Save Money

Today's blog is about saving money and how to make the most of your resources available to you.

We are in tough economic times. A lot of people are cutting back on expenses as more and more people are losing their jobs. This is a great time for you to start making changes in your financial lives. It starts now. Do you want to change your financial situation - have more money rather than spend what little you have? If so, I have some ideas that may help you.

First, make a list of the things you need and the things you would like to have. Give the priorities to the things you need. If you want to buy something, i.e., new tv, computer, etc., make sure you are able to pay for it in cash rather than on a credit card or be able to pay for it in one month if you do put it on a card and avoid any finance charges. Wants vs. needs. If you don't have the money to pay for it in full, then don't get it. All this is going to do is get you into debt, and that is how one starts to get further and further in debt.

Second: Stay home and save money. By staying home, you spend less money on going out, spending gas, pay for dinner or a movie, etc. Save that money. Eat at home, rent a movie (using coupons) or watch a movie on tv. Cutting back is ok, especially right now. If you can do that and look at the savings you can make, you will see an improvement in your finances. Here's an idea, calculate how much you would spend on going out to a movie and/or dinner; then, put that money into your savings account instead. This is one way you will see your bank account grow. If you do this often, you will have a good nest egg for those rainy days.

Third: Check your credit cards - interest rates, balances. The smart thing to do is get your credit cards paid off as soon as possible. Let's say you have three outstanding credit cards. First - balance of $1,000, Second - balance of $500.00 and Third - balance of $2,500. What should you do to eliminate these cards? You have a few options. First try to pay off the card that has the greatest balance. Pay more than the minimum on that one to pay it off faster. If you are tight on money, then pay the minimum on the other two cards while you pay the other higher balance off. Then, once that one is paid for, go to the next highest and do the same thing, then the third. But make sure, you do not use those cards while trying to pay them off. If so, you will take a lot longer to pay them off. Another way of paying off the credit cards is to look at your interest rate. Although, credit card companies are being tougher on card holders these days, try to contact them to see if you can lower your interest rate, most times, they will do so. If you can get them to lower your rate, then you can pay them off faster. Another option is to consolidate your cards, i.e. find a low transfer rate card and transfer all of your cards to one card with a low interest rate. This way, you have one payment instead of three, and a lower interest rate. I have had some luck in this. I would get approved for 0% interest for 6 months or a year or a 3.99% interest on life of loan. I would transfer my other cards to this one, pay as much as possible and paid it off sooner.

Fourth: Use your resources wisely. Use your cards to your advantage. As stated in the third idea. Find a lower interest rate card and transfer all of your balances to that one, have one payment and a lower interest rate.
Here is a story of what I did last year. I was looking for a good used car for my wife. I found one at a dealership and negotiated a price of $5,000 total (TTL). What did I do? I actually bought the car on a credit card, then transfered the balance to a card that was charging 3.99% interest. The loan interest rates on used cars are higher than new cars - typically around 8-10% depending on the year. The older the card, the higher the rate. So, instead of paying 8% interest on a car loan, I was paying 3.99% on the life of the loan. This is what I mean by using your resources. (Unfortunately for me, my wife had a car accident and totaled the car, so it didn't work out the way it was supposed to). But you get the idea.

Finally: use your money wisely. If you can't afford it, don't get it. Save your money until you can pay for it in cash. Another thing, if you have paid your cards off, great, but don't close your credit card account. As I found out, it actually hurts your credit score if you do. I don' t know why, but it does. Just don't use your card.
Do what I do when you get your pay check. Pay yourself first. Meaning - set aside $25 or $50 and put it into your savings account first before you spend it on bills or entertainment. This is a good way to build up your savings account.

I hope these are some ideas you can use. If you read this, pass it along to as many people as possible. I would like ot get a lot of people following my blogs and click the ads, that helps me out too.

Good Luck.