end
of the lease. A valuable source of information about auto leasing can
be found in Keys to Vehicle Leasing: A Consumer Guide, which is published
by the Federal Reserve Board and Federal Trade Commission.
Gasoline
You
can save hundreds of dollars a year by comparing prices at different stations,
pumping gas yourself, and using the lowest-octane called for in your owner's
manual.
You can save up to $100 a year on gas by keeping your engine tuned and
your tires inflated to their proper pressure.
Cheap gas has no additives and may contain water which can damage your
vehicle.
Car Repairs
Consider
the vehicles you now own. If you own a gas guzzler, consider trading it
in for a more economical car. You could spend less for a newer car than
what you now pay for repairs.
Keep your vehicle maintenance up to avoid major repairs.
Keep your gas tank at least half full at all times.
Avoid using the car air conditioner when it is not really hot. Car air
conditioners alone can take up to 20% in gas.
Use your cruise control to save even more gas.
Watch your driving habits. Driving fast and putting your foot on the brakes
takes more gas and wears on your brakes.
Consumers lose billions of dollars each year on unneeded or poorly done
car repairs. The most important step that you can take to save money on
these repairs is to find a skilled, honest mechanic. Before you need repairs,
look for a mechanic who:
- is certified and well established;
- has done good work for someone you know; and
- communicates well about repair options and costs.
INSURANCE
Auto Insurance
Shop
around for the best insurance, but also ask others how insurance companies
paid off when they had a need. A lower cost is only as good as the customer
service behind it. One person had an accident in a parking lot and when
they called their Progressive Insurance, Progressive wouldn't pay because
the other person had Progressive and called in first. Surf the net, ask
your friends or call your state insurance department for ideas about companies
and agents to contact.
You can save several hundred dollars a year by purchasing auto insurance
from a licensed, low price insurer. Call your state insurance department
for a publication showing typical prices charged by different companies.
Then call at least four of the lowest-priced, licensed insurers to learn
what they would charge you for the same coverage.
Ask
for Higher Deductibles in collision and comprehensive (fire and theft)
coverage, you can lower your costs substantially. For example, increasing
your deductible from $200 to $500 could reduce your collision and comprehensive
cost by 15% to 30%. If you have an old car, consider dropping this coverage
altogether. This can save you hundreds of dollars on insurance premiums.
(Check with your insurance agent to see how much you would save each year.)
Make certain that your new policy is in effect before dropping your old
one.
Some companies offer discounts to motorists who drive fewer than a predetermined
number of miles a year.
Homeowners/Renter
Insurance
Deductibles
on homeowner's policies typically start at $250. By increasing your deductible
to $500, you could save up to 12%.
You
can usually get discounts of at least 5% for a smoke detector, burglar
alarm or dead-bolt locks.
When you get homeowners, car and life insurance from the same company,
you get a break.
For
more information go to Saving on Homeowners
Insurance.
Netquote Since 1989, NetQuote® has provided consumers with a free, simple, and effective way to fulfill their insurance shopping needs Insureme.com gives insurance quotes from insurance companies.
You
can save several hundred dollars a year on homeowner insurance and up
to $50 a year on renter insurance by purchasing insurance from a low-price,
licensed insurer. Ask your state insurance department for a publication
showing typical prices charged by different licensed companies.
Call at least four of the lowest priced insurers to learn what they would
charge you. If such a publication is not available, it is even more important
to call at least four insurers for price quotes.
Make certain you purchase enough coverage to replace the house and its
contents. "Replacement" on the house means rebuilding to its
current condition.
Make certain your new policy is in effect before dropping your old one.
Life Insurance
If
you want insurance protection only, and not a savings and investment product,
buy a term life insurance policy.
If
you want to buy a whole life, universal life, or other cash value policy,
plan to hold it for at least 15 years. Canceling these policies after
only a few years can more than double your life insurance costs.
Check
the National Association of Insurance
Commissioner's website or your local library for information on the
financial soundness of insurance companies.
BANKING
Checking Accounts and Debit Cards
You
can save more than $100 a year in fees by selecting a free checking account
or one with no minimum balance requirement. Request a complete list of
fees that are charged on these accounts, including ATM and debit card
fees.
See if you can get free or lower cost checking through direct deposit
or agreeing to ATM only use. Be aware of charges for using an ATM not
associated with your financial institution.
Savings/
Banking/Credit
Before
opening a savings account, find out whether the account is insured by
the federal government (FDIC for banks or NCUA for credit unions). Financial
institutions offer a number of products, such as mutual funds and annuities,
which are not insured.
