An Easy Way to Save Money: Ask For a Discount

Source:http://www.moneycrashers.com/an-easy-way-to-save-money-ask-for-a-discount/
I know that I am much bolder when it comes to buying a car, furniture, a mattress, or other big-ticket items to haggle on price. But typically, I don’t have what it takes to get a good deal on a mid-priced item at a large retailer. One time, my wife’s father haggled the price of a microwave at Best Buy! Most people don’t think about haggling on price at Best Buy, but it can be done. It can especially be done at the Appliance section. The store clerks don’t make commission, but I am convinced that there is some kind of financial incentive for them. We bought a set of appliances two years ago, and by the time we left, we had about $300 knocked off the total price.

The formula is simple. ALWAYS ASK FOR A DISCOUNT! It never hurts to ask, and the worst they can say is NO. I’m preaching this to myself, because I am very shy when it comes to buying certain things. My wife is awesome at this. She’ll ask for anything. She wants to get a discount wherever she can. Some discounts are staring you in the face. If you see that the item has something wrong with it, or it has already been opened, you can typically get 10 to 20% off the retail price.

Be a frugal shopper. You’ll save thousands of dollars over your lifetime.

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Outwardly Simple and Inwardly Rich

Source:http://millionairemommynextdoor.com/2009/08/outwardly-simple-and-inwardly-rich/
It’s been my experience that frugality can run the continuum from miserly to magnificent.

When I was a child, I never went a day without a nutritious meal or a warm bed. Still, I recall times when I perceived my family as poor. In the school cafeteria, I furtively slipped my free lunch ticket to the cashier — with hopes that my friends wouldn’t notice that my family received government-provided financial assistance. When my father returned to college to earn his graduate degree, my siblings and I shared one crowded bedroom in a tiny apartment. I was teased unmercifully whenever my peers noticed the strips of fabric my mom sewed onto the bottom of my out-grown “high-water” pants to make them long enough to cover my ankles once again.

The most painful part of our family’s frugality, though, was when I overheard my parents argue about money.

At other times, I was aware that my parents purposely chose our frugal lifestyle — they voluntarily chose to live simply. Those were the best of times. “High-water” pants or not, our family was free from the handcuffs of Stuff. We used things up, repurposed them, and improvised. My parents were good role models for me in this regard.

As a young adult, I operated from a mindset of scarcity. I feared running out — or not having enough — of what I needed. After a year of struggling to support myself financially through college, I dropped out. I took another job: pouring coffee during the graveyard shift at a donut store. Many of my customers were homeless. They nursed one cup of coffee – all night long – to earn a warm spot inside.

One night, it dawned on me that I was one paycheck from becoming homeless, too.

I dealt with my anxiety by hoarding what little money I made. I shared rent for a one-bedroom apartment with three other young women and dined on free appetizers offered at local bars during Happy Hour. At that point in my life, frugality – emotionally speaking – was a defensive action.

“A miser is a person who is reluctant to spend money, sometimes to the point of forgoing even basic comforts. The term derives from the Latin miser, meaning “poor” or “wretched,” comparable to the modern word “miserable”.”

—Wikipedia

Over time, my fearful and hoarding behavior resulted in a medical insurance policy and an emergency fund. I had stashed enough to see me through a missed paycheck or two. But did I have enough? Would my future always include beater cars, cramped apartments and grocery coupons? Was I destined to earn minimum wage, doing a job I hated, forever?

“Frugality (also known as thrift or thriftiness) is the practice of acquiring goods and services at minimum cost, achieved via economical restraints or creative measures. Frugality can be related to the idea of being conservative or conserving money.”

—Wikipedia

Frugality continued to feed my savings account and in turn, my savings account afforded new opportunity. Consequently, I was able to become an unpaid apprentice to learn a new skill. After studying animal behavior and learning how to train dogs, I quickly landed a higher paying job. And I loved my work. As my skills, enthusiasm and reputation grew, I started my own dog-training business. Despite my increased income, I continued to live frugally. However, I made a point to shift my mental attitude of lack to one of abundance. The purpose of my frugal behavior shifted from reactive to proactive.

“To be healthy, wealthy, happy and successful in any and all areas of your life you need to be aware that you need to think healthy, wealthy, happy and successful thoughts twenty four hours a day and cancel all negative, destructive, fearful and unhappy thoughts. These two types of thought cannot coexist if you want to share in the abundance that surrounds us all.”
—Sidney Madwed

Today, rather than being driven by fear, I embrace the abundance in my life. I have enough. Rather than flashy opulence and keeping-up-with-the-Joneses behavior, my husband and I joyfully choose a lifestyle of voluntary simplicity. Duane Elgin, author of the classic book Voluntary Simplicity, defines simple living as:

“Living in a way that is outwardly simple and inwardly rich.”

From fearful and miserly to voluntary and magnificent, frugality has had a profound impact on my life.

Simple living (or voluntary simplicity) is “a lifestyle in which individuals consciously choose to minimize the ‘more-is-better’ pursuit of wealth and consumption. Adherents choose simple living for a variety of reasons, including spirituality, health, increase in ‘quality time’ for family and friends, stress reduction, conservation, social justice or anti-consumerism, while others choose to live more simply for reasons of personal taste or personal economy.”

—Wikipedia
May we all enjoy a magnificent and inwardly rich life!

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How to Make a Million Dollars While Eating Lunch

Source:http://millionairemommynextdoor.com/2009/08/how-to-make-a-million-dollars-while-eating-lunch/
In response to my last post, Would You Ditch A Car For $1,000,000?, a reader made the comment: “As a grad student in an urban area, I don’t have a car (nor could I afford one) and I use public transit. … I wish there was a “big ticket” item like that that I could easily cut out of my life, but there just isn’t. Instead I try to cut back on small things and aggressively invest for cashflow.”

