This is a guest post by Kevin Craig. See author bio.
The recent generation fails to understand that “A penny saved is a penny earned”. If you start saving a decent amount of cash then you prevent yourself from further borrowing and you can pay off debts from your savings. If you save a good amount of cash then you can buy desirable things without taking loans. This would you from debt traps laid by the credit card companies.
Tips to save money:
1) Get rid of credit card debt:
Try to pay off the entire credit card debt as soon as possible that is one of the crucial rules when you are going for financial planning.
A suitable way to pay off your credit card debts is that as an alternative you can think of a low-cost loan. If you pay off your credit card debts then you can avoid creditor harassment.
2) Try to save on fuel:
There is an extreme hike in the price of the fuel but you need to be smart to save a good amount of cash. An online search can help you to find a supplier who sells fuel at a cheaper rate. This is possible because of the competitive market and you can easily find a supplier who would give you a more pocket friendly deal. Your present dealer would handle the formalities and you can reap the benefit of paying less each month.
3) Prepare a shopping list:
We tend to spend recklessly when we do not make a list of the items we think of buying. Preparing a list before going out for shopping helps us to focus and prevents us from unbridled expenditure. When you are going to the market make sure that you buy things in quantity since at times the stores keep things on offer. Avail the discount offered by the store and few stores even give some extra benefits to people who buy in a bulk.
4) Sell your unused belongings at eBay:
If your closet is packed up with clothes that you are not wearing then it’s time to bid them adieu. Ebay is one of the most popular website where you can sell your prom night gown or your old watch. You can earn a good amount of cash from selling you unused clothes. Make sure that the dresses are wearable and not in a wretched condition.
5) Avail the student’s discount:
If you are a student then avail the student’s discount as that can save you a hefty amount. Displaying your student’s ID you can get things at an affordable rate compared to the usual rate. The best time to buy things when the discounts are available. But if you are availing the discount make sure that the money that you save should be deposited into your saving account.
These are but a few ways to save money that are easy to follow. So implement them in your life and achieve a secured future.
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Authors Bio – Kevin Craig is a financial writer for Oak View Law Group. He has helped many people to get out of debt by offering financial advice.
Tags: debt management, lowering grocery cost, managing credit, ways to save money
It’s amazing how many people I see who have beautiful homes filled with aesthetically pleasing objects, yet are struggling financially. Quite often I find that the people are working two, even three, jobs to make ends meet. They miss time with their family and friends. And they do complain about it. there is no comprehension regarding the situation they are in and why they are struggling so much.
Can a small family survive on $45,000 per year? I think so. But it wouldn’t be luxurious. Yet there are people who make this kind of money as single parents in one job and insist that they have to work more in order to survive. I’ve done my budget. I have two kids and no spouse to rely on. Granted, I only have to feed my kids half of the time, since they are with their mom the other half. But I do have to have a home that gives them each a room. I pay for all their clothes. I pay for all of our entertainment. And I pay for my son’s school supplies and even manage to pay for his martial arts lessons. Could I do this on a salary of $45k? Certainly.
If we keep ourselves debt free and aren’t having to pay for things twice, which we essentially do if we carry a big debt load, then we will find that our money will go further. The biggest way to do this is to plan all of our purchases. Something as simple as a bathroom garbage container, even. Why spend $10 or more on something like this, just because it’s nice looking? Instead I’ll go to a dollar store and spend less than $2 for something plain looking that serves the same function. I am not so concerned about the form of the object. And I only buy what is necessary. It’s this kind of thinking that allows me to move forward and actually make it for me and my kids. I can still afford to go camping for a long weekend. I can occasionally take me and the kids to a restaurant. And if I planned really well, I could probably manage to afford something like Folk Festival tickets, although I chose not to this year.
So why spend $400 on that puppy that your daughter wants? Instead go to the animal shelter and spend a lot less, while saving a lost dog’s life. And don’t forget to include the increased costs of keeping a pet into your budget!
