Does Worrying About Finances Make Matters Worse?
All the focus in the media and on the street is that we are all going under and it is just a matter of time before we see the next great depression in this country, but is all the negative hype making matters worse? Well, there are many schools of thought on this subject and the consensus is yes, worrying will make your financial situation even worse.
Worrying is creating and wasting energy that could be better used to focus on what you can do to help yourself. Worrying creates depression and a feeling of matters being totally out of your control. This leads to feeling overwhelmed and helpless, and that is a hard place to function from. How can you avoid feeling like this?
Start focusing on the positive. Things that can help reduce your monthly expenses will help you to feel empowered. Take the reigns and get your spending and your finances under control. Don’t think negatively about money, think positively focus on the fact that there is plenty of money in the world and plenty of it for you. Tell yourself that each day you will work to conserve not only money but all of the resources that you have available to you. Always treat your money with respect. Keep it well organized and neat and treat it well. Experts say that treating your money with respect is a good way to obtain wealth. If you think about it there aren’t too many millionaires with crumpled up money stuffed in their pockets or money lying all around their homes, so show money the respect that it deserves.
Following these simple rules can not only help you feel empowered to deal with your personal budget, but can also keep you from getting down in the dumps when the going gets tough. Just a few tips to keep your sanity during this time of growth.
Cutting Back Doesn’t Mean Cutting Out The Fun
The focus is definitely on financial stability these days, with cost rising and unemployment rising, there is an air of concern throughout our society. Taking our finances seriously is very important, but it doesn’t necessarily mean cutting out any extra spending. If you just cut out all the extras you will become depressed and frustrated. That doesn’t mean that you don’t have to cut out some of them, but you still need to have something to look forward to. The question then is where you should cut back, and the answer is quite simple, the necessities. That’s right, less of the necessities, not actually less of them, but spending on them. The following are some money saving ideas that don’t need to impinge on your current lifestyle, and can still save you some big $$$ when you put them all together.
1. Car Insurance (and all other insurance) – Rates tend to gradually rise as you stay with a company, so if you really want to make a dent, shop around about every 6 months, this won’t cost you anything, but it can save you a bundle.
2. Electricity – Change to energy saving light bulbs and start unplugging items especially those items like TVs and Computers. These items drain electricity even when they are off, so unplugging them will help save you money. Also line drying items saves on electricity and is an especially good idea for the big bedding items that can take a long time to dry in the dryer. Also, the clothes dryer tends to run for longer than it actually takes to dry the clothes, doing laundry while you are home, can cut back on the costs of running the clothes dryer.
3. Groceries – Eat what is on sale, buy only what is on sale and use coupons. They are available online and in the local papers on Sunday. Cut them, organize them and shop the sales. Also, try to shop in stores that offer double coupons. Buy lots of what is on sale and a little less of the other stuff. It takes a few weeks to build up a good base, but in the long run it will not only save you money each week, but you will go to the store less and that will save you money on gas.
4. Eliminate your home phone service – That’s right, get a phone that runs through your internet provider or just stick with a cell phone for home. Sometimes with the right company it will only cost about $10.00 per month to add a second phone to your plan and this will virtually eliminate a monthly bill.
5. Shop around on the cell phone. There are a lot of new companies popping up on the scene that don’t require a contract and don’t have any roaming or long distance charges. This can be an incredible amount of savings if you use your phone a lot.
6. Find alternative heating sources. Heating bills will be especially high this year, so look into some energy saving alternatives. Seal the windows, put some extra padding around doors and windows that lead outside or to the drafty attic or basement. This can save you quite a bit of money in the coming months.
There are many ways to save and cut back and you may still have to cut out some of the extras, but if you work hard you can save a lot of money without giving up anything, and that is a really nice feeling.
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.
Balancing Debts and Credit Cards
Balancing debt and credit is a challenge for many of us today. When my parents or grandparents needed or wanted something, they simply saved up until they could afford to pay cash for it. Credit was only used for those large-ticket purchases like a house or car and then it was done with an installment loan. Credit as we know it today was basically unheard of and having more than one debt over and above a home or vehicle was out of the question. It was not considered wise.
Well, wise or not, these days easily acquired credit and resulting debt are a part of our day-to-day lives. Unfortunately, the ease and convenience of instant credit has left many of us depending far too much on borrowed money and in turn living in a raging sea of debt. We jumped into those waters before we knew how to balance the convenience of using credit cards and staying out of deep, deep debt.
Having credit is a good thing if you are using it responsibly. It establishes the fact that you can be relied upon to pay your debts, that you are creditworthy and it may in fact help you secure a lower interest rate when you find you have the need for an important loan, such as a mortgage. Without a good credit history, your chances of qualifying for such a loan are greatly reduced. However, using your credit cards unwisely and to the extent that you begin to spend more than you earn can lead to overwhelming debt that you may never be able to pay off.
Installment loans are a good way to establish credit. The interest rates can be very competitive and specified monthly payments are made at the same time every month with a specified time period established to pay off the loan. There are no surprises when the payment becomes due. Often, even if you have the cash to pay for a moderately priced purchase, it could be wiser to use an installment loan. That would of course depend on the interest rate you are earning on your cash from the bank and the interest rate you could get on an installment loan. If the bank is only paying you 2% and the installment loan has an interest rate of 6%, you may be better off using the installment loan for the purchase, and possibly paying it off earlier and generating a good credit standing by doing so.
It is very important to periodically take a look at your credit card debt. If you can see a pattern of making impulse purchases or purchases that you know you cannot afford, then it may be time to consider paying off that credit card debt. Analyze your monthly expenses and determine what spending you can eliminate and put that amount towards your credit card debt in addition to your regular payment — and dont make any more charges on it until you have it under control. Every time you make a purchase on your credit card, you have just borrowed more money. Every time you consider making a purchase on your credit card, ask yourself if you would borrow that same amount from a friend or family member. That may help to put it into perspective.
If you find yourself drowning in that sea of debt, it would be wise for you to seek out a financial advisor that might be able to help you reallocate your income more effectively to address your credit card debt. There are many companies out there that can assist in getting you out of debt. Whatever you do, always keep in mind that spending more than you earn in even a short period of time can be very dangerous, but doing it over an extended period of time can mean financial ruin.