While savings do accumulate faster when you cut back on the biggest budget-buster categories (housing, transportation, insurance and taxes), the little things do add up. Take for instance:

My Million Dollar Lunch Recipe

1. Replace your $9.50 restaurant lunches (sandwich, fries, soft drink, sales tax, tip and mileage) with a nutritious $3.00 lunch brought from home.
2. Deposit your $143 monthly savings ($6.50 daily, 22 working days a month) into a Roth IRA retirement account.
3. Invest in equities (stocks, mutual funds) at a 10%* annual long-term average rate of return.
4. Let your account simmer for 41 years.

Recipe Yield = $1,000,837

Serve: During retirement with whipped cream and a cherry on top.

Ingredients:
Total deposits = $70,356
Total interest earned = $930,481
Total taxes paid = $0
Total Saved= $1,000,837

Optional Garnishes:

*

Combine with a 20 minute walk to the park for lunch.

Yield: 1,277,232 calories– enough to keep off (or lose) 365 pounds! (Calculated for a person weighing 140 pounds walking 4mph for 20 minutes (1.33 miles) 5 days a week for 41 years.)
*

Pack a lunch for your spouse.

Yield: An additional $1,000,837
* Add a group of supportive friends for lunch to work on the Baby Steps to Financial Freedom together. Yield: Financial freedom – with friends who will have the resources to enjoy it with you!

Isn’t it amazing how much money you can amass by investing small amounts over long periods of time?

Once you think in terms of investing instead of spending, look for ways to duplicate this process in other ways. Consider the following actions:

*

buy staples in bulk and invest your savings
*

invest your employee bonuses
*

invest unexpected financial gifts and inheritances
*

invest your tax refunds
*

buy a term life insurance policy instead of a whole life one and invest your monthly premium savings
*

buy a used car instead of new and invest the difference in price
*

borrow books, movies and music from your local public library and invest your savings
* save and invest your pocket change

Imagine this: Starting with $0 and depositing $5,000 annually in a Roth IRA account over 41 years (at a 10%* annual rate of return compounded monthly), you will have $3,081,554.

Ingredients:
Total deposits = $210,000
Total interest earned = $2,871,554
Total taxes paid = $0
Total Saved= $3,081,554

Choose affordable and cost-effective options and rather than feel deprived, feel excited that you get to invest the difference in yourself and your future.

~ Bon Appetit!

ooOOOoo

*The actual rate of return is largely dependent on the type of investments you select. From January 1970 to December 2008, the average annual compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 9.7% (source: www.standardandpoors.com).

Total savings are calculated in actual dollars (not inflation-adjusted). A common measure of inflation in the U.S. is the Consumer Price Index (CPI), which has a long-term average of 3.1% annually, from 1925 through 2008.

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Is Your Will Updated?

Source:www.yapminghui.com
Is Your Will Updated?

If you have written your Will, congratulations! But, when was the last time you took it out and reviewed its' content? If your answer is NEVER like many people, chances are that your Will may not be updated to reflect your current financial position and latest wishes.

Some of the problems caused by not having an updated Will are:-

1. Unsuitable executor - Without reviewing the content of the Will, one may forget who he has appointed as the executor for his Will. In other cases, the executor may have migrated to another country. It is also possible that the appointed person may not be a suitable candidate anymore due to various circumstances. For example, the appointed executor may become bankrupt and is no longer fit for the position.


2. Unsuitable guardian - You may not discover that the guardian appointed by you is no longer suitable or capable to act when he/she is needed. As life changes, the person you have appointed as the guardian for your children may not be the best candidate anymore.

3. Distribution not according to your latest wishes - As we move on in life, our assets also change (hopefully it will change to become more rather than less). Without rewriting your Will, it is hard to ensure that your estate will be distributed according to your latest wishes.

4. The Will becomes invalid - According to Section 12 of the Wills Act 1959, your Will is automatically revoked upon marriage. For example, the Will signed by you when you are single will be revoked and become invalid the moment you are married. Without rewriting your Will, you may think that your current Will is still workable and expect your estate to be distributed according to it. This is, of course, a misconception. Another circumstance that will revoke your Will is when a non-Muslim converts to Islam.

Solutions:

1. Regular review - Make it a habit to review the content of your Will once a year.

2. Review by events - If you don't think that you will have the discipline to review your Will on a regular basis, you must at least review your Will under the following events:-

a. Marital status change - The changes could be either from single to married, married to divorced or a case of remarrying.
b. Financial status change - The significant financial changes may be starting a new business, winning the lottery, selling or listing your business, committing huge liabilities, buying new properties and others.
c. Executor status changes - Your appointed executor may fail to act because of death, incapacity, migration to another country or even 'change of heart' in that he becomes unwilling to act.
d. Guardian status changes - Your appointed guardian may fail to act because of death, incapacity, migration to another country or even change of heart in that he becomes unwilling to act.
e. Beneficiary status changes - You need to review your distribution when one of the beneficiaries predeceases you or becomes bankrupt.
f. Change of heart - You need to review when you want to change your executor, guardian or beneficiaries.
g. Addition of child/children - The addition could be in the form of birth or adoption.
h. Setting up a trust fund - When you plan to set up a trust fund, you will need to review your Will to see how you can distribute your wealth in an integrated manner.
i. Legislative changes - When there is a change in distribution law or imposition of estate duty, it is important that you review your Will.

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If Your House Is Worth Less Than You Owe, Is It OK To Just Stop Paying Your Mortgage And Walk Away?