Banking/Credit
Once
you select a type of savings account, use the telephone, newspaper, and
Internet to compare rates and fees offered by different financial institutions,
including those outside your city.
These
rates can vary a lot and, over time, can significantly affect interest
earnings.
To
earn the highest return on savings (annual percentage yield) with little
or no risk, consider certificates of deposit (CDs) or U.S. Savings Bonds
(Series I or EE).
To avoid late payment fees and possible interest rate increases on your
credit cards, make sure you send in your payment a week to ten days before
the statement due date. Late payments on one card can increase fees and
interest rates on other cards.
You
can avoid interest charges, which may be considerable, by paying off your
entire bill each month. If you are unable to pay off a large balance,
pay as much as you can. Try to shift the remaining balance to a credit
card with a lower annual percentage rate (APR). You can find listings
of credit card plans, rates, and terms on the Internet, in personal finance
magazines, and in newspapers.
Be aware that credit cards with rebates, cash back, travel awards, or
other perks may carry higher rates or fees.
LOANS/MORTGAGES
Auto Loans
To
save as much as several thousand dollars in finance charges, pay for the
car in cash or make a large down payment. Always get the shortest term
loan possible as this will lower your interest rate.
Make
certain to get a rate quote (or pre-approved loan) from your bank or credit
union before seeking dealer financing. You can save as much as $1000 in
finance charges by shopping for the cheapest loan.
Make
certain to consider the dollar difference between low-rate financing and
a lower sale price. Remember that getting zero or low-rate financing from
a dealer may prevent you from getting the rebate.
Mortgage
Loans
Although
your monthly payment may be higher, you can save tens of thousands of
dollars in interest charges by shopping for the shortest term mortgage
you can afford. For each $100,000 you borrow at a 7% annual percentage
rate (APR), for example, you will pay over $75,000 less in interest on
a 15-year fixed rate mortgage than you would on a 30-year fixed rate mortgage.
You
can save thousands of dollars in interest charges by shopping for the
lowest-rate mortgage with the fewest points. On a 15-year $100,000 fixed-rate
mortgage, just lowering the APR from 7% to 6.5% can save you more than
$5,000 in interest charges over the life of the loan, and paying two points
instead of three would save you an additional $1,000.
Check the Internet or your local newspaper for mortgage rate surveys,
then call several lenders for information about their rates (APRs), points,
and fees. If you choose a mortgage broker, make certain to compare their
offers with those of direct lenders.
Be aware that the interest rate on most adjustable rate mortgages (ARMs)
can vary a great deal over the lifetime of the loan. An increase of several
percentage points might raise payments by hundreds of dollars a month,
so ask the lender what the highest possible monthly payment might be.
Sell any homes that you don't live in before the value goes down.
Mortgage
Refinancing
Consider
refinancing your mortgage if you can get a rate that is lower than your
existing mortgage rate and plan to keep the new mortgage for at least
several years. Calculate precisely how much your new mortgage (including
points, fees and closing costs) will cost and whether, in the long run,
it will cost less than your current mortgage.
Home Equity
Loans
Be
cautious in taking out home equity loans. The loans reduce or may even
eliminate the equity that you have built up in your home. (Equity is the
cash you would have if you sold your house and paid off your mortgage
loans.) If you are unable to make payments on home equity loans, you could
lose your home.
Compare home equity loans offered by at least four reputable lending institutions.
Consider the interest rate on the loan and the annual percentage rate
(APR), which includes other costs, such as origination fees, discount
points, mortgage insurance, and other fees. Ask if the rate changes, and
if so, how it is calculated and how frequently, as this will affect the
amount of your monthly payments.
HOUSING
Home Purchase
You
can often negotiate a lower sale price by employing a buyer broker who
works for you, not the seller. If the buyer broker or the broker's firm
also lists properties, there may be a conflict of interest, so ask them
to tell you if they are showing you a property that they have listed.
Do not purchase any house until it has been examined by a home inspector
that you selected.
Renting
Do
not limit your rental housing search to classified ads or referrals from
friends and acquaintances. Select buildings where you would like to live
and contact their building manager or owner to see if anything is available.
Remember that signing a lease probably obligates you to make all monthly
payments for the term of the agreement.
Home Improvement
Home
repairs often cost thousands of dollars and are the subject of frequent
complaints. Select from among several well established, licensed contractors
who have submitted written, fixed-price bids for the work.
Do not sign any contract that requires full payment before satisfactory
completion of the work.
MISCELLANEOUS
Prescription Drugs
Since
brand name drugs are usually much more expensive than their generic equivalents,
ask your physician and pharmacist if a less expensive generic or an over
the counter alternative is available.
