Sunday, July 27, 2008

7 radical savings tips

To help curb the consumer in you, we've come up with a few of admittedly drastic savings strategies, along with some ballpark figures of their savings potential. (If you're looking for a real no-brainer way to save, arrange to have a certain amount of your paycheck automatically deposited into a savings account. Then, sit back and watch it grow.)

  • Hold the mother of all garage sales. Cast a critical eye on the stuff at the way back of your closets. If you haven't used it in six months, chances are you can do without. Same goes for all that junk in storage. Annual savings? Depends on how much junk you have, of course, but one coworker guessed he had at least $5,000 worth of stuff he could get rid of. I'd put my own garage sale potential down at around $1,000. Thats a good number.
  • Quit smoking. Pack-a-day habit? In Washington state, that's easily $5 a day -- or about $1,800 a year -- that can go right into your savings, not to mention what it saves you on insurance and health care.
  • Tame your driving addiction. In other words, carpool or use public transportation. This saves on gas, insurance and maintenance costs -- not to mention any money spent on aspirin. Using the IRS's 2002 mileage reimbursement rate of 36.5 cents per mile as a proxy for the cost of commuting, you could save $1,141 a year by driving half the time for 50 weeks a year (based on a 25-mile roundtrip commute). For an even more drastic approach, consider getting rid of your car if you live in the city. Some cities are now implementing progressive programs that allow you to have access to a car without the ownership hassles (e.g. "Flexcar" in Seattle, Portland and Washington, D.C. For more on Flexcar, see link at left.)
  • Buy used. The average consumer spends about $1,750 a year on clothing and its upkeep, according to the U.S. Bureau of Labor Statistics' most recent Consumer Expenditure Survey. You can potentially cut that in half by shopping at consignment shops and auctions, though the life of the goods may be less than buying new. To account for that, the annual savings may only amount to 25%, or $437.
  • Become a homebody. At just over $1,800 a year on average, entertainment spending has a way of quickly eating through the best-planned budgets. Consider the library for books, music and movies. Eat out less often. The average person spent $2,276 a year on eating out in 2002. Try cutting your spending in half on both areas for annual savings more than $1,900.
  • Cut your housing expenses. While a move across the tracks may save some money, moves are expensive in themselves. Consider renting out a room. The average housing costs per person in 2000 were just over $13,200. In metropolitan areas such as Seattle, rooms easily go for $400 a month. Figure about $20 of that goes to increases in utility costs, and you've still got an annual savings of more than $4,000 before any income taxes.
  • Cut up your credit cards. Build an emergency fund first to handle most unexpected expenses. This allows you to become your own lending agency. (OK, if you're chicken, try cutting up all but one.) Credit cards can be a cash-flow management tool, but paying only the minimum will keep you in debt for years. If you're the average American with at least one credit card, you probably have close to $8,523 in credit card debt, according to industry research group CardWeb.com. At an average APR of 14.4%, it could cost you as much as $1,100 a year in interest alone. By simply waiting until you've saved enough money to make purchases, you could eliminate those interest payments entirely.
If you're really ambitious and follow all the above tips, you could be looking at savings of nearly $12,000 a year. Figuring you can invest it at the historical rate of return at 10% your savings will start to compound nicely -- and rapidly.
by jennifer mulrean


lost my discover Card

I am so mad at myself right now. I used my Discover card on Tuesday and forgot to put it back in my wallet. Then on Wednesday I got to the store and did not have the card to shop with.

I had to end up calling Discover to have the card cancelled and order a new one.

The new card will take about a week to get here but I am annoyed. The thing is that if I really did lose it outside of the house then someone can see my name and signature. I will be getting a new account number but just the fact that the old information is out there is disconcerting.

I think the card is lost somewhere in the apartment because I remember using it in front of the comuter to renew a subscription, but cannot find the subscription paper or the card.

If I find the card in the apartment I will be very happy to get it….and then I will kick it across the room for hiding from me.

by lulugal


Friday, July 25, 2008

Money saving Tips

Money Saving Tips!
Start building a nest egg with these handy tips for controlling your finances.

Money Saving Tips!
Start building a nest egg with these handy tips for controlling your finances.
1. SET goals and KEEP to a budget.
2. CLEAR your credit card debt.
3. SEE a financial adviser for an investment strategy.
4. MAKE a shopping list when you shop for groceries (and STICK to it).
5. LEARN to distinguish between "wants" and "needs".
6. RENT movies instead of going to the cinema.
7. BRING your own lunch to work-it might be boring, but it'll save you a few dollars every day.
8. OPEN separate current and savings accounts.
9. SHOP smart-RESEARCH prices, stores and sales.
10. TRAVEL in low or shoulder seasons if possible.