30 Apr
2010

Impulse spending happens to everyone. You’re cruising along, budgeting correctly and feeling good about your saving habits when suddenly you spot something wonderful on sale or some new gadget. Before you even know what is happening, you’re at the cash register, handing over your credit card. Too much impulse buying can lead to big credit card bills, too many personal loans, and no savings. Here’s how to curb the impulse:

1) Give ads a pass. Catalogs, flyers, commercials, and other forms of advertising are all designed to make you want to buy, buy, buy. Give these a pass and you’re less likely to crave shopping. Be especially vigilant about those glossy magazines – they tend to make you want to shop because they are mostly ads.

2) Talk yourself out of ads. When you are confronted with an ad or a great sale, use the same techniques advertisers use to talk yourself out of the purchase. Consider the flaws of the product, whether you really want it, how much room it would clutter in your home, how much you’d save if you didn’t buy it… Come up with a list of reasons not to buy and the desire for that item will melt faster than an ice cream in June.

3) Reduce shopping time. The less time you spend wandering around in a store, the less potential impulse items can catch your eye.

4) Shop with a list and intention. Before you leave your home, make a list of what you need and organize it so that you can shop most effectively. Shopping with a list can curb impulse shopping.

5) Check your list twice. Once you make your shopping list, go through it once or twice to make sure you really need everything on your list. Cutting out an item or two can save you a good amount of cash. Try to separate needs and wants.

6) Pay in cash and only bring what you need. This is one of the easiest ways to avoid overspending, since it places a physical limit on spending and makes you aware of overspending.

30 Apr
2010

Spending money can become a habit, but you can just as easily develop savings as a good money habit. Here’s how:

1) Save something every day. A little bit everyday makes spending a habit and a regular practice. You can start small – put $5 in your emergency fund every day or every week. Or, take out all the change from your pockets at the end of every day and put it in a jar you can cart to the bank once a week. A little every day can really add up. Two dollars a day – what most of us spend without thinking about it – can add up to over $60 a month.

2) Develop something you can do instead of spending. Smokers who want to quit are often told to chew gum or fiddle with pens as a substitute for smoking. If you have a habit of shopping when you are bored, you need to develop new habits. Make a list of things you can do when you are bored (things that are free) and post it where it is visible. Then, when you feel like shopping do one of the other things on your list instead.

3) Stay away from spending temptations. Looking at catalogues, online stores or window-shopping can sabotage your best budget intentions. Only shop when you absolutely need to and avoid ads and stores when you’re not shopping.

30 Apr
2010

The Internet is a great tool. It helps you keep track of the latest celebrity gossip, play online games, and even while away a boring Sunday afternoon. But did you know that the Internet is also a powerful financial resource? There are many ways you can use the Internet to boost your financial situation:

1) Passive income opportunities. The Internet can be a great way to boost your income by selling products or services online. There are also affiliate programs and many other programs that can bring in a little extra cash in your spare time. If you already have a small side business to supplement your income, the Internet can help you market and promote it.

2) Educational resources. The Internet can help you understand just about anything financial for free. There are many blogs, podcasts, videos, and online workshops that can teach you everything from budgeting to investing.

3) Freebies. The Internet is full of free stuff that can save you money. You can listen to music, audiobooks, and videos online for free. You can play games online for free and even learn about freebies or swap meets in your area. The Internet also lets you try software before you buy. A smart consumer can save hundreds of dollars online.

4) Financial planning and tools. You can bank online, keep track of your debts, and even open an emergency savings account online. In addition, there are mortgage and debt calculators, budgeting tools, and other planning tools. Many virtual banking resources are even free to use.

29 Apr
2010

If you have cash loans, unsecured loans, personal loans, or other consumer debt, interest determines how much of your paycheck you get to take home. Quite simply, interest is the amount of money you are charged in exchange for borrowing money. If you get an unsecured loan from a lender, you will be charged an interest rate. When you repay your loan, you will need to repay your loan plus interest on that loan. The larger the loan amount and the interest, the more you will pay for your loan. In most cases, interest rates are calculated monthly, which is why paying off debts early can often save you money.

