3 Simple Ways
To Save Money
Everyday
This book is for informational purposes only and the author has made every effort to verify the
information was true at the time of publication and reserves the right to change views and opinions
based on changing conditions. The author or any associations to the author is not responsible in any
way for any damages occurring from the use of information from this guide. This is a free publication
and open for use by the general public. You may email this booklet in it’s entirety to others. You may
NOT alter this product in any way. You MAY distribute this on your website or blog, you just have to
register your name, email and website address to me.
This is original content created by Paul Russo
Copyright 2008 - DaddyDigital.com - All Rights Reserved Worldwide
You can reduce debt, you just need a plan of action and you can get rid of
high cost credit cards, personal loans and other high interest debt.
We are all facing tough times, but our old spending habits are still with us.
We all must stop buying out of want and start buying for need. We can no
longer afford to carry large credit balances and hope we win the lottery and
it will all go away! You must plan and budget and get rid of outstanding
debt, not all debt is bad, but if you are just moving it from credit card to
credit card, your time is almost up. If you are truly unable to pay your debt,
then either seek the advice of an attorney that manages debt and
bankruptcy, they are usually pretty insightful and can determine which route
is best for you or your local community usually has debt/family counseling
services that are provided for free. Financial advisors can help you make
money, but they only want you when you have money to invest.
First, we have to get something straight, debt is something that we
accumulate over time and eventually have to pay the price of paying it back.
So, this may mean changing your existing spending habits, use of cash
instead of credit cards and just plain old being cheap once in a while. If you
are willing to do this then this will work for you, it is fairly simple and you
can do it.
Savings Tip #1
Here is a Tip About Using Department Store Credit Cards:
It is really easy to get in debt fast, the credit is readily available, especially
at department stores. These cards have high interest rates, fees and other
charges, but beat them to it. If your store is offering money off if you use or
apply for a card and you were planning on paying cash, take the deal, pay
the cashier and then go to customer service in the store right then and pay
the bill, why give up the savings.
What you don’t want to do is wait, you will spend your money on something
else during the month and when the bill comes in, you will pay the minimum
and “put it off” until you have te money...you are starting a tailspin by doing
this.
Grandma was right, you can’t have steak if you only have enough to buy
chicken. In other words, don’t live beyond your means, if you can’t pay for it
at the end of the month then don’t get it.
Here is an example of my sliding scale payments. You will concentrate on
the lowest balance first and then slide your payment into the next lowest
balance. The reason why you start with the lowest is simply physiological,
you will feel a sense of accomplishment and success, which makes you strive
for the results.
Step
Gather all of your statements that have balances, pick out the one with the
least balance, this is called your first target. Here is an example of what I
mean:
Credit Card 1= Balance $690 Min Payment $30Credit Card 2= Balance $945
Min Payment $40Credit Card 3= Balance $1290 Min Payment $50
This is just an example but let's just say you pay $75 on each of these cards
per month, that total would be $225 and your balances only go down
slightly. What you can do is this case to get rid of this debt:
Still use the $225 as a base amount, since you want to eliminate debt and
not transfer it here is the simple method. Credit Card 1- Pay $135 on this
cardCredit Card 2- Pay $40 minimum on this cardCredit card 3- Pay $50
Minimum on this cardCredit card 1 will be paid off in less than 6 months, the
next step is critical for the success of this to work.
Step
Still using the $225 as a base you have now paid off credit card 1 and now
you are ready to attack credit card 2...So here is what you are going to
do:Take the $135 that you were paying on CC1 and apply the payment of
$40 on CC2 and pay $175 per payment towards CC2. Again you will repeat
this and keep building on what you are already paying and just
concentrating it on paying off your debt.You are not increasing your
monthly output, but you will be getting rid of debt one at a time.
Repeat this process over and over and you will be debt free sooner than you
think.
STOP using the cards, again you must change your spending habits and the
way you think, credit cards should be used in an emergency and paid off as
quickly as possible. Many people over the last few years have used their
home as an ATM machine and refinanced to pay off short term debt, don't
fall in the trap, use it if you must, pay it back as fast as you can.
Here are some of the benefits of paying off this debt...
Once you have gotten to the point where all of your short term debt has
been paid, you should use the extra cash to provide yourself with an
adequate savings account for emergencies. The experts say to have at least
3 months set aside, but with prices on the increase and paychecks being
reduced by increased costs in healthcare and taxes this may not be possible
for some. The most important thing is that you have something to fall back
on.
It may free up money to invest into a retirement or college fund, or other
investments that will earn money instead of costing you money. Whenever
investing read the terms and be sure you understand them, and know that
certain investments you can loose some or all of your investment, so know
what you’re investing in before giving your money to someone.
