Tag Archives: Saving Money

9 Basic Pieces of Money-Saving Advice No One Follows – But Should

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download (1)Good advice can be hard to take – especially when it comes to money. Often, the thing that’s best for us is the thing we really don’t want to do. Saving more and spending less is boring; why do that when you can have fun now?

Well, you know what else sounds boring? Working for the next 50 years.

There are some very basic pieces of money advice that experts give, but no one seems to follow. So, let’s make a deal: How about we start listening to what these experts are saying? The sooner we start, the sooner we’ll reach our financial goals.

Here are nine pieces of financial advice you need to stop ignoring.

  1. Run your financial life like a business. You should treat your budget like a business because, in the business of life, the bottom line matters. Many of the same principles business owners use can be applied to your personal life: prioritize, assess and restrain. Everything that keeps a business running will keep your personal finances in order: prioritize your spending, assess your profits and losses, and don’t lose sight of the big picture, like saving for retirement or getting out of debt. This is fairly common advice, but when it comes to actually saving and making more money, there isn’t a one-size-fits-all strategy. Just like every business has its own unique goals and needs, you will too – so manage accordingly.
  2. Make saving part of your lifestyle. Saving money doesn’t always come naturally. Successful savers usually fail a few times (or more) before they figure out what works best for them. It’s easy to get discouraged and give up, but just like exercising and eating well, saving money takes a while to get right. It’s also important to remember that a frugal lifestyle doesn’t mean living in deprivation. People who live with less and save more know where to cut back. Even shrinking your grocery bill by just $15 a week will save $780 a year – imagine all the other little cutbacks that are possible. So instead of making drastic lifestyle changes, build your savings muscle slowly by making small adjustments over time. After a while, you won’t even notice a difference – except in your bank account balance.
  3. Save the difference. Are you a bargain hunter, coupon clipper or thrifty shopper? What do you do with all the money you save? If you’re like most consumers, you just spend it on something else. The point of getting a discount is to save money, right? The next time you get a discount or score a sweet deal, save the difference of what you didn’t spend.
  4. Automate the process. This is a piece of money-saving advice that is echoed by nearly every financial expert. Paying yourself first is the first step, which means setting up an automatic transfer from your checking account into a savings or investment vehicle. You can set up one large transfer to go through monthly, weekly or whenever works best for your finances – as long as it’s automatic, you’ll be saving without even realizing it. Some experts recommend transferring a portion of your paycheck into savings, and once you reach a certain balance, transfer any additional funds into an investment account. If you aren’t sure where to start, try automatically transferring 10 percent of each paycheck and see how that feels.
  5. Seek advice on your 401(k). It’s official: People with 401(k)s are better savers, according to a study last year by Natixis Global Asset Management. Want to get the best returns out of your nest egg? Get professional help. The study found 74 percent of people who see a financial advisor for 401(k) advice know exactly how much they need to have saved by the time they retire. Set up your complimentary appointment with First Financial’s Investment & Retirement Center to discuss your retirement and investment goals. Contact the IRC at 732.312.1500, or mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com.
  6. Save your spare change. We all have loose change filling our pockets or strewn on our bedside tables. Start banking that change, and you could put a serious dent in your savings goals. For example, putting just 50 cents a day in a jar can help you save nearly $200 over the course of a year. Some experts also recommend only using paper money for daily expenses, such as coffee and lunch, and then saving the difference. If you don’t carry cash, consider using an app like Acorns, which invests your spare change for you.
  7. Fill a need. Many experts say the trick to making money (so you can save more of it, of course) starts with thinking about others before you think about yourself. Basically, the path to success starts by first identifying a need and then filling it. Your earnings are a byproduct of how well you serve your audience. So, focus on filling your customers’ or boss’ needs, or solving a problem, and you will likely make more money (whether through a raise or increased profits). This concept can also be used for people who freelance or want to start a side business – find out what people want, and give it to them; you’ll be in high demand.
  8. Live like a student. No, you don’t have to survive on a diet of ramen and frozen burritos in order to get ahead, but you can take a lesson from struggling students everywhere and learn to live with less. If you are just starting out in the workforce, try living on half your paycheck. Since you’re probably already used to living off very little, half your paycheck should be enough to get by. Meanwhile, you’ll pad a robust savings account with the equivalent of a full paycheck each month. For those who aren’t fresh out of college and have large expenses like a mortgage or child care, try saving a penny of each dollar you make; then, step it up another penny every six months. In five years, you’ll be saving 10 percent of every dollar you make; in 10 years, you’ll be saving 20 percent.
  9. Trick yourself. Many behavioral economists say mental accounting (i.e., treating different piles of money with different intentions) helps trick your brain into better budgeting and saving. This strategy might sound a little complicated, but it’s really a take on the classic envelope system, where you allocate your paycheck to a weekly or monthly budget and put the cash into different envelopes – one for each budget category. Once the envelopes are empty, your budget is maxed out.