Think about every little thing that you buy for your home. What function does it serve? Is it necessary? Is there a less expensive alternative? We so often purchase things that we don’t really need. And we don’t think about it, we just by them because they’re nice or give us momentary pleasure. but if we stopped doing this and moved from being consumers to being more practical, we will find that our money goes a lot further. And that will increase our standard of living. Sometimes considerably!
So, examine the function of everything you think you need. And if you find you are buying something more because of its form, then perhaps that needs to be re-examined. It really is our choices that determine how comfortable we are and how much we materiality need to have in our lives.
Tags: budget strategies, Frugality, making choices in shopping, managing money, shopping frugally, ways to save money
It’s very important that you do not neglect your budget, even once you are into a cycle of confidence in your finances. While it’s certainly easier not to have to watch your money all the time, there are drawbacks to letting things go, even a little bit.
- It’s very easy to overspend, just because it’s nice to buy something that you don’t normally or because you feel confident that you have enough money that you can easily flex into getting something special or going out more than usual.
- The little things that you don’t want to bother tracking can add up very quickly. And then they become something big!
- There can very easily be something unexpected. I know this firsthand, as something happened in my life that cost me several hundred dollars unexpectedly.
And thank goodness that I do budget, or I would be in real trouble! - Not budgeting makes it harder to understand what is happening with your finances, which in turn makes it harder to plan for those things that you truly desire in the long term, such as vacations, new and bigger things in your life, proper investing, and even retirement.
These are just a few simple reasons not to neglect your budget. The biggest reason not to neglect it, however, is the peace of mind that you get from always knowing where you stand financially!
So, keep tracking your spending, planning your bills and savings, and make sure that everything is always current in the amounts that you are planning. As for me, I plan my budget out at least two years in advance… I know that some people think that’s extreme. But it really helps me to see the possibilities of what I can do! I’ve even done detailed three to five year budgets just to know what those possibilities are. And it’s a real boost to one’s financial confidence!
Tags: better managing your budget, learning to budget, personal budgeting
I recently read that the Canada Revenue Agency (CRA) has figured out that it costs the average Canadian (as shown by Larry McDonald of Canadian Business Online) $215 to file a tax return. Over half of Canadians, according the study from the Fraser Institute, have professional tax preparers complete their return and submit it. With tax preparers such as H&R Block charging no less than $55, it can get quite expensive to do your return. Add to that stress that today, April 30th, is the deadline to file and you can be looking at even greater costs.
The $55 cost mentioned above is directly from an advertisement that these start at this price! This means that there is only one T4 and one return. Now think about how much it will cost to do a return that is more complicated. One of my friends was telling me yesterday that four years ago he stopped using H&R Block because they wanted to charge him $95 for his return. He only has one T4 and a few RSP receipts. His return is very simple (I do it for him now, since I have done that professionally for a number of years). But if you’re willing to do it yourself, then there are several methods that you can use. The cheapest is usually to do it by hand. Of course that can be complicated.
Another option, which most people who do it themselves choose, is to use tax preparation software. The most popular of these cost around $30 to buy and tend to have limits on them. So you’re still spending money and using up your precious time. Now there’s nothing wrong with trying to save money on preparing your own taxes. Just make sure that you follow the guide and have everything organized ahead of time. It’ll make things easier. And I’ll let you in on a secret… Don’t pay for tax software! You can download StudioTax for free. I love this company, because they give you a free, fully functional version of their software, with no limits, and you can file up to 20 returns with it. Who has 20 people in their family? Of course they aren’t doing this without some expectation of something in return. Studio Tax has a link on their website where you can donate towards their software development, effectively paying what you think you can afford. And each time you print or Efile a return they ask for a donation. Nothing wrong with that!
So, with today being the deadline, save some time and money on completing your return and use an excellent personal tax preparation software that you can download for free! Get that return in and avoid interest and penalties if you owe anything! And if you’re still afraid of doing your return on your own, just contact me and I can do it. You’ll find that I do NOT charge nearly as much as the big tax preparation firms (and the small ones for that matter… Maybe I should up my rates. Nah.)
