Money Saving Tips For Those Already Doing The Obvious?
What are some good money saving tips for the average joe that has been stuck in the financial rut recently? And what I mean by that is that they are living paycheck to paycheck, not eating out, they make more than the minimum payments on their credit cards and never pay late yet the credit card co’s raised the interest rate and won’t neg. a lower term, etc?
I’m sure I’m not the only one that reads every money saving tip online, yet finds that they are all the same and don’t really help you save because you are already doing them…
November 21st, 2009 at 5:00 pm
Have you tried writing down all your expenses and comparing them with your paycheck, and assigning which credit gets what out of every paycheck? Do a simple budget for each month. It will probably take at least 3 months to get it right.
Are you putting any money in a 401K or other retirement account? If you are, you need to temporarily stop, because you could use that money to get rid of the debt. When they are paid off, you go back to the 401k
Are you getting a big tax refund each year? If you are, re-arrange it so that you get as little as possible. You need the money now, instead of later.
This may not save you money, but makes it easier to budget. I put all my utilities on an equal payment plan so that I don’t open the bill in August and gasp because it’s $200. You don’t need those kind of surprises.
Sign up for online updates, rebates & specials at the places where you shop (and even those you don’t). Someone at work just this week sent me a coupon for a free rotisserie chicken at Whole Foods (grocery store chain). His wife is going every day and getting one, because that’s the only limit (1 per day). Today, I got free hand sanitizer at CVS, and tomorrow I will get free eyeshadow or nail polish at Sally Beauty Supply. All this is because I’m on their email lists.
See what you have around the house that you could sell on Ebay. Ask your neighbors if you can help them clean out and reorganize their attics/closets/garage, then sell what they don’t.
Attack your credit card w/ the lowest balance first; put as much on it as you can, w/ the minimum on the rest. It is extremely motivating to pay just one off! And then put the amount you were paying on it to the next smallest, etc.
Dave Ramsey is my financial hero, who is quite different from the rest of the financial folks. See below.
November 21st, 2009 at 5:18 pm
1. Distinguish the difference between “want” and “need.” You want cable tv, but you need food. You want new furniture, but you need to pay the rent. You want a new car, but you only need transportation. Once you figure out where you are spending for non-necessities, you can start to cut back on spending.
2. Put your credit cards in a freezer-safe container, filled with water, and freeze into a block of ice so you have to take the time to thaw them before you can use them.
3. Instead of paying more than the minimum on several credit cards, choose the one with the highest balance and pay the most on it each month til it is paid off. Then take that entire amount each month and pay toward the next highest interest to pay it off. Then the next…
It takes a lot of self-discipline to live within your budget. It takes more discipline to eliminate the unnecessaries to get to where you can live on what your earn…spend less than you earn.
November 21st, 2009 at 7:35 pm
Ummmm – the obvious is to stop using credit cards. Pay cash or use a debit card. If you do use your credit card, pay it in full as soon as the bill arrives.
If you don’t carry a balance then you don;t have to worry about the interest rate.
If you have already cut costs, then you have to increase income. Throw papers, deliver pizzas, etc.
November 21st, 2009 at 11:33 pm
Change to a different credit card company with a lower interest rate and transfer the balance. It’s not great for your credit score in the short term, but it’s your monthly income that’s important now. Don’t let them take advantage of you!
November 22nd, 2009 at 3:01 am
I have dial-up on my computer, I don’t have cable, cellphone, or long distance on my phone, I wear slacks so I don’t have to pay for pantyhose, I rarely wear makeup, I pull the plugs on everything (especially the pc) when not in use, I do all my grocery shopping and get other things I need only a couple of times (gas used is less than 10,000 a year), I have a clunker that I bought for $300 and have owned it 11 years now, I wear a pair of shoes out in 6years (go barefoot in the apartment), I’ve watered down the shampoo and cream rinse and instead of using a body soap when bathing I wash my hair first so the shampoo is used to suds me with, I hand wash all my clothes and dry them above the bathtub, I live in an efficiency apartment, and I like Macdonalds fish sandwiches, buy a lot of veggies, noodles and potatoes. I pay my bills thru the mail rather than incurring bill paying fees or paying from credit cards. My check is on automatic deposit (so I don’t have to drive there; I don’t do it on the net). If you live alone you can control your finances a lot better than when living with someone. Some furniture you can do without or pick up used stuff sitting outside of the dumpster or buying from salvation army. When grocery shopping you can buy their store brand, and also compare with Walmart prices (sometimes Walmart’s are cheaper in cost). If you’re driving an expensive car you can turn it in for a used one and not only get down your payments but your insurance as well. It’s nice to not have monthly car payments. Dave Ramsey says eat beans and rice and get a second job to pay down your bills.