20 Mar
2011

Spring is a great time to refresh and clean out, and this means clearing up your insurance. If it has been a year since you have taken a look at your insurance, now is the time to take a second look. Your insurance needs change and the rates you qualify for may change, too, so it is important to review regularly.

Take out your homeowners insurance, car insurance, health insurance, and any other insurance you have. Are there any obvious gaps? For example, if you have dependents, you will need life insurance, too. Do you have adequate health and disability insurance? If not, you may need to get these policies to ensure that you have enough coverage.

Next, take a look at the insurance you do have. Is it adequate? Have you had to pay cash over the past year or two because of insurance you did not have? Maybe it’s time to increase the levels of insurance you have. Or, maybe you need to dial down your insurance. If your car is now older, you may not need as much comprehensive insurance as in years past because it’s value is lower.

Finally, take a look at your rates. Go online or call around – what rates do you qualify for now with the insurance you need? If you qualify for better rates, call your insurer and negotiate for lower premiums. If your current insurer refuses, do the math to find out the costs of switching. If you can get better insurance at a lower price from a competitor, you should consider the move.

20 Mar
2011

Many people successfully invest in CDs, stocks, and other assets in order to increase their money and savings. However, while assets such as stocks can allow you to make more money than you would with a savings account, they are also riskier. When you invest your money, you could lose your money.

Luckily, there is a way to invest your money without losing a great deal. To begin with, you will need to raise some money to invest. This should be a sum that it wouldn’t be devastating to lose – let’s say $1000. Once you have your money, invest half in stocks that seem promising – look for companies that you trust and use yourself. Invest in the other half in riskier but likely prospects. Once the higher-risk investment makes you money above your initial investment amount, take out the excess money. For example, if you have invested $500 in higher-risk stocks that are now worth $700, take out the extra $200 and invest it anew. This way, your initial investment is not being risked but you can still invest in potentially higher-growth and riskier assets without risking everything.

20 Mar
2011

The “bank of mom and dad” as it is sometimes known pays for everything from school tuition to school clothes, bicycles, and summer camps. In some cases, children draw on the bank of mom and dad long out of their teens, using parent support to start businesses or attend college. While many parents want to do everything they can to help their children, some experts believe that the bank of mom and dad may not be good for kids.

Some experts argue that too much financial support makes children value money less and makes them less likely to stay independent as adults. Some experts also believe that too much simple financial support can mean that children avoid learning about financial responsibility. Other experts, however, claim that in really difficult circumstances, help can offer children a new start.

When parents get asked for money, they need to carefully consider the child asking, the age of the child, and the child’s money attitude. A young child is of course financially dependant on their parents, while an adult child with debt problems may need to make some money changes in order to learn better financial skills.

19 Mar
2011

It can be very difficult when friends, family, or children turn to you for money. If you need to say “no” to their request, it can be very difficult. Here’s how to say it anyway:

1) Carefully listen to the request. In some cases, listening to a problem is very important for a loved one who is going through a hard time. Giving someone your undivided attention and support can be crucial in situations like this.

2) Make other suggestions or offer support in other ways. If you cannot offer money, make suggestions that may help your loved one out or consider offering support in other ways. For example, if your child wants money to buy a car, offer to help them find a part-time job or offer to drop them off at their job on the way to work.

3) Carefully consider your own financial situation. If you are struggling to pay your own bills or have debts, you should avoid borrowing money, even if you really want to. Putting yourself in financial jeopardy is not going to help a loved one and may make them feel worse.

4) Consider the long-term consequences. Consider what will happen if you do or do not give money. If long-term giving money will make your situation or your loved one’s situation worse, don’t offer the money.

5) Think about the offer and say no gently. Carefully weigh the risks, pros and cons. If you decide that you cannot offer money, say so as gently as you can and offer a reason. However, do not allow yourself to be dragged into a conversation about it. Your loved may offer counter-arguments to your reasons, but you need to gently let them know that your “no” is final.

19 Mar
2011

If you want to save money, part of the effort means finding the areas where you are wasting money. To do this, you need to think like a detective, checking out all the clues:

1) Do an inventory. For a week or a month, write down every dollar you spend. Don’t judge yourself, just consider how and why you spend your money. To be even more effective, jot down why you made each purchase and how you felt when you made the purchase. You may find that you buy things to cheer yourself up or just for something to do.

2) Check out your regular bills. When is the last time you got quotes on your insurance? When is the last time you comparison shopped your TV cable and Internet service? How much do you spend on phone calls? Many people just automatically pay their bills, but going over your bills lets you find ways to save. If it’s been a while, get a new quote for insurance – maybe you don’t need the same coverage or maybe you qualify for a better rate now. Check to see whether you can save money by switching Internet or phone service providers, too.

3) Take a look at your house and closets. Walk through your home and peer into your closets. How much of what you own do you actually use? If there are things you no longer love or use, ask yourself why. If you have bought things that you have never likes or used, ask yourself why you made the purchase. All of those purchases are wasted money – you can save a great deal by avoiding similar buys in the future.