Tags: cheap professional tax preparation, filing your own taxes, free tax software, frugal tax preparation, saving on taxes, tax preparation
1) What’s your “frugality story?” In other words, how and why did you become frugal?
I went through a bad split up with my kids’ mom a couple of years back. I was making a lot of money (over $100k per year) and had suddenly lost my business because of a change in the economy. Imagine that! With three months of no work their mom decided to leave me as soon as she found work of her own. After she left I had a huge mortgage, all the bills and credit cards and other debts that had been run up (mostly by her desire for a lavish lifestyle), and now huge lawyer bills. I absolutely NEEDED to be very careful with every penny I had! Yes, I got a job, but it paid about half of what I was making before. It became so tough that I was eventually forced to sell my house in order to avoid foreclosure. I figured the costs of that were better than having the foreclosure on my credit report. I was already having problems enough!
I’ve always been very good at designing spreadsheets and tracking things. After all, I did that as a part of my business. So now I applied it to my personal life with a diligence! Every dollar that was spent was tracked, no matter how trivial. My budget was done out a year in advance, so that I could see exactly how I could make it on the salary I was earning. It was tough! I had to find ways to cut back in order to avoid bankruptcy, and even then I wasn’t sure I could do it. As a single dad with two kids to take care of, things can sometimes be tough. Kids need a lot more taking care of than I do, and they can’t understand some of the demands that are needed. So I cut back on everything for myself. No entertainment. I stopped going out at all. I took on what extra work I could on the days that the kids were with their mom, and I pushed hard to retain those few clients I still had. Then I started finding even more ways to become frugal – cheaper food, finding ways to discount what I needed, free samples, message boards where things are given away (a real life saver when I couldn’t afford clothes for my kids at one point!), even sometimes taking help from family and friends – through advice as well as having them give me groceries a couple of times. And I still follow the frugal way. It saves me a lot and helps me to get the things that I really need to. It’s also getting rid of the debt (slowly but surely). Can’t afford a lawyer (the money for that ran out a long time ago), so I have had to learn a lot about family law and how I can get things on my own. That got me shared-joint custody of my kids, at least!
2) What, if anything, tempts you to overspend, and how do you resist?
It’s hard to resist nice clothes that the kids want and nice presents for them on special occasions. That’s the worst. How I resist is I tell them that we only have to much to spend and put them on a budget for clothes, too! Then we go shopping together and the kids pick their own clothes within the price range I have given them. My kids are only 3 and 5, so for them I have to tell them how much things cost (well, my five year old reads the price tags now, since he has figured that out). I tell them their budget before taxes, so that it’s easier for them to understand. With toys, we’ve started to make some things. This costs much less, and we’re in the process of making the coolest “castles” (a doll house for my daughter and fortress for my son) any kids they’ll ever meet will see. Total cost on both of these is under $30. I’d have paid over $200 for each to buy them. And we’re having a great time making them! Plus, with these the kids can add on to them any time. If they get upset about not getting cool toys, I remind them of the things we make that no other kids ever get. And it’s a good reminder for me, too! Helps me to resist. The only other thing is food. So I make sure that I never go grocery shopping unless I have a full stomach!
3) What personal finance or frugality habits were the hardest for you to adopt and why?
Entertainment cutbacks…. I love movies, and I love skiing, and travelling. I haven’t been able to go skiing or do any travelling in years now, so it’s the toughest on my spirit. Going to movies and renting movies was tough, too. But I have some friends who helped a lot there by lending me DVDs. The other is food. I like to eat some fancy foods and enjoy baking. I don’t bake so much now, and a lot of the foods I eat are simpler, which makes them less expensive. It was hard at first, because I started getting used to a fancy, meat laden diet before the separation. Now I’m going more back to the vegetarian diet I had before I met my kids’ mom. It’s starting to help me feel better health-wise, and costs less than eating meat. 
4) Have you ever taken frugality too far? How so?
I don’t think so. In fact I am thinking of other ways that I can continue to do it, especially if they are ways that are better for health or environment. I think that I haven’t (yet) taken it quite as far as I could. I’m still working on that!
5) What resources (blogs, books, websites) would you recommend to someone who’s newly frugal?
