In this day and age of online banking and account management, it’s good to know what physical items to keep around in case of an emergency. On the other hand, there’s no point in having excess paper documents clog up your filing cabinet.
What you should Keep
Paper documents like a will, insurance and a retirement plan are definite keepers. If you haven’t already, you should keep these things in a secure area like a bank safety deposit box or a fireproof safe. Also things like separation and divorce documents, real estate deeds, titles and tax returns for the last seven years are a must as well. Make sure you keep those pay stubs until the end of the year as well to compare the year end totals with the W2 forms from your employer.
What you should Toss
The documents that you can toss include things like bank receipts and ATM transactions, once you’ve checked that all the transactions are correct on your bank statement. The same goes for bills that have been paid and you know the checks have been cashed. Shred all the documents you discard. If you don’t own a shredder, you might be able to use one at work. If you have a wood burning fireplace, use a few of your documents as fire starter and then curl up next to the fire with a book while the rest of the unwanted paper keeps you nice and toasty.
Wednesday, June 18, 2008
Friday, June 13, 2008
None of us are perfect, but all of us can save
Let’s face it, none of us are perfect, especially when there’s money involved. I admit that occasional retail therapy can be just the thing after a really bad day, but then I get home and usually say, “What did I just buy?” and “What in the world am I going to wear with purple shoes?” It’s easy to rationalize purchases as they’re being made, but those purchases often lead to regret and can make saving money an almost impossible task!
If you’re interested in overcoming any retail therapy urges and saving some money too, here’s some absolutely easy advice for doing just that. Oh yeah, and keep the receipt for that recent impulse purchase and you'll have no problems returning it.
*Stash the Card and Use Cash
One of the best ways you can put a halt on your dollars flying out the door is to drastically cut down your use of credit cards. The “swipe now and pay later” game can lead to an unhealthy habit, a ton of fees and a mountain of debt. Instead of paying with credit, budget out a set amount of cash you’ll need for the week, and try to stick to it. The next time you get the urge to pull out the old credit card, just use the cash in your pocket for the things you really need. You might even try leaving your credit card(s) at home.
*Keep Track and File Away
Organize your finances and bills. This won’t take much time and will really save you the hassle of missing a bill payment here and there. Create a filing folder or cabinet for all your bills and keep track of when each bill is due. If possible, try to get your bills paid a few days early so there’s no chance of being charged a late fee. After you have paid a bill you can write ‘paid,’ the date, and the check number on it so you have a clear record that it’s done and then stick it in your filing folder for at least a year.
*Do You Really Need That?
Trim some fat by canceling unnecessary subscriptions to monthly magazines, organizations, clubs, or other memberships. The money you save from these might not seem like much at first, but a year’s worth of subscriptions can be a good start on a savings plan.
*Be Choosey
Do some comparative shopping for things like phone, television, and internet service to find the best rates around. More often than not, these providers usually offer some kind of special discount. Voice-over-internet (VOI) service providers like Skype provide phone service over the internet for less than $3 per month, which is a great deal if you don’t mind logging on to make your calls.
*Record and Reflect
Keep a record of your daily expense for one week. This will make it clear exactly where your money is going. Then you can decide whether or not you really need to get that double mocha latte every morning. Eating out for lunch every day can cost you an average of $40 or more a week ($8 per lunch), so try packing a lunch instead. You’ll be surprised what $40 worth of groceries can get you if you’re a smart shopper. You can still enjoy a meal out once in a while, but to really see the savings, try limiting dining out to once a week.
*Stash it and Forget about It
The best way to save money is to start saving! A good rule of thumb is to set aside 10% from you paycheck for a retirement fund or savings account. If you can’t do that, try putting 5% away. If you can do more, go for it, you’ll only reach your goal quicker! After a year or two you’ll find that paying yourself first is extremely beneficial and you’ll have a great base from which to build a long-term retirement plan.
If you’re interested in overcoming any retail therapy urges and saving some money too, here’s some absolutely easy advice for doing just that. Oh yeah, and keep the receipt for that recent impulse purchase and you'll have no problems returning it.
*Stash the Card and Use Cash
One of the best ways you can put a halt on your dollars flying out the door is to drastically cut down your use of credit cards. The “swipe now and pay later” game can lead to an unhealthy habit, a ton of fees and a mountain of debt. Instead of paying with credit, budget out a set amount of cash you’ll need for the week, and try to stick to it. The next time you get the urge to pull out the old credit card, just use the cash in your pocket for the things you really need. You might even try leaving your credit card(s) at home.
*Keep Track and File Away
Organize your finances and bills. This won’t take much time and will really save you the hassle of missing a bill payment here and there. Create a filing folder or cabinet for all your bills and keep track of when each bill is due. If possible, try to get your bills paid a few days early so there’s no chance of being charged a late fee. After you have paid a bill you can write ‘paid,’ the date, and the check number on it so you have a clear record that it’s done and then stick it in your filing folder for at least a year.
*Do You Really Need That?
Trim some fat by canceling unnecessary subscriptions to monthly magazines, organizations, clubs, or other memberships. The money you save from these might not seem like much at first, but a year’s worth of subscriptions can be a good start on a savings plan.
*Be Choosey
Do some comparative shopping for things like phone, television, and internet service to find the best rates around. More often than not, these providers usually offer some kind of special discount. Voice-over-internet (VOI) service providers like Skype provide phone service over the internet for less than $3 per month, which is a great deal if you don’t mind logging on to make your calls.
