Welcome to Strategies for Life. This blog is dedicated to sharing ways to improve your life from finances to health, relationships to family, telecommuting to getting rich. The posts range from making money online to starting a home based business, getting out of debt to saving for retirement. Resources on working at home, paying for college tuition.
Do you have huge phone bills? Between home phone, long distance, cell phones, family plans, text messaging, it all gets overwhelming and expensive. Below are my tips on reducing your phone bills.
Drop the land line: The first tip to save money on the phone bill is to drop the land line. Some times this can be challenging especially if you have kids that don't have cell phones however most do. So if you can drop the land line, and just rely on the cell phones, do so and you can save a minimum of $35 per month or more.
Drop the features: If you can't part with the land line the next best way to save money on your phone bill is to start dropping features from the land line. If you can get down to the bare bones you will save the most money. For example drop the long distance service, save $2.50, use a calling card instead, drop call waiting, save $4 per month, I hate call waiting, there is nothing more iratating than when you call someone and they say hang on just a minute I have another call. They put you on hold to find out it was only some sales call. It really shows you how you rank in their world.
Calling cards: We have been buying calling cards from Sam's Club forever. These are great for making long distances calls. It is like $.04 per minute which is a pretty good deal. We usually buy the 1000 minutes at a time for $40. Consider using these for kids in college as well.
Cell Phone Family plans: I haven't gone down this path yet because I am still too cheap however, a lot of people get the family plans for their cell phones. Some programs allow you to get 4 or 5 phones and you can share your minutes and texting. I think it is a good idea however the programs start at around $70 per month. It is still a little to rich for me.
Free Texting: Did you know that if you have a Yahoo account that you can text on yahoo for free. This works out great for teenagers because they can text their friends for free. You just goto Yahoo mail and click on the new button and then click SMS. Pretty cool, you don't have to pay $.15 per message to either send or recieve.
Buy a texting package: As most of us know that have teenages, kids don't talk to each other anymore. No sense in picking up the land line and talking to each other when you can get on AIM or text message someone on your cell phone. Anyway my kids wanted to text more so they bought a monthly package at ATT which gives them 1000 texts for $10 per month. Its is a good deal and get the cost of texting down to $.01 per messages.
Bundling: Make sure you investigate bundling your service providers. Determine which one is better for you the cable company or the phone company. Both offer TV, internet, calling etc. Make sure you find our what the fixed prices is including taxes. Don't be fooled by just taking the introductory offer of 12 months at $100. It could go up a lot after the introduction is over.
Pay as you go cellular: If you are not doing the family plan on your cell phone. Consider switching to a pay as you go phone. We buy the $100 ATT card which last for a year. We end up using it up in 6 months, however $200 per year is a great deal for a cell phone. The only down side is if you want one of the coolest latest phones then you are going to have to shell out some initial investment for the actual phone. Like $200 to $300. However, if you consider the minimum cost for a cell phone contract is $40 per month which is $480 per year the payback is pretty quick.
Skype or other VOIP: If you do a lot of long distance consider using Skpe or another VOIP provider. You can make long distance calls for $.02 per minute to places like Japan and Europe. Pretty amazing. If you buy the package you can get almost unlimited calling for around $25 per month. Skype especially works well when you are traveling overseas and you want to call home and chat for an hour. You can even install Skype on your cell phone.
I saw a great article called Recession Diet Just One Way to Tighten Belt in the New York Times. There a ton of ways to save money and reduce your expenses. Even though our government officially does not state that we are in a recession, most people think we are already in one. Therefore, most people are think of ways to save money. Here are some ideas from the article along with my own ideas.
Set a budget: First of all, do you have a budget? If not get one, especially for descreationary items like dining out, gifts, and entertainment.
Cut back: If you are already spending a lot of money on home entertainment, such as cable, Netflix, XM radio, and so on and still going to the movies or clubs, you might want to think about cutting something out? Skip the movie theater and watch the DVD instead.
Brown bag it: If you have a habit of going out to lunch with your buddies make a change and start brown bagging it. Going out to lunch can cost as little at $3.50 for Subway to $15 if you get a salad, sandwich, and a cola at Friday's. You don't have to completely stop going out however, just dropping 2 lunches a month could save as much as $30 per week or $120 per month.
Order Pizza: Dining out can be a big expense, especially with a family. Skip the Friday night out and buy the two $5 pizza specials and eat at home.
Skip the drinks: When you eat out drinks such as cola or adult drinks are expensive. If you are a family of 4 then you could spend $8 extra on the meal just ordering pop and ice tea. Alcohol is even worse. A beer at home is $.50 to $1 depending on what you are drinking. Eating out you can pay $2.50 to $10 or more per drink. Skip it. Buy it at the store and have the drink when you get home. For example, like gin and tonics. I bought Seagrams Gin with Lime for around $10 per fifth. I think I can get at least 10 to 12 drinks out of it.