Of course I’d recommend mine (personalbudgethelp.com). I also highly recommend kijiji, as it is great for finding things anyone needs for cheap (and sometimes free). That’s where I got a bed for one of my kids that’s like new, and I’ve gotten other great things for us from there. Look for local support groups, such as meetups (meetup.com), where one is likely to find a group of people with similar interests in frugality and people can exchange tips (and sometimes such meetups people swap things they need, which is good, too). Local religious organizations are helpful, regardless of your faith (or lack thereof). They don’t discriminate, they just help whenever needed. Through this group: http://www.edmontonearthcycle.org. I have found a lot of good exchanges through earthcycle, and as I understand it there are groups pretty much everywhere in North America. Local thrift stores are okay, but one has to be careful there, because things can seem cheap, but won’t be of good value for the dollars paid. Garage sales can also be awesome! Go early in the first day or at the end of the weekend in order to get the best stuff or the best deals. And always bargain! Especially if you’re interested in more than one item. Most of the books I’ve looked at are too in depth for the beginner (such as the Dummies series), although if one is patient gleaning useful things from them is certainly possible. Just don’t get too wrapped up in the finances that aren’t relevant (or initially too confusing) to most people really interested in frugality.
Tags: budget resources, budget story, budget tips, budgeting, Frugality, learning to budget, personal budget tips, personal home budgeting, ways to save money
Whether you drive a hybrid car, an economy car, or a sports utility vehicle you are going to need to get gas and when you do you are going to want to get the most bang for your buck. As the recession has come to an end the gas consumption has risen causing a classic scenario of supply versus demand. This is why gas prices are on the hike and will continue to rise over the months to come.
It is important to watch your finances and whether you are driving more now that the recession is over or simply driving the same amount, you want to make sure your dollar goes as far as it can and this is where it is time to decide what is the more cost efficient method of payment at the pump, cash or credit. To many, this question may seem simple because we all know cash does not come with an interest rate or a monthly bill. The dilemma arises for some people if in their wallet they have a branded gas credit card that gives incentives when used at the gas pump.
In the USA most gas stations offer gas savings when their branded card is used on a particular day or when the card is used for a fill up. If you are not able to meet the requirements to get the discount offered by the gas station for using the card, it doesn’t make financial sense to use this card any other day. If gas is on the rise and you use your gas credit card for fuel, then you might as well add your gas credit card percentage rate to each dollar that goes into the tank. Usually these credit cards charge around 28%, sometimes slightly more. That can really add up! For those people who are weary of using their gas credit card on days that a savings is offered due to trying to cut down on their credit card usage may find that by using this gas saving days to their advantage and then utilizing a cash advance loan to pay off their balance when the bill arrives, they will not only save money on gas, but improve their credit score all at the same time.
Gas stations offer many advantages for those who pay in cash too. For instance, gas stations will designate a day in which you can get so many cents off per gallon if you fill up and pay cash. Making these designated days as your day to get gas will help you accrue a gas saving each month. Also, don’t forget those gas stations that offer free coffee and a pastry with your fill up, that is close to a $3 saving right there!
Tags: budget tips, cash loan, cash versus credit, managing money, ways to save money
Realising When Something is a Liability Instead of an Asset
Sometimes it’s easy to see when something is a pure burden financially and not necessary, no matter how much one wants to have it. Perhaps it’s those seasons tickets that you really crave or the extras in the cable package that can be let go in order to give a little financial relief. But sometimes it’s not so easy.
If you are in a house where you are barely making it and upon examining the costs you realise that the mortgage you are paying is higher than you can manage in the long term, it’s very difficult to let go. Most people view their home as an asset and a great investment. Sometimes people even view vehicles this way. But if an asset is costing too much and it is not serving any present return, then there is a chance that it may be better to let it go. Even the stress relief may be enough of a reason to do so.
