10 Ways to Increase your Savings

With a record number of taxpayers living paycheck to paycheck, these days many people are finding it difficult to save money. We all work hard for the income we earn and it is nice to be able to put a little away for the rainy day – so, I have put together the following list of saving tips.

1. Set a Savings Goal

If you are serious about saving money, then I highly recommend the following: set a goal, a timeline, and a plan of attack. Depending on your unique financial situation your goal might be to save up enough money for a new car, or it might be to just put extra funds in your savings for that rainy day. Whatever your goal is, it is always helpful to identify it, and work towards achieving that goal.

2. Focus on Paying Off Debts

Many of us have credit cards, and are simply paying the minimum monthly payment. Do you believe sending monthly payments to a creditor can significantly inhibit your ability to save? Believe me, it does. Therefore, you should focus on paying off your credit cards as soon as possible. It is always a good rule of thumb to begin paying down cards with the highest interest rates, which will help you save as much of your money as possible. As you work towards paying these cards off, it is important to not use them any more then you absolutely have to. A good habit to get into is to pay the monthly balance in its entirety each month.

3. Put Together a List of Monthly Expenses

In order to assess areas that you can save, you should put together a list of all of your monthly expenses. Then, determine which expenses are required (rent, car payment, health insurance, etc.) versus those that are unnecessary (such as coffee, landscaping, gym memberships, etc.) By making these two separate lists you can focus on finding ways to save.

4. Trim "Unnecessary" Expenses

After your list is complete, you should identify all the ways you can trim your unnecessary expenses. This could include eating out less, brewing your own coffee, mowing your own lawn, downgrading your cable or satellite service, or finding a gym with a less expensive membership fee. It might be difficult to go without some of these luxuries at first, but once you begin seeing the result of your savings you will be encouraged to trim more and more!

5. Reduce Household Monthly Expenses

Even though you cannot simply get rid of some monthly household expenses, you may be surprised to see how much money you can save with a little effort. When your lease is up ask your landlord to reduce the rent, or move to a cheaper place. If you own your home you might be able to refinance with a lower interest rate. Additionally, you should check your insurance policies to make sure you are not “over insured,” and paying an inflated premium. You could even start an office carpool to lower your gasoline bill. Be creative; you are sure to find a few ways to reduce your monthly expenses across the board.

6. Stick to your Budget

Millions of families across the country make a monthly budget for expenses, but sticking to that budget is often easier said then done. You should make your budget a priority, and get your whole family involved in the process. Maybe invest time in having a weekly or monthly family budge meeting.

7. Become a Discount Traveler

Summer is often the season when families take a vacation. However, your vacation does not have to break the bank. You could save money by looking for cheaper hotel rooms online, or take a frugal camping trip this year.

8. Review Tax Withholdings

While looking for ways to cut your expenses, it is also a good idea to look over the taxes being withheld from your paycheck to make sure you are not over or underpaying. If you overpay the government each month then you are basically giving the IRS an interest free loan. Instead, you could get more money in your paycheck, and put that money into a savings account.

9. Interest Earning Savings Account

As part of your plan to save money, you should consider looking around to find a savings account with the best interest rate possible. If you have enough spare cash you might be able to put the money into a high interest savings account. However, these accounts often have restrictions such as a large minimum balance.

10. Put Money from Each Paycheck into Savings

If you are committed to saving, then you need to make it a priority and see that money from each of your paychecks goes into your savings account. You could decide to put a specific percent of your income into savings, or a dollar amount, whatever you select the most important thing is to stick to your plan. Many banks even offer automatic transfers from your checking to savings account, which is a great way to make sure you add more funds to your savings each month.

The “Perfect” Time To Save

Everyone has an excuse to put off saving. You’re waiting until after the holidays, or until you pay off your credit card, or until the economy improves. Does this sound like you? The article, There’s No Perfect Time to Start Saving on Banks.com, states what I’ve been telling people for years. So many individuals of every age and income level are waiting for that “perfect” time to save, but the truth is, the perfect time to save is NOW. No matter what your income level I bet you can put a few dollars into an interest-bearing account each month.

Waiting for interest rates to rise again? Don’t hold your breath. I’ve only seen mine go down in the last few years. While interest is a wonderful way to make your money work for you, the main point is to get in the habit of saving. The “perfect” time to save will most likely never arrive. While financial experts recommend saving 10% of your income, every bit helps. Make a goal to put something into savings every month and you’ll be well on your way to a healthier financial future.

