Here's the latest online piece from the Money magazine team that touches on a subject that is dear to my heart: 11 Ways to Save Money Now. My favorites are:
#3: Accept the new norm and set realistic investment goals
How true! In other words, we have to accept the reality that we won't see the kind of outlandish returns of the 1990s and early 2000s for a long, long time, and therefore we have to plan accordingly.
#4: Lose Rate By Refinancing Your Mortgage
My take: But this works only if you are (1) gainfully employed with a real full time job (i.e., "no job, no loan" is the new banking mantra), and (2) you have real equity in your house (i.e., your house is now under water). If you are the lucky few, take advantage of it. Otherwise, blame your mortgage broker for tempting you into a loan that is way too much for your finances.
#5: Juice your credit score an extra 20 points
Easy steps, but require discipline to pay down that revolving balance though...
#6: Go cold turkey on monthly services...
#7: Turn off the TV...
This advice really works. I save a bundle by not having cable (since 2003), no Netflick, Blockbuster, etc. As for #7, I watch over-the-air digital HD broadcast with rabbit ears antenna on my digital LCD TV, borrow DVDs from my neighborhood public library and use hulu.com, boxee.tv, etc., to watch older full-length movies on a netbook that is hooked up to my LCD TV). Cutting a few dollars here and there and we're talking about real, cold hard cash being saved!
#8: Reorganize your insurance drawer
I did that in 2008 and save several hundred dollars by raising the deductible on my car insurance to $1,000/- and my home fire insurance to 2% instead of $500.00. Think about it: you don't want to claim insurance on small claims to avoid insurance companies jacking up your premiums. It makes more sense to save money by having the highest possible deductible and be disciplined enough to put that money saved into your emergency fund in a high yield online savings account. That way, the money and interest earned go to you and not to the insurance company.
11. Start your own "working capital" fund
Very good advice (my 12-month emergency fund also covers job search expenses, in case I'm laid off).
Article Link: 11 Ways to Save Money Now
#3: Accept the new norm and set realistic investment goals
How true! In other words, we have to accept the reality that we won't see the kind of outlandish returns of the 1990s and early 2000s for a long, long time, and therefore we have to plan accordingly.
#4: Lose Rate By Refinancing Your Mortgage
My take: But this works only if you are (1) gainfully employed with a real full time job (i.e., "no job, no loan" is the new banking mantra), and (2) you have real equity in your house (i.e., your house is now under water). If you are the lucky few, take advantage of it. Otherwise, blame your mortgage broker for tempting you into a loan that is way too much for your finances.
#5: Juice your credit score an extra 20 points
Easy steps, but require discipline to pay down that revolving balance though...
#6: Go cold turkey on monthly services...
#7: Turn off the TV...
This advice really works. I save a bundle by not having cable (since 2003), no Netflick, Blockbuster, etc. As for #7, I watch over-the-air digital HD broadcast with rabbit ears antenna on my digital LCD TV, borrow DVDs from my neighborhood public library and use hulu.com, boxee.tv, etc., to watch older full-length movies on a netbook that is hooked up to my LCD TV). Cutting a few dollars here and there and we're talking about real, cold hard cash being saved!
#8: Reorganize your insurance drawer
I did that in 2008 and save several hundred dollars by raising the deductible on my car insurance to $1,000/- and my home fire insurance to 2% instead of $500.00. Think about it: you don't want to claim insurance on small claims to avoid insurance companies jacking up your premiums. It makes more sense to save money by having the highest possible deductible and be disciplined enough to put that money saved into your emergency fund in a high yield online savings account. That way, the money and interest earned go to you and not to the insurance company.
11. Start your own "working capital" fund
Very good advice (my 12-month emergency fund also covers job search expenses, in case I'm laid off).
Article Link: 11 Ways to Save Money Now
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