Think about how much it would cost to rent what is adequate. Not what is really desired and ideal; just what is necessary only. How much is the difference? If you lived in that, would you be willing to take the difference and put it into an investment? Could you do so comfortably? How much could you? This is the same as that home that is too costly. If it really is costing too much in money and stress, then it is time to let it go. The money that is saved really can be put to better use. Whether that use is simply living stress free, because now the money doesn’t need to be found and struggled for each month or invested or living a more acceptable standard of living doesn’t matter. Sometimes the stress alone just isn’t worth it.
My personal experience: Last month I lost my house due to the mortgage being too high and me not being able to qualify for a standard, lower rate mortgage. I sold it in order to pre-empt foreclosure and not have that on my credit report. Part of why I lost the house is because of my marriage failing and the poor refinancing decision I made around that, and part is because of a poor investment decision that I made a couple of years ago which really hurt my credit rating. I was forced to sell the house, just closing the deal one month ago and moved into a smaller (rented) townhouse. The stress surrounding this issue in the last couple of months was giving me palpitations, causing lost sleep, and other health problems, some of which I am only now recovering from. In reflection I realise the mistakes I made for the sake of being strong and helping others instead of putting my own interests first, which I probably should have done. But I have also learned how to manage money in ways that few people ever have to do or would even be able to do. Those are valuable lessons that will serve me and my children for decades. I also learned that there were lessons in finance that my grandparents and mom could have taught me, but never did, simply because finances are somewhat taboo in our society. Why is that? I may never know, but I will also try my best to teach my kids and others the hard lessons that I have learned. And I’m always willing to answer questions directly now, just so that others can learn from my experiences!
When we are budgeting, part of what we do is start to organise our lives. This is only natural for our finances – and very important – if we want to understand money and be better at managing money. A budget organises the expenses and income of a household, sets targets and strives to help people reach their goals. And it lowers overall stress in the lives of everyone involved.
And lowering stress can also be done through organising the household in general. While for most people it starts with the budget, it can also start with better organised schedules, getting rid of clutter, and general cleansing of the whole home. And if it doesn’t start there, perhaps the budget concept is useful to keeping the whole household organised and can be applied there. Getting the home organised leads to a higher level of happiness and ease in the household. Organising also leads to less clutter, a cleaner and healthier home, and can be a source of pride! Imagine how you would feel with visitors in the house who really notice that the place is in good shape and always presentable.
Like a budget, we can start by trimming the excess by decluttering. From there it is easier to manage what does belong in the house and what doesn’t, finding a place for everything and keeping it categorised where it belongs at all times. This means dishes in the kitchen or dining room, not on the coffee table or in someone’s bedroom. And from there the categories can be trimmed as needed. Does one really need 25 pairs of shoes? Can things be rotated by season?
And once the current categories are organised, then keeping track of “income” can be better managed as well. What objects is the hosue gaining, and are they necessary? This can tie directly into the budget exercise and bringing the two of them together can really help keep a house organised and clutter free! Don’t get anything more than what is truly necessary for a house. Not every wall need have a picture. And knick-knacks really don’t serve a purpose.
Find places for necessary papers and objects (and not all papers are necessary). Put things away right after they’ve been used. Never handle anything more than is necessary. And if something hasn’t been used in a year, it probably can be donated, given away, or trashed. Organising and sticking to the organisation “budget” can help lead to a happier, easier life. And organising a house can also (surprisingly) mean less cleaning is needed overall. Hmmmm… for me that’s motivation enough to keep it organised!
For a few tips on home organisation, I found a good article called “The twenty-seven most important rules for keeping your house in order.”
Some Ways to Spend Less This Season (or Any)
It’s something that we all want to think about – spending less for the holiday. But for many people, thinking is as far as it goes. The most common concepts involve “Secret Santa’s” and gift pooling. And there is also making gifts. There really are a lot of ideas to save on spending for the season. Maybe this should be done every year (and throughout the year) in order to keep our sanity and a little cushion for “just in case.”
Here are a few brief ideas…
- Make gifts – these can be anything that you honestly think the recipient will appreciate, whether it’s putting together a gift basket of teas and sugars or hand-crafting a hope chest for a child.
- Gift pool – go together with someone in order to afford buying a gift that would be out of reach for either of you alone.