*Record and Reflect
Keep a record of your daily expense for one week. This will make it clear exactly where your money is going. Then you can decide whether or not you really need to get that double mocha latte every morning. Eating out for lunch every day can cost you an average of $40 or more a week ($8 per lunch), so try packing a lunch instead. You’ll be surprised what $40 worth of groceries can get you if you’re a smart shopper. You can still enjoy a meal out once in a while, but to really see the savings, try limiting dining out to once a week.
*Stash it and Forget about It
The best way to save money is to start saving! A good rule of thumb is to set aside 10% from you paycheck for a retirement fund or savings account. If you can’t do that, try putting 5% away. If you can do more, go for it, you’ll only reach your goal quicker! After a year or two you’ll find that paying yourself first is extremely beneficial and you’ll have a great base from which to build a long-term retirement plan.
Monday, June 9, 2008
The grass isn’t always so green…
“To Have - is To Spend” is the philosophy for most Americans. We often find ourselves too caught up in keeping up with the Jones’ to keep up with our finances. We get lost in having the perfect car, a large house or fancy dinners. In the end, that behavior may leave you with a depreciating, gas guzzling SUV, a home you can’t afford or less than perfect credit scores.
…But there are ways to get back on track. A great start is saving money with some of these easy tips:
Have a Monster Garage Sale Take a look inside your closets, see any junk back there? What about mom’s storage unit where you’ve kept junk for the past 5 years? If you haven’t used it in six months, consider collecting all the stuff you really don’t need and selling it. Remember, one person’s junk is another person’s treasure. Who knows, you could end up with $100, $1000 or maybe even more.
Drink Water Forget the soft drinks at lunch, and order water with lemon. You could save an average of $250-$350 each year and it’s healthier too - some studies show that drinking http://www.usatoday.com/news/health/2006-10-24-water-diet_x.htm water can help you lose weight.
Leave the Car at Home If you can, try carpooling with a friend or ride public transportation to work. This saves on gas, maintenance and insurance costs, not to mention being able to relax a bit on the ride home.
Buy Used Items such as clothing can be purchased at consignment shops with slightly used and name-brand items. Depending on where you live, you might be able to find some incredible deals on quality brands, at less than half the price. Over the course of a year, you could save half the money you spend on clothing.
Spend More Time at Home According to recent statistics, the average household spends an annual total of around $2,300 on entertainment. Just going to the movies can be outrageously expensive. Instead, rent a movie, read some good books or have some game nights with your friends. Your local library is an excellent source for free rentals of movies, books and music. If you’re feeling adventurous, find a local park or state park and do some hiking. There’s no substitute for good old fashioned exercise in the fresh air.
Cut up Some Cards Try cutting up some of your credit cards. Most of us have at least a few credit cards, and the less you have, the better off you’ll be. Try to consolidate your expenditures onto one card, which will make it easier to keep track of how much you’re spending.
Pack a Lunch Eating out with the gang for lunch every day might be nice, but it can burn a hole in your wallet very fast. If the average lunch costs around $7, that’s a total of $1750 a year (5 lunches per wk times 50 wks a yr). Bump it up to $10 per lunch a day and that’s $2500 a year. Instead, try planning out your meals for the week and packing a lunch accordingly. You’ll be amazed at how much you can save, not only on food, but on the cost of gas driving to and from the restaurant.
…But there are ways to get back on track. A great start is saving money with some of these easy tips:
Have a Monster Garage Sale Take a look inside your closets, see any junk back there? What about mom’s storage unit where you’ve kept junk for the past 5 years? If you haven’t used it in six months, consider collecting all the stuff you really don’t need and selling it. Remember, one person’s junk is another person’s treasure. Who knows, you could end up with $100, $1000 or maybe even more.
Drink Water Forget the soft drinks at lunch, and order water with lemon. You could save an average of $250-$350 each year and it’s healthier too - some studies show that drinking http://www.usatoday.com/news/health/2006-10-24-water-diet_x.htm water can help you lose weight.
Leave the Car at Home If you can, try carpooling with a friend or ride public transportation to work. This saves on gas, maintenance and insurance costs, not to mention being able to relax a bit on the ride home.
Buy Used Items such as clothing can be purchased at consignment shops with slightly used and name-brand items. Depending on where you live, you might be able to find some incredible deals on quality brands, at less than half the price. Over the course of a year, you could save half the money you spend on clothing.
Spend More Time at Home According to recent statistics, the average household spends an annual total of around $2,300 on entertainment. Just going to the movies can be outrageously expensive. Instead, rent a movie, read some good books or have some game nights with your friends. Your local library is an excellent source for free rentals of movies, books and music. If you’re feeling adventurous, find a local park or state park and do some hiking. There’s no substitute for good old fashioned exercise in the fresh air.
Cut up Some Cards Try cutting up some of your credit cards. Most of us have at least a few credit cards, and the less you have, the better off you’ll be. Try to consolidate your expenditures onto one card, which will make it easier to keep track of how much you’re spending.
Pack a Lunch Eating out with the gang for lunch every day might be nice, but it can burn a hole in your wallet very fast. If the average lunch costs around $7, that’s a total of $1750 a year (5 lunches per wk times 50 wks a yr). Bump it up to $10 per lunch a day and that’s $2500 a year. Instead, try planning out your meals for the week and packing a lunch accordingly. You’ll be amazed at how much you can save, not only on food, but on the cost of gas driving to and from the restaurant.
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