Since pharmacies may charge widely different prices for the same medicine,
call several. When taking a drug for a long time, also consider calling
mail-order pharmacies, which often charge lower prices.
Funeral
Arrangements
Plan
ahead. Make your wishes known about your funeral, memorial, or burial
arrangements in writing to save your family or estate unnecessary expense.
For information about the least costly options, which may save you several
thousand dollars, contact a local Funeral Consumer Alliance or memorial
society, which are usually listed in the Yellow Pages under funeral services.
Before selecting a funeral home, call several and ask for prices of specific
goods and services, or visit them to obtain an itemized price list. You
are entitled to this information by law.
COMPARE PRICES LINKS
Ebay
could save money because you can make comparisons among a number of sellers
and you may be able to find second-hand merchandise.
Lowermybills.com
offers comparisons on a variety of topics from mortgages to photography.
An excellent resource for comparisons is Lending
Tree Mortgage Loans where you can submit a loan request form and within
3 business days get up to 4 offers from competing lending institutions.
WARNINGS
If
you have a hobby, set a hard rule that whatever you allow yourself to
spend on your hobby, you match those funds to your savings. For example,
if you buy yourself a $45 pair of riding gloves, another $45 goes to your
savings. No excuses.
If you receive unexpected cash, put all or most of it into your savings,
but continue to set aside your regularly scheduled amount as well.
Make
purchases with paper money, not exact change, and save the change. Use
a piggy bank or jar for your coins. They may look insignificant but when
accumulated over time they can help you save.
Do not go out "window shopping" with any money in your pocket.
You will only be tempted to spend money you cannot afford to lose. Only
shop with a predetermined shopping list.
After a long week of working, you may believe you have the right to indulge
in some luxury. Tell yourself, "Of course I deserve this, but can
I afford it? If I can't afford it, I'm still a worthy person, and I still
deserve to meet my savings goals!"
Unless you're in truly desperate financial straits (like 10 seconds from
eviction and your three children are starving) don't try to cut corners
connected to health. Basic preventative care for yourself, your family,
and your pets might cost you a $60 office visit or a $30 heartworm pill
today, but the skipping it will contribute to expensive problems and heartache
down the road. http://afewtips.com/articles/home-and-family/tips-for-saving-money
has more tips on saving money.
REACHING
YOUR SAVINGS GOAL
Consider whether you have a purpose for saving. What is your goal? This
will help you motivate yourself to save more and spend wisely. Figure
out how much you will have to save per week, per month, or per paycheck
to reach each of your savings goals. Take each thing you want to save
for and figure out how much you need to start saving now. For most savings
goals, it's best to put away the same amount each pay period. For example,
if you want to put a $20,000 down payment on a home in 36 months (three
years), you'll need to save about $550 per month every month. But if your
paychecks amount to $1000, it might not be a realistic goal, so adjust
your time-frame until you come up with an approachable amount.
Keep a record of your expenses. What you save falls between two activities
and their difference - how much you make and how much you spend. Look
at sales slips and see what you are spending money on now. Since you have
more control over how much you spend, it's wise to take a critical look
at your expenses. Write down everything you spend your money on for a
couple weeks or a month. Be as detailed as possible, and try not to leave
out small purchases. Assign each purchase or expenditure a category such
as: Rent, Car insurance, Car payments, Phone Bill, Cable Bill, Utilities,
Gas, Food, Entertainment, etc. Keep a small notebook with you at all times.
Get in the habit of recording every expense and saving the receipts. Sit
down once a week with your small notebook and receipts. Record your expenses
in a larger notebook or a spreadsheet program.
Consider how you want things to change. Making a journal of your expenses
and your savings helps you look at it and make changes, but also helps
you see how far you have come. Set a specific date along with a desired
amount that you wish to save.
Take a serious look at your spending records after a month or two have
passed. You'll probably be surprised when you look back at your record
of expenses: $300 on ice cream, $100 on parking tickets? You'll likely
see some obvious cuts you can make. Depending on how much you need to
save, however, you may need to make some difficult decisions. Think about
your priorities, and make cuts you can live with. Calculate how much those
cuts will save you per year, and you'll be much more motivated to pinch
pennies.
Considerations:
- Can you move to a less expensive apartment or
house? Can you refinance your mortgage?
- Can you consolidate your debts so that you're
not paying as much interest?
- Can you save money on gas, or give up a car
altogether? If your family has multiple cars, can you bring it down to
one or two?
