So here are Top 10 Tips to Save Money….
1. Stop paying huge Interests on Credit Cards: Credit Card interest happens to be one of the biggest traps…The solution? Simple,payoff money you owe to credit cards as soon as possible. The 20-30% of interest that you pay for the money you borrow only ends up making the card company rich. Try calling the credit card company asking them if it is possible to lower the interest rate, this usually does the trick, as they are eager to retain you as a customer. Cut down or if possible put off your expenses for a while and pay the credit card. This saves a lot of money and also helps improve your credit score.
2. Mortgage Payments: This is probably the largest single expense from your paycheck. Consider refinancing with lower interest rates. Any extra money must be redirected towards paying the mortgage. Also consider paying ahead of the due date or pay twice a month. This will lower interest money that you pay. If you have more than one loan, pay off the loan which has a higher interest rate first.
3. Avoid Eating Out: On an average lunch costs $6 and dinner $10. This amounts to more than $5000 a year. So consider cooking your own food. Also pack your lunch when you go to office. This will save a lot of money.
4. Quit Smoking/Drinking: Can't stress enough. Quit these habits. Cigarettes cost like $30 a carton and $40 for 12 pack beer. Puff away all the hard earned money, and what do you get???? Huge bills for the doc visits when your health goes for a toss. I am really against this habit.
5. STOP Lottery/Gambling: This is the worst way to loose money. Let me emphasize that the chances of you winning money is less than 1 out of 300,000. Did I make myself clear with the numbers! Yes, the chances that a person may win are less than 1 out of 300,000. Some of them loose their entire paycheck for lottery. Grow up. Use a little common sense. You gamble to make these lottery/gambling company’s rich. These companies pay out less than half of what is bet on. So just STOP.
6. Insurance: Choose your insurance wisely. We hardly claim insurance money. So it is very important to make good decisions about insurance. Shop around for insurance every time the policy expires. Increase the deductible if possible. If you have multiple cars, insure within a same policy. If you own a home insure your car and home with the same company. Most companies give multi-car and multi-line discount to attract customers. Also, avoid getting speed violation tickets. Tickets are the main factors in increasing your premium. Drive responsibly and Save Money. Also check if you really need travel insurance, payment protection plans. This all together will save lot of money.
7. Buy Used products: Most commodities loose their major portion of value once out of the showroom. Be it a couch or a car. I bought my car used with just 6000 miles on it with a warranty and it was just working great. This saved me lots of money and the difference between the new and this used one was just unbelievable. So, consider buying used when ever possible.
8. Drive Smart: With raising concerns over Gas prices, it is important to consider your driving habits. With Oil companies reaching record profits, everyone really needs to cut down on fuel consumption. This also helps the Global Warming problems. Don't drive a truck or SUV to work everyday. Cut down on your speed to optimize fuel efficiency. Speeding not only consumes gas but it also does a lot of wear and tear to your car. Consider going to nearby place instead of a far ones. Carpool as much as possible. Take the junk out of your car trunk to reduce weight and consume less fuel. Make sure you have a list done before you go to the grocery store to avoid going again. List the things to do and optimize your trip.
9. Do It Yourself: You will definitely save a lot of money by doing own household work. Do your own laundry and stop paying for dry cleaning, clean your own house, mow your own garden, cook food, wash your own car, pay your own taxes, trade stocks yourself, and lots of other stuff you could do yourself to save money.
10. Identify Need Vs Wish: We always wished we had more. A better TV, nicer home theater, great furniture, and so on. But we have to control our urges on spending on these luxuries and should make a wise decision on putting off that money to save for hard times or to payoff the dept. The best way to avoid this to just set down a particular amount to spend on a monthly basis and try to stick to it as much as possible. Try to avoid the temptation of using the credit card to its limit while shopping.
There are lots of other ways to save money. Like using water from vending machines instead of bottled water, shop groceries from wholesalers like Costco or Sams, cut down unnecessary expenses, wait for a while for the prices to come down for expensive gadgets, shop online. Etc.
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