Feeling The Crunch??
If you are like most people you are probably starting to feel like the walls are closing in on you. For so many people, who in the past have been making just enough money to keep their heads above water, the tide has shifted and the heads are not having any room to come up for air. Well, everyone is feeling the pinch, some more than others, but instead of complaining about the issues, make a pact with yourself to take the necessary steps to give yourself some breathing room.
1. Watch your unnecessary spending. So many of us spend without really thinking about it. We are functioning on automatic pilot when we are out there in the world. Sometimes just cutting out that extra cup of coffee and donut on your way to work in the morning can be enough to ease a little bit of the pressure. Did you realize that if you buy one cup of coffee a day for a week that is the same amount of money that it would cost you to buy a coffee maker? Even with the price of coffee these days, you still save an enormous amount just by brewing your own. Not only that but invest in a plastic travel mug and clean it out. You will not only save on $$$ but also be helping out the environment.
2. You can do your own car repairs. Did you know that many of the instructions for performing an oil change or changing out filters can be found right online? You can even find a diagram of your car’s engine, so that you will easily be able to locate filters in the car more easily. This will take a little extra time, but it is a wise investment that will not only save you money, but will also take up some time in which you might otherwise be spending money.
3. Cut out your home phone bill. Did you realize that in addition to just functioning on cell phones, that you can also get cheap home phone service through your high speed internet connection? Not only that but you can reduce your bill from about $70.00 per month to about $20.00. These online phone services don’t charge you for long distance fees, and you can sign up right online and choose your own phone number. It is worth your time to look into this option.
4. If at all possible ride a bike to work or carpool. This will save you on fuel expenses and let you use the fuel you are buying for recreational purposes. Again another money saving tip that will also help the environment while also reducing the wear and tear on your car, which provides truly a double savings.
5. Save as much money as you can and put it aside. Hanging on to your money is definitely the way to go. Now more than ever, saving is important and needs to be looked at. When the economy goes through a rough spot companies will be cutting back, so unless you are in the food or fuel industry, your job could become an extra expenditure that your company doesn’t need. Being prepared by having a little nest egg tucked away just in case is definitely the way to go.
There are many things that we can do to help ourselves feel a little less out of control. We may not be able to control the economy, but we can control how we spend our money. We must use this ability to create a more powerful perspective on the situation.
Goodbye to Working Years
I have seen it happen all too often in the recent past and I don’t know if it will ever end. The older employees who have just about reached the top of their salary level begin to get weeded out and replaced by the younger employees that will do the job for about half. If at all possible, do not let this happen to you without being financially prepared for it. I did not think I would be prepared but I am surviving and you will too.
If you still have a mortgage, get that thing paid off if you possibly can or have alternative living arrangements for yourself – even a roommate would help. Hopefully, you have a 401k plan that you have been investing in or a retirement plan of some kind. Be sure to find out the best method of switching it over to an IRA or the like so that you will not be hit hard by taxes.
If you are nearing early retirement age (62), seriously consider taking advantage of your Social Security benefits. The monthly amount will be less (I think maybe 25%??), but if you multiply the amount you will receive yearly by the number of years until you could take full retirement (66 for me), you will find that it would take you many, many years at full retirement to make up for those few years of early retirement benefits. Make sense?
If you are one of those 55+ employees, it would be wise to just check in to basic health insurance. And be sure you can get coverage for pre-existing conditions. As it turns out, it is not nearly as expensive as I had feared and just knowing the facts (and adding a little for inflation) goes a long way as far as your peace of mind.
There are dozens of things you need to “just check out” for yourself before you actually retire. So do yourself a favor and check it all out now in case you find yourself sliding toward that door out of the work place. It may not be a walk in the park, but you can do it too. I have not looked back.
Gas Saving Tips
Hey! How about those gas prices? Geez-O-Pete! There has to be a stop to those constantly rising prices before long or we won‘t be able to afford to drive to work to get the money to pay for the gas it takes to drive to work. If this has become the same nightmare for you that it has for most of us, may I suggest:
1. If there is any way you can swing it, carpool. It makes more environmental sense as well as financial sense. If there are only two people in the pool, you will at least cut your gas expenses by half. If you are lucky enough to have more than just two in the pool, then your gas savings will increase even more, of course. Check around in your office or check the newspaper. There may be an easy carpool fix with your name on it.
2. If it is not possible for you to carpool, check in to the transit systems in your area. Unless you live in a reasonably large city though, you will most likely be looking at the bus lines. Here you will find minimal cost compared to driving yourself, fighting the traffic and the cost of parking and you can catch up on your reading (or doze a while) on the trip in to the office. You may find you prefer it to driving your own car and it may become an enjoyable little modification to your previous life style.