Source:www.smartonmoney.com
ince the market collapsed back in 2008 we’ve seen the real estate market take a nosedive. People who bought at the height of the market (assuming that real estate would always appreciate) found themselves in a situation where their homes had dropped significantly in value. My wife and I are a part of the group who have taken a significant hit, our home value has dropped by over $40,000.

Many people, especially those who bought homes without a down payment, or with a sub-prime loan are now finding that they also owe more on the home than it is currently worth. According to a report by First American Core Logic, a real-estate data firm, more than 11 million families are in “negative equity”, that is, they owe more on their home than it is worth.

Thankfully we aren’t underwater, but what about those people who are? What are they to do? A growing group of people are saying that for most of those people it would make complete sense to just walk away from their mortgage, stop paying, and take the credit score impact of a foreclosure. They call it a “strategic default“.

My question is this. Is it OK to walk away from your mortgage if you have the money to pay, just because you’re underwater and have negative equity?
Credit Score Impact Of Foreclosure

There are a lot of things to consider when you’re thinking about walking away from your home. First of all, you need to consider the financial impact of walking away from your mortgage.

One of the most obvious impacts a foreclosure will have on your financial life is on your credit score. Now, I’m not one of those people who will tell you to constantly check your credit score and rely on it for everything, but the fact is that it does play a part in a lot of things these days, so you can’t completely ignore it. So what impact does a foreclosure or delinquent payment have on your credit? Fair Isaac pulled back the curtain a bit and revealed a little bit about what kind of a credit score impact those things might have:

30 days late: 40 – 110 points
90 days late: 70 – 135 points
Foreclosure, short sale or deed-in-lieu: 85 – 160
Bankruptcy: 130 – 240

So having a late payment, a short sale, foreclosure or bankruptcy can have a pretty significant impact on your credit score. In any of those situations it is going to show up on your account and have pretty negative impact. What does a lower FICO score potentially mean?

Absorbing a big credit-score hit can make many transactions more costly. It’s not just paying more for credit card debt and auto loans, insurance can cost more as well.

The average savings for someone with a good versus mediocre credit score is about $115 a year for auto insurance and $60 for home, according to Loretta Sorters, of the Insurance Information Institute.

A low credit score can even make it harder to rent a home because landlords often use credit scores to weed out prospective renters.

So having a foreclosure, short sale or even late payments can mean you’ll end up paying more for a variety of things. Definitely a huge impact to consider when you’re thinking about walking away.
Moral Dilemma Or Just A Contractual Transaction?

While walking away from your mortgage will obviously have a negative financial impact, especially as it relates to your credit score, this still isn’t enough for many people to not consider it. There are still those who are just having a hard time making ends meet, and while they can still make the payments, they would prefer to just walk away from the hefty mortgage on their underwater home, because they don’t want to lose upwards of $50-100,000 (or more) on their home value. Why take the hit when the bank can better absorb the blow?

It does seem to make sense on the surface, but now we need to ask the question, is backing out of a mortgage contract an OK thing for a homeowner to do, or is it morally wrong to back out of a contract you are still able to fulfill?

Personally I tend to come down on the side of paying your obligations if you’re able. I like to think that a contract is something you live up to. You knew the terms of the deal when you signed up, and now you should live up to it if you can. We need to be responsible for the obligations that we’ve made.

Others would counter that a strategic default is a legitimate option that is even spelled out in the mortgage contract, where specific ramifications of a foreclosure or short sale are spelled out for the homeowner. To exercise those options is just a a part of the legal transaction.

I understand that argument, but don’t agree with it. Just because the ramifications of missing payments or defaulting are spelled out in a contract, doesn’t mean it is an acceptable or desirable thing to do. Also, there is nothing in the mortgage agreement that makes your continued payment contingent upon the value of the home going up! It is a risk that you take!

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8 Big Reasons Why You're Getting an F in Personal Finance 101

Source:http://lenpenzo.com/blog/id1142-8-big-reasons-why-youre-getting-an-f-in-personal-finance-101.html
My 12-year-old son, God bless him, brought home his mid-term progress report a few weeks ago and I noticed he was getting an F in one of his classes.

What was most infuriating was that the F was in Physical Education.

“How in the world do you fail phys ed?” I asked the Honeybee, shaking Matthew’s mid-term report card in my hand for added emphasis.

“Beats me, Len. Why don’t you ask him?”

Genius. Where would I be without the Honeybee? So I marched upstairs and confronted my son.

“Matthew, why are you getting an F in phys ed?” I said in my calmest possible voice.

Of course, almost as an afterthought, I did manage to shake the report card that was still in my hand to convey the gravity of the situation. The fact that I shook it two seconds late didn’t seem to phase my son.

“Beats me, Dad. I don’t think coach likes me.”

Of course. The old my-teacher-hates-me-and-that’s-why-I’m-getting-an-F excuse.

Well, it was too late in the afternoon to call his coach. Furthermore, the completely unsatisfying lack of cooperation from both my son and the Honeybee forced me to come up with my own answers.

Perhaps, I reasoned, Matthew has trouble discerning the difference between a push-up and a jumping jack.

Then again, maybe he just keeps forgetting his gym locker combination, or always insists on asking for directions while running the 440 relay.

I know, but it’s phys ed, for God’s sake.

The next day, after talking to his coach, it turned out my son’s poor grade was due entirely to indifference and a general lack of effort.

Well, duh. What else could it be?

Needless to say Matthew and I had a nice little talk about his grade and, unless he decides the domestic equivalent of your typical penitentiary chain gang is a great way to spend his summer vacation, I sincerely doubt he’ll be finishing the year with an F in PE.

8 Big Reasons Why You’re Getting an ‘F’ in Personal Finance 101

That little incident with my son got me thinking about what people would have to do to earn an F in Personal Finance 101. To me, Personal Finance 101 is all about mastering my first commandment of personal finance: spend less than you earn.

