Budgets

Emergency Savings Tips

June 28, 2012 By Twila Van Leer

Unless you’re sitting in a movie, chances of an overwhelming emergency (think invasion by aliens) are not very likely. But in the natural course of things , emergencies do occur, including earthquakes, hurricanes, floods, blizzards, windstorms, fires and landslides. On a more personal level, the theft of credit or debit cards, checks and other items that you routinely use to make your way financially can be a temporary emergency that deprives you of your usual ability to pay for purchases, cover usual expenses, etc.

Financial experts take the position that emergencies, large or small, are almost certain and they advise that you be prepared to see yourself through a temporary dry spell. The question is, how much to stash for an emergency and where to put it so it is accessible when you need it without being a target for thieves. The “how much” element is tricky. There is no set amount and the individual ability to tuck money away against future need varies greatly. Some say $500 minimum. Others set three to six months of usual income as the goal. Some see a “conservative” $10,000 as requisite. In the final analysis, you have to assess your ability and do what feels right for you. But you must make it a priority not to be taken lightly and then treat your emergency fund as inviolable. Don’t let little emergencies rob you of what you would need in a real emergency. Treat the emergency fund as you do insurance: Be sure it’s available, then hope you never have to draw on it.

Just be aware that in a real emergency, there is likely to be no power (no ATMs, no self-serve gasoline pumps, etc.) and financial institutions are likely to be unavailable. Your credit and debit cards are probably going to be useless. That makes cash the preferred mode of preparing for an emergency.

Financial guru Dave Ramsey advises starting small. Set a goal, for instance, to save $3,000 in a year. That amounts to $250 per month. Spread it over 18 months and the monthly set-aside is $166. Rule of thumb: It probably will be at least a week after a serious emergency before things return to normal for your finances. Plan on at least that long. If you already have savings accounts, consider taking out enough to finance your emergency fund. It is possible to invest the emergency funds, but don’t put them in accounts that can’t be accessed almost immediately. The money should be liquid and available. If for some reason, your emergency fund is depleted (say in an actual “little” emergency such as frozen pipes or some such) rebuild as soon as you can.

While in the normal routines of life it is not wise to keep a large amount of cash in your home, that might be exactly where you need the ready money for an emergency. Be creative in finding unobtrusive, unusual places to stash your cash. Not under the mattress, in a sock in the drawer or any of the other spots that have become so cliched they are obvious. Some suggestions from the experts:

Put cash, ideally in smaller bills such as tens and twenties, inside a plastic baggie, place it in a meat tray and put it in the freezer as unobtrusively as possible among other packages of meats.

Bury it in the yard, inside a piece of PVC pipe or other water-impervious container. (Use good sense. If your yard is covered in six feet of snow in the winter, take another tack.) The same idea would work with a large planter inside your home.

If you want to put an envelope of bills behind a photo or piece of art, insert it between the cardboard backing and the picture, not on the back.

Take a tip from the old movies and put “the evidence” inside a book from which you have carved a hollow section. Of course, that only works if you remember which book you used. In a real emergency, there will be no time for browsing.

Create a “decoy safe,” by putting the cash into a small container and burying it in any larger container that looks like anything but a bank — a mayonnaise jar, tin can, shaving cream tube, etc. etc.

Just remember that accessibility is the key in this instance. If you hide it so thoroughly that it takes hours to retrieve it, you need to reassess. Emergencies don’t, by their nature, provide lots of time to contemplate. The important thing is to recognize the need for an emergency fund, start now to provide one and have it handy if the need arises.

20 Ways To Save Money This Summer

June 5, 2012 By Sherry Tingley

Sometimes when the thermometer goes up, your living costs do likewise. A bit of careful planning and creative budgeting can keep costs under control while adding to your enjoyment of the season. Here are twenty ways to cut costs and make summer your favorite season of the year.

