You can reduce your living expenses in several ways.
Some can result in a lot of savings, others in a little
savings. But by adopting a few painless—or relatively
painless—money saving strategies, a sizeable nest egg can
accumulate over the years ensuring a more secure financial
future. No one ever regrets saving too much money, but
many regret not saving enough.
Clip and use coupons
You'll be amazed how those
nickels and dimes add up when you shop with
coupons. But don't buy something you
don't need just because you have a coupon.
Pay off high-interest loans
Making only small
monthly payments on your credit card and other high interest
loans can sap your financial future like nothing else.
It can take decades to pay off a credit card loan if you pay
only the required minimum. The sooner you pay off loans,
the sooner you'll be able to put your money to better use for
your future and for your loved ones. Look for a
credit card with a low interest
rate.
Plan ahead for vacations
The earlier you make travel
plans, the more money you're likely to save. But while a
bundle can be saved by making advance
hotel or
airline reservations on
the Internet, if you have the flexibility to wait until the
last minute to make vacation plans, you can reap
last-minute
bargains from travel companies.
Save on insurance
Insurance is
often one of the five most expensive items in the family
budget. Everyone needs insurance, and you want to be sure you
don't have gaps in your coverage. But most people pay more for
their insurance coverage than they need to. You should eliminate unnecessary coverage and comparison shop for less-expensive,
long-term or month-to-month,
no commitment policies.
Lower your phone bill
Lower your bills by using a calling card and removing the need for a long
distance carrier—and any monthly fees the carrier may charge. Calling
cards also come in handy in emergencies or while traveling. They also make
great gifts. Remember to choose cards with low or no connection and
maintenance fees.
CallingCards.com
and
1-877-phonecards.com
have some of the lowest per-minute rates.
Long distance calling is the same regardless of the carrier you use.
Rather than using a high-cost long distance provider, switch to
GTC Telecom and pay 5 cents/minute for long distance calls.
Deflate your credit card rate
If
you have a credit card balance of $5,000 and you were able to reduce your rate
from 16 percent to 10.46 percent, you realize an annual savings of $278
(assuming you paid only the 2 percent minimum monthly payment that many credit
card companies require). What can you do with $278 a year? Put that money in a certificate of deposit for three years earning just 3
percent annually and you boost your savings by $885!
Search for a credit card with a lower interest rate.
For more ideas on miscellaneous ways to save money, read
How Starbucks will fund your retirement in the Thrifty Tips section.
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