Ways to Save Money While Saving the Environment
February 15, 2012
Green living is all around us today, from sustainable buildings to Eco-friendly cars and so on. Everyone is worried about the environment and looking for new ways to protect it. Sometimes “going green” can mean spending more money on products and services than we’d like to.
There are ways to save money while helping out the environment. You just have to be a little savvy and shop around. You can still do your part to save the Earth while saving money for yourself. We’ll show you some ways to be environmentally friendly on a budget.
Go Green:
Use a low-flow shower head – You’ll have to spend some money up front to purchase a low-flow shower head but you’ll see those savings coming back to you when you get your first water and energy bill. They reduce the amount of water you use to get clean and also reduce energy consumption. Low-flow shower heads usually run from about $12.99 upwards to $45.00.
Replace light bulbs – Use energy efficient light bulbs instead of the regular ones. They are reasonably priced with the average cost of around $1.50 per bulb. Compact Fluorescent Light bulbs (CFLs) draw less electricity and can last about seven years. You’ll see the savings in your utility bills.
Don’t buy bottled water – Bottled water costs between $1 and $3 and can add up to a few hundred dollars a year. Try a filter for your water faucet and a re-useable water bottle instead. There are also water purifier pitchers to keep in your refrigerator like the Brita water pitcher.
Turn off the lights – How often do you leave a room and the lights are still on? If you don’t really need it, switch it off. Many people will keep all the lights on even if they’re not in that room. Teach your children these habits and you’ll notice savings on your next electricity bill. Less energy consumption is better for the environment.
Weather strip or caulk around doors and windows – Use weather stripping or caulk around each of your windows and doors to help save heating and energy costs. Caulk runs about $5 per tube and can be used to help seal drafty windows. It’s a little messier than weather stripping, but more cost efficient.
Grow your own herbs – Grow an herb garden indoors all year round for fresh herbs. There are many do-it-yourself kits out there. You can stop buying dried herbs at the store and save money over time. Also, think about growing fresh vegetables and fruits whenever possible. Produce can be very expensive when purchased at the grocery store.
Going green or helping to save the environment can be overly expensive. Some people think it’s worth the investment, no matter the cost. Even if you haven’t jumped on board the “go green” bandwagon yet, by consuming fewer resources, you’ll end up keeping more cash in your wallet.
We’d like to hear how you’re doing your part to help save the environment. Do you have any environmentally-friendly money saving tips to share with us? We’d love to hear from our blog community. Thank you!
Image: scottchan / FreeDigitalPhotos.net
What to do with your tax refund this year
February 13, 2012
Will this be the year you save your tax refund for a rainy day or will you spend every last penny like the majority of people? The Internal Revenue Service will let you directly deposit your refund money into four different types of accounts. You can have part of the refund sent to your checking account, another amount directed to your savings account, a third chunk of cash sent straight into your IRA and use up to $5,000 of the refund to purchase savings bonds.
This is a really simple way to help you save that money this year instead of spending it. You can still choose to have your entire refund sent into just one account, if you’d like. Even if this is your first year to have your refund sent electronically to a bank account, the directions are easy and clear. The Form 8888 includes a blank check diagram showing you exactly what to look for and enter.
Here are some ideas on what you could put that money towards:
- Emergency fund – If you already have an emergency fund, you could always add to it. If you don’t have one then it’s a good idea to take your refund and start one. You never know when something will come up and you’ll need a nice bit of cash to take care of it. Consider opening a high-yield savings account and depositing your refund for an unforeseen future expense.
- Retirement fund – Direct deposit your refund into your Roth, Traditional, or SEP-IRA. With the price of everything going up recently, you may need more money than you think to retire comfortably. Start now but adding that refund to your Retirement Fund, so you can live well when it’s time to stop working.
- Pay down your debt – If you have medical bills, credit cards, an auto loan, or student loans, you need to get that debt monkey off of your back. Add the refund to either your high-interest accounts or payoff a smaller account. Either way, being able to make more than the minimum payment will help you to pay off your debt more quickly.
- Invest in stocks, bonds or an ESA – While investing can sometimes be risky and not many people want to take those risks, there are some stable and beneficial things to invest in. Start a college fund for your children. Look into opening an Education Savings Account (ESA) or a 529 College Savings Plan. It’s never too early to start thinking about their future.
- Support a charity – Find a charity that speaks to you. Are you an animal advocate, environmentally friendly person or all about helping kids? Not only does making a charitable contribution help a worthy cause, it’s also tax deductible. Score!
Whether you choose to save, spend, invest or donate; it’s your hard earned money so make the most of it. If you choose to just spend the money, try to spend it wisely. Do you need a new water heater or a new furnace? Is your car on its last leg and about to give out? It’s a good idea to take a look at things that need replaced or fixed now, so they don’t end up costing you more money later on down the road.
