Here we are in late 2009 and the recession is lingering on. While the stock market numbers aren’t quite as dismal as they were a year ago (when people lost everything), employers are continuing to shed jobs by the thousands. Despite the perpetual gloom that hangs over the news headlines, many people are taking this time to discover new money saving tips that will help them in good times as well as bad.
“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.
The wise Benjamin Franklin leaves us with these money saving tips: “The way to wealth is as plain as the way to market. It depends chiefly on two words, industry and frugality; that is, waste neither time nor money, but make the best use of both. Without industry and frugality nothing will do, and with them everything.” In essence, financial freedom is a bit like weight loss. One cannot lose weight by simply dieting or simply exercising — but with a combination of both. Likewise, our penny-pinching efforts must be a combined approach of bringing in a steady income stream and cutting costs.
Rene Lacape is a well trained insurance agent who has been in the industry for so long. Many clients have been satisfied and have been recommending him to others. Check his website so you will know for yourself what goodness of dealing with him is.
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