This and That Money Tips

The bottom line is simple; if you spend more than you make you will accumulate debt. Your household will sink deeper into debt if your expenses exceed your income. Determine which expenses can be cut to get your spending under control. Also, stop using credit cards until they are paid off. Put them in an inaccessible spot - anywhere but your wallet.

The most common areas where overspending occurs are entertainment and food. Also, much of our spending is attributable to spur of the moment spending, I don't feel like cooking lets eat out," It's on sale," "it's more than I wanted to spend but I love the extra options." The groceries you bought, the gas you put in the car and the meals you enjoyed are long forgotten before the bill even arrives. And if you pay only the minimum payment each month, it will take over 30 years to repay the debt. The dress you bought on sale will long be out of style before you've even paid for it.

Here is an example of what your lifestyle may cost you:

Those $2.50 cappuccinos every morning is costing $650 a year.
Fast Food 5 days/week averaging $4.50 costs $1,170 a year.
Lunch out 5 days a week averaging $8.00 cost $2,080 a year.
Dinner for 2 at $40.00 each week is almost $2,100.00 a year.

To reduce credit card debt, the first step is to cut your expenses. Track your expenses for an entire month by categorizing your checks and charges into major spending categories - dining out, gas, groceries, clothing, fast food, snacks, etc. Keep a piece of paper and pencil stub in your wallet/purse where you can record each cash expenditure for a few weeks. This will reveal budget leaks. The results may shock you into fiscal responsibility.

As you add an extra $100 or $200 to your minimum credit card payment you are reducing your debt and your interest payments.
If you have multiple credit cards, transfer balances to a card with lower interest rates. But be careful, many low interest rate cards have low rates for only an introductory period. Be sure to read the fine print carefully to determine the APR after the introductory period and other charges.
Once you have eliminated the balance on a credit card then cancel your card.
Once you rid yourself of the pressure of monthly payments you will be able to save more.
Shop only with cash (you spend less when you're using real money).
For plastic use a debit card (debit cards are cash too). Don't even carry a credit card.
Add to Retirement Savings. Use payroll deductions or automatic transfers from a bank account. Those in sales with irregular paychecks should take a percentage off the top of every check (10% is nice). Save enough in 401(k) s to get the full company match. If you don't have a match save anyway.
Pay off high interest credit cards. Send your tax refund straight to Visa or MasterCard. Look for other ways to make one-shot payments from bonuses, yard sales, or savings accounts.
Don't borrow against your house to pay off consumer debts. That is like putting Band-aids on bullet wounds. You have to stop the bleeding first and learn to live within your means. Unless you've learned to live within your means, you'll run up your credit cards again. You don't get out of debt by borrowing more. A home equity loan will offer lower interest rates and the interest is tax deductible if you itemize.
Start an emergency fund. Keep petty cash on hand for emergencies.
Save money for college. Admit and accept it if you can't afford a "logo" private college. Don't wreck your retirement trying to pay for it.
If any cards have small balances, repay those first and then cancel them.
Use ceiling fans they will make the temperature feel 5 degrees cooler and cut down on air conditioning costs.
Practice utility control. Install water saving showerhead, buy energy saving light bulbs, turn the temperature up on your refrigerator and down on your water heater, and turn off the lights and television when you leave the room.
Make long distance calls on weekends, early in the morning and late at night, or better yet e-mail or write letters.
Save food costs. Buy on sale, clip coupons, buy in bulk, purchase generic brands, eat less expensive cuts of meat, and don't frequent convenience stores.
Carpool to work. You'll save on gas and wear and tear on your car. Buy used rather than new.
Cars, furniture, computers, stereo equipment, televisions, and appliances can all be found at substantial discounts through the want ads and at garage sales and swap meets.
Cut entertainment costs by renting videos rather than going to the movies.
Eat out less frequently, and brown bagging it to work.
Save on supplies. Use sponges rather than paper towels; use multi-purpose cleaner rather than several specialized ones. Better yet try vinegar and water as well as baking soda for scrubbing.
Give up bad habits such as smoking, drinking or gambling.
Save on vacations. Explore local recreational sites. Travel off-season when rates are cheaper.
Drive your car an extra year or two before you replace it.
Stay healthy, eat right, buy a few pieces of exercise equipment and drop the gym membership.
Saving money is like losing weight. Most of us want to do it, but seldom implement concrete activities that will bring success.

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To avoid racking up late fees by forgetting to pay your credit card or any other bills on time, make a list of all the bills as they come in on a piece of paper. Hang that list on the refrigerator where you will see it everyday. Write the bill amount due and the date it is due by.
Credit card tracking. To keep track of your credit card purchases use a checkbook register. Whenever you make a purchase record it in the register so there are no surprises at the end of the month when you get your bill.
Get a VISA check-cashing card from your bank, it's like using cash for purchases.
Tired of getting those pre-approved credit card applications in the mail?
Call 1-888-567-8688 and request that your name is taken off the list.
Shred those pre-approved credit card offers and credit card checks so that nobody could possibly use them.
Enlist your kids in money management. Have them help you when writing out bills and reviewing the household budget. This should deter kids from asking for money.
Keep spare change in a jar. At the end of each month count it up and put it into your savings account. You'll be surprised how quickly it adds up.
Get rid of the premium cable channels.
Bring you lunch to work with you.
Use coupons on products you usually buy
Use automatic bill pay and save on the stamps and late fees.
Get your books from the library.
Mike a list of all the meals you can make out of the ingredients in your kitchen and use them all up before you go shopping again.
Use Tupperware instead of bags for storage of food as they can be used again and again.
Use a shopping list and then stick with it.
Put 10% of your paycheck into savings. Have it automatically withdrawn.
If you cannot pay your credit card in full each month, stop using your card.
Pay your debt first or you'll get further into debt.
Don't use another credit card to pay off your first one. That will just put you into a cycle of debt.
Buy what you need, not what you want.
Don't cosign or guarantee a loan for someone. Your signature obligates you as if you were the primary borrower. You can never guarantee that someone will repay.
Teach your children the three uses of money - giving, saving and spending.
Put your budget on a diet.
Take lunch to work.
Have a nothing weekend.