Turn off the air-conditioning when it’s feasible, depending on where you live and how hot it gets. Keep tabs on weather reports and if there is any cooling forecast, make adjustments. Open windows to take advantage of cool air in the early morning and evening and use portable fans or ceiling fans to cool small areas. If you really need an air conditioner, the Department of Energy suggests an Energy Star model with fan and programmable thermostat. Mount air conditioning units in shaded windows and keep electrical appliances, including lamps, as far as possible from the unit.
Cook outside. Stove tops and ovens create lots of heat that has nowhere to go. Barbeque cooking is particularly appealing to many families any way, and a huge variety of recipes is available online. Try something new!
If your situation allows, dry laundry outside. Not only will you be spared the price of gas or electricity to do the job, you may find your laundry has a nice fresh air scent. Small drying racks are readily available and may be all you need if your family is small.
Replace your air conditioning filters. A dirty filter can increase cooling costs by restricting airflow, causing longer run times and higher costs. Filters are not expensive, so change them frequently.
Take advantage of summer-end sales to prepare for the next gardening and yard work season. Sales generally begin on landscape plants, bulbs and gardening tools just as the height of summer passes.
Instead of investing in summer clothing that you’ll wear for a short time, hold a clothing exchange with family and/or friends. If you prefer new, the sales on sundresses, shorts, swimsuits and other summer wear usually begin in mid-season, giving you plenty of time to tog out in your new duds before autumn begins. Watch for sales on non-clothing items such as sunglasses and tote bags.
Don’t think you have to leave town for entertainment. Visit the websites for local pools, hiking sites, sports venues (you might enjoy local youth sports as well as you would the majors.) The tendency is to overlook community theater and local sites such as zoos, aquariums, art galleries and other opportunities for family outings. If there is a university in your area, check to see if they offer special opportunities for children or youth. You can Google “free events,” adding your city, for a list of local entertainment opportunities. Many communities have home-town celebrations in the summer and you could spend weeks hitting fun-filled local events with very little overlap.
If an out-of-town trip is on the summer agenda, check with the motel or hotel to see if they provide in-room refrigerators and microwaves service so you can cut down on the number of restaurant meals. Stock up on microwave meals, popcorn, etc., to pack for the trip.
Take short showers to conserve on water and energy. Less than 10 minutes, ideally with a low-flow shower head, can save up to 20,000 gallons of water a year, according to the Environmental Protection Agency.
If you enjoy expanding your education, summer is the time to do it. Many school districts, colleges and universities offer half-price courses during the summer season when many of their regular students take a break. You’ll likely find yourself with other lifetime students who are there to learn in earnest.
Instead of laying out big bucks to keep the ice cream coming, consider treats from frozen fruits pureed and re-frozen in ice pop molds, plastic cups or in a bowl to dip out as needed. Throw in a bit of yogurt and increase the nutritional value. The same holds true of the expensive iced tea that you can stockpile at great cost. A simple recipe for “sun tea” calls for four large tea bags emptied into a pitcher or jar full of water. Let is stand outside for three hours. When you want to use it, dilute with water to taste, add a little lemon and sugar and voila! Refrigerate what’s left in clean soft-drink bottles . Ditto iced coffee, which you can make by freezing left-over coffee in trays then blending with liquid creamer and ice cubes.
Plan a yard or garage sale. Many bargain-hunters take advantage of summer weekends to snarf up items of interest. De-cluttering your house is easier when the weather is warm. You may be able to interest neighbors, friends or family in a joint sale that is likely to attract more potential buyers.
Head for a farmers’ market if such are available in your area, instead of the grocery store. Farm-fresh produce such as spinach, cucumbers, tomatoes, string beans and peppers make a super salad for a warm-day meal at a price much below what you’d pay at the store. And if the farm outlet offers flowers to give your house a summer pick-me-up, so much the better.
The fireworks season is dead ahead, but you can save money and avoid products that are banned in many communities by celebrating with reusable rocket balloons (often selling for 79 for $20) or glow sticks that may spare little fingers from sparkler burns and cost, in general, just a dollar each. Most communities have fireworks displays that you can enjoy for free without the hazards of firing off your own.
Have a “vacation” at home. Plan a themed party, such as a trip to Hawaii for instance, and involve all your family in making decorations and choosing music appropriate to the theme. Grill fish or chicken with pineapple and choose island side dishes. End the evening with a hula contest, with the winner walking off with the grass skirt. Make it a family challenge to see who can come up with the most fun theme for the next vacation.
Make it a season for ordering checks online at Coolchecks.net Save up to 50% on your orders.
To avoid costly first-run movies, plan on the matinee performances. Swap movies with friends and relatives. Many libraries allow you to reserve new DVDs, If you want to get into movies in a big way,and really enjoy the old-time productions, consider looking into a 16-mm film projector and old movie reels. They’re available on ebay.com
Instead of heading for expensive swim sites, invest in a slip-n-slide plastic strip and use the garden hose to keep the kiddies entertained. Small pools can be as much fun for tots as more-threatening large pools. But even with small pools, be sure little ones are supervised.
The refreshing but expensive iced tea and coffee drinks that you spend big bucks for are easy to replicate in your own kitchen. A simple recipe for “sun tea” calls for four large tea bags emptied into a pitcher or jar full of water. Let is stand outside for three hours. When you want to use it, dilute with water to taste, add a little lemon and sugar and voila! Refrigerate what’s left in clean soft-drink bottles. Ditto iced coffee, which you can make by freezing left-over coffee in trays then blending with liquid creamer and ice cubes.
Walk instead of driving. With the cost of gasoline across the country heading up and down and mostly up, take advantage of warm weather to do as many errands as possible without driving. Whatever you can do in the early morning or evening will provide the most comfortable temperatures when you start off on foot.