What's on special: When you are food shopping make sure you grab the specials paper when you enter the store. All of the stores run specials. Don't be afraid of the $2 per pound chicken.
Do more work: I was just in the grocery store today, boneless skinless lean chicken breasts are $5 per pound, chicken legs and thighs were $1.19 per pound? You can remove the skin yourself? It saves almost $4 per pound. Wow!
House brands: House brands can save you a lot of money. When you are buying cereal or shampoo make sure you check out the house brand. Compare the ingredients. Most of the time they are the same. Besides who do you think is making the house brand. Most likely it is the same company that makes the brand name.
Buy in bulk: Buying in bulk can save you money. You need to know you cost per item and you have to watch the quantities. It takes some work but it can save you money.
Skip the value meal: Ever notice how the fast food place always wants to sell you the value meal? Thats because it is more expensive. Skip the value meal and just order off the value menu.
How to calculate net worth, how do you compare to others
I ran across a cool little tool to calculate where you stand relative to you peers in regards to net worth? Do you ever wonder if you are saving enough or if you are on the right track. This net worth tool will compare your income, total net worth vs. other people in your age bracket. Pretty cool little net worth tool.
Check out this video on how to increase your net worth by changes in your credit card interest rates.
I found and excellent ariticle over at Kiplingers magazine on 20 ways to save. Below is the article along with my comments.
You've heard of the saving crisis in America. You've probably even thought, 'yeah, I should probably save more.' But eking out an existence is tough on a starting salary and sometimes comfort takes precedence over cutting corners. Besides, if you can only save $50 or $100 a month, is it really worth it? The answer: absolutely.
I use to think that however almost 15 years ago I started saving $50 per month for my kids education. Each year when I could I would increase the amount of the monthly withdrawl. Overtime it has really added up and of course this is due to the miracle of compounding and the advantages of starting early.
By starting to save now, you're giving your money -- however little it is -- time to grow on its own. The magic of compound interest means that you can contribute less money for fewer years if you start when you're young and still end up with more cash than someone who waits. For example, if Natasha starts saving or investing when she's 25 and saves $100 a month for ten years then lets the money sit, her stash will grow to $174,928 by the time she turns 65 (assuming an 8% annual return). If Anna waits to until age 35 to start saving, and socks away the same $100 a month for the next 30 years, she'll have only $135,940 by 65. Anna will have contributed three times as much as Natasha, but will end up with nearly $39,000 less.
It always amazes me when I meet young people who are not saving for their retirements. Start early and you will benefit greatly. Additionally, as you move along in your life you will find that even as you make more money you will spend more money. So get use to saving right away. Check out this book The Retired Millionaire Exposes Everything! Click Here! .
This week is America Saves Week, and it makes as good a time as any to get started. Think you don't have enough money to save? We've compiled a list of our best tips to find extra money in your budget to sock away. These strategies won't require you to take a vow of poverty -- we know money's tight already. Rather, they're small and simple cost-cutters that'll help you get started saving as soon as possible.
1. Give yourself a raise and bank it. Boost your take-home pay by adjusting your tax-withholding and have the difference in pay automatically transferred to an online savings account. Kiplinger's tax-withholding calculator can help you revise your W-4.
I have never been good at figuring out my with holding. So if you can do it great. What I do instead is use a special savings account which automatically pulls money out of the checking account and pops it into an account at is used for special items. For example, I use my special savings account for a Christmas fund, paying property taxes, paying for kids annual tuition bills. How many of us are still paying off our Christmas debt. If you had a special savings account your bill would be paid off or at least alot less.
2. Enroll in a 401(k). If your employer offers a 50-cent match for every dollar you contribute, even adding $60 a month will net you over a grand a year. Plus, you defer paying taxes on your contributions, giving you a bigger paycheck now.
Enrolling in a 401K is a triple whammy and that is a good thing. First of all most of the 401K have a matching plan so if you save 6% they match like 3%. Second the money you save in a 401K is tax free dollars meaning that you earned the money, banked it in the 401K without and taxes being taken out. It is the number 1 and in most cases the only tax deduction most of us have left. And finally, the third items is the money in your 401K grows tax free. Sweet!
3. Raise your car insurance deductible. Upping your out-of-pocket outlay from $250 to $1,000 can save you 15% or more off your premium.
I totally agree with the high deductible. However, I would add the following, first of all you can only raise your deductible once. I recommend that at least every 2 years you shop your car insurance around. My house insurance was $900 a year. I went to a new broker and they lowered my house insurance to $600. Then of course every year it went up, like $100 a year. So after 2 years of that I called the current broker and asked why it was going up so high and what they could do about it. The broker is an independant and they shopped it around for me. They were able to get the payment down to $575. That was even lower then where I started out 2 years ago. Pretty cool!
