Credit Card Debt
1) Heavily in debt due to overspending or the kids needed new braces or you needed a new roof or new tires so you plopped it on your credit card and promised yourself you’d pay it off next month. Well, that never happened did it. Here’s how you drop that credit card debt quickly. Open your wallet and if you have more than 2 credit cards, a master and a visa, then you have way too many credit cards. Start by grabbing those scissors and cut the one you don’t need. Then dig out your credit card bills and see how much you’re paying in interest. When you make your payment next two checks, one for the monthly payment and the other for as much as you can afford to pay. On that second check write APPLY TO PRINCIPLE in bold letters, then once the ink is dried grab your highlighter and go across those words then put both checks in an envelope and mail them to your credit card lender.
2) Do you have a car loan? Do you have a mortgage? I’ll share with you a little tip that banks and financial lending institutions don’t want you to know. Ask for what is called an amortization breakdown of your loan. What this is, is simple. It’s a breakdown of your loan by month and how much your payments are applied to principal, insurance, and interest. Once you get this review it and keep it in a safe place. Then do the same thing with your payments each month as mentioned above. If you have a car loan that is a 3- or 5-year loan, write a separate check for say $100.00 and a note on the check highlighted that says. “Apply to Principle”. This way you are paying only the principle instead of the principle with interest extra each month and before you know it, your car will be paid off. As thing goes for that 30-year mortgage. But instead of paying your mortgage payment in one lump sum, try paying it in half on the 1st and the other half on the 15th, with an extra $100 applied to principle. You’ll save in the long run and pay off your car or mortgage in half the time.
Groceries and how to save
3) After you’ve paid all your bills for the month you need to buy groceries in order to survive. I am a stickler for grocery lists when going shopping. A list ensures that you only get what you need to survive. One of the best inventions I’ve come across to combat the options to buy things you don’t need is to go to your store's website and see if they have an online shopping option. I don’t recommend using this option to order your food, but us it to calculate how much you are spending for that week or month. I use it to ensure I get what I need for the month without going over budget. Never bring your kids with you to the grocery store because they will throw things into the cart that you can’t afford the luxury to buy right now. Another trick of the trade-in household management is to know what is in your pantry or freezer. Plan out your meals and list the ingredients, then see what you have and what you need. What you need goes on your grocery list. You can never go wrong if you have the basic staples at hand like potatoes, celery, carrots, and onions plus bouillons for stews and soups. Never buy name brand items unless it’s mayo (has to be Hellman’s). Every grocery store chain has an agreement with food suppliers to label items in the store brand name and is usually right next to the name brand item on the shelf. Plan to include lunches and breakfast at home or bring to work instead of buying out each day and save that money. There is nothing wrong with bringing your lunch to work along with a thermos of coffee brewed by your two hands instead of buying Starbucks or some other expensive brand of coffee/tea while at work. You’re working so you can earn and save money, not put your money into someone else’s bank account. If you cut down on those temptations each month, you’ll begin to see that you’ve got extra money in your wallet and your bank account.
Cable service
4) How much television do you really watch each week? If it’s a lot, you need to find a better way to spend your free time. If you rarely watch television but you have cable for the internet service. I would suggest you start shopping around to see if your landline service offers a bundle for home line, internet, and maybe cell service. These days you don’t really need cable service anyway. However, if you have cable, [plus Netflix, Hulu, and Brit box, then you need to rethink your entertainment budget. With cable you’re paying for channels you never watch at the cost of approximately $135 a month, then you’re paying another $10 bucks a month each for the other streaming systems, that’s approximately $165 a month. Don’t just drop cable then sign up for every streaming system out there, that cost will add up quickly and whack your budget for sure. Be smart and only subscribe to a service that you really can’t live without.
Shopping Services
5) When I was a student, I used Amazon Prime all the time for supplies because they offered a 50% discount on their services for students, however, once I graduated the price doubled and I canceled. So, unless you’re in college consider stopping by a store on your way home from work instead of utilizing Amazon Prime. It’s a waste of money for sure and that money could be better spent on reducing your debt.
Windfall or refund Income
6) At the end of the year many companies used to give out bonuses, not sure if they still do. However, if you should get one or you get a healthy tax refund come April, consider using that found money to pay toward a credit card, or extra apply to principal payments for that new car you bought because your old one died. If you don’t have a lot of debt, consider using that money for a rainy-day fund or as some call an emergency fund.