Start Saving Money Now

May 9, 2012 By Twila Van Leer

When it comes to personal savings, getting started is the hard part. Few people would disagree with the concept that having a cushion to see one through emergencies and to provide against the day when retirement becomes a reality is a good idea, but a surprising number of people don’t get around to starting a savings program until it is very challenging.

Facing reality is a good place to start. Know precisely how much income you have. Don’t confuse gross income with net. Don’t forget such items as taxes that automatically reduce your take-home pay. Consider all the sources and don’t fudge. You can’t establish a savings system on shifting soil. Then apply the same realistic appraisal of your outgo. The difference between the two is the logical launching point. It may require some adjusting to create the leeway you need to set money aside.

Benjamin Franklin said it first: “Spend less than you earn.” It is only common sense that you can’t save anything if all your income is devoted to current living expenses. A little belt-tightening is requisite if you are serious about building a hedge against future needs. Consider these steps:

Discern between wants and needs. A little economy now will mean a lot less stress later on. Consider the relative advantages between buying an amenity-stacked vehicle, computer or electronic equipment or having a little cushion in the bank. What you could save by eliminating just a couple of trips to fast-food outlets in a week could provide the seed money for a savings account. Don’t complain about not having enough money to save if you are making frivolous purchases on a regular basis.

Use the resources offered by your employer. Many companies offer opportunities for savings plans, with the money automatically deducted from your paycheck each pay period. Some companies even offer a match of some kind as incentive for you to save. Investigate.

Seek professional help. Information about common-sense money management is readily available online, at a library or through publications put out by financial institutions. Dozens of tools are available to help you keep track of your money, including budgeting, meeting short-term and long-term goals and saving.

In the current economic climate, banks are actively promoting savings plans. Some offer ways to save automatically through your debit card or automatic deductions from your deposits. Ask. Some have a plan that allows you to round up purchases to the nearest dollar, with the additional money going into your saving plan. Over time, small change can add up to real savings. You may find that you have more peace of mind if you control the amount going to your savings by arranging for a transfer of a certain amount of money to your savings account each deposit period.

Compound interest is your friend. Putting money into a low-interest plan may be the way to get started, but consider moving into an investment account when you are ready. You’ll earn more money. Investment and retirement accounts provide more interest over time.

Practice frugal banking. Look for a bank that offers free checking, automated savings and the ability to withdraw cash from an ATM. But be sure to document your ATM transactions. It is easy to lose track if you don’t. Do whatever you can to minimize outgo and capitalize on what you are able to save.

A raise or a windfall from some source outside your normal income is an opportunity to build savings. Avoid the temptation to adjust spending upward until you have contributed to your future well being by adding to your financial cushion.

The time to start is now. The future is just around the corner.

Don’t forget to save money on your personal checks by ordering online. You’ll find big savings there!

Budget is Not a Dirty Word

September 23, 2010 By Sherry Tingley

The word “budget” may seem like a dirty word, but during these trying economic times, it can be your life line. If you think “it can’t happen to me”, look around you; national unemployment is hovering around 9.5%. Unless you are self-employed, you have no idea what lies around the corner.

Sadly, the great majority of us have never had to budget our money. Our parents and grandparents grew up when times were lean, living within their means, on a budget, which became a habit. But, those of us born after 1945 have grown up in the land of plenty, quite accustomed to instant gratification. A budget can be a hard pill to swallow.

Do you live paycheck to paycheck? Do you “do without” as a result? Do you regularly bounce your account? If you answered yes to any of these questions, a budget will be your salvation.