4. Pay off your credit card. Carrying a $1,000 balance at 18% blows $180 every year on interest that you could put to better use elsewhere.
I have wrote about paying off you debts in this blog extensively, you have to learn how to stop using credit cards and payoff your debts. First of all, don't borrow money from a credit card company. Borrow money from a bank, you will find much cheaper loans at a bank. Second don't incurr debt on something that doesn't last like a dinner out or a vacation. Who wants to be paying for last years vacation this year and you are already thing about this years vacation and the bills.
5. Go green. Control energy costs with a programmable thermostat. Prices start around $50, but you'll cut your heating-and-cooling bill by 10-20%.
Another idea, just turn down the thermostat and where a sweat shirt. Also another great way to save on energy costs is to drive slower. I use to run up and down the freeway way to fast. I back it down to 70, and you would be amazed what is does for your mileage. Also, if you don't have a garage, don't pre-start your car in the morning. This wastes a ton of gas.
6. Bundle up. Getting a package of phone, Internet and cable from one provider can save you about $50 a month.
This one really pisses me off. Our stupid cable bill is $120 a month, phone is $38 and that doesn't include cell phones. One tip I have on the cell phones, consider using a pay as you go phone with no contract. My wife has one and her cell phone bill is only $200 per year. That is only $16 a month. We buy her a $100 card when she needs more minutes and it last almost 6 months. Also, cut the long distance service on your land line. We use calling cards. It is only $.04 per minute.
7. Use your employer's FSA. Flexible spending accounts let you pay healthcare costs with pre-tax dollars. If your company offers them, take advantage and save 33% or more.
This is your second largest deduction that you can take right out of the pay check. These are tricky though, because if you don't use the money you loose the money. They also tend to be a lot of record keeping. But I still use mine.
8. Get a credit card with rewards. Spending $80 a week on gas and groceries? Putting it on a card with 5% cash rebates will earn you nearly $200 a year.
I am a huge fan of cash back cards. The caution here is don't sign up for a cash back card and then not be able to pay off your credit cards. Additionally, make sure your cash back cards don't have an annual fee. No sense in paying $100 to get $200 back.
9. Kick the habit. Smoking is hard on your health and the wallet. Three packs a week averages $50 a month. Learn more about how getting in shape can fatten your wallet.
My work is even offering cash incentives to get healthy and stop smoking.
10. Brown bag it. Instead of spending $8 on takeout every day at work, bring a bagged lunch for $5. You'll save $60 a month and $720 a year.
Eating lunch out is expensive. I disagree with the math here. I think you can bring your lunch for less than $5 and when you eat out it is usually a lot more than $8. Huge savings here when you start to cut back on the number of family dinners out. Another thing to consider is to cut back on the drinking in the bars. Have a beer at home they only cost $.50 at home and they are $3 to $4 in the bar!
11. Negotiate your rate. Instead of paying an APR of 18% on your credit card, call your issuer and ask for a lower rate. If you have good credit, your lender might consider it and if you can provide examples of offers you've gotten from other companies, it'll strengthen your case.
12. Travel on the cheap. Bypass the old trifecta of travel search engines (Travelocity, Expedia and Orbitz) and head straight for Sidestep.com, which will search them all -- saving you money and time. For last minute deals, try Site59.com. And see our list of the 25 Best Travel Sites for more cost-cutting resources.
I recently wrote a post on finding cheaper flights. Vacations are expensive! Consider driving, not staying at a resort, you never spend time in the room anyway.
13. Insure yourself. Even if your company has a health plan, you may be able to do better for yourself. Pairing a high-deductible medical policy with a health savings account -- which lets you put away pre-tax dollars for out-of-pocket medical expenses -- can save money on premiums. Shop around at http://www.ehealthinsurance.com/.
14. Make media free. Dust off your library card and enjoy DVDs and books for free. If you'd normally rent a movie a week and buy a book a month, you can cut costs by $30.
15. Change your calling plan. The average wireless-phone user spends about $60 a month, including taxes and fees. If you talk for 200 or fewer minutes per month, switching to a prepaid plan where minutes cost 25 cents a minute could save you $10 a month. Compare plans at http://www.myrateplan.com/.
17. Ditch your gym. Forget the $40/month gym membership that'll cost you almost $500 a year and check out community centers in your area. Some may be free or charge a minimal fee such as $100 a year. Or buy a good pair of running shoes and work out the old-fashioned way.
18. Reshop your auto insurance. Using a comparison site like InsWeb can help you determine if you've got the best deal.
19. Learn to cook. Cooking at home saves on your food budget and it could even improve your dating prospects -- who isn't impressed by someone who can prepare a great meal? Check out Nine Ways to Get Ahead for more practical financial advice.