If you would like more information about paying down your debt, contact us today. Our certified credit counselors can help you with your budget and with setting up a debt management plan. It’s a smart choice to use that refund to help you get rid of that debt monkey once and for all.
Which debt to pay off first? Debt Snowball Method vs. Highest Interest Method
February 8, 2012
There is much debate on this issue in the financial world. Some experts say to pay off the smaller balances first to get instant gratification. Others say it’s better to pay off the high interest rate ones first regardless of the balances. The first method (smaller balances) is called the “Debt Snowball Method”. The second method is called the “Highest Interest Method” and both have benefits.
We’ll go into detail and discuss each method in length to help you decide which method is right for you. Are you the type of person who needs to see instant results to know something is happening? If so, then you might prefer the snowball method. If you are more interested in saving money in the long run and are not worried about seeing a result right away, then the highest interest method is for you.
Debt Snowball Method:
Using the debt snowball method, you would focus on paying off the smallest debt first while just making minimum payments on the rest. Start by listing all of your credit card debts in order from the smallest balance to the largest balance. Next, total up the minimum payments you are making on all of your cards to see how much you are paying each month. Continue paying the minimum on all of your cards except the card with the lowest balance. If possible, try to add more money to that monthly payment. Paying more than the minimum will help you pay off the balance faster. For example, if your smallest debt is $100 with a $10 minimum payment, by increasing your monthly payment to $20, you will pay off the balance in about 6 months versus 10 months.
Once you have eliminated the balance on your lowest card, the debt repayment snowball effect begins. Apply that $20 you were paying on your lowest card to the next lowest balance in line. If you were paying $30 a month minimum payment, you will now be paying $50 a month. Once that balance is eventually paid off, apply that $50 you were paying per month to your next lowest balance, and so on and so forth.
Highest Interest Method:
Using the highest interest method, you would focus on paying off the highest interest debt first while just making minimum payments on the rest. First, list your credit card debits in order from highest interest rate to the lowest interest rate, disregarding the balances. Continue paying the minimum on all of your cards except the card with the highest interest rate. You need to add more money to that monthly payment to pay it down quickly. Any extra money should go directly to that debt first. Paying more than the minimum will help you pay off the balance faster and it will save you money in the end because of the high interest rates. Continue this method using the next highest interest rate and descending in that order.
It can be frustrating at first because it’s hard to see any improvement or “dent” when using this method. That doesn’t mean it’s not working, it really is, you just have to give it more time to see the results. The benefit to this method is the amount of money you can save when all is said and done because you paid the highest interest rates off first.
Which Method Wins?
The “highest interest” method usually means that you would pay less in overall interest by going that route. However, with that method, the “successes” don’t start happening for quite some time. With the “debt snowball” method, the successes occur more regularly throughout the process, meaning it’s better for keeping your encouragement up as you repay, even though you will pay more in the end because of the interest rates.
It’s really up to your personality when choosing one of these methods. If you think you will get frustrated and give up with not seeing instant results, then you might want to go with the “debt snowball” method. That is actually the more preferred method among people in debt.
Just remember that it’s always easier to get into debt than it is to get out of debt. Hang in there and have some faith. You can do this and we are always here to help. Give us a call if you have any questions or would like more information.
Introduction – Taking Over Our Financial Blog
February 6, 2012
Hi there! My name is Lauralynn Schueckler and I’m the Online Marketing Specialist here at AdvantageCCS. I’m taking over our Blog and I’m looking for some great ideas for topics to write about. Please let us know what’s on your mind and what you’d like to see on our Blog. I’ll do my best to provide you with the correct information and to answer any questions you may have.
I’ll tell you a little bit about myself. I have an Associate’s Degree in Multimedia Technologies and Graphic Design from Pittsburgh Technical Institute and I have been with the agency for a few months now. Before that I was the Social Media Manager at a Pittsburgh based Internet Marketing Firm. I’ve always had a passion for Social Media and Search Engine Optimization.
I’ve actually gone through the AdvantageCCS Debt Management Program personally myself almost 2 years ago. I’m completely debt free today and my credit score is very good now. I know all about what it’s like to be in debt. I was in over my head and I almost gave up. I had student loans, a car loan, and massive credit card debt. I heard about Advantage Credit Counseling Service from a friend and I’m so happy that I checked them out. They truly are the reason I’m out of debt today. I have been there and done that when it comes to debt, so if you can name a financial issue, I probably have experience with it.
In conclusion, if there are any financial topics that you would like to see discussed here, please feel free to suggest them. You can also contact me directly at lschueckler@advantageccs.org with any questions or ideas. Don’t forget to friend us on Facebook, and follow us on Twitter. We are also on Google+, LinkedIn and YouTube. Thank you and I look forward to hearing from you!
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!
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