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8 Ways to Save Money Now That Will Pay Off Later

October 11, 2008 by

The U.S.’s economic situation is being felt around the world. Last week was the worst week for the stock market. People are bailing out left and right. Is that a wise thing to do? No, it’s not. Fear is like a disease that infests one person and then spreads like wildfire to others. That’s exactly what is happening right now. Americans are scared to death and are salvaging what they can. On the flip side, those with money will find great bargains on wall street and will be able to turn a profit when the stocks go up.

Perhaps the “economic crisis” in America will teach people a valuable lesson or two. First, do not live beyond your means. People who knew they could not afford the $400,000 house are learning that lesson right now. Second, cut back on expenses. Is it necessary to eat out 3 to 4 times week? Why not prepare a home cooked meal with the family gathered around the table? This is a great way for parents to interact with their children and find out what they are doing or not doing.

People who “tighten their money belt” now will save later. How do you save when you have a family of four or are a single person living on your own? Here are some money saving tips.

Tips to Save Money

  1. Cut back on going out to eat.
  2. Skip the Starbucks, donut shop, or bakery.
  3. Carpool if you can.
  4. Use coupons. Some grocery stores offer double and triple coupons and will accept competitors coupon.
  5. Sell items on Craigslist and eBay. Go through the house and see what can be sold. If something has not been used in a year, it will not be used at all. Sell it!
  6. Cut back on entertainment. Wait until movies come out on video and rent them from the video store or library. As far as concerts go, choose one that you will really enjoy. Before you agree to see Motley Crue (that’s another article), remember, it’s Motley Crue. Speaking from experience, go with the Metallica tickets. It will be a better show. Remember, your time is just as valuable as your money.
  7. Go to FREE events within your community.
  8. Take your lunch to work instead of buying it every day.

Money that you save can be put into a savings account (FDIC insured), Treasury Bills, or Treasury Money Market funds. Be smart with your money and it will take you far. Remember, you are the master of your money; it’s not the master of you.

Saving money is a mindset. You will either save money or not. Most people would like to own their own home, but it may not be feasible at this time. As mom used to say “patience is a virtue.” For now be happy with the things in your life such as good health, family, and friends. You may live in a one bedroom apartment, but at least you are in perfect health!

Bonus

  1. Do not grocery shop on an empty stomach! People who shop when they’re hungry usually spend more. Make sure you eat breakfast before going to the grocery store.
  2. If products come with a rebate, redeem them, and save the money!

How are you saving money? Do you have any suggestions you would like to share?

Filed Under: Personal Finance Tagged With: , ,

Save for a Rainy Day Today Because Tomorrow it May Storm

September 29, 2008 by

Are you caught in the “eye” of a financial storm? If you watched Suze Orman on Oprah’s September 23rd show then you know she is fired up. She gave no sympathy to a couple who is $90,000 in credit card debt. The wife did not want to hear that the right move to make was to sell the house. God forbid the couple move into an apartment. They must enjoy yard work, routine and not so routine maintenance, and the typical house work. Then again, maybe they hire people to do this for them which is why they are $90,000 in debt. For “5 priceless money saving tips by Suze Orman, please visit MSNBC.com.

Clipping coupons is a great way to save money on groceries and personal items. The dollars you save will add up over time. Take the extra cash and put it into a savings account. When you are ready, take some of the money and put it into Treasury Bills and Bonds and Treasury Money Market accounts.

Give up the Starbucks Coffee for awhile. It may seem cruel and unusual, but it will be worth it in the long run. Think of all of the extra money to be deposited into the savings account. Not only will you save money, but reduce time and gas consumption. Plus, cutting down on your drive time will decrease the amount of emissions being released into the air.

Money Saving Links

  1. The Dollar Stretcher. Find out how to live better for less.
  2. Bank Rate. “Original and objective personal finance stories to help consumers make informed financial decisions.”
  3. Money.CNN. Gerri Willis gives you personal finance and savings tips.
  4. Woman’s Day. Has money savings tips from finding a cheap flight to how to do-it-yourself household cleaners.

Most Americans are in credit card debt beyond what their eyes can see. Too much indulgence and not enough self-discipline equals a financial disaster. Unfortunately, this can all be avoided with a little frugality.

