Category Archives: Saving Money

How to Save Money Even When It Feels Impossible

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When living paycheck to paycheck, it’s hard to set aside any money at all, let alone start saving substantially for things like retirement and emergencies. You get a paycheck, you immediately use it for rent, student loan payments, utilities and more, and all of a sudden you’re left with just barely enough to get by. So how can you even think about saving?

Well, the truth is, you can and you should, because the last thing you want is to be stuck with an emergency room bill or totaled car and have absolutely no money. In fact, most financial experts agree that everyone should have at least $1,000 in savings for those types of financial emergencies. To that end, here’s how to save money– even when it feels impossible:

Get in the Right Mindset.

Saving money is more than just a habitual practice– it’s a mindset.  Like starting a new workout regimen, saving money must be a lifestyle you’re completely committed to in order to be effective. So, the first step to saving money is making the decision to do so. That way, when you’re enticed by that sale at the mall or a nice dinner, you’ll have a clearly defined reason to say “no.”

Start Small – Very Small.

Saving money doesn’t have to mean putting 10% of every paycheck away. You’ve likely heard it before, but every dollar counts. At first, save more like 2% or even just $20 per month. OK, maybe that won’t make you rich as fast as saving a more substantial amount, but the important thing is it’s a start. For weeks or months that you don’t spend quite as much, put a bit more in savings than you normally do. Just commit to saving something,no matter how small the amount.

Make it Automatic.

When many people first start learning how to save money, they find it’s easiest when it isn’t a conscious decision. In other words, if you have your bank automatically transfer money into your savings account every time a paycheck is deposited, you won’t even see that money for long enough to consider spending it. If auto-transfers make you feel a bit out of control, take on that responsibility yourself.

Deny Yourself Access.

One of the hardest parts about saving money is seeing it accrue and knowing you could use it if you wanted to. If that sounds like a feeling you’re familiar with, do yourself a favor by setting up an account that’s a bit harder to access. For instance, ask your bank if they can add an account that can only be accessed by physically walking into a bank to make a withdrawal or using an ATM card. If you don’t have a debit card attached to it, you’ll be less likely to swipe first and regret later.

Keep Careful Track of Your Spending.

It goes without saying, but how much you spend has a direct impact on how much you’ll be able to save. If you know you have some spending problem areas (like eating out a lot or buying an unnecessary amount of upscale sneakers), focus on reducing those however you can. The best way to spend less (and save more) is to know where every dollar is going– then you can pull back in certain areas. If you can’t do this without a bit of help, try using budgeting apps like Mint or Mvelopes to track your spending and come up with a financial plan.

Cut a Few Expenses (At Least for Now).

As you start keeping better track of your spending, look for certain regular expenses that you may be able to do away with completely. Are you still paying for cable that you rarely watch, a magazine subscription that goes unread more often than not, or a gym membership you could replace with free workouts in your apartment? Get creative, and know that you don’t have to give these things up forever. Even just cancelling for a few months can allow you some wiggle room to save more money faster.

You can also look at refinancing options for certain expenses, like car payments and student loans. See if you can spend less each month on those- at least for now while you’re working on building a savings account.

Find Ways to Earn More.

If you have some extra time on your schedule (even if you work a 9-to-5 office job it’s likely that you do), consider finding ways to earn some more money each month. Pick up dog walking or babysitting gigs, or even do some freelance work on the side. This is beneficial for two reasons: One, you’ll be making more money. And two, you may find yourself spending a bit less if you’re, say, babysitting on a Friday night instead of going out.

If you’re trying to figure out how to save money, remember: It’s doable, you just have to be committed, organized, and focused on an end goal. You can do it!

*Original article source courtesy of Forbes.com.

8 Ways To Cut Costs For A Week & Maintain A Budget

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bigstock-Time-To-Communicate-75279877-e1446813441441Saving money can be really challenging — sometimes after basic necessities like food, phone, and rent, it can seem like we already don’t really have anything left to put away. However, there are actually plenty of ways to cut your spending this week alone, and they’re usually in places that we don’t even think about.

