Money Sense
This is a new year, so lets get to saving!!!!!
Here's a roadmap for
finding money you didn't know you had.
I have no excuse for my inadequate savings. And neither do you. most significant savings factor was no more jaw-dropping than this: Ya just gotta save it.
But hooooow, you whine? How can you save a red cent when you just barely live on what you earn? Well, since you asked:
Saving is a two-step process. First you retrain your brain, and then you find all kinds of clever ways to live on less (many of which are conveniently located below).
1) Saving money is a state of mind. Before you can start, you have to renounce the spending -- and stop believing you actually need all the stuff you've been spending money on. Just don't. Spend, that is. Sure you want it, but that's no excuse for buying it.
2) The next time you want to buy something, take the $50 or $100 out of your wallet, and stash it somewhere. See? That's called saving. You don't end up with stuff; you end up with MONEY. A few other tips for the brainwashing youčre about to do:
3) Accept frugality as your savior. Become a closet cheapskate and emulate your frugal friends. Note that they fix the shower curtain instead of buying a new one. Sit down with Depression-era relatives and ask about economizing.
That's what I did. And, yea, did the spirit of saving take hold of me!
4) Seek inspiration. Get thee onto Google or Yahoo! or MSN Search and type in "living cheaply," "frugal living" and "voluntary simplicity." You'll find a gazillion websites devoted to living on less, including thefrugalshopper.com, simpleliving.net and Frugalliving.com.
5) Cry poverty -- with style. Learn handy phrases like, "Let's eat somewhere cheap." And "Shopping? Blech. Let's go for a bike ride." It's less embarrassing than you'd think, because more people are in your shoes than you think -- and they'll be grateful you spoke up.
There are a thousand ways to live on less. But you don't want to make your life a misery. Here are some of the most painless ways you can economize, without losing out on quality of life.
1) Don't even think about it. Direct deposit is a saver's best friend because the money is whisked away into your IRA, 401(k) or money market account -- and you don't have to do a thing. Except drop by your payroll department and/or your bank and fill out the damn forms.
2) Go veggie. If you can do three meatless days a week (without substituting pricey fish), you could save $25 a week, which equals $100 a month, which equals $1,200 a year! Beans: Ya gotta love 'em.
3) Play money games. Whenever you get a $5 bill, put it aside. Or do it with ones, with quarters, or all your spare change. You'll have a nest egg before you miss a nickel.
4) Never spend a windfall. Take your income-tax refund, the $16.35 overpayment check from the telephone company and any other extras and save 'em.
5) Haggle. You'd be amazed at who will drop their prices, fees and interest rates: airlines, hotels, credit card companies, computer/appliance/rug salespeople.
6) Re-evaluate. Re-evaluate. Re-evaluate. That dinner out cost more than you spend on groceries in a week. That pair of shoes is worth what it would cost to fill up that tank for at least a couple of weeks. Learn what your money is worth, and you won't be so quick to dispose of it.
7) Raise your insurance deductibles. Reassess the deductibles for various kinds of insurance. If you can raise them, your premiums drop.
8) Get your mortgage costs down. First, look at whether the rate is too high. If it is, look at refinancing -- if you'll save money. Next, let's look at the private mortgage insurance (PMI) you've been paying because you didn't have enough money to make a 20% downpayment.
You're protecting the lender, not you. If the equity in your home is greater than 22%, demand that your lender cancel it. It's the law.
9) Lastly, pay ahead on your mortgage. If you can swing an extra $100 per month, you will save thousands in interest costs over the long haul.
10) Don't pay unnecessary fees. Like the $1.50 you pay just because the ATM is right there, right now as opposed to walking two blocks to your bank, where you don't get charged every time you use your cash card. Or the late fees for returning videos. I know a woman who paid $60 in late fees to a video store last year. (It wasn't me.) Or those fat charges banks hit you with when you write a check that, well, bounces.
11) Clean it yourself. I've discovered a nifty trick: When a clothing label says, "Dry Clean Only," I wash it. Or I dab out that little coffee stain with an old-fashioned cleaning device known as a sponge.
12) Pay less for long-distance. Evaluate your phone bill and see how much you're paying per minute. Some dial-around codes or cheap calling cards (one without a surcharge per call) may give you a better rate. Not only do you save, but you may find you won't need to speak to "Al" in wherever so often.
13) Never pay full price. If you must shop, for pete's sake, discover the online world of discount Web sites. Ebay is still OK, but half.com and craigslist.org are excellent sources of "lightly used" goods -- everything from books to jewelry to office furniture.
I could go on an on, but let's stop here. If you follow even a few of these tips (as I have) you'll end up with a substantial chunk of extra cash every month.
Just stay in the savings state of mind, and don't blow it on those sales, OK?