Read the full article here.

20 Ways to Save Money this Summer

The summer season brings vacations, birthdays, graduations, and parties, which all cost extra money. However, there are several ways you can save this summer to survive this recession. To help my readers looking to save this summer so they can still enjoy the sunny weather, I have collected the following 20 easy tips to save money.

1. Adjust your Withholdings

The average taxpayer overpays the IRS by over $2,000 per year. It can make for a nice refund come tax season, but by adjusting your withholdings you can get more money each month. This can be especially helpful during the summer season.

2. Make a Summer Budget

Most people plan their summers in advance, so why not take it one step further and plan your entire summer budget as well? Then, try to stick to it as much as you can. You’ll be surprised how much you can save when you plan out a budget in advance.

3. Plan Vacations in Advance

Planning vacations well in advance will allow for you to get the best deals on hotels, air fair, and even tickets to attractions like Disneyland or Sea World. Check out websites like Travelocity.com and Expedia.com to search for early bird specials and bundle packages.

4. Always Ask for a Discount

If you plan to do any traveling this summer with your family, then you should get in the habit of always asking for a discount. Hotels, theme parks, museums, and car rental agencies always run unadvertised sales and specials. By simply inquiring about a discount you could save hundreds of dollars this summer.

5. Investigate Gas Prices

When traveling, a few miles can make a big difference in gas prices. There are a lot of sites – such as GasBuddy.com – that can help you plan your fuel stops on a road trip, so that you can be sure to get the best gas prices possible.

6. Plan Meals

In addition to planning gas stops in advance you could also decide where you are going to stop for meals. You could even try making easy meals in advance that you can eat at a park or rest stop.

7. Vacation with Friends

Vacationing with friends or family members means you can split gas prices, hotel rooms, and entertainment expenses. Which could cut the cost of your vacation in half instantly.

8. Coupon Clipping

Summer savings are infectious, and with the recent economy, there are even more deals out there to take advantage of. You can try clipping coupons from your local newspaper, or purchase a coupon book from a local non-profit group. It may seem silly, but you would be surprised how much money you can save by clipping coupons.

9. Hyper Mile

"Hyper-miling" is the newest gas-saving craze, which involves altering your driving behavior to extend your mileage. CNN.com recently posted an article on the topic that you can check out by clicking here.

10. Cook Outside

Using your oven and stove can heat up your house, and result in excess air conditioning expenses. By cooking more food on the BBQ you can drastically reduce your energy costs, and with energy rates going up this summer any reduction will help.

11. Programmable Thermostats

If you do not have a programmable thermostat for your A/C then you might want to get one. You can use it to schedule your A/C to come on just a few minutes before you get home. That way your house will still be comfortable when you arrive, but you will not have to pay to keep the A/X running all day.

12. Full Laundry Loads

When doing laundry, you should always find a full load to wash. It uses the same amount of water, and can reduce the total amount of loads you will need to wash.

13. Fill in Drafts

Needing to caulk and seal a few drafty areas around the house? Do not hesitate because of the costs… the energy you are loosing through those drafts will cost you more than a container of caulking.

14. Make Expensive Purchases Online

We all have friends of family members with summer birthdays, and if you are buying a pricey gift then you should try to buy it online. You can usually search out pretty good deals, just make sure to make your purchase early enough to account for shipping.

15. Party at Home

Purchasing pricey beverages and snacks that are sold at bars and clubs can add up very quickly. Entertaining at home more often can save you hundreds of dollars throughout the summer.

16. Family Shared Plans

If every one in your family has a cell phone, but they are on separate accounts, then you could be wasting hundreds of dollars per year. Ask your phone provider if they have family plans, and how hard it would be to switch.

17. Pack a Lunch

Estimates show that bringing your own lunch to work even a few times a week can save up to $100 per month. If you do not like cold sandwiches, then you could try bringing leftovers from the previous night’s dinner.

18. Turn the Lights Off

Whenever you have the A/C on you should always have your lights turned off. Most light bulbs emit heat, and on a sunny day you can let light in through the windows.

19. Donate and Deduct

Donating some unwanted winter clothes? Do not forget all clothes donations are deductible on your next tax return. It will not save you any money right now, but it will next April.

20. Unplug on Vacation

If you are going to be away from home for a while for vacation, then you should always unplug major electrical appliances such as computers and televisions. Even when they are off, they still use some electricity, so by unplugging them you can reduce your energy bill.