3. If you are physically able and the distance does not prohibit it, you can clean up that bicycle or invest in an electric scooter — last resort for some, I know.
4. Another thing to remember when buying that golden gas is to pay cash or use your debit card. Every place I know accepts a debit card the same as cash. However, if you use a credit card, you will most likely have to pay a higher price than what is advertised and all that gas price shopping you have been doing will have been a wasted effort. Even a few cents makes a difference at the pump. Check it out before you pump and you won’t have to deal with that unpleasant shock after the fact.
5. Plan your trips also. Use one trip out to accomplish all of those short stops. When you leave the grocery store, stop by the dry cleaners, run into the pharmacy and pick up those rental videos in one large swoop. Saves you time as well as gas.
6. I continue to hear that not using your air conditioning in the car will give you better mileage. Well, that is just about impossible for Floridians in the summer months — unless you limit your driving to after the sun has set. Do it if you can. I absolutely cannot.
7. Check the air pressure in your tires. Whatever air pressure the manufacturer suggests is exactly what you should maintain. Check them often. Keep them in good shape. And keep your car in good running condition. Change the oil, filters and keep the fluids checked as is suggested. If your car is running more efficiently, you’ll do better in the long run also.
You probably have heard most of this before but maybe this time you are ready to pay a little more attention. It makes no sense to not take advantage of every little savings you can when we are suffering through this gas gouge. And even taking a baby step forward to improve your situation may encourage others to do the same and keep you out of the poor house. Just pick one of the above and give it a try. You’ll be glad you did.
Financial Health
Currently, the financial health of the average American is less than wonderful. Layoffs, cutbacks, downsizing — call it what you want, but many of us are in financial trouble. We want to pay our bills on time and stay out of foreclosure, but at times it is a struggle. At these times, many people turn to credit cards to get them through. Now theres a potential nightmare of a problem.
Credit card use is totally out of control and creating problems for thousands and thousands of people — actually, it is credit card misuse that is the problem. Credit card companies have made it far too easy for us to have credit limits beyond what we should ever need and the other thing is, we sometimes forget that using our cards is actually making a loan. We tend to think in terms of a temporary advance until we can pay the bill next month. But then, we dont pay that charge off when the bill arrives and the interest charges begin to mount and so on and so on.
If you are in a position that you are using your credit card for some of your daily living expenses out of what seems to you like a necessity, then you are either already in trouble or you are headed for it shortly. If you are already there or if you can see it looming in the very near future, now is the time to head it off and get yourself some help.
The media is flooded with advertisements for companies that can help you eliminate your debt. They claim that they can lower your interest rates, get rid of late fees and consolidate your debts. Well, they can. You will wind up paying them a fee to help you with it, but if you find a reputable company, it may be the single best thing you ever did for yourself.
This is a brief summary of what happened to a friend of mine. She was in her forties, went through a bitter divorce, found herself in financial trouble when she wound up with one income and continued to try to live as if she still had two. Raising children is expensive and not all dads are forthcoming with child support. She began to use her credit cards for everything from cash advances to cover daily living expenses (food, lunch money, clothes, gas) to mini-vacations for herself and the children because she felt so guilty that they didnt have as much as they did before. Before she knew it WHAM! She was borrowing from one card to keep the other one at bay. When there were no other answers, she sought out the help of a debt consolidation firm and put her problems into their hands. They reminded her that she was only one of thousands in that position and with all of her information, they set up way for her to pay them one lump sum, they took their portion out of that and then they dealt with her creditors. Meanwhile, she had to tighten her belt quite a bit, as well as take on any odd jobs she could to make a little extra money and then she and the children began finding amazing things to do right there in their community that were free and fun. Most likely within about three more years, she will be debt free. And as important as that, she can hold her head up and shell never be afraid to answer that telephone again for fear its another bill collector. She used what she had available to her to turn her bad situation into a good one. If a single mother of two can find a way to make herself whole again, I think anyone can.
If this is in any way a familiar situation for you, do not hesitate. There is no harm in admitting you have a financial problem. The harm comes in thinking if you ignore it, it will just go away. It wont, it will just continue to grow until you will have the Godzilla of all problems. Next time you see one of those advertisements, whether on television or magazines or newspapers, take down that number and give them a call. A consult is usually free and then you can determine whether or not you want to go forward with their program. Let me know how it works for you.