- Can you drop a land line and only use your cell
phone?
- Can you live without cable or satellite TV?
- Can you cut down on your utility bills?
- Can you restrict eating out? Buy food in bulk?
Cook more at home? You might be able to save a lot of money on food. (See
food section)
Subtract your expenses (the ones you can't live without) from your take-home
income (i.e. after taxes have been taken out). What is the difference?
And does it match up with your savings goals? Let's say you've decided
you can definitely get by on $1500 per month, and your paychecks amount
to $2300 per month. That leaves you with $800 to save. If there's absolutely
no way you can fit all your savings goals into your budget, take a look
at what you're saving for and cut the less important things or adjust
the timeframe. Maybe you need to put off buying a new car for another
year, or maybe you don't really need a big-screen TV that badly.
Once you've managed to balance your earnings with your savings goals and
spending, write down a budget so you'll know each month or each paycheck
how much you can spend on any given thing or category of things. This
is especially important for expenses which tend to fluctuate, or which
you know you're going to have a particularly hard time restricting. (E.g.
"I will only spend $30 a month on movies/chocolate/coffee/etc.")
Stop using credit cards. Pay for everything with cash. It's easier to
overspend when you're pulling from a bank or credit account because you
don't know exactly how much is in there. If you have cash, you can see
your supply running low. You can even bundle up the predetermined amount
of cash allocated for each expense with a label or keep separate jars
for each expense (e.g. a bundle/jar for coffee, another for gas, another
for miscellaneous). As you pull money from a jar for that particular expense,
you'll see how much remains and you'll also be reminded of your limit.
- If you need to have credit cards but you don't
want the temptation of having them available to use day-to-day, restrict
that section of your wallet with a note or picture reminding you of your
savings goals.
- Credit cards are not inherently evil if you
completely pay them off every month. But the reason most credit card companies
make money, however, is because people end up spending money that they
don't have. Unless you are one of the people who can religiously pay off
the balance in full every month, you're better off foregoing the promotions
that credit card companies use to lure you in (cash back, introductory
APR, airline miles, and so on).
Consider your upcoming needs, beginning with biggest items first to the
smallest items. Those include Shelter, food, clothing, transportation.
Just about everything else is not a need. It has become a luxury. You
don't need cable. When you are ready to buy something, consider if it
is a want or a need. Could you live without it even though you are used
to having it? If it means the item or going without food, which takes
priority. If you are willing to go without food, take the money you would
save, and save it until you can pay cash for your item.
As you are ready to throw something away, look at it and consider if you
can possibly use it for storage.
Borrow or rent what you need instead of buying it. That works for anything
from a book to a backhoe.
Take care of your debt first. Start by paying off the small debts, paying
a little more than needed on each payment, then take the amount you were
spending on that debt to pay off the next larger debt and so on until
the debt is paid off. You may have to take on another job to bring in
more money. When all debt is paid off, start saving your money.
Open a savings account. It's easier to keep track of your savings if you
have them separate from your spending money. You can usually get better
interest on savings accounts than on checking accounts. Senior citizens
can usually get all accounts with no charges. This includes a variety
of extras as well.
Be aware of how much you have in the bank before you spend any more. If
you accidentally overdraw your bank account, you will incur bank fees
and the place you paid with that check may add a bounced check fee as
well and send the check in again, resulting in a second overdraft fee
from the bank! A few cents missing to cover that check could result in
over $100 in fees.
Deposit savings into an account (or your piggybank) as soon as you get
paid. Consider depositing 10% of every check in a savings account.
Set up an automatic transfer from your checking account to your savings
account and/or retirement.
Free
Money Savings Ebook "66 Ways to Save Money" is now being
distributed in English and Spanish by CFA and the FCIC. A grant from MoneyManagement
International, a nonprofit community service organization offering free
credit counseling and financial education (visit www.MoneyManagement.org
or call 1-866-490-5362), covers the cost of printing. For an online version
of this brochure, go to www.66ways.org. For information on bulk orders
contact: Save Money, Consumer Federation of America, 1620 Eye Street,
NY, Suite 200, Washington, D.C. 20006 or email 66ways@consumerfed.org
. The information from this book is found within each category.
- Check out powertosave.com to compare electricity prices. Spring and fall prices are normally lowest.
-
Information
on Debt Advice
- General
Shopping Thoughts
- The perfect gift for turning 1
- Shopping for Fittness Equipment
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Designer
Clothing
- Money
Saving Hints
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Books,
More
Books
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Shopping Hints
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Shopping
for the Home
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Take
the Stress out of Buying a New Car
- Sales