If you find yourself swimming in debt and living paycheck to paycheck the odds are you would be getting an F in Personal Finance 101. Here are eight of the most likely reasons why that is so:

1. You don’t have an emergency fund.

In life you should expect the unexpected, such as the sudden loss of a job, and the last thing you want to do is be caught off-guard and forced to rely on credit cards or a loan which could get you into deeper financial trouble.

Extra Credit: Establish an emergency fund of at least three to six months of expenses.

2. You don’t know how much money you have in your bank accounts.

Overdrawing a checking account by just a few cents could result in lots of expensive bank fees. To ensure you’ll never write a check for more than what you have, you should always know how much money you’ve got in all your accounts.

Extra Credit: Set your overdraft limit to $0, and your debit card will not be allowed to overdraft your account. True, you could bounce a check. But if you are being a responsible household CFO and balancing your checkbook regularly, that shouldn’t ever be a problem. You can also consider using money management software to help manage your finances more closely.

3. You don’t understand the difference between a want and a need.

Being able to distinguish between wants and needs is directly tied to your ability to accept personal responsibility.

Extra Credit: Understand that when taken down to the most basic level, all of us have only four or five primary needs. Those needs are food/water, clothing, shelter, transportation (for most of us), and health care. Everything else is a want.

4. You don’t know how much money you spend.

It’s pretty simple. What you save is the difference between how much you make and how much you spend. But it’s tough to save anything if you don’t know how much you can afford to save. That’s why it’s important to take a critical look at your expenses so you know exactly how much money you are spending.

Extra Credit: Audit your expenses by writing down everything you spend your money on for a couple months. The trick is to be as detailed as possible; try to capture even the smallest purchases. Assign each purchase or expenditure a category such as: Housing, Automobile, Food, Phone Bill, Cable Bill, Utilities, Entertainment, etc. Here is a budget worksheet to help get you started.

5. Your tastes exceed your spending capability.

Understand that this is not a problem, so much as an excuse. Kind of like my son arguing that he’s getting an F in his PE class because the teacher doesn’t like him. When your expensive tastes starts impacting your ability to save, you’re in for trouble.

Extra Credit: If your tastes exceed your budget, ratchet them down a notch or three – and stop making lame excuses.

6. You can’t say no.

Many people do understand the difference between a want and a need, but they have trouble saying no anyway. Being able to say no is a crucial skill in the world of personal finance. Those that can’t will always have the most trouble keeping their personal finances on an even keel.

Extra Credit: Master the art of saying no.

7. You’re an impulse shopper.

Impulse buying is a nasty habit that can best be cured by careful planning.

Extra Credit: Establish a household budget. When going out shopping, know exactly how much you will be spending at each establishment. When buying groceries, make a list of everything you need before you go shopping. In short, think before you buy.

8. You worry about what others think about you.

People that worry about what others think of them suffer from a predilection to conspicuous consumption, otherwise known as the desire to keep up with the Joneses. There are many reasons why people do this: the urge to advertise their success in life (be it real or imagined), the desire to have what others have, and instant gratification, just to name a few. Unfortunately, people with a poor grip on their personal finances fail to understand this little piece of reality: the Joneses are broke.

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Why Your Expensive Luxury Car Doesn't Impress Smart People. (Or Me.)

Source:http://lenpenzo.com/blog/
A few days ago Jennifer from Live Richly commented on a post I had written entitled 8 Big Reasons Why You’re Getting an F in Personal Finance 101. She was lamenting the sense of entitlement she saw in many people. Here is an excerpt:

“I know a woman who is a single mother and hit up her friends for money to replace the engine in her SUV. I declined to participate because even though I have a lot more money than her, I have a 9-year-old car that’s worth maybe $2000, and hers is worth about $30K. Her engine costs more than my whole car… I will admit that peer pressure is real though. I’ve had many people mock my car, and if I cared, I would run out and get a fancier one.”

Ah, Jennifer. Let them mock you all they want because those people clearly have a misguided view of how the world really works.

Yes, it’s true a large segment of society still believes that the car a person drives is a status symbol that accurately reflects the level of financial success he or she has achieved.

The truth is smart people know nothing could be further from the, er, truth. (Dang, I hate when I do that.)

As far as smart people are concerned – and even dummies like me – the sticker price of somebody’s car can never be considered a reliable indicator of their financial success.

If you don’t believe me, just look around; the proof is everywhere.

For example, here in Southern California I see teenagers driving BMWs, and Lexuseseses (or is it Lexi?) all the time. I don’t think most of them hit it big blogging, or own wildly successful businesses at that tender age.

I also see people working in jobs that pay $30,000 per year driving Infinities. Is that supposed to be impressive?

More like stupid.

Heck, Jennifer’s friend owns a relatively-modest priced SUV and she couldn’t even afford to get the engine fixed.

So clearly, one cannot determine the size of a person’s bank account merely by the type of car they drive.

I know a couple that used to live in my little neighborhood community who drove brand new his and hers BMWs. Guess what? The bank foreclosed on their house a while back and they had to move away. Although I do not know the exact circumstances that led to the foreclosure, perhaps if they drove more modest cars that didn’t require monstrous monthly payments – or better yet, no payments at all – they might still be living in their home today.

Although we can truly afford to drive almost any car we desired, The Honeybee and I choose to drive a 2001 Honda Odyssey and 1997 Honda Civic, respectively. Our cars are not glamorous, obviously, but they are well-maintained and, best of all, they are paid for.

Although she didn’t say so, I bet Jennifer’s car is paid off. I’ll also wager the vast majority of newer luxury cars on the road aren’t.