In an article on cutting your spending in U.S. News and World Report, CPA and bestselling author of “Save Wisely, Spend Happily,” Sharon Lechter said, “Either you are a master of your money, or a slave to it. Use your mind and have fun.” On her personal website, Lechter suggested many tips for saving more, and the bulk of them come down to small, everyday tips as opposed to huge, life-altering changes. It usually just comes down to becoming aware of the places we spend money without even really thinking about it — like going to an evening movie instead of a cheaper matinee, or buying books when we have a library right down the street.

If you’ve recently taken stock of your finances and decided that you want to spend less and save more but don’t know where to begin, don’t fret. Here are eight extremely simple tips that you can try for a week or two to cut your daily expenses — and they almost all entail minimal self-sacrifice.

1. Figure Out Where You Spend.

OK, this one isn’t really a tip as opposed to a necessary first step to tracking your savings. In an article for U.S News and World Report, Senior Editor of the financial advice site Wisebread.com Meg Favreau said, “Making a budget is the most important thing you can do because then you will be able to understand where your money is going and where you can afford to make cuts.” After the big things, like rent and loan payments, write down everything you spend money on each week — from a morning cup of coffee to dinner out with friends, and tally how much you’re spending “extra.” This will enable to you to know how much you’ll be saving once you begin making adjustments (and for real motivation, multiply how much you spend each month by four and then by 52 to see how much you’re spending in an average month and year).

2. Pack Your Lunch.

Packing a lunch may seem incredibly simple, but I know from personal experience that this can be one of the hardest habits to break (anyone else ever realized they spent $15 on lunch every single day for the last 14 days, and then sometimes also eaten out for dinner too?). In an interview for a Bustle article about meal prep, registered dietician Sumi Tohan said it’s important to be real with yourself about what you’ll realistically eat for lunch each day. “If you plan meals that are too restrictive, full of supposedly good-for-you foods that you hate, it’s more likely that you won’t eat these meals,” Tohan says.

Instead, she recommends including at least one of your favorite foods with each meal and says to “avoid cutting out major food groups, such as carbohydrates, as doing so can leave you feeling hungry, unsatisfied, and with unbalanced nutrition.” So pack things you’re actually looking forward to eating each day, and not running around the corner to grab that $14 salad won’t seem like such a big deal.

3. Cancel Your Cable.

In that same U.S. News and World Report piece, Cameron Huddleston, contributing editor of the personal finance news site Kiplinger.com, recommended canceling your cable altogether. “There are so many other options out there for less, like Netflix and Hulu,” Huddleston said. If you live with roommates, talk about cancelling cable and setup an antennae for basic channels and Hulu and Netflix for everything else – this will add up to a personal monthly cost of about $7 a piece. As much as you may love channel surfing, paying a ton for cable just feels obsolete now.

4. Energy-Efficient Lightbulbs.

Trent Hamm, founder of the financial advice site The Simple Dollar, recommended switching out your regular light bulbs for the energy-saving kind (and also recommended to always be conscious of your thermostat use). It’s super simple and easy, and is a money-saving tip you literally never have to think about once it’s done.

5. Buy Staples In Bulk.

It’s always a good idea to buy things you use every day in bulk. It can feel really hard to put down $25 for something like toilet paper at one time, especially when there are smaller options for $5 nearby. However, buying in bulk can hugely reduce costs in the long-term. Plus, who likes running out of toilet paper?

6. Make Coffee At Home.

This is another one can be a challenge — everyone loves their morning, store-bought coffee. In another U.S. News and World Report piece on ways to cut costs today, retail expert Hitha Prabhakar said, “While a $4 morning coffee can satisfy the soul, it can also hurt the budget.” She recommended investing in a home coffee-maker, saying, “It’s a larger out-of-pocket expense, but it will easily pay for itself over time.” It’s also recommended to invest in some handy coffee-to-go cups so you can have something to carry and drink on your morning commute as well as when you get into the office — this definitely helped curb my desire to buy a cup on my morning commute.