There are many things that affect interest rate. The financial markets and institutions of the world and your country determine rates. Depending on how well the economy is doing, interest rates may climb or drop, determining general interest rate trends and minimum interest rates. Lenders also determine interest rates to some degree. A lender may reduce their interest rates in order to attract more customers, for example, or may raise rates to avoid defaulted loans and subprime debtors. For this reason, comparing different lenders can sometimes save you money. Finally, interest rates are determined by a consumer. Two different consumers visiting the same lender on the same day may be quoted very different interest rates. Consumers with great credit scores will be given more attractive interest rates than consumers with poor credit histories.

29 Apr
2010

Debt is not something you want to put off – not even for a day. Debt can be a little bit like those first five pounds. You may be a healthy weight, but once you gain five pounds, that can easily lead to five more pounds, then five more pounds, and so on until losing weight is a big project. It’s a lot easier to lose that initial five pounds than to wait and have to lose thirty. It’s the same with debt. A small credit card balance can lead to a larger one, which can lead to a payday loan or two when you have trouble making payments, which can lead to more personal loans.

If you have any unsecured loans or debts at all, it’s important not to put it off even another day. You don’t want that debt to grow. Luckily, there are many small, painless things you can do today to help start paying off debt. You can budget your monthly expenses to see how much you can put towards debts in the next thirty days. You can make a list of debts you need to repay first (because they have the largest interest rates). You can probably put at least a few dollars – even five dollars – in your emergency account and another five towards a credit card.

29 Apr
2010

Watching movies is great fun, but buying new movies can easily run you $20 or more and dinner and a movie can easily top $50. While that won’t exactly leave you dependant on payday loans in most cases, it can wreak havoc with your budget, and anyway that $50 is better served in your buffer account. Even if you’re a cinephile, though, there are some thrifty ways to see plenty of movies for (almost) free:

1) Check out garage sales – and stick with older technology. At garage sales, it’s not unusual to find VHS tapes and DVDs for under a dollar, which is much cheaper than renting or seeing a movie in theaters.

2) Visit your local library. Your local library is usually well-stocked with DVDs and even Blue-Ray, including the latest releases. The best news? It’s all free.

3) Check out your video store. Your video store may have specials (such as two for one deals) and big-discount sales on previously-viewed videos. Most stores will buy many copies of the latest DVD and then sell off those copies at a deep discount once new videos are released. It’s a cheap way to buy recent DVDs for very little. Also, shop around for the lowest-cost video store in your area – it can save you a few dollars on every rental, which can add up.

4) Exercise some patience. The longer you wait after a DVD comes out, the cheaper it will be. Watching last year’s movies now is a lot less expensive than watching the latest releases in theaters.

5) Use your TV. Even local cable companies air movies for free on your TV.

6) Get in tune with local free screenings. Plenty of organizations in your area offer free or almost-free movie screenings. Check out local colleges, film societies, libraries, fund raisers, and film festivals or events. Some screen even new movies for free.

28 Apr
2010

If you cannot pay your bills this month, there may be many reasons. You may be over your head in debt and that excessive debt may have finally caught up with you. You may have had a genuine emergency which harmed your ability to repay your bills. In some cases, you may have lost your job and may have no cash to pay. Any time you miss a bill, your credit rating is affected. However, the consequences of different bills being unpaid vary widely.

Some unpaid bills will just affect your credit rating. Others may have worse consequences. In most places, for example, not paying your rent for even one month may allow your landlord to start eviction proceedings against you. In many cases, not paying  a mortgage can also get your home foreclosed in as little as three months. In general, you should do everything in your power to pay your home costs first.

Begin by trying to get cash before your bill is due in any way you can. Have a yard sale or put some unneeded items on sale through classified ads to generate cash. Take on temporary work that pays instantly in order to generate some extra cash. As a last resort, consider a payday loan or credit card advance to pay your home costs. Even though this is expensive, it is better than being evicted.

As for the rest of your bills, prioritize them. Focus on bills that will leave you with the most dire consequences. In general, focus on paying the minimum on your credit card, as well as your utility bills, phone bills, and any bills that are needed for you to work. You usually have a little more time with student loans and medical debts. However, with any debts you can always call the lenders to work out a repayment plan. This is always better than not paying your bills and ignoring the consequences.

