Tracking your expenses daily is very important
February 1, 2012
It might seem tedious and easily forgettable but tracking your expenses daily can really help you save money. One of the most important things you can do when trying to get your personal finances under control is to figure out WHERE your money is going first.
If you start off by tracking your expenses each day, you’ll be able to get a better idea of where your money is going each month. Once you have tracked your spending for thirty days, multiply that by 12 and that is the amount of money that you spend in one year. Talk about an eye-opening experience!
Tips for tracking your daily expenses:
- Keep a pocket-sized notebook with you for the entire 30 days. If you have a smart phone, you can create a new Note and track your expenses there.
- Keep receipts from ALL of your purchases. Refer to your checkbook, online banking, ATM/debt receipts, bank statements, credit card statements and other bills you may have.
- Record every purchase, regardless of the amount spent. (Remember the little things can really add up!)
- Enter your daily spending totals on a spreadsheet or in a notebook at the end of every day. This will help you total everything up and the very end of the month.
- Organization is the key to staying on top of your daily spending! Make folders and keep it all in one safe place.
- There are new Apps for your smart phone that help track spending and keep everything together and cohesive.
Did you know that your expenses can be divided into three categories? The three categories are: fixed, variable and periodic expenses.
Fixed Expenses:
- Typically require a set payment every month, i.e. rent, loan payments, insurance, etc.
Variable Expenses:
- Amounts that vary from week to week or from month to month
- Occur on a regular basis
- Some examples are food, utility bills, entertainment, etc.
Periodic Expenses:
- These can be fixed or variable
- Do not occur on a regular basis
- Include such things as quarterly taxes, gifts, clothing, impulse buys, etc.
Tracking your expenses daily can save you money but it can also help you set financial goals for the future. If you know exactly where your money is going every month, you can easily see where some cut backs and compromises can be made. It will also give you a good outlook on your spending habits and those impulse buys will stick out like little red flags.
Try it for 30-60 days and let us know what you’ve found out about your spending habits and how much money you were able to save. We liked to hear about your success stories!
Valentine’s Day overspending can happen
January 30, 2012
Valentine’s Day is fast approaching. This day is all about undying love and showing that special someone how much you care. Show your sweetie you love them while keeping your bank account in check. That is easier said than done, right? Total holiday spending is expected to reach $15.7 billion this year according to the NRF (National Retail Federation).
We all seem to be expecting more this year. You can’t walk down the street, ride on a bus or catch a taxi cab without advertisements enticing you every second of the day. It’s so easy to put aside your financial woes when love is in the air. Nevertheless, you don’t have to spend a fortune to make your true love happy.
Here are some helpful tips to stay frugal while expressing your feelings:
- Do a chore or task that your significant other doesn’t like doing. Vacuum the house, do the dishes, take out the garbage. Anything that you know they don’t like to do, do it for them. Make sure you do a thorough job as well. This little gesture goes a long way to touching their heart.
- Create your own one-of-a-kind Valentine’s Day card. Instead of going to your local convenience store and just picking out any old card, make one yourself. This can be done on the computer or by hand. Be creative and let the love flow into creating that special card.
- Have an intimate dinner made by you. It can be hard to find a restaurant on Valentine’s Day that isn’t over crowded with a really long wait. Why not make dinner yourself at home? If you can’t cook, order out from a favorite restaurant. Create the mood by lighting candles. This is a wonderful way to show how much you care.
- Find your favorite picture as a couple and put that picture on an item for them. You can add pictures to just about anything these days. Whether it’s a coffee mug, mouse pad, calendar, t-shirt, ornament, etc. It’s really easy to create and order it online. It’s such a personal and thoughtful gift that they will cherish for a long time.
- Make a burned CD or create a Playlist on their MP3 player of favorite songs. Be sure to include the song that you both think of as “our song”. Use your computer or drawing skills to make a custom cover for the CD case.
- Design your own flower arrangement. When you buy pre-arranged flower bouquets, you could be paying double what you’d normally pay. Save money by buying individual flowers, a lovely vase, and do the arranging yourself. Remember to cut the stems at an angle and the flowers will last longer. Another tip is to put a penny in the bottom of the vase. The penny acts as a natural fungicide and will help the flowers stay vibrant.