Now is the time to face the truth of the situation. It will not be easy at first, but once you stop lying to yourself and others it will get better. Do what you have to do for a brighter future. If you have children then you better sit down and face the facts. Is it fair to make your children suffer for your mistakes? This is something to think about now and going forward on your financial quest. A little honesty goes a long way. Get real, get out of debt, and start saving for those rainy days and not so rainy days.

Filed Under: Personal Finance Tagged With: ,

Does Renting Makes More Financial Sense Than Buying a House?

September 28, 2008 by

Many renters think about buying a house, a place to call their own. They save a “nest egg” hoping to buy the home of their dreams. But, does buying a home make sense from a financial perspective? Is it a sound financial investment? Can renting help you to acquire wealth? These are some questions that “weigh” on peoples minds when it comes to considering purchasing a home.

According to an article by Jack Hough from SmartMoney.com “Rent is the cost of owning shares with money you would otherwise spend on a house. Houses have ownership costs, too: taxes, insurance and maintenance. Rent costs about 5% of house prices each year if we apply the price/rent ratio of 19. House incidentals often cost around 2%. If you have $300,000 and a choice between spending it on a house or shares, you’ll pay $6,000 a year in incidentals if you buy the house or about $15,000 a year ($1,250 a month) in rent if you buy the shares. But the shares will return $21,000 a year after inflation while the house will return zero. (My numbers work out even better than these. I pay a smidgen less than $1,250 a month for rent, while house prices in my neighborhood are far higher than $300,000.”)

Renting does not have as much responsibility as buying a home does. When you rent, it’s the property management’s job to fix repairs and maintain the property’s landscape. Renting gives you lease flexibility and a opportunity to check out different areas of the city. Once you a buy a home and decide you do not like the area, then you must put the home up for sale and pray to God that it sells straight-away!

Buying vs. Renting Links

  1. New Buyer.com. “Learn the tradeoffs, potential money savings and which option makes sense.”
  2. Ms. Money. A great site for financial planning.
  3. ABC News. Find out the pros and cons of renting and buying.

The bottom line is only you can decide if renting or buying is the best option. Do you want the flexibility of a lease or the commitment of a home? What is your financial situation? Ask yourself these questions before signing your name on the bottom line of either a lease or mortgage loan.

If you desire to make more money or spend a little more, renting may make sense for you. Many financial calculators are available online and can help you decide if renting or buying is the right move. Start crunching the numbers and plan for your future today!

Filed Under: Personal Finance Tagged With:

Relationship Rules That Rule!

September 22, 2008 by

Human beings are social creatures. We need intimacy, to be loved, and to love. Yet, many people have trouble with relationships. Most people have no idea of what a healthy relationship is because of their past. God only knows what happened in their childhood or in their young adult life that made them wary of connecting with others.

According to Hara Estroff Marano’s article on Psychology Today, there are “some basic rules of relationships.” For example, “choose a partner wisely and well. We are attracted to people for all kinds of reasons. They remind us of someone from our past. They shower us with gifts and make us feel important. Evaluate a potential partner as you would a friend; look at their character, personality, values, their generosity of spirit, the relationship between their words and actions, their relationships with others.”

Tips on Relationships

  1. Do not confuse sex with love! Many people do this in their relationships which is why they do not work out. While you are at it, do not confuse lust with love! You may think that you love that man or woman, but in reality it’s only lust.
  2. Do you respect yourself? If you do not respect yourself, your partner will not respect you. Mutual respect and understanding of another is important in a relationship.
  3. Open and honest communication is key! Honesty and trust can do wonders for a relationship. Without these two components, your relationship may not last that long. If something is bothering you, speak up because your partner is not a mind reader. Unless, of course, you are dating or married to a psychic then it will not matter if you speak up because they will already know what is wrong.
  4. Apologize if you make a mistake! Many people have trouble admitting when they are wrong. It’s not that difficult to do. You are human, so you will make mistakes. Remember, the world will not end because you made a mistake! Just admit that you were wrong and ask for forgiveness. It will be a great learning experience for you.

Relationships do not have to be difficult. Be sure that open and honest communication is present in your relationship. Do not be totally dependent on your partner. It’s not their job to make you happy. That’s your responsibility. Remember, to love yourself first. If you cannot love yourself, how can you love someone else?

Your time on planet Earth may be short. Would you rather enjoy it in a fun-loving relationship or one that brings you drama? The choice is yours.

Filed Under: Relationships Tagged With:
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