And while those luxury car owners will continue to be saddled with some hefty car payments over the next several years for the privilege of traveling to their jobs in style, the rest of us will continue driving our Honda Civics, Toyota Corrolas, and Ford Focuseses-es (or is it Foci?) and use the money we save for our relentless drive toward financial freedom.

And guess what? Most of us won’t give a damn what the others think either.

If I had to give any advice to Jennifer on this subject, I would tell he that she should never fear peer pressure for owning a “beater” for a car.

Financially savvy people actually consider it a badge of honor.

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104 Ways to Save Extra Money

Source:http://ptmoney.com/

Let’s save some money! Here are 104 ways to save extra money. Why save money? Well, so you can afford your future. So you won’t have to rely on credit to get you by. So you can do some fun things. There are lots of reasons to do it.

Why 104? Because it’s double my other list, 52 Ways to Make Extra Money and I like a challenge. Okay, let’s get started with the savings…

1. Get a Piggy Bank – Put up a piggy bank at your home. This creates a visual reminder to capture those little handfuls of change you come home with. At the end of the year, you’ll have a nice little savings fund for a fun purchase, or even to fund a real savings account.
2. Use Open Source Software – Utilize free, open-source software like OpenOffice (like MS Office) and Firefox Internet browser.
3. Get Cash Back for Your Online Purchases – Use a website like Ebates.com to shop online. They will give you a percentage back on the money you spend online at hundreds of popular stores
4. Use CFL Bulbs – Compact florescent lamps (CFLs) cost more on the front-end, but they will save you money and energy in the long-run.
5. Combine Coupons with Local Sales – Save up coupons and use them in conjunction with sales at local markets. You can end up with items either being free or at a greatly discounted price.
6. Drive Your Car Until it Dies – No car payments or big cash outlays. Lower car insurance. Plus, you get the satisfaction of knowing you used this depreciating asset to it’s fullest potential. – DoughRoller.net
7. DIY Greeting Cards – Design and print your own greeting cards. You can design and print a greeting card for around .50/card, which is a good price compared to $3.99 cards.
8. Use Cash for Better Negotiations – Larger ticket items definitely benefit from you waving around cash. You’re able to negotiate great deals when they see you’re a serious buyer. My wife was able to knock $200 of her recent road bike purchase by showing the money and asking. – FiscalGeek.com
9. Consider the Reviews – Do your research before you buy an expensive item (or even a not so expensive item). Check reviews on Amazon, look up reviews online, check a few forums, look up prices at different stores…you can easily save money and you might even find out the item you thought you wanted isn’t so great. – Free From Broke
10. Reuse Work Clothes – Reuse clothes that did not get dirty during the day, this cuts my laundry down, water, and electric bill.
11. Consider a Movie Subscription Service – If you currently spend a lot of money on entertainment at the theater or at the movie rental store from month to month, consider saving time, gas, and money by subscribing to an online movie service like Netflix.
12. Clip Coupons – Find the best coupons in the Sunday paper every week for grocery and other household items.
13. Monthly Spending Review – Write down all the expenses you make in a month. Review the list and try to eliminate the unnecessary expenditures.
14. Avoid Financing at All Costs – Delaying instant gratification by saving for purchases before buying will hone patience and aid in bringing wealth and piece of mind to all who are exercised thereby. This element of self-discipline may be one of the oldest, simplest, and most base elements of financial success… but regrettably, it has also become a lost art in our common culture. Avoid financing and save for things before you buy them. Period. – Debt Free Adventure
15. No Restaurant Challenge – Take a week out of the month, or better yet, a month out of the year and commit to dining inside your home only. No dining out. See how much you can save by following this.
16. Do Free Activities – Find free stuff to do. For example on Sunday mornings go to a big book store and read books in the store without having to pay for them.
17. Keep Larger Bills – Never break down your large bills. You’ll be less likely to spend it. Smaller bills get spent quicker.
18. No Second Thoughts – Only buy things that you really need. Avoid buying things that you have second thoughts about or aren’t sure you’ll need.
19. Dine Out for Special Occasions Only – Only dine out for special occasions. You could get a week’s worth of food at the grocery store for the same amount that you pay for a single dinner out for one person.
20. Consider Quality – Buy things of high quality even if it costs a bit more up front. Look back at all of the things you skimped on over the years and ended up having to replace earlier than you expected. Suddenly that big sale or off-brand item doesn’t seem like such a good idea. This doesn’t mean everything that is more expensive is better, but use your smarts to find the best bang for your buck instead of looking for the absolute lowest price on something. “You get what you pay for” still holds true for many things. – Generation X Finance
21. No Credit Cards – Cut up the credit cards and live only on what you make. No interest. No late fees. No problems.
22. Pack Your Lunch – Don’t go out for lunch everyday; pack lunch instead. This can easily save you $50 a week.
23. Don’t Pay for Your Kids - If you do dine out during the week, make sure you visit one of the many places that offers “kids eat free” specials. At least you won’t be paying for their meals.
24. Don’t Forget to Ask – Ask for a discount. We always ask about discounts and have found that many places we wouldn’t have thought of give unadvertised discounts. For example, our preschool offered a discount to pay in full. And our plumber gave us a discount when we asked. As it turns out, many things are negotiable if you ask! – My Dollar Plan
25. Savings Goal Reminder – Carry a list in your wallet of financial goals that you will see every time you take it out to buy something.
26. Shopping Plan of Attack – Look at all the sale ads before you grocery shop and go to the store with the most sales. Write down a list before I go to any store and it saves you from buying unnecessary items.
27. Vacation During No Child Care Days – Plan your vacation days on the days your children have half days of school or teacher in-service days. It yields more time with kids and lower child care costs.
28. Quit Your Bad Habits – Be they eating out, smoking, or going out partying. Every time you stop yourself from doing it, put the money you would have spent into your savings.
29. Meat Alternative - Meat is generally the most expensive source of protein. Beans and nuts are pound for pound far more nutritious for your protein dollar, and better for you too. –Amateur Asset Allocator
30. Daily Spending Goal - Set a daily goal for yourself: how much money your going to spend during the day.
31. Deal of the Day Sites – Groupon.com. This is a fantastic site to get some great group deals from local businesses. The only thing to watch out for is the “I don’t really need that but it’s such a great deal” syndrome. – FiscalGeek.com