Christmas Gifts
7) Stop spending thousands of dollars on Christmas gifts each year then spend the next year paying them off. How about making your list of who you buy for and being shopping in June for special gifts? Personally, I begin making Christmas gifts years ago. Christmas ornaments, jams, jellies, baked goods, or even jewelry for the ladies and craft items for the guys. If you decide on a budget for Christmas and shop early, you’ll save money in the long run and won’t be in so much debt. However, if you wait until the last second, you’ll pay through the nose for every item on your list. Get back to basics and make your gifts, they will be much more appreciated than some dust collector you bought at Macy’s.
Car Insurance
8) Did you know that you can save on your car insurance if you have a college degree – Bachelors, Masters, or Above. I didn’t know that until I called my insurance company and complained about the rates. Then the woman asked if I had a college degree and bang, dropped my insurance rate by $100 bucks straight away. So if you have a degree, call your insurance company to see if they will drop the rate for having endured all that college homework agony.
Energy Savings
9) If you have an HVAC system in your, that’s heating and a/c system, you can save money each month by changing the filter every 30 days. Be sure to have it serviced twice a year by a reputable company in your area. March for the spring season and September/October for the winter season. My recommendation would be to get on a maintenance plan with the service company. Normal maintenance plans can cost no more than $175 per year, that’s a lot better than laying out 4 or 5 grand for a new system because you were too cheap to get a maintenance plan last year. Energy-saving appliances are all well and good, but they only save you a few bucks over the year. So instead of rushing out and buying a new fridge or dishwasher that will save you 5 bucks a year, save up for that new appliance and pay cash instead of putting it on a credit card. Also, look for sales on the appliance you need, then buy it when it’s on sale. If you’re a veteran, don’t think twice about asking if the company gives a veteran’s discount over and above the sale price. Research the store and corporation before you shop. And get that extended warranty on the appliance, you’ll thank me later for suggesting it.
Cell phone service
10) If you are a veteran, military or senior citizen call your cell phone service to see if they offer a discount. The most retired military still have a .gov email address from their branch of service, that’s all you need to send a message to your cell service provider to ask about discounts. Otherwise, you will need to enter a cell phone service corporate store and show them your veterans Identification card. Sometimes they will change your profile in their system and add the discount and maybe extend the discount to reflect the savings a few months back. 😊 Also, ensure that you have unlimited data and calling on your plan. This will save you money in the long run, especially if you text a lot or watch movies while traveling on your cell phone.
Library services
11) We all love to snuggle up in a comfy chair with a cup of cocoa and a good book on a cold and wintery day, but with the costs of everything these days, one just cannot afford to buy new books every week. As an author, this hurts me to say this but, utilize your local library and borrow a book then return it. Or better yet use overdrive on your cell phone and listen to an audiobook while cooking dinner, or folding laundry, or driving a long distance. I am absolutely addicted to audiobooks. I must listen to at least 200 of them per year.
Family freeze spending
12) Here is a novel suggestion to test the theories in this article. For one month try to not spending any money outside of bare necessities. This basic living challenge offers you an opportunity to spend less money each month but also the challenge to observe your family and their reaction to this new concept. It also shows you that your willpower is much greater than the have to have it, notion that overtakes you every month that blows your budget out the window. Make your own food and don’t order take out that will cost you about $40 bucks a shot. Find new recipes online that allows you to use the contents of your pantry before having to buy more groceries. Cook just a little more and take it to work for lunch tomorrow.
Yard/Garage Sale
13) Go through your house, room by room, closet by closet, and gather up everything you no longer use or want. The golden rule is this: if you haven’t used it in the last 6 months and you don’t think you’ll need it in the next 6 months, get rid of it. Just declutter the entire house this way. You’ve got baby clothes that haven’t been used in the last 15 or 20 years, time to get rid of them so that they can be used by some mother who needs them now. You can turn everything into cash and what you don’t sell, cart it over to the Salvation Army or Good Will and get a tax write off for it. Win-win for all.
That’s about it from me. If you have any other saving suggestions, don’t hesitate to leave me a message below and I might use it in my next article. In the meantime, have a joyous and blessed day.
Author Elizabeth Kilbride is a former political operative,
author, scriptwriter, historian, journalist, business professional, and
creative artist. With a degree in business and a Masters in Criminology, Ms.
Kilbride has spent years cooking and researching ways to save money. Although she
has been out of the loop for a while, she is back with a powerful new agenda to
help her readers save money while enjoying life.
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