7 Easy Ways to Save More Money Today

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downloadSaving more money doesn’t necessarily mean giving up restaurant meals for good or never buying a new outfit again. In fact, there are plenty of ways to save money without making too many sacrifices. The following seven ideas might take a bit of extra effort, but they also have the potential to pay off, right into your bank account.

  1. Get healthy. For people who struggle to stay fit, eating healthy and staying in shape is easier said than done. But for those who are in good shape, you can save a lot of money on life insurance and individual health insurance plans. And as an added bonus, you’ll feel better and have more energy. You don’t have to join a pricey gym, either: You can take up walking or jogging, or download a free app that helps walk you through different exercise programs.
  2. Rethink auto insurance. Every year, re-examine your auto insurance policy for savings opportunities. For example, consider raising your deductible, which lowers premiums. For older vehicles, evaluate whether you really need collision coverage, which covers damage to your car when your car hits or is hit by another vehicle or object. And make it a habit to compare auto insurance quotes annually, which can be done online in minutes. (While you’re at it, consider taking time to compare other insurance policies that you currently have, including homeowners insurance).
  3. Improve your credit score. Of all the painless ways to save money, improving your credit score is arguably the most important. From home loans and car loans, to credit cards and auto insurance, a good credit score can save you a small fortune. Over a lifetime, the savings can easily reach tens of thousands of dollars. The simplest way to improve your credit score is to make on-time payments each month on all of your accounts.
  4. Think triple play. One of the biggest monthly expenses for some is the cost of Internet service, cable and phone. The majority of providers offer discounts when you bundle all three of these services together. Called a triple play, you not only save money, but you also get the convenience of a single bill each month.
  5. Go prepaid with your cellphone. While this option won’t be right for everybody, many can save a small fortune with prepaid cellphones. You can find prepaid cellphone plans that start at $25 a month. And because they are prepaid, you don’t have to commit to long-term contracts. Two of the more popular prepaid cellphone carriers are NET10 Wireless and Cricket.
  6. Shop online. There are several benefits to shopping online – convenience being chief among them. But shopping online can also save big money. Many retailers offer special discounts to online shoppers. And virtually every company that sells products or services online offers promo codes, discounts or coupons. Particularly if you have a big purchase, make sure to search the Internet for deals before buying. You can also track discounts and coupons through online tools, including RetailMeNot and PriceGrabber.
  7. Get cash back. If you have good credit, there are a number of cash-back credit cards that pay up to 5 percent on purchases. The key is to use the card for monthly bills and everyday expenses, not to charge things you don’t need. Put monthly bills that accept credit cards on automatic payment, and use the card for everyday purchases such as groceries and gas. And as an extra precaution against overspending, pay the credit card bill in full several times throughout the month. It’s easy to do online, and it prevents any surprises at the end of the month.

*Original article source courtesy of US News – Money.

Smart Shopping Tricks to Make Your Budget Last All Month

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shopping cart postitWe can all use ways to stretch our paycheck each month, but it’s not always easy to know which expenses to focus on minimizing first. The fact is, some costs are easier to trim down than others. The strategies below will help you always score the lowest price, making it easier for your budget to go farther.

Always look for the deal.

Local drugstores often feature special deals on everything from personal care to grocery items. While the selection is generally smaller than at the grocery store, drugstores can offer even better discounts. Looking for these deals, and applying them to your purchase can generate big savings.

Register for rewards programs.

Many stores feature rewards programs, including drugstores. Walgreens has Balance Rewards, CVS has ExtraCare, and RiteAid has Wellness+. If you register for these programs you’ll likely receive frequent emails, but there will be gems among them, and you might even save 20% off an order. A smartphone app like Key Ring makes it easy to track account numbers for multiple programs.

