Today’s news is certainly gloomy, with talks of unemployment, decreasing home values, family business closures and low consumer confidence. Americans are tuning in to shows like Suze Orman, Mad Money and the Clark Howard Show for advice and money saving tips that can help them weather the storm. The silver lining is that there are many areas to save and these strategies will help big spenders get ahead when their situations improve too.
“Getting organized” tops the list of money saving tips because, without organization, you can’t get anywhere. Many consumers end up paying late fees, reactivation charges, interest and penalties all because they missed a due date when their papers got shuffled into a pile. Not surprisingly, “Getting Organized” was right up there with “Losing Weight” for Top New Year’s Resolutions in 2009. A quick stop at Office Depot to buy a $30 filing cabinet is a great way to get started. You might want to have hanging files of different bills (credit card, car loan, taxes, utilities, mortgage, etc) and you might want to demarcate a section for “unpaid bills.” Next, invest in accounting software like Myelopes, Quicken or Microsoft Money. Why test out your amateur mathematician skills when you can use a computer’s expert accuracy every time to ensure no mistakes are made on your annual budget? You’ll find all your financial information is neatly filed and printable for your convenience. These programs can even remind you to pay bills, allow you to check your finances online, track your purchases and lets you know how much you have left to spend in each category based on the initial budget you set up!
The next aspect of money saving tips is comparing your expenses to the norm. You may want to do a little online research to see what the average household spends in certain areas. For instance, the average American household spends about 33 to 38% of their income on housing, 15 to 19% on transportation, 13 to 14% on food, 9% on personal insurance, 5% on entertainment, 4 to 5% on clothes, 4.5 to 6% on out-of-pocket healthcare, 4% on credit card or consumer debt, 2.5% on charity, 2% on reading and educational materials, 2% on miscellaneous items, 1% on personal care products and 0-3% on alcohol/tobacco/caffeine. Come up with a realistic budget for your household and see where you can save some money.
Following these money saving tips, and especially during the current recession, may feel like a culture shock at first. You might instinctively want to rebel against the plan the moment it’s written. The best way to adhere to your plan is to leave in some allowances for fun. Instead of seeing the $10 movies, you can opt for the $1.50 cheap shows, for instance. Or you can dine out once a week — but at lunch time, instead of dinner time. After a while, you’ll find that saving money can be quite liberating, actually. As former US President Calvin Coolidge once said, “There is no dignity quite so impressive and no independence so important as living within your means.”
Rene Lacape is a well trained insurance broker. He has been handling many kinds of insurances for the past many years. He still does well in his chosen field and is sure to help more people who will need his expert advice. Contact him now.
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This post was written by admin on January 18, 2010