- Bake a cake or favorite dessert. Make something by hand or use your talents to create something unique for him or her. If you like to write, maybe write them a poem. If you are a musician, write or sing a song. If you work with wood or metal try creating a memory box. Whatever skills or talents you have, use them to make something truly special for them.
If you put a lot of thought or time into a gift, it means so much more to that person. You don’t have to buy expensive jewelry or 12 dozen long-stem roses to show that someone you really care. This day is about expressing your love and feelings. Just being with that person on this special day could be enough for them. There’s no reason to break your budget and overspend on this holiday.
What are your Valentine’s Day Plans? Do you think you might have gone a little overboard on the planning and spending? We’d like to hear your thoughts and ideas!
Dealing with student loan debt
January 25, 2012
Student loans can seem like a nightmare. Many Americans struggle everyday to pay back their loans and many can’t make it. In 2010 two-thirds of college seniors carried an average of $25,250 in debt according to the Project on Student Debt. These kids also had the highest unemployment rate in recent history at 9.1%. Overcoming student loan debt may seem impossible with those odds.
However, there is a light at the end of the tunnel. We’ll show you some ways to manage your debt and get your life back on track. You’ll have to decide what the best choice for your current situation is. Here are some suggestions to help you get started:
Loan forgiveness - There are some programs out there that will forgive all or some of your federal student loans if you work in certain fields. Jobs such as public safety, teachers, nurses, and a few others fall into this category. This program discharges any remaining debt after 10 years of full-time employment in public service.
Loan deferment – If you are having trouble paying loans back due to economic hardship, unemployment, military deployment, health problems, or enrollment in school, there are ways to postpone your federal loans. This process is called loan deferment. Deferment lets you temporarily suspend making your student loan payments.
Types of loans & grace periods – It’s imperative that you keep track of the lender, balance, and repayment status of each of your student loans. Different loans have different grace periods, or how long after leaving school before you have to start paying it back. Pay schedules or due dates should also be closely monitored. This will help you avoid any late fees or charges.
Tackle the most expensive loan first – Check to see which loan has the highest interest rate and pay that one off first. The highest-interest method usually gets the debts paid slightly quicker than the debt-snowball method (paying debts with the smallest amount first regardless of interest rates). Compare the interest rates and start on the highest one first. That will leave more money in your pocket when all is said and done.
Extended Payment Plan – Try to request the extended payment option, if possible. This will lengthen the repayment time and could help decrease the amount due each month. Though extended payment plans will cause more interest to accumulate, the interest is tax-deductible within limits. Call your loan provider to see if this is an option.
Income-based Repayment Plan – Some loan providers may have this as an option. You’re monthly payment would be based on the amount of income you are making each month. This plan limits the amount to a specific percentage (depending on the lender). It could help you keep current on your payments. Ask your lender if they provide this type of plan.
Whatever your situation may be, hopefully you’re lender is willing to work with you to repay your student loan debt. Don’t ignore the problems and think they’ll just go away. There can be major consequences with defaulting on a loan. Be advised that student loans are now generally not dischargeable through bankruptcy.
If you or someone you know is having trouble with debt, give us a call. We have certified Credit Counselors available to help get that debt monkey off of your back. If you have any questions about student loans or debt, please leave a comment.
Cutting small expenses equals big savings
January 23, 2012
The little things can really add up. Have you ever heard of the “Latte Effect”? It’s what some personal finance guru’s call unnecessary daily spending. Meaning you can save “X” amount of dollars per year by skipping you’re daily latte, cigarettes, bottled water, etc.
Sometimes we forget to add the small expenditures into our budgets because “it’s only $2.50, come on!” but that $2.50 a day for coffee adds up to be $840.00 a year. Who couldn’t use an extra $840.00? We are going to share some tips and ideas that will help you cut the small expenses and help save you money.
Ways to decrease expenses and save
- Ask your utility company to perform an energy audit of your home to show how to save energy consumption and cut down your monthly bills.
- Set the water heater to the lowest acceptable temperature (approx. 140°).