Use manufacturers’ coupons.

In addition to browsing through Sunday circulars, you can rely on websites like coupons.com to search and print coupons at no cost to you. Since most manufacturers’ coupons usually have an expiration date that is at least one month into the future, hold onto the coupons until you find a great deal.

Look out for store coupon books.

Many stores offer coupon books, usually at the front of the store near the pile of circulars. They often contain many high value store coupons that can be combined with sales and manufacturers’ coupons for additional savings.

Shop online.

When it comes to essential drugstore items, you can often find the lowest prices online, especially when coupons are applied. Some coupons offer deeper discounts to online shoppers, and you can find everything from vitamins, cleaning supplies, personal care items and pain relievers for reduced prices.

Use blogs.

Many blogs and websites collect coupons and deals for readers, which makes your job even easier. Sites like Retailmenot.com research and sort deals for you, and you can often match the deals with sales in circulars.

Don’t pay full price.

Most retailers make it easy to find deals online. In fact, you should never pay full price for your purchases, at least before checking for discount codes. Signing up for store email lists will also help make sure you don’t miss out on discounts.

Get an Amazon Prime membership.

It might sound counterintuitive, but purchasing an Amazon Prime membership can actually end up saving you money. That’s because it comes with two-day shipping on most orders, movie and TV streaming, and one free book rental per month. You can try out a 30-day free trial membership to see if it would end up saving you money.

Write a review.

Some companies are willing to pay customers, in the form of discounts, for leaving reviews on their products listed online. HonestFew and SnagShout are a couple companies that make this process easy. Once you receive items at a low price (or sometimes even free), then you simply log in to leave your review, whether it’s good or bad.

Buy a reusable water bottle.

Going through a handful of water bottles a day is expensive, unnecessary, and bad for the environment. Instead, pick up a reusable water bottle for yourself. You can even get one that comes with a built-in carbon filter to remove tap water impurities. Your body, and the Earth, will thank you.

Use apps.

Many stores have made it even easier to save these days by introducing their own apps. These apps offer special discounts to shoppers that cannot be found anywhere else, and saving is as easy as opening the app and seeing what deals are available. You can even do this while standing in the checkout line. Other apps, like Shopkick, work at many stores. You can earn points by checking in at stores and making purchases, and then using those points to earn gift cards.

Plan ahead.

Planning out meals in advance is one way to keep grocery store costs down because you can minimize waste or unnecessary purchases. You not only cut out impulse purchases at the grocery store but also eliminate the need to order delivery on those nights you realize you don’t have anything to make. Pinterest can also help with new recipe inspiration if you’re feeling stuck.

Article Source: Lisa Koivu for http://money.usnews.com/money/personal-finance/articles/2015/10/20/smart-shopping-tricks-to-make-your-budget-last-all-month

5 Ways to Save Money When You’re Broke

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save-moneyIt can be hard to save money at any time, but it is particularly difficult when you feel like you are broke. If you can barely afford your bills and you are living paycheck to paycheck, saving money is probably one of the last things on your mind. However, you can still save money when you’re broke. In fact saving money, even if it is a little, is a key step to stop being broke.

As long as you are making some money, you should be saving some. Especially if you routinely have insufficient funds, it’s important to make a habit of saving money. Despite the fact that you have little extra funds, there are ways to save. Cutting costs, sticking to a budget, and saving a little at a time are all ways that you can save money, but there are other ways as well. Here are five ideas to consider.

1. Cut out the extras. An easy way to save money when you’re broke is to cut costs. You may think there is nothing you can cut out at first, but think a little harder. If you are truly “broke” then you need to let some things go. Do you really need such an expensive cell phone plan? What about cable television? Can you use the internet at the library or use WiFi instead of paying a monthly fee?

There are many things that we consider necessities that are really just extras, and cutting some of those will quickly free up more money. Take a look at your monthly bills, and decide what is really necessary. If you want to stop being broke, you may have to cut out some of the extras for a while.