7. Invite Friends Over Instead Of Going Out.

Hamm also recommended inviting friends in for dinner and drinks instead of going out. He noted that while this might seem like legwork, make it a team effort. Everyone can bring one thing and a drink of their choice, and you can make something large and cheap — like a big pasta dish. You’ll almost definitely end up spending significantly less than doing dinner and drinks out.

8. Remember: Exercise Is Free.

In the same U.S. News and World Report piece about cutting costs today, Wisebread blogger Sabah Karimi reminded readers that exercise doesn’t have to equal a costly gym membership. “You could sign up for fitness classes at a neighborhood recreational center, join the YMCA, take advantage of a corporate wellness program or commit to following DVD fitness programs at home,” Karimi said. There are also a ton of 100 percent free workout videos to be found from fitness experts all over YouTube for a super simple, cost-free way to exercise.

Spending less doesn’t mean a life of rice and beans or saying no to every social engagement that comes your way. It’s often just about greater awareness of some of the hidden places we spend money and working towards changing simple behaviors. Try some of the above tips and see how much you save.

*Article source courtesy of Toria Sheffield of Bustle.com.

9 Basic Pieces of Money-Saving Advice No One Follows – But Should

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download (1)Good advice can be hard to take – especially when it comes to money. Often, the thing that’s best for us is the thing we really don’t want to do. Saving more and spending less is boring; why do that when you can have fun now?

Well, you know what else sounds boring? Working for the next 50 years.

There are some very basic pieces of money advice that experts give, but no one seems to follow. So, let’s make a deal: How about we start listening to what these experts are saying? The sooner we start, the sooner we’ll reach our financial goals.

Here are nine pieces of financial advice you need to stop ignoring.

  1. Run your financial life like a business. You should treat your budget like a business because, in the business of life, the bottom line matters. Many of the same principles business owners use can be applied to your personal life: prioritize, assess and restrain. Everything that keeps a business running will keep your personal finances in order: prioritize your spending, assess your profits and losses, and don’t lose sight of the big picture, like saving for retirement or getting out of debt. This is fairly common advice, but when it comes to actually saving and making more money, there isn’t a one-size-fits-all strategy. Just like every business has its own unique goals and needs, you will too – so manage accordingly.
  2. Make saving part of your lifestyle. Saving money doesn’t always come naturally. Successful savers usually fail a few times (or more) before they figure out what works best for them. It’s easy to get discouraged and give up, but just like exercising and eating well, saving money takes a while to get right. It’s also important to remember that a frugal lifestyle doesn’t mean living in deprivation. People who live with less and save more know where to cut back. Even shrinking your grocery bill by just $15 a week will save $780 a year – imagine all the other little cutbacks that are possible. So instead of making drastic lifestyle changes, build your savings muscle slowly by making small adjustments over time. After a while, you won’t even notice a difference – except in your bank account balance.
  3. Save the difference. Are you a bargain hunter, coupon clipper or thrifty shopper? What do you do with all the money you save? If you’re like most consumers, you just spend it on something else. The point of getting a discount is to save money, right? The next time you get a discount or score a sweet deal, save the difference of what you didn’t spend.
  4. Automate the process. This is a piece of money-saving advice that is echoed by nearly every financial expert. Paying yourself first is the first step, which means setting up an automatic transfer from your checking account into a savings or investment vehicle. You can set up one large transfer to go through monthly, weekly or whenever works best for your finances – as long as it’s automatic, you’ll be saving without even realizing it. Some experts recommend transferring a portion of your paycheck into savings, and once you reach a certain balance, transfer any additional funds into an investment account. If you aren’t sure where to start, try automatically transferring 10 percent of each paycheck and see how that feels.
  5. Seek advice on your 401(k). It’s official: People with 401(k)s are better savers, according to a study last year by Natixis Global Asset Management. Want to get the best returns out of your nest egg? Get professional help. The study found 74 percent of people who see a financial advisor for 401(k) advice know exactly how much they need to have saved by the time they retire. Set up your complimentary appointment with First Financial’s Investment & Retirement Center to discuss your retirement and investment goals. Contact the IRC at 732.312.1500, or mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com.
  6. Save your spare change. We all have loose change filling our pockets or strewn on our bedside tables. Start banking that change, and you could put a serious dent in your savings goals. For example, putting just 50 cents a day in a jar can help you save nearly $200 over the course of a year. Some experts also recommend only using paper money for daily expenses, such as coffee and lunch, and then saving the difference. If you don’t carry cash, consider using an app like Acorns, which invests your spare change for you.
  7. Fill a need. Many experts say the trick to making money (so you can save more of it, of course) starts with thinking about others before you think about yourself. Basically, the path to success starts by first identifying a need and then filling it. Your earnings are a byproduct of how well you serve your audience. So, focus on filling your customers’ or boss’ needs, or solving a problem, and you will likely make more money (whether through a raise or increased profits). This concept can also be used for people who freelance or want to start a side business – find out what people want, and give it to them; you’ll be in high demand.
  8. Live like a student. No, you don’t have to survive on a diet of ramen and frozen burritos in order to get ahead, but you can take a lesson from struggling students everywhere and learn to live with less. If you are just starting out in the workforce, try living on half your paycheck. Since you’re probably already used to living off very little, half your paycheck should be enough to get by. Meanwhile, you’ll pad a robust savings account with the equivalent of a full paycheck each month. For those who aren’t fresh out of college and have large expenses like a mortgage or child care, try saving a penny of each dollar you make; then, step it up another penny every six months. In five years, you’ll be saving 10 percent of every dollar you make; in 10 years, you’ll be saving 20 percent.
  9. Trick yourself. Many behavioral economists say mental accounting (i.e., treating different piles of money with different intentions) helps trick your brain into better budgeting and saving. This strategy might sound a little complicated, but it’s really a take on the classic envelope system, where you allocate your paycheck to a weekly or monthly budget and put the cash into different envelopes – one for each budget category. Once the envelopes are empty, your budget is maxed out.