The first step in planning a budget is to gather the family. Write down every possible, itty-bitty expenditure. You can transfer it to a computer spread sheet later, though many people prefer to use an inexpensive accounting journal; writing it in longhand seems to get their creative financial juices flowing.

Sort your expenses from the largest to the smallest, then focus your attention on ways to reduce your largest. If you can refinance your home, you may be able get enough to pay off your vehicle, which may enable you to put money into a savings account, a tax-free IRA or to pay off your high interest credit card debt. The end should always justify the means, so consider this carefully.

Now, look at your credit card debt and commit to becoming “plastic free”. You will want to save one or two cards for emergencies, but these should be cards you’ve held the longest and should be paid off along with the rest. You may even want to cancel the cards you don’t plant to keep, insuring you can’t add to your debt. Also cancel that costly “insurance” you have on each card. That money would be put to better use by applying it towards the balance.

Just start with the largest balance and start budgeting extra money to pay on that card. Do this faithfully. Once you have paid off one card, take that money and put it towards the next, plus what you’ve already been paying, then do it for the next and the next…. It may take some time, but time flies when you’re having fun! The satisfaction of paying off each card will be incredible.

Consider online bill pay to save on stamps, envelopes, pens, checks and time. Stamps and stuff add up, while your time is incalculable; add the cost of your morning latte at $3.50 ($910.00 annually) and the family dinner out 3 times a week (upwards of $4992.00 a year for a family of 4). If you start looking at the receipts for the last month or two, you can identify a lot of frivolous spending that can be cut or reduced.

Allocate money to savings and treat your savings account just like any other bill. You can’t take the money back that you’ve paid on your electric bill, right? Treat your savings much the same and include long-term goals like retirement, college and inevitable high dollar household needs in your annual budget.

No, it won’t be easy, but it will ultimately be extremely satisfying. Try it, just for a few months, and see how much better you feel. It really helps to know exactly where your money is going and as you save, having that financial cushion will be absolutely priceless. Budget is not a 4-letter word; it is a 6-letter word, just as “relief” or “comfort” is.

Ten Money Saving Tips That Anyone Can Use

September 15, 2010 By Sherry Tingley

More and more individuals are becoming budget conscious everyday. If you want to join the club in gaining financial freedom by saving money then you might want to use some of these money saving tips.

Use Cash. Forget about your credit cards and use cash instead. You will avoid interest fees and it will help you fight temptations to making unnecessary purchases.
Compare prices. Price comparisons help you save when grocery shopping. Use the Internet to do your best comparison shopping. Sites like groceryguide.com and mygrocerydeals.com allow you to compare prices in grocery stores that you shop at, saving you both time and money.
Use coupons. If you add up the savings you get when using coupons, you may be surprised at how much difference they make. Check your local papers, magazines or surf the net for printable coupons. Remember to check the fine print for any special rules that may apply.
Trade In Unwanted Electronics. National retailers like Best Buy, Costco and Sears have trade in programs. Some will accept Apple Ipods, Apple laptops, mobile phones and PC laptops and let you have gift certificates to use for new purchases.
Research Your Insurance Coverage. Before buying insurance for you or your loved ones compare and analyze your risks in the insurance you are currently paying for. Do you have enough to cover you in case of catastrophe? Make sure you are well covered to protect you from exorbitant losses. Meet regularly with your insurance man to discuss your protection.
Pay Insurance Yearly. You can avoid paying monthly fees if you pay annually. Ever little bit of savings helps. Figure out how much you can save yourself by paying annually.
Use Online Alerts. Many companies have an automated email alert system that will notify you of sales coming up for the products you normally buy. You can subscribe to money saving newsletters. You will be notified about amazing deals and discounts through email. Travel package deals are sometimes only available through specials advertised through email.
Walk More Often. Are there places you can get to by walking instead of driving? If you make it a habit to get exercise by walking places you would normally drive, you end up doing two good things for yourself. Save money on your gas expenses and your gym expenses. Maybe you’ll be able to give up an expensive gym membership with your new exercise plan.
Avoid Impluse Buying. Most retail prices are lowered to get you do buy things you weren’t planning on. So sometimes even though items are on sale, they may not be a good purchase for you. Impulse buying expensive items because they are on sale has risks that come along with it. Postponing purchases can give you extra time to make sure that you really want the item and that you can really afford it.
Keep Learning New Ways To Save. There are a lot of sites that have information about saving money. Read those often to keep yourself alert to new money saving tips.

There are also online coupons available for those seeking discounts.