32. Online First, In-store Second – Always do comparison shopping online before going to stores. This will allow you to find the best deal without wasting time and gas driving around town.
33. Consider a Stay-Cation – No need for a big expensive vacation. Take a week off of work and simply do a bunch of activities in your own home town. Skip the hotel and airfare costs and spend more money on entertainment and dining out for the week.
34. Wash Your Own Work Clothes – If you need a lot of professional clothes for work, buy the generic equivalent of Woolite and wash your work clothes with it instead of regular harsh detergents. It costs a bit more initially for the detergent but saves your clothes from fading, thinning, or frizzing, so I can wear them a lot longer and not have to buy new things. Also use Dryel instead of dry cleaning my clothes as much as possible.
35. Do it Right the First Time – If you are working on a car repair or home improvement, consider doing it right the first time. If you try and cut corners it will likely end up costing you more money in the long run. – Money Smart Life
36. Early to Bed, More in the Bank – Go to bed earlier. Saves light, heat and late night nibbles.
37. Create a Savings Category on the Budget – Make saving part of your budget and set saving goals. If you monitor your progress toward a goal you are much more likely to succeed in hitting that goal than if you just hoped to save money some day. Monitoring anything makes you more aware of it. – No Debt Plan
38. Utilize Free Online Services – Dump the monthly subscriptions and read newspapers and magazines online.
39. Be Purposely Low in Cash – Do not take a lot money with you when you go out, so even if you have the temptation to buy something you will not, if its really that important you will surely go back home to get the money. If its not, then you just saved yourself from spending money.
40. Reduce Your Medical Bills – If you have a hospital bill, just call up the billing department and ask if you can get a discount for paying cash, or if you can pay a lower amount. Often they’ll be happy that they’re just collecting a bill, and are willing to cut 10-20% off your amount. We saved several hundred by doing this after my wife was hospitalized last year. – Bible Money Matters
41. Lower Your Interest Rates – Call your bank and/or credit card company to negotiate a better interest rate on your loan or outstanding debt. This can save you hundreds in interest payments.
42. Don’t Pay for Your Credit Report – Instead, visit annualcreditreport.com and get your truly free credit report. Get your credit score from the source at MyFICO.com
43. Kill the Energy Vampire – Connect all of your appliances to surge protectors and shut the switch off when you are finished using them. Most of today’s appliances constantly use electricity when plugged in to the outlet.
44. Cut the Cable TV – Move all your TV watching to online services like Hulu.com. It’s free and has fewer commercials.
45. Pay Yourself First – Put money in your saving account every paycheck. Make it the first thing you do and then pay all bill with your remaining funds.
46. Cancel Your Home Phone Line – Not using your home phone as much? Consider going to your cell phone for most of your calls. Install Skype on your computer for making computer to computer calls or cheap long distance calls. Video is better than voice anyway.
47. Work Out and Exercise at Home – Skip the monthly gym membership and start working out at home or in your neighborhood. Run or walk around the block. Rent workout DVDs from the library to do at home in front of your own TV.
48. Fuel Efficient Auto – If you travel a great deal during the week, consider a high fuel efficient vehicle to save on rising gas prices.
49. Read the Fine Print – Do a thorough review of all your monthly bills. Study the fine print to see exactly what you are being charged for. Cut out any charges for services you aren’t using.
50. The Savings Trade-Off - Think about saving money in terms of trade-offs – save money here, spend it there. If you’re planning on a vacation this year, keep that in mind as you are looking to save money elsewhere. It’ll give you a sense of accomplishment as you save more towards a particular goal and will motivate you to be more creative. – Bargaineering
51. Bring Lunch for Errands – Even if you don’t have a day job, when running errands in town, pack a lunch instead of eating out. This is a healthier alternative that saves you time and money while watching your waistline.
52. Do-it-Yourself Home Repair and Improvement – Most basic home repairs you can do yourself if you take some time to study the manual or look online for video tutorials. And basic improvements, like painting can easily be done cheaper if you use your own labor.
53. Stretch Your Coffee Beans – Use half of your used coffee beans in the next batch. Repeat this cycle and you’ll only use half the recommended scoop each time. Some coffee drinkers swear by this method.
54. Go on a Spend-Free Splurge – Commit to a week without spending new money. Make it a goal to only spend money for the week that you earn from selling old stuff or making returns.
55. Separate Your Savings - Set up a separate bank account with a bank other than your main bank. Deposit extra money in the account whenever possible. This will create a nice barrier between you and your savings.
56. Start a Dinner Club – If you miss the social element of dining with friends, start having each other over to your houses and cook for each other. Similarly to eating at home, you can save money by making your own meals instead of buying pre-prepared meals. – Money Smarts Blog
57. Talk Yourself Out of It – Install a dialog in your head that uses the following questions: “Do I NEED this, or do I just WANT this? If I think I need it, do I have others like it, or will it fulfill a need I can’t meet without it? If I WANT it,will I really enjoy it and appreciate it, or is it just going to make its way to the back of the closet, the bottom of the toolbox, or the one-more-thing-to-dust category?”
58. Go Cash Only – Avoid using credit cards or debit cards for a while. Spend only on things you can already afford with cash.
59. Throw Out the “Deals” – Stop looking at deals and sales unless you are really in need of something. This means cancel all the catalog subscriptions and trowing out the junk mail when it arrives.
60. Invest with a Low Cost Broker – Stop using an expensive broker that charges you an arm and a leg each time you trade. Use one of the top discount online brokers to do your investment trading.
61. Avoid the Deal Websites – Don’t visit online shopping or deal sites unless you have a plan for buying something you need. Doing so will tempt fate.
62. Consider a Refinance on Your Loans – With interest rates at historic lows, you may be able to significantly lower your monthly payment and overall interest owed on a loan by refinancing at a low mortgage rate.
63. Get Social Savings – Use social media, Twitter, Facebook, email etc and follow, fan or subscribe to companies whose products you regularly purchase. You’ll get all sorts of deals and offers that way. You might be better off using a different account or setting up good filtering so you don’t get overwhelmed. – FiscalGeek
64. Use Only One Car – Get rid of the second car. Just trying to get by on one car may seem like a challenge, but it’s well worth it if you are a two-car family. How does at least $500 in insurance savings sound to you?
65. Skip the New Bottled Water – Don’t by bottled water to carry around. Simply refill a permanent container.
66. Grow Your Own Organic Veggies – Organics usually cost more than other veggies. Consider growing some of your own organic vegetables.