7 Easy Ways to Save More Money Today

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downloadSaving more money doesn’t necessarily mean giving up restaurant meals for good or never buying a new outfit again. In fact, there are plenty of ways to save money without making too many sacrifices. The following seven ideas might take a bit of extra effort, but they also have the potential to pay off, right into your bank account.

  1. Get healthy. For people who struggle to stay fit, eating healthy and staying in shape is easier said than done. But for those who are in good shape, you can save a lot of money on life insurance and individual health insurance plans. And as an added bonus, you’ll feel better and have more energy. You don’t have to join a pricey gym, either: You can take up walking or jogging, or download a free app that helps walk you through different exercise programs.
  2. Rethink auto insurance. Every year, re-examine your auto insurance policy for savings opportunities. For example, consider raising your deductible, which lowers premiums. For older vehicles, evaluate whether you really need collision coverage, which covers damage to your car when your car hits or is hit by another vehicle or object. And make it a habit to compare auto insurance quotes annually, which can be done online in minutes. (While you’re at it, consider taking time to compare other insurance policies that you currently have, including homeowners insurance).
  3. Improve your credit score. Of all the painless ways to save money, improving your credit score is arguably the most important. From home loans and car loans, to credit cards and auto insurance, a good credit score can save you a small fortune. Over a lifetime, the savings can easily reach tens of thousands of dollars. The simplest way to improve your credit score is to make on-time payments each month on all of your accounts.
  4. Think triple play. One of the biggest monthly expenses for some is the cost of Internet service, cable and phone. The majority of providers offer discounts when you bundle all three of these services together. Called a triple play, you not only save money, but you also get the convenience of a single bill each month.
  5. Go prepaid with your cellphone. While this option won’t be right for everybody, many can save a small fortune with prepaid cellphones. You can find prepaid cellphone plans that start at $25 a month. And because they are prepaid, you don’t have to commit to long-term contracts. Two of the more popular prepaid cellphone carriers are NET10 Wireless and Cricket.
  6. Shop online. There are several benefits to shopping online – convenience being chief among them. But shopping online can also save big money. Many retailers offer special discounts to online shoppers. And virtually every company that sells products or services online offers promo codes, discounts or coupons. Particularly if you have a big purchase, make sure to search the Internet for deals before buying. You can also track discounts and coupons through online tools, including RetailMeNot and PriceGrabber.
  7. Get cash back. If you have good credit, there are a number of cash-back credit cards that pay up to 5 percent on purchases. The key is to use the card for monthly bills and everyday expenses, not to charge things you don’t need. Put monthly bills that accept credit cards on automatic payment, and use the card for everyday purchases such as groceries and gas. And as an extra precaution against overspending, pay the credit card bill in full several times throughout the month. It’s easy to do online, and it prevents any surprises at the end of the month.