20. Keep track of your money. The best way to save is to know what you spend. It might not be pretty, but detail every expense for a month to get an idea of where you can cut back. Nearly everyone has some fat they can trim from their spending to put toward a savings goal.
Thanks for visiting and feel free to leave a comment or idea. By the way I am running a little survey to get my readers opinion on what items I should write more about so please take the survey, it is over on the left hand side of the page. Also for related articles check out the tags below. You might find something usefull. If you enjoyed this post please Subscribe to Strategies for Life.
Avoiding Christmas Debt - Tips To Avoid Sinking Into Holiday Debt
Do you set a budget for your holiday spending? Unfortunately it is easy to over do it during the holidays in many ways. Weather it is eating too much stuffing or drinking too much eggnog is one thing. Buying too many gifts on your credit cards is another. Did you start that Christmas club savings fund to help out in paying for you Christmas bills?
It is easy to get carried away with Christmas debt. However, with some self-discipline you can help keep your purchases to a manageable limit. The key to success it setting a limit to your Holiday Credit Card Purchases. Credit cards are only an illusion that can buy more gifts than you actually can afford. Here's why you should limit your credit cards purchases this holiday season. Gifts bought on credit end up costing more. . The best laid plans.... Unexpected post-holiday expenses might postpone your credit card payment plan, lengthening your credit card debt. By sticking to a few spending principles, you can keep your holiday spending to a minimum and avoid paying for holiday gifts until the next holiday season.
How To Avoid Christmas Debt
When you've made the decision to keep your credit card purchases within a reasonable limit, here's how to put it into practice.
Save up. Spending cash instead of using credit for your holiday purchases allows you to avoid holiday debt all together. If you haven’t started saving, put aside something each paycheck starting now and use that to finance your holiday purchases.
Set a budget before you shop. Setting a spending limit and sticking to it will keep you from overspending. Be disciplined and don’t go over your budget, no matter what.
Make a list. Santa makes a list and checks it twice, so should you. Even though you might feel compelled to splurge on everyone in your life, you don't have to. People appreciate simple and meaningful over expensive and useless.
Don't shop for yourself. Avoid the "one for you, one for me" shopping mindset. You'll end up spending double what you would had you shopped only for the loved ones in your life. Ignore "big" sales. More often than not, they're not really sales at all. Those "Buy 2, Get 1 Half Off" deals only trick you into buying more than you would otherwise. Remember, stick to your list.
Shop online first. The internet makes it easy to shop around. It also makes it harder to buy on impulse. Since most retailers have inventory on their websites, you can decide exactly what you want to buy before going to the mall.
Leave your credit cards at home. Without your credit cards, you’ll have a hard time charging them up. If you must use credit for your purchases, pick one credit card and stick to your spending budget.
Don’t buy if you can’t afford to pay. Keep in mind that when you use credit, you’re borrowing from your future income. You know your finances better than anyone. Only charge what you can afford and you’ll avoid paying on your holiday debt until the next holiday season.
Are you looking for ways to find cheaper flights for the holidays? It is really tough trying to find good deals during prime season. If you are flying around Christmas or Easter breaks it can be a really expensive proposition. I am stuck in the mode that some things should still cost what they cost 20 years ago, for me a flight should cost $200 to anywhere in the U.S. A pair of dress shoes should cost $30 and a loaf of bread should cost a buck. Unfortunately, this doesn't always work out for me. So you really have to look around for the airline flight deals. Hear are my tips on reducing the cost of airline tickets during the holidays.
First tip, shop early but don't worry if there are not any good flight prices 2 months in advance of your trip. During the holidays the airline companies will re-task planes to popular destinations like Florida so they can accomodate more travelers.
Shop frequently, you might have to check several airline websites everyday for several weeks before you find a good deal.
Shop at different times of the day, evening, midnight, early morning. Sometimes the airlines release new fairs during odd hours and you could get lucky and find a great deal.
If you can be flexible on your dates and departure times. Some times moving just one day earlier or later can mean your flight is $100 cheaper. Remember everyone wants to travel on December 26th so they can be home for Christmas but after that it is off to Florida or somewhere warm.
Look for an early morning or late night flight. Most people don't want to get up at 3:30 am to goto the airport, however, if you are cheap like me you'll do it if it saves you a few bucks.
Check multiple travel sites like Yahoo Travel (Fare chaser is really good).
Check the airlines websites directly.
Use discount airlines, generally the hub airline in your city will have the most non-stops but the discount airline might have one connection, however if you are a family of 4 saving $100 per person is a big deal and it might be worth wasting an additional 90 minutes during the layover some where.
Be flexible on your departure airport. If might make sense for you to drive 2 hours to another airport if they have a cheaper flight.
Look for one way ticket deals. Some times you might have to fly down on one airline and then fly back on another. Providing you are using the same airport you really won't even know the difference.
on 20 ways to save. Below is the article along with my comments.