- Eliminate premium cable and extra phone services or long distance. Look into Skype or VOIP (voice over Internet protocol) to save money when calling out of the country.
- Comparison shop for insurance and ask how to receive special discounts and save money.
- When shopping for food, look for advertised store specials or buy the generic brand. Never shop for food on an empty stomach. You’ll end up spending anywhere from 10-25% more.
- Avoid costly convenience stores and convenience foods. The vending machine at work is also a good thing to avoid.
- Use coupons and rebates when shopping for anything. Look online for Promo codes or deals. You can also sign up for coupon sites like Groupon, Living Social and Google Offers.
- Drink water, iced tea, hot tea or drink mixes instead of more expensive beverages, i.e. soda, energy drinks, cappuccinos.
- Ask your doctor or pharmacist about generic equivalents for your prescription drugs.
- Browse clothing thrift shops and consignment shops for your clothing and other items. Even if it’s just for accessories like belts, scarves and hats.
- Cut back on expensive gifts; shop year round at sales to stock up on holiday, baby shower, wedding and birthday gifts.
- Discover great “finds” at yard sales and garage sales, but check the items carefully and stick to things you need, not things you want.
There are many ways to cut back on the small things and save money. You have to find what works best for you. Understanding the difference between a “need” and a “want” is the first step. It’s all about making smart financial decisions that will save you money. We hope that these tips and ideas can help you in the future.
Let us know how you save money on the little things or if there’s something you don’t buy anymore because it’s an unwanted expense. We’d love to hear from you!
How to enjoy the weekend for FREE
January 18, 2012
The weekend is almost here and you are looking for something fun to do. However, you are on a tight budget right now and trying to get your personal finances in order. You might be thinking that you won’t be able to find anything fun to do because of your budget. Here are some tips and ideas to show you how to have a good time for FREE.
- Start in your community - You can easily find a list of free events going on in your local community by checking out their website or going to city hall. You’ll often be surprised at how many interesting and fun activities are going on in your city that you didn’t even know about.
- Organize a walking tour or hike - Research the interesting historical sites in your hometown, and then go on a walking/hiking tour of those places. You can easily turn this into a full day if you live in a compelling area. Invite a group of friends to join you. Make this a weekly/monthly thing. It’s not only free and fun but it’s healthy for you too.
- Visit a zoo or museum (free admission days) - Many cities have free educational attractions, such as zoos or museums. If they are not free to the public in your city, ask those places if any days are free to get in. If not, ask about possible opportunities for “free to the public” exhibits or “free admission days” in the near future.
- Movie night with friends - Invite some friends over and have them each bring one of their favorite movies. Then just settle in with some snacks (whatever you have on hand or ask them to bring something) and burn a lazy afternoon and evening just watching movies together. It’s a ton of fun and is sure to create lasting memories.
- Throw a yard sale - A yard sale is a very rewarding way to spend a money-free weekend. Not only does it provide you an excuse for cleaning out unwanted stuff, it can also bring in some good money as well. Plus, it will give you a whole weekend’s worth of entertainment and fun.
- Go to open mic night or a free show – Many local restaurants, coffee shops and pubs have free entertainment in the form of open mic night, free shows or even karaoke. Call around or grab your local paper to find these events. Get a group together and see how many free shows you can attend.
- Take a bike ride - If you’ve got a bicycle in your garage or closet, you already have everything you need for some exercise and good fun. Almost every town and state park has an extensive array of bike trails, so you can always find somewhere new and interesting to ride. Don’t have a bike? See if you can borrow your neighbor’s or a friend’s.
- Host a potluck dinner - Make a dish out of food you already have in your pantry. Invite some friends to do the same, and then get together for a potluck dinner. It makes for a “free” meal and a lot of fun for everyone involved. Set up a theme for the party and get ready to have a blast.
There are many ways to have a fun-filled weekend for free. You have to be willing to do a little research and ask around. Get creative and think outside the box. You don’t have to spend a lot of money to have a good time. Invite friends over this week to brainstorm some ideas. Have fun with it! Here’s to more money in your wallet come Monday morning!
Let us know about some of your favorite FREE activities and how you enjoy spending your weekend. We’d love to hear from you!
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