*Original article source courtesy of US News – Money.

Smart Shopping Tricks to Make Your Budget Last All Month

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shopping cart postitWe can all use ways to stretch our paycheck each month, but it’s not always easy to know which expenses to focus on minimizing first. The fact is, some costs are easier to trim down than others. The strategies below will help you always score the lowest price, making it easier for your budget to go farther.

Always look for the deal.

Local drugstores often feature special deals on everything from personal care to grocery items. While the selection is generally smaller than at the grocery store, drugstores can offer even better discounts. Looking for these deals, and applying them to your purchase can generate big savings.

Register for rewards programs.

Many stores feature rewards programs, including drugstores. Walgreens has Balance Rewards, CVS has ExtraCare, and RiteAid has Wellness+. If you register for these programs you’ll likely receive frequent emails, but there will be gems among them, and you might even save 20% off an order. A smartphone app like Key Ring makes it easy to track account numbers for multiple programs.

Use manufacturers’ coupons.

In addition to browsing through Sunday circulars, you can rely on websites like coupons.com to search and print coupons at no cost to you. Since most manufacturers’ coupons usually have an expiration date that is at least one month into the future, hold onto the coupons until you find a great deal.

Look out for store coupon books.

Many stores offer coupon books, usually at the front of the store near the pile of circulars. They often contain many high value store coupons that can be combined with sales and manufacturers’ coupons for additional savings.

Shop online.

When it comes to essential drugstore items, you can often find the lowest prices online, especially when coupons are applied. Some coupons offer deeper discounts to online shoppers, and you can find everything from vitamins, cleaning supplies, personal care items and pain relievers for reduced prices.

Use blogs.

Many blogs and websites collect coupons and deals for readers, which makes your job even easier. Sites like Retailmenot.com research and sort deals for you, and you can often match the deals with sales in circulars.

Don’t pay full price.

Most retailers make it easy to find deals online. In fact, you should never pay full price for your purchases, at least before checking for discount codes. Signing up for store email lists will also help make sure you don’t miss out on discounts.

Get an Amazon Prime membership.

It might sound counterintuitive, but purchasing an Amazon Prime membership can actually end up saving you money. That’s because it comes with two-day shipping on most orders, movie and TV streaming, and one free book rental per month. You can try out a 30-day free trial membership to see if it would end up saving you money.

Write a review.

Some companies are willing to pay customers, in the form of discounts, for leaving reviews on their products listed online. HonestFew and SnagShout are a couple companies that make this process easy. Once you receive items at a low price (or sometimes even free), then you simply log in to leave your review, whether it’s good or bad.

Buy a reusable water bottle.

Going through a handful of water bottles a day is expensive, unnecessary, and bad for the environment. Instead, pick up a reusable water bottle for yourself. You can even get one that comes with a built-in carbon filter to remove tap water impurities. Your body, and the Earth, will thank you.

Use apps.

Many stores have made it even easier to save these days by introducing their own apps. These apps offer special discounts to shoppers that cannot be found anywhere else, and saving is as easy as opening the app and seeing what deals are available. You can even do this while standing in the checkout line. Other apps, like Shopkick, work at many stores. You can earn points by checking in at stores and making purchases, and then using those points to earn gift cards.