- Special certificates – NOT store gift certificates! These are certificates redeemable for your help in areas that the recipient would really appreciate and could help in the daily life of that person!
- Time – similar to the above, but not for chores or similar help. One of the best gifts I ever got was a card that was redeemed for one day of whatever I wanted from the giver, redeemable at any time. Of course I was good about not making her take a day off, but it was a great (and inexpensive) day spent together. That was very memorable!
- Trade – yes, trade. If you have something that you can trade with someone for another object that you know someone else would like, then do it!
I’m certain that there are many, many other ideas out there. Why not let me know some of yours?
To read more on this topic, see my article on suite101.com: Holiday Budgeting in Tough Times
Tags: budget gift ideas, frugal giving, gift savings, holiday gift giving, saving on gifts
How to Properly Shop with Coupons
Coupons are often touted as great money savers and the greatest way to save on groceries, household supplies, even clothing and home construction. Need some eyeglasses? There is certain to be a coupon for it. Whatever your needs, you can find a coupon for some supplier.
The way that coupons are touted by some finance and budget advisors, you would spend half of your Saturday scouring the internet and newspapers looking for the best deals and clipping coupons. This is a waste of your time! How much will you really save if you clip all of the coupons that you find for items you like or need?
Firstly, look at what the deals are that each coupon shows. Now ask yourself if you really need the items on the coupon. If the answer is “no” then you aren’t saving anything, since you are either wasting money on something you don’t need (so you are throwing money away), or you have just wasted your time with the coupon. Don’t clip it or give it a second glance. Coupons are really just advertisements that are used in order to get new sales or promote customer returns and loyalty. And they are effective advertising!
The key with coupons is to know ahead of time what you need and stick with that, only. Most people will use coupons for groceries, as these are the most common coupons that we see. And they are the easiest to find. They lure you from grocery store or brand to another. And sometimes they include special offers that entice a person to buy more than what would normally be needed or used. For example, the grocery store that I shop at often has a special marked down price on items if they are bought in certain quantities, such as $1.00 each if bought in groups of 3; $1.28 for a single item. If you don’t need 3 of the items, why would you buy 3? You’ve just spent $1.72 on something that you didn’t need, and are likely to throw at least one of those three away. This means that you would have spent $1.50 each for the two that you did use. So where are the savings? Of course if you were going to buy the 3 items in the first place, then you will save.
This same grocery store has a large bulletin board posted directly inside the entrance of the building filled with coupons that you can tear off and use for the trip you are going on that day. This is very clever of them, as all of these items are then advertised and the coupons often entice people to buy items that they wouldn’t otherwise. But you won’t fall for that, will you?
The point is to not use coupons except for items that you would already buy!
In order to do that you have to have certain strategies whenever you go shopping or even looking for coupons. The first thing is to make a list of what you need. Complete the list before you look for coupons. Then when you look for coupons seek only those items that are on your list! It doesn’t matter if you see a great deal on something that isn’t on your list that you might like. It isn’t on the list, so you don’t need it. Don’t buy it! Don’t even think about buying it.
Advertisers love coupons and special offers, because these things really do get people to buy things that they don’t need. Take a look around your house and the homes of your friends. Guaranteed that you will see many things there that are never used – probably aren’t even thought of – and serve no purpose. But they looked cool at the time, maybe they were a fad, the advertising for them was good, and they weren’t expensive. And that’s why they were bought. And how much money over the months and years is wasted on buying things that aren’t needed? Do you really want to keep following that pattern?
Coupons and special offers are useful. They allow you to try new brands that you wouldn’t normally buy. [We all already know about brand names being overpriced.] This really won’t make a difference to your pallet, but it can make a difference to your budget, if the special offer or coupon makes the brand name cheaper than what you normally buy. And that is always a good thing!
Remember, there are three steps that must be followed:
- Make a list
- Find any coupons that are on that list only.
- Cut your cost by using the coupons on items you would already buy.
Tags: budgeting tip, budgeting with coupons, coupon clipping, grocery coupon, using coupons