67. Don’t Believe the Price Tag – Realize that price tags are liars. Most locally based retailers are willing to negotiate and therefore their price tags are just the starting points. Even managers at large national retailers will occasionally be willing to negotiate. It all starts with your willingness to ask. – The Wisdom Journal
68. Mend Your Own Socks – Yes. Repair your own socks. You can make them last three or four times as long as they otherwise would, and it really adds up.
69. Switch to Bio Fuel – Using bio fuel for vehicles instead of Petrol / Diesel. It is environment friendly too.
70. Limit the Impulse Buys – Try to limit impulse purchases. A few small items can add up quickly, and a major purchase like a new car can haunt you for years. Have a plan. A marketer’s number one job is to separate you from your money. And there are a lot of good marketers out there. My rule is to never go shopping without a list or a clear idea of what you I am looking for. Otherwise, I’ll end up spending more than I had planned to spend. – Cash Money Life
71. Diversify Your Investments – Do not put all your eggs in one basket. Invest in stocks, mutual funds, bonds, real estate, etc.
72. Buy Store Brands – Most of these products come from the exact same factory as the “brand name” equivalent – and you can usually find this on the box – but they cost $1-$3 less.
73. Line Dry Your Clothes - Cut down on energy costs by drying your clothes on a clothesline. They have clotheslines for inside the home as well now.
74. Check Your Warranties and Ask for Free Repairs – If something breaks, don’t immediately run out to buy something new. Look to utilize any available warranties or free repair offers you can find. Some manufacturers are so proud of their products that they will repair them for free.
75. Raise Your Deductible – Raise your car insurance deductible to a higher level. This can cut your premiums by several dollars a month. Just make sure you have the cash saved to cover the deductible in case something happens. – The Dough Roller
76. Budget for Irregular Expenses – Set up a monthly line item in your savings account for bills that don’t come due every month. For example, car repairs. If you know that you will spend around $600 on car repairs every year, put $50 a month in savings so when the inevitable breakdown happens you don’t have to charge it on a credit card. In the meantime, draw interest rather than having to pay it to someone else because you didn’t plan in advance.
77. Get the Kids Involved – Involve your children in the process of saving money. For each coupon they bring home, split the savings with them. For instance, if they give you a fifty cents coupon, give them twenty five cents into their savings account. Thus, saving both for the family and the children.
78. Car Pool – If you drive a car going to work, ask some office mates who could ride with you so that they can share for gas money.
79. Wait 2 Days – On purchases over $100, wait 2 days to think it over before you actually make the purchase.
80. Make a List, Baby – Before buying anything, or even heading to the store, make a list so that you won’t be tempted to buy something more.
81. Utilize Online Coupon Sites – There are many websites that offer coupons that cannot be found in the Sunday paper. They are free to join and easy to use.
82. Two is Better Than One, in the Dryer – It might sound crazy, but tear dryer sheets in half for the dryer. A half sheet is just as effective.
83. Google for Promo Codes – When you get to the shopping cart, you’ll see a space to enter a coupon code or promo code. Instead of just making the purchase, do a quick Google search for your item plus “promo code”. Maybe you’ll find a nice 10% off code to save you money at the last minute.
84. Buy with Your Reward Points – Don’t spend more than you normally would, but use a reward credit card throughout the year and accumulate reward points for your spending. Then use the rewards for your Christmas gifts or to help with a vacation.
85. Install a Programmable Thermostat - This awesome invention can help you save 10 to 20% on your energy bill. Makes saving a no-brainer.
86. Use Your Library More – Instead of buying book and renting movies, use your local library to check out books and movies for free. They also typically have free wifi and computers you can take advantage of.
87. Sweep the Kitchen – Save money by being a creative cook. Use ingredients on hand, rather than buying ingredients to make a specific dish. Food doesn’t go to waste and you’ll create some new and different salads, casseroles, etc.
88. Avoid the Bank Fees – Get rid of those monthly checking and savings fees. Move to an online savings account or online checking account and stop paying fees.
89. Free Eggs – Four chickens on a quarter acre of land provide free eggs, natural insect control, and free fertilizer.
90. Cure Your Savings – When shopping for over the counter medicines compare the labels between the generic and name brand items. Usually they are the same and usually you can get the generic for about 40 percent less than the name brand.
91. Practice Hypermiling – Drive slower, brake as little as possible, and keep your tires properly inflated. All will help to conserve on fuel expenses.
92. Truly Save, Not Spend Less – The best way to save money, is to deposit money in any bank as savings deposit for use at a future time. Don’t confuse spending less with true savings.
93. Bundle Your Savings – Bundle your TV, Internet and phone services. This can typically save you good money each month. – DoughRoller.net
94. Don’t Be a Captive Consumer – Prepare in advance when you might be stuck in a place where the pricing gets marked up because of low competition (e.g. movie theater, airport, zoo, etc.). Bring your own snack, or eat at home just before heading to these places.
95. Invest in a Deep Freeze – If you have a big family, consider buying a deep freeze so you can buy more in bulk, and do more batch cooking.
96. Eat Before You’re Entertained – Eat your meals at home before going to theaters, sporting events, etc.
97. Brew Your Own Coffee - Stop spending upwards of $5.00 per day on a cup of coffee. Make it at home and bring it to work in a thermos.
98. Turn Off the Lights – Make it a habit to turn off the lights when you are the last person to leave a room.
99. Clean with the News – Use old newspapers instead of paper towels with an eco-friendly cleaning product to wipe glass surfaces.
100. Create Your Own Cleaning Rags – Cut up old clothes that have holes or stains and use them around the house for cleaning, dusting, and grease rags. Don’t buy paper towels anymore.
101. Split the Meal – Portion sizes are huge these days. When dining out, split a nicer meal with your significant other.
102. Buy Used from Craigslist – When you’re considering a purchase, first look at Craigslist to see if their is a lightly used version of the product you can purchase for a heavily discounted price.
103. Pay Less in Taxes Next Year – Shelter your money from taxes by putting it in a 401K or traditional IRA.
104. Get Excited About Saving – Find a passion for saving money. Not because you want to hoard all your cash, but because you want to use it for good. Think about how many lives you could change if you saved more of your money to give it away. Or think about how great your kids future could be if you saved more money for their education and general well being. And don’t forget about your own retirement. Enjoy watching your savings grow knowing that you won’t have to depend on someone else for your future.