19 Mar
2011

If you have children in school or a home office, you can easily spend hundreds or even thousands of dollars a year on home office supplies. Here’s how to cut the cost:

1) Reuse. Rather than tossing out bits of paper, for example, cut them up and use them for rough notes or use the backs of letters to print rough drafts. You’ll save a small fortune on paper.

2) Buy in bulk. Buying larger quantities of printer toner, paper, and pens is almost always cheaper. Also, check out the sale and clearance section of your local office supply store – you can often find supplies at up to 75% off.

3) See whether a local office supply store has a cash-back or rewards program. Many do, and these can make your dollar go further. Plus, when you do sign up for these programs, you will generally receive emails about upcoming sales, when you can stock up on essentials for less money.

4) Be careful when buying office gadgets. You may end up paying a lot in accessories. When buying a new printer, for example, consider the cost of ink toner or cartridges. Consider spending a little more for a printer that uses cheaper ink and you will save money.

18 Mar
2011

Groceries are the second-largest expense for most households – just behind housing. While you need to eat, you don’t have to spend too much on food. Here’s how to save big money on groceries:

• Switch stores. Use online flyers to find the best deals on groceries this week and shop by discounts, rather than by convenience or habit. As well, check out discount gourmet grocery stores, grocery store outlets, and farmer’s markets – these tend to have lower-cost foods.
• Shop with a plan. Find recipes you would like to try and look for recipes that have simple ingredients that are affordable. Then, check your pantry and your freezer for ingredients, noting just what you need to buy. Making your weekly meal plan and then buying just what you need helps prevent food waste and over shopping.
• Be prepared to shop. Shop alone, after you have had a big meal. This will help prevent impulse buys caused by hunger or kids’ nagging.
• Build meal ideas around your budget. Work to find low-cost meal ideas that are also really tasty. Once you find a few of these recipes, make them regularly to save money and time. As well, consider eating less meat – a diet with mostly grains and veggies is considered healthier and can cost less.

18 Mar
2011

Many financial experts believe in tithing, or the idea of giving 10% of your income to charity. Some financial gurus in fact believe that tithing is a very important way to get rich. Can giving money away make you financially better off? Many people believe so. On a practical level, tithing may work because:

1) It reinforces the idea that you have enough. Many people worry about not having enough money when in fact they have quite a bit. By giving to those who have less, many people feel more fortunate. They also realize that they have money to spare, which makes them feel wealthy. Sometimes, this simple shift in perspective is enough to make people start thinking in a completely new way about money.

2) It encourages budgeting. If you want to start giving some money away, you may need to budget or start thinking more closely about your spending. In turn, this can help you make some good discoveries about places where you can save even more money.

3) It encourages savings. It’s hard to justify not saving money in your buffer account if you are giving money away.

4) It means tax benefits. Keep your receipts when you give money. When you file your income taxes, these can mean some nice deductions.

18 Mar
2011

Most financial experts agree that to make money, you need financial mentors. These are people who can inspire you and teach you about money matters. Here’s where to find these money mentors:

1) Your local community. If you live in a larger community, especially, you may find financial experts and investors you can learn from. These people likely give speeches and presentations at local events you can attend. You can even search closer to home. If one of your friends seems to live really well on a small budget, don’t be shy about asking for tips. You don’t have to find the most powerful financial masters in your community to learn. You may already know someone who can teach you something about money over a cup of coffee.

2) The global community. International financiers and entrepreneurs are inspiring, especially since many came from humble roots to build vast empires.

3) Online. Once you have the names of a few financial experts you admire, go online. Today, most financiers and investors have websites, blogs, and online content that you can access in order to learn more about their money-making ventures.

4) The library. Everyone from Donald Trump to Warren Buffet have books about finances available. Even if you cannot meet your money heroes in person, you can generally learn a great deal about them through the books they have written and the books written about them. The library is also a great place to discover new financial mentors – check out the biographies of business persons and the financial section to learn. Your local library likely has all the information you need to get wealthy.

5) The classroom. Some entrepreneurs and business persons teach classes at colleges and local universities. Check out course offerings in your area to find out who is teaching what – this can be a great opportunity to actually meet with and question your money mentors.

17 Mar
2011

Whether you love the idea of a fancy car, a great condo, an art collection, jewelry, designer clothes, or other luxuries, you may be surprised to find that you may be able to afford more than you thought. Here’s how to find the luxuries you want for less:

1) Find out where people are selling the luxuries you want. There are people living near your area who can afford the luxuries you want right now – and when they get bored with their new toys, they sell them off. Check out estate sales, factory outlets, auction sites, classified ads, and other resources to find the things you want for less than retail.

2) Have a very clear idea of what you want. It’s simply not enough to know that you want designer clothes, for example. What specific pieces and designers do you want? How many items do you want? Create a list and then go online to research how much it will cost. Knowing the exact items and prices in question will help you spot bargains when you see them.

3) Have a budget. In addition to your emergency fund, have a luxury savings account where you can put money for your luxuries. Or, consider investing this money so that it will grow faster.

4) Be patient. If you have a small budget, it can take time to find exactly what you want at prices you are willing to pay. However, if you keep searching and keep what you want in mind, you will eventually find exactly what you want at the price you can afford.