Plan ahead.

Planning out meals in advance is one way to keep grocery store costs down because you can minimize waste or unnecessary purchases. You not only cut out impulse purchases at the grocery store but also eliminate the need to order delivery on those nights you realize you don’t have anything to make. Pinterest can also help with new recipe inspiration if you’re feeling stuck.

Article Source: Lisa Koivu for http://money.usnews.com/money/personal-finance/articles/2015/10/20/smart-shopping-tricks-to-make-your-budget-last-all-month

5 Ways to Save Money When You’re Broke

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save-moneyIt can be hard to save money at any time, but it is particularly difficult when you feel like you are broke. If you can barely afford your bills and you are living paycheck to paycheck, saving money is probably one of the last things on your mind. However, you can still save money when you’re broke. In fact saving money, even if it is a little, is a key step to stop being broke.

As long as you are making some money, you should be saving some. Especially if you routinely have insufficient funds, it’s important to make a habit of saving money. Despite the fact that you have little extra funds, there are ways to save. Cutting costs, sticking to a budget, and saving a little at a time are all ways that you can save money, but there are other ways as well. Here are five ideas to consider.

1. Cut out the extras. An easy way to save money when you’re broke is to cut costs. You may think there is nothing you can cut out at first, but think a little harder. If you are truly “broke” then you need to let some things go. Do you really need such an expensive cell phone plan? What about cable television? Can you use the internet at the library or use WiFi instead of paying a monthly fee?

There are many things that we consider necessities that are really just extras, and cutting some of those will quickly free up more money. Take a look at your monthly bills, and decide what is really necessary. If you want to stop being broke, you may have to cut out some of the extras for a while.

2. Eat at home. Grabbing lunch on the go is so much easier and more convenient than bringing a lunch to work, but doing this regularly will really eat away at your income. According to Living on A Dime, eating out is a common way people get into personal debt. It’s easy to rationalize eating out because you are too busy to cook, or you are a bad cook. However, making food at home will truly save you money, and if you want to save money, you need to make the time and the effort to cook at home. You can save time by making several meals over the weekend and freezing them to use during the work week. If you simply don’t know how to cook, buy a cookbook for beginners.

3. Make a budget. If you don’t have a budget, your first step should be to make one. Perhaps you already have a budget, but there are several reasons a budget can fail. If you recently lost your job, or your income somehow changed but you are using the same budget, you will need to make a new one. You also may need to look at your budget and see if it is really reasonable and if you need to adjust anything.

According to Lifehacker, if you are broke and budgeting, there are several steps that can help. Start by assessing your financial situation, cut back on expenses (as mentioned in point one), and be frugal. There are other steps you can also take, including paying down your debt.

4. Save a little at a time. If you’re completely broke, the idea of saving anything probably seems unreasonable. However, you have to get into the habit of saving if you are going to save more in the long run. It’s important to think about the future: write down your financial goals, even if they seem completely out of reach. Then, start saving. If you are saving nothing right now, then any savings is an improvement. Once you cut your extras and start following a budget, you can use some of the discretionary money to save for your future.

Another idea is to get a second job. Even if you only work a few extra hours each week, but you put all the money in a savings account, you will quickly see a change in your financial situation.

5. Avoid common mistakes. You can make plenty of good decisions about your finances, but if you make a few poor decisions, you will still have a hard time saving. Some of the worst things to do when you are broke include splurging when you get money, prioritizing convenience, taking on too much debt or making poor decisions about debt, living beyond your means, and having no savings at all.

It’s really easy to live above your means, but this is one of the easiest ways to get into debt. If you have a hard time controlling your spending, try setting a budget and then doing envelope budgeting (you can modernize this practice with a few steps). Also, be careful about the debt that you incur. You need to avoid the worst financial mistakes if you really want to save.

Saving money isn’t easy, but if you take the time to put these five steps into practice, you will be off to a good start!