Debt is a serious issue, it causes stress and money arguments between
spouses. I am going to put it to you simple:
-Stop you bad spending habits by NOT relying on credit to purchase the
things you need. Don’t charge gas, food or even a pack of gum UNLESS you
must to survive. Otherwise set a budget and stick to it.
-Stop using your debit card for everyday purchases, yes, carry cash give
yourself a stipend at the beginning of the week, when it’s gone, you’re
broke, you can’t overspend if you don’t have it to spend.
-Everyone, I mean everyone must be on the same page, change is tough for
some, but results is really what matters. If you keep spending more than
you earn, you will need to extend credit to yourself to cover expenses, keep
doing it hundreds at a time each month, it adds up to thousands by the end
of the year. Clamp down and stop overspending.
Savings Tip #2
Cutting Costs Around the House
Other Debts- Personal Loans/Car Loans etc. Once you have tackled the small
stuff, start paying down these next. Once you have some cash flow going,
you will feel a little better and see things clearer. It may be decision time to
get a more economical vehicle or something more reliable, this is the time to
make the decision, paying down a vehicle that you are going to trade in or
sell just doesn't make any sense.
Consider an automobile an investment, do some research first before
going out and picking the shiny red convertible. The best free resource is
Kelly Blue Book, you can check the value of your existing vehicle as well as
your new vehicle and look for a vehicle in the best condition at the lowest
miles and demand that you get the best price or you’re walking.
Cut your Utility Bills- Start conserving and get everyone in your household
to do it. Turn off lights, televisions and computers when not in use, be sure
your household appliances are in good condition-especially your clothes
dryer, this is a money eater if it is not properly cleaned. You should call a
professional appliance service to perform this.
Have you heating and cooling systems tuned up for the season, so they are
running at peak efficiency. Use air conditioning only when needed, if it is
cooler out during the evening, open the windows. During winter use extra
blankets, space heating and open blinds during daylight hours on the south
facing side of home, open the oven door after your done cooking, you
already paid to produce that heat.If you save $10 that’s $40 a month you
can put this towards your emergency fund or an investment.
Savings Tip #3
Save Everyday up to $100 Per Week.
Everyday we spend the few dollars here and there on “stuff” we can’t
account for at the end of the week. List out the items below and see how
much you really spend without “doing or going anywhere but to work.”
Figure it out if you do any of the items below and add them up and see what
you really spend every week.
Breakfast or Coffee Stop- If you stop everyday maybe cut it down to 3
visits and save the $4-$15 you will not be spending.
Lunch- A grinder, hoagie or sub whatever you want to call it is $5 get sides
it’s even more.
Habits: Cigarettes, Cigars, Candy, Snacks etc. If your going to do this, then
buy them in bulk and save. For instance 3 or six pack of gum costs about a
dollar more than the one package, see what I mean. Buy your snacks in a
bulk package and bring them from home, the convenience store stop is a
pocket cash killer.
Use coupons, buy in bulk and look for sales on items you use everyday, you
will have the money to buy them by becoming a better manager of your
money.
You have two choices- 1. You can save money by making a plan or..2.
You will have to make more money to continue living the way you do, it's
your choice .
Take control of your finances, if you start to write it down, I bet most middle
class families can save a minimum of $100 per week. I wrote an article of
how you can save up to $100 a week on my blog on blogger as well as my
ehow site. You can see the articles using the links below. My other article, in
the Home Savings Center at Blogger shows you how you can set 10 basic
rules in your home about spending.
Here are some free resources for your assistance:
If your debt is beyond the scope of this article and you will need more help,
you can get 3 debt settlement plan quotes for free. It doesn’t cost anything
to get the quote and you do not have to give a credit card, you will receive a
professional comparison quote. There is no obligation or cost associated with
this.
Click Here for more free information.
Kelly Blue Book is a great place to get auto prices and see what your current
vehicle is worth to sell or trade in. Go to http://www.kbb.com
You can also get your auto extended warranty for less by purchasing it direct
instead of through your auto dealership. They simply buy it and send it to
you in the mail and charge you a commission for it. Save the commission
and get it direct here.
Additional Free Resources:
FreeCreditReport.com is the easiest and best way to get your credit report
from the “big 3" in one step. You can get more free information at their
website by clicking Here.
Foreclosure- If you are in danger of losing your home, you may be eligible to
“modify” your loan. You do have options, the banks do not want your home,
they are willing to work with you so they don’t have to take your home. You
can get the Free Loan Modification Guide and additional information Here.
You can also see additional articles on my Ehow Webspot
Should you get a Home Repair Warranty?
To hedge against future losses due to unexpected breakdowns of appliances
or other components in your home you should consider a home warranty,
you can see my article about it here.
You may go directly to the website Here.
No comments:
Post a Comment