Money Saving Tips

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 batch of money saving tips revolves around saving. This realm is much easier said than done and it requires a bit of honesty to proceed. While you may say, “I don’t spend that much going out,” you might need to crunch those numbers to be sure. Even though you feel you “deserve” that dinner out, you’ve got to be realistic about how many times a month you can afford that sort of luxury. Look at your habits. Are you getting enough hours at work? Could your wage be higher? Are you saddled with credit card debt? Are you paying over 38% of your income on your living space? Are your utilities bills higher than your neighbors’? Are you a compulsive shopper or fast food junkie? Do you spend lavishly on your lover, even when you really don’t have the money? Look out for these trouble areas.

Some of the best money saving tips come from notoriously frugal families. The Economides Family consists of seven individuals who have somehow managed to live off just $35,000 per year! To save money on food, they meticulously plan out their food menus each week and adhere to the plan. They also cook just a few days a month and freeze everything else for a quick reheat, which costs them $350/month. They believe in hunting down bargains at the store, coupon clipping and negotiating prices, whenever possible. They get their clothes from consignment shops and thrift stores, buy used furniture, cut their own hair and rent free movies from the library. Anything they earn beyond their monthly budget gets divvied up into a house fund (to cover repairs), a fun account (for vacations) and a charity account. The Economides also never use credit cards! While this lifestyle may sound extreme, you may want to check out some of their money tips at www.homeeconomiser.com.

Rene Lacape is a seasoned insurance agent. He has been dealing with both corporate and individual accounts for several years up to the present. If you need him, you can check his website and give him a call. Act now.