28 Apr
2010

Sporting events can cost hundreds of dollars to attend and sports enthusiasts can spend thousands of dollars on sports accessories, snacks for the big game, cable subscriptions and more. It is possible to run up considerable personal loans and debts by following a favorite team, but it also possible to get as much fun out of the game while spending less:

1) Create a money-saving system to watch games at home. Stay at home to watch games. Many sports bars offer big screen TVs to watch your favorite games, but it can get expensive if you want to follow a team’s entire season and you stock up on beer and snacks at every game. If you have friends who are fans as well, consider pooling together for one cable subscription and snack costs. Meeting for games is not only more fun but it saves cash.

2) If you want to see a favorite team, check out home games and games on the road. Teams play at different cities for different prices. Seeing an ice hockey game in Toronto can easily cost hundreds of dollars or even over a thousand for great seats, but it is possible to see a great hockey game in Phoenix, Florida, or California for a fraction of the price.

3) Look online for last-minute deals and sports fan deals. Some travel companies offer packages that include airfare, hotel, and tickets to your team’s game. This can often be less expensive than buying each item separately. Also, buy tickets online, looking for last-minute deals, when most ticket-holders are willing to bargain.

4) Buy a few favorite team items on sale. Rather than buying every item with your team logo, buy one or two items only, such as a jersey and a hat.

5) Support local sports. Local sports offer all the same fun and thrill as national sports – but tickets are usually a fraction of the price.

6) Never use a payday loan or personal loan to pay for tickets or sports-related events. It is tempting, but it is not a necessity and you could be stuck with repayments for months or more than a year.

28 Apr
2010

College James Pendergast has been talking to the media lately about his money-saving ways. He has been giving interviews because he spends a paltry $35 a month on food, putting him well ahead of the game when it comes to keeping student loans and debt low. Most of us spend hundreds of dollars. His is not a regime of dumpster diving, coupons, or sales. It is about planning and careful spending. Here’s how he does it:

1) Reduce waste. Pendergast notes that even careful shoppers waste hundreds of dollars on uneaten and spoiled food each year. Eliminating this waste helps you go further on your grocery budget.

2) Find one free meal a day. Pendergast looks at fliers and posted at his college to find free meals or snacks offered by organizations. Many lectures, workshops, and school events include free snacks or food, which takes care of one meal for Pendergast each day.

3) Do it yourself. Pendergast makes his own bread and chili. He does not, obviously, dine out.

4) Reduce meat. Pendergast only eats meat when someone else pays for it (such as at those college events), because meat, pound for pound, is one of the most expensive foods to buy. Eating vegetarian or vegan can save dollars.

5) Keep tabs on your health. Pendergast used to use free online software to make sure that he was getting enough nutrients from his thrifty meals, but he stopped once he saw that he was getting enough of all nutrients.

6) Plan and think ahead. Budget carefully, compare grocery store prices on the items you need, and shop when a store is offering added discounts.

27 Apr
2010

As nights and afternoons get warmer, more and more homeowners want to set up a great outdoor space. Before you take out a personal loan to buy a new barbecue, patio set and all the accessories, though, here are some tips for keeping your costs low:

1) Use what you have. Rather than buying all new accessories, take a close look at what you have. If your patio set is serviceable, maybe you can repaint it. Consider replacing just a few items – like a broken chair – rather than buying everything new.

2) Create a great lawn. One of the easiest and least expensive ways to create a great outdoor space is with lots of green, lush grass. Forget the expensive accessories and fertilizers. For under thirty dollars, you can buy a huge bag of grass seed and basic fertilizer. In most cases, this is all you need. The trick is to plant the grass thickly and water just before the evening, so that your grass will not bake.

3) If you need new outdoor garden accessories, compare sales and used items in classified ads. Many building centers have sales on outdoor furniture at this time of year and you may also find gently used accessories through classified ads.

If you want to save on more than just your outdoor space, don’t forget to check out our guide to saving cash.