2. Eat at home. Grabbing lunch on the go is so much easier and more convenient than bringing a lunch to work, but doing this regularly will really eat away at your income. According to Living on A Dime, eating out is a common way people get into personal debt. It’s easy to rationalize eating out because you are too busy to cook, or you are a bad cook. However, making food at home will truly save you money, and if you want to save money, you need to make the time and the effort to cook at home. You can save time by making several meals over the weekend and freezing them to use during the work week. If you simply don’t know how to cook, buy a cookbook for beginners.

3. Make a budget. If you don’t have a budget, your first step should be to make one. Perhaps you already have a budget, but there are several reasons a budget can fail. If you recently lost your job, or your income somehow changed but you are using the same budget, you will need to make a new one. You also may need to look at your budget and see if it is really reasonable and if you need to adjust anything.

According to Lifehacker, if you are broke and budgeting, there are several steps that can help. Start by assessing your financial situation, cut back on expenses (as mentioned in point one), and be frugal. There are other steps you can also take, including paying down your debt.

4. Save a little at a time. If you’re completely broke, the idea of saving anything probably seems unreasonable. However, you have to get into the habit of saving if you are going to save more in the long run. It’s important to think about the future: write down your financial goals, even if they seem completely out of reach. Then, start saving. If you are saving nothing right now, then any savings is an improvement. Once you cut your extras and start following a budget, you can use some of the discretionary money to save for your future.

Another idea is to get a second job. Even if you only work a few extra hours each week, but you put all the money in a savings account, you will quickly see a change in your financial situation.

5. Avoid common mistakes. You can make plenty of good decisions about your finances, but if you make a few poor decisions, you will still have a hard time saving. Some of the worst things to do when you are broke include splurging when you get money, prioritizing convenience, taking on too much debt or making poor decisions about debt, living beyond your means, and having no savings at all.

It’s really easy to live above your means, but this is one of the easiest ways to get into debt. If you have a hard time controlling your spending, try setting a budget and then doing envelope budgeting (you can modernize this practice with a few steps). Also, be careful about the debt that you incur. You need to avoid the worst financial mistakes if you really want to save.

Saving money isn’t easy, but if you take the time to put these five steps into practice, you will be off to a good start!

4 Ways to Trick Yourself Into Saving More Money

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empty magic hat with wand isolated on white

Think you’ve run out of ways to save? Think again. While it might not seem possible to squeeze any more savings out of your budget, you can find new ways to save by changing some of your money habits. But as we all know, old habits die hard. So to instead of struggling to change your spending patterns cold turkey, here are four easy ways to trick yourself into saving more money.

1. Ignore Windfalls, Pay Raises & Bonuses

Whether it’s a $5 scratch-off or a big tax refund, whenever you come into contact with some unexpected funds, ignore it and put it away. It’s best to get into the mindset that unexpected money is best spent by planning for your future or paying off money owed. Before you know it, you’ll have that credit card bill or emergency fund finally taken care of!

2. Try Cash Only

Sometimes it can be a little too tempting to go over budget when using a debit or credit card. Keeping yourself to a strictly cash only lifestyle for a couple weeks is a great way to make sure you stay on budget. Just put your cards in a drawer or, if you don’t trust yourself to leave the cards in a drawer, freeze them so it will take a lot of work to use them. You should also look to remove your credit cards from any online accounts to keep yourself from splurging! This is especially important if you’re carrying a balance — which you are hopefully paying down.

3. Take Five

The next time you’re about to make a big purchase, wait five days. Taking time to contemplate your purchases can help you avoid unnecessary spending on lavish items, or maybe even find a better deal online or at another store. Delaying your purchases can also give you time to really investigate the impact the purchase might have on your budget and whether or not it could keep you from reaching your financial goals. You may discover that your long-term financial security means more to you than having a giant TV for a couple of years.

4. Put It On Auto Pilot

Instead of heading to the ATM or a bank branch to transfer money from checking to savings, why not bring your finances into the 21st century and have your financial institution or employer do it for you? Automating your savings, whether for retirement, an emergency fund, or any other long-term goal, can make it very easy to stay on track and ensure your goal will be reached! Plus, seeing a little less in your checking account each week will keep you honest and help you cut back on your overspending habits.

You don’t have to make more money to save more money. Saving efficiently really boils down to how you spend and manage your money. So the next time you find yourself falling a little short of your savings goals, look at the way you’re making your purchases and how transferring your money into a savings account. Just taking a closer look at your money habits can do wonders for your financial well-being.

