4 Tips to Save You $250 Per Month
Posted on August 28, 2007 in the Ranting category
My wife and I managed to get ourselves in to quite the financial hole - in record timing I might add. Exactly how we managed to be so successful at it is likely to remain a great mystery, however, I would like to offer a few pointers to help you dig your way out of a financial hole - should you end up in one. Following these tips enables us to save over $250 every month.
1) Perhaps this may be obvious but I recommend paying your bills on time. This means sending the check out before the due date. People with credit cards and mortgages should know what happens to them should the payment be late. Usually you get smacked with a late charge of $30 or more, then those sneaky $%@* will charge you interest on their late fees - so don’t do it!
2) Drive like an old lady. I definitely mean this in a positive way! Older drivers are much more cautious, drive closer to the speed limit, and avoid aggressive maneuvers. If you drove like this you would experience better gas mileage because slower, steady speeds use less gas. In addition you could save money on your car insurance by not getting speeding tickets or getting into accidents. I get a 30% reduction in my premium by having a clean record for over 5 years.
3) Be sure to read the terms of any loan you may get. Sounds like another obvious one but you need to know what you are signing. If you opt for an adjustable rate, you need to know when your rate will change and by how much - when your rate adjusts, you could end up paying almost double what you are used to paying. When it comes to a car, never get a loan term for longer than the warranty. If you need a longer term to pay it off than your warranty covers, then you can’t afford the car.
4) When calculating your budget (you do have a budget, right?) be sure to judge your ability to pay your bills based on net income (after taxes) not gross income (before taxes). Too many people spend their money based on pre-tax income and wind up 20-40% short because of taxes. Here is a test for you - pay yourself first by putting money in savings with every pay check. It does not have to be much to make a difference when it comes time for retirement - say about 5% of each paycheck. If this is too much for you then you are living outside of your means.
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