Reduce your utility bills
July 31, 2008
In previous posts I’ve talked about cutting back on your bills, including utility bills.
Here are some ways to trim your electric and water bills.
· Install an automatic thermostat. Set it to the desired temperature when people are at home and adjust the temperature to a higher or lower setting, depending on the season, when your house is empty or at night.
· Lower the temperature on your hot water heater to at least 120 degrees. You can also turn your hot water heater off if you’re going to be away for an extended period of time.
· Use cold water to run your garbage disposal and for washing clothes whenever possible.
· If you need a new washing machine, consider one of the newer front-loader models. They use far less water than traditional washing machines. They are also gentler on fabric, so your clothes stay nice longer.
· Line dry your clothes.
· Make sure to clean the lint filter of your dryer after each use. A clogged filter will result in longer drying times.
· During the summer months, keep your house cooler by shutting blinds or drawing the curtains in the morning and afternoon when the sunlight streams into your house. Keeping those rays out will also help to keep your house from heating up.
· During the winter months, use draft guards around the bottoms of doors that may leak cold air.
· When it’s hot outside, prepare cold meals or use your grill. Heating up the oven will only make things hotter inside.
· If you are using an oven, bake double batches. Freeze the extra, so you can reheat it in the microwave at a later date.
· Turn off the tap while you are brushing your teeth or washing dishes by hand.
· Keep unconsumed drinking water left in cups for watering plants.
· Take showers instead of baths.
· Install low-flow shower heads.
What are some of your tips to conserve water and electricity?
Start living within your means – Part 2
July 30, 2008
Here are some more ways to stop living beyond your means.
Get your bills under control. If you don’t have some sort of system to organize your bills, make one. Start by making a list of all of your bills and the due dates for each bill. Mark the dates on your calendar, so you’ll be sure to pay all of your bills on time. A great way to make sure to pay on time is to set up an automatic withdrawal online. Nothing can derail a budget faster than late fees. Of course, if you decide to use automatic withdrawal, you must make certain there is money in your account. Overdraft fees are a budget killer, too.
As mentioned in my previous post about living within your means. If you can’t afford to pay all of your bills, it’s time to look at cutting back wherever possible.
Paying your bills on time is also a good way to maintain your good credit score or improve a bad credit score. Positive credit history is an important component of your score.
Finally, it’s important to build up savings. If you are not saving any money, start with an amount that you feel is manageable. The recommended amount for savings is 10 percent of your take-home income. If that’s too much, start with $5 or $10 a week and work up from there. You can always increase your savings once you’re in a better position.
“Extreme” foreclosure
July 29, 2008
Call it an extreme foreclosure. An Atlanta-area home demolished and rebuilt on the hit ABC television series “Extreme Makeover: Home Edition” has become one of the latest statistics in the foreclosure crisis.
When I saw this story in the Washington Post my first thought was, “How could that happen?”
I must admit that I don’t really watch the show, but I know about it. I don’t live under a rock after all. I was under the impression that the home was pretty much paid for by the show.
As I continued to read I learned that not only was the house rebuilt, but the family was given enough money to pay the taxes on the home for years as well as a home maintenance fund.
It turns out the family used their beautiful new home as collateral for a $450,000 loan and fell behind on the payments.
I was left a bit stunned by this. A family who was living in a sub-standard home with an overflowing septic tank was given the gift of a brand new home, reportedly the biggest on their block. They were also given money to maintain their home and money to put into their children’s college funds. After all of that good fortune, they’re going to lose it.
The family has refused to talk to most of the media, though they did tell one television station they used the loan for a business that ultimately failed.
Most news reports say the home is set to be auctioned off Tuesday. I did read one story that said the family had reached an agreement with the lender to stop the foreclosure.
I wish the family would speak more about their situation. ABC has released some statements, but mostly said the family’s financial situation is private. To a certain extent I agree. But, I also think a family that has accepted hundreds of thousands of dollars from the community owes it to the community to step up and accept responsibility for what has happened. They owe the sponsor companies and private volunteers an explanation, an apology, something.
Regardless of what put the family in this situation, it is ultimately someone else’s time and money that has been lost.
Another strange twist in the daily news of foreclosures …
Seek help if you’re facing foreclosure and feel depressed or panicked
July 25, 2008
Today I had originally planned to post the second part of “Living within you means.” However, I saw a story this morning that was very upsetting, and I think it’s worth addressing immediately.
A woman in Massachusetts committed suicide over the pending foreclosure of her home. You can read the story here.
This is a tragedy in so many ways. I have not seen details as to whether this woman tried to get any type of help, either psychologically or financially.
For anyone who is facing foreclosure, it is very important to know that there is help available in many forms. In terms of finances, seek out a reputable non-profit credit counseling agency that also offers housing counseling. A certified counselor may be able to put a halt to foreclosure proceedings, help you organize your finances and offer practical suggestions to get your finances under control.
You are not alone. Many people have found themselves in this unfortunate situation. There is no shame in asking for help.
If you are feeling depressed or panicked and cannot control your feelings, please seek out a psychologist who can help you work through these feelings. Many people face situations in their lives that they can’t handle on their own. Again, do not be embarrassed to get help.
Finally, if you have a family member or friend who is struggling financially or facing foreclosure, please check in with them. Watch for signs of depression or changes in mood.
You can get information about mental health, the signs of depression and other resources by visiting the National Alliance on Mental Illness at www.nami.org.
Live within your means – Part 1
July 23, 2008
In my last post I addressed the signs that you could be living beyond your means. Now let’s start to look at ways you can start living within your means.
A sign of living beyond your means is increasing credit card balances.
If your credit card balances are rising the first thing to do is stop charging. That is a difficult thing for some people to do, especially for those who have been using credit to supplement their income. But, it is imperative to stop. The only way you can tackle your debt is to stop accruing more.
Look at what you’ve been charging. Are they necessities or wants? Necessities are things like food, water, clothing and shelter. Eliminate or scale back on the “wants” in your budget.
Buy only what you can pay for in cash.
Next, make a plan to tackle your credit card debt through some type of a repayment plan, whether it’s a plan you create for yourself or an established plan through a non-profit credit counseling agency.
Another sign that you are living beyond your means is that more than 35 percent of your take home pay goes towards your housing including mortgage or rent, taxes, insurance and utilities.
If this is the case, scale back on your housing expenses. Admittedly this can be a difficult obstacle to overcome, but it is a necessity.
Whether your own or rent, start first by looking to see what expenditures you can cut. Try to cut your utility bills by reducing your water, gas and electricity consumption. Look at what “extras” you’re paying for that could be trimmed or eliminated, like your cable or satellite package or extras on your phone.
If you rent, start looking for a new apartment with a lower rent. Take all factors into consideration such as whether your current rent and the new rent include utilities and what other financial responsibilities go along with the apartment. Do you have to pay for garbage service? Are you responsible for lawn maintenance? Make sure if you find an apartment with a lower rent payment that you won’t get dinged by other expenses that could make it more costly.
If you own, consider downsizing if possible. Obviously downsizing is more complicated for owners than renters. You should seek professional advice if you are considering selling your home and moving to a more affordable location.
Keep your eyes out for the next post which will continue with suggestions to help you start living within your means.
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