Article Source: Leslie Tayne for http://blog.credit.com/2015/04/4-ways-to-trick-yourself-into-saving-more-money-115116/

10 Ways Too Many People Throw Money Away

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Packs of dollar in the garbage can. Waste of money or currency collapse concept. 3d

There are all sorts of ways to cut spending and boost your savings, and there are just as many ways to sabotage your own finances. In addition to missing out on money-saving discounts, making unwise shopping decisions, and purchasing unnecessary items, you might also be throwing your money down the drain without even realizing.  Keep reading to ensure this doesn’t happen to you!

1. Never redeeming gift cards.

Even if you don’t want your gift card, at least give it to someone who will use it. According to statistics compiled by Gift Card Granny, more than $41 billion in gift cards went unused over a 6 year period. American households also average $300 in unused gift cards, and nearly half of recipients do not use the full value of the card. Don’t let dollars go down the drain!

2. Letting Groupons expire.

According to Yipit, roughly 15% of Groupons go unredeemed by the time the expiration date rolls around. Make a note of your daily deal coupon’s expiration date to ensure this doesn’t happen to you. And if your Groupon does expire, you may be able to contact the merchant directly to get some value from it.

3. Buying tickets and not showing up.

Purchasing tickets for a concert, sporting event, or other cultural activity often requires planning far in advance. But if you change your mind later or something comes up, you’ve already spent that money. These days people even buy movie tickets in advance online. If you can’t get a refund, you may be able to at least pass along your tickets to a friend. To make every dollar count, when possible it’s best to wait until you are certain to actually buy your tickets.

4. Paying late fees.

Even small late fees add up quickly. This can include everything from overdue library books, Redbox DVD rentals, or late payments on utilities. To avoid incurring late fees on your credit card, pay in advance of your due date, schedule automatic payment, or set a reminder for yourself. If you are hit with a late fee, call customer service and ask to have the charge waived. On your first offense many companies are willing to let the late fee go.

5. Paying bank fees.

It seems like every year big banks come up with new ways to nickel and dime their customers. Between minimum balances, fees for checking accounts, and ATM fees – these charges can add up. Avoid these unnecessary fees by joining a local credit union like First Financial! Credit unions typically offer free checking accounts and savings accounts with better interest rates.

6. Not returning unwanted goods.

It’s easy to let unwanted items or gifts just sit there in the closet, but with a little effort, you could be getting money back in your pocket. Even if you are past the return date, give it a try anyway. You may be able to at least get store credit. For online purchases, many retailers even cover the cost of shipping for returns. Some retailers will even take returns without a receipt.

7. Failing to ask for a refund.

Consumers who are dissatisfied with their service often don’t take the time to voice their concerns. The ones who do however, could end up with a full refund or at least a discount. If you have a bad experience, don’t be shy about speaking up. Even if you don’t get any money back, retailers and service providers should know when their customers aren’t satisfied.

8. Never disputing mistakes on a bill.

If you think your bill may be incorrect, it’s worth disputing the charges with the company. At most respectable businesses, the error will quickly be corrected. Unexpected medical bills are also a growing problem, and patients almost never file a complaint with a state agency. The Consumers Union online insurance complaint tool is a good place to start.

9. Forgetting to follow up on a rebate.

The sneaky thing about mail-in rebates is they are designed to be so complicated that consumers either forget to mail them in or do so incorrectly. More than $500 million in rebates go unfilled every year, often due to deceptive practices. The Wall Street Journal reported that about 40% of mail-in rebates go unredeemed or are filed incorrectly and denied. Think twice before getting involved in a rebate in the first place. If you are waiting on a rebate check from weeks or months ago, file a complaint with the Federal Trade Commission.

10. Not claiming money that’s yours.

Every year, unclaimed money is reported by the government, and rightful owners are encouraged to step forward and claim their funds. In 2013, states, federal agencies, and other organizations together reported $58 billion in unclaimed cash and benefits. This can include unclaimed IRS refunds, old bank accounts and stock holdings, unclaimed life insurance payouts, mortgage refunds, forgotten pension benefits, and more. Health insurance companies report forgotten funds as well. And if that money isn’t claimed, it gets turned over to the state.

The moral of the story – pay attention, follow up when necessary, and don’t throw good money away!