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Couples and Money: Learn How to Stop Fighting Over Your Finances in Marriage

Source:genxfinance.com
Married Couples Spend a Lot of Time Fighting About Money
Apart from sex, money is one of the leading causes of stress in a marriage. When couples fight about money it’s not only bad for the marriage, but it can also lead to bigger financial problems as well. One of the problems is that one person in the marriage may be completely in charge of the daily finances while the other may completely unaware of what’s going on. When you are married or dealing with shared finances both parties need to take an active role in dealing with the family’s finances. It is not fair to place the entire responsibility on one person’s shoulders and this extra burden is sure to leave to arguments.
It isn’t just about avoiding arguments. Yes, having shared responsibilities may reduce stress, but what happens if the person normally in charge of the finances were suddenly no longer to manage them? Maybe it’s an injury, or even worse, death? What happens to their spouse who has never had a hand in the finances before? As if the death of a spouse isn’t difficult enough, now they are at a complete loss when it comes to simply paying the bills.

Start With Simple Tasks
It’s common for one person in the relationship to handle the checkbook or to monitor daily balances. Whether it is because this person is better with numbers or has more time to keep up with the task, when only one party is privy to this information it can quickly lead to a disagreement when questions come up regarding the status of the finances. Begin by making sure both people are on the same page with day-to-day finances. This doesn’t mean both people need to sit down and work out the checkbook or enter data into Quicken together, but both parties do need to have regular access to this information so they are on the same page.

Tackling the Big Purchases
While it isn’t likely that in a marriage one person will go out and buy a car or a boat without first consulting their spouse, but these larger purchases are still an area for added stress in a relationship even if they are openly discussed. Again the problem comes when one person isn’t fully aware of the financial situation. If one person handles most of the budgeting and day-to-day finance issues they are fully aware of their family’s situation and may know whether or not they can afford the big purchase. But what happens is the spouse that is not as involved in this aspect of the finances will have a false sense of what they can or can’t afford. Maybe they freak out thinking that their financial situation isn’t as good as it is so they fight about spending too much money. Or maybe they have this feeling that money is abundant and wants to buy a new car without realizing how tight money is. Either way, you can be sure there will be a heated discussion about this.

When deciding on a large purchase it is crucial to take some time to make sure each person fully understands where the finances stand and what the purchase would mean going forward. If you need to, sit down and go over the budget item by item, clarify the current balances in all of your accounts, and understand what bills or expenses will be coming out in coming months. With both parties in agreement on the true state of their finances they can go into making a large purchase without assumptions. There is no quicker way to an argument when one person thinks they can afford a $30,000 vehicle while the other knows they can realistically only afford a $15,000 vehicle.

Hold Regular Family Money Meetings
Think of your family finances like a business and hold regular meetings. You don’t need to set aside hours of time or put together fancy reports to have a successful meeting. All it takes is spending a few minutes a week together to make sure everyone is aware of what is going on. Make it a point to spend at least a little time once a week going over the immediate financial issues and then try to have a monthly time set aside to review longer term issues. Don’t stop with basic budgeting and cash flow discussions. Use those monthly meetings to go over longer term goals such as retirement plans so you don’t end up broke, college savings, and other financial goals and dreams.

I’m sure you’ve been here before. How does it feel when your spouse springs something up on you at the last minute? For example, have you ever had a situation where your spouse tells you about a birthday or baby shower gift that needs to be purchased tomorrow for the event this weekend? If you’re living paycheck to paycheck this can be a stressful nugget of information. Nobody likes surprises when it comes to spending money that wasn’t budgeted. A quick talk once a week will identify these types of expenditures before they become a surprise and will not only allow you to budget better, but probably keep you from sleeping on the couch over a $50 argument.

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