Keep Your Hot Water Tank Hot!

Need another money saving tip? How about your hot water tank. Whether you have gas or electric, it takes a toll on your bills every month. As the water heats up, the temperature reaches the set level and then slowly starts to lower again. This causes the heating element to re-engage and heat the water back up. Every time the water needs to be re-heated, you lose money.

A good way to help this problem is to purchase a hot water heater insulation pad. You can purchase one at most hardware stores. You simply wrap it around your hot water heater and tape it up. It comes with tape to secure it to your heater, but you’re going to need more. The tape has a tendency to heat up in the summer and make the glue slide. This’ll make the insulation slide off of the water heater. Use a large amount of tape and make sure the blanket is secure.

Keep Track of your Finances by Writing them Down

Everyone knows how easy it is to spend money. Once you get a paycheck in the bank, it’s easy to start using your debit card and lose track of how much you spend. A good way to help you not lose track of your finances is to keep an ongoing record. Every time you buy groceries or pay for a movie, go ahead and write it down. Once you have more than one purchase, start adding the numbers together. Keep adding to the total every time you use your card. This will put the total you’re spending right in front of your face. Seeing the financial result of your constant spending will really get you to think about things before you buy them. You’ll start to save more and have cash in the bank for the day that you REALLY need it. Start writing!

To Shop or Not to Shop

Many people are living on a shoe string budget these days. But luckily there are some ways to shop on a dime without completely sacrificing style.

· Pay attention when stores are having sales. Immediately walk to the back of the store to check the sales racks. Stores often keep sale items in the back so that customers will be more likely to see items that are not on sale first and will be more inclined to purchase those too. But do your best to resist the temptation.

· Discount stores such as Ross and Rugged Warehouse offer amazing deals on designer finds. Of course, be prepared to search through the racks to find anything good and often items will have holes, so inspect carefully before making a purchase.

· Websites also offer some great discount choices. Many sites will also offer customers free shipping with a purchase of specific amounts.

· There are discount designer stores that offer beautiful clothes at discounted prices. Stores like Steve and Barry, H&M and Forever 21 create their own clothing lines, which give them the flexibility to sell most items for $50.00 or less.

· Consignment stores also offer great choices. Consignment shops aren’t what they used to be! Now you find great deals on slightly used, name brand clothing. Sometimes you can even find items with the tag still attached.

Re-Evaluate your Cell Phone Plan

A third step toward reducing monthly expenses is to look at your cell phone payment. If you’re paying over $150 a month to use your phone, you may want to evaluate your plan to see how the bill can be reduced.

Some other alternatives:

Text Messaging Text messaging plans can be added for a small fee (usually around $6 to $10). The great thing about text messaging is that it doesn’t use up air time minutes, which reduces the need for talk and shaves money off of expensive plans or over limit charges (rate per minute charges).

Voice Over Internet Options This service consists of a software application that allows users to make telephone calls over the Internet. Calls to other users of the service and to free-of-charge numbers are free, while calls to other landlines and mobile phones can be made for a fee. Additional features include instant messaging, file transfer and video conferencing. Online phone services like Skype offer unlimited US and Canadian calling plans for $2.95 and unlimited world calling plans for $12.95 per month. Calls to friends who are also using Skype are free.

Consumers Have Overdosed on Credit

Many Americans have fallen victim to risky loans – applying for high interest credit cards, purchasing homes they can’t afford and paying financial loans on private schools for their kids. Recently, when I looked into admitting my daughter into a pre-k program at a local private school here in my city, I discovered that the total costs for 10 months would be over $11,000! Sorry, I may be willing to go into debt for my daughter’s college education, but not for Pre-K. Does that make me a horrible parent? –HARDLY!

If you get into a financial bind due to too much overdosing on credit, you’d actually be better off applying for a short-term online loan. These loans are paid back within 2 weeks and are intended to help consumers make ends meet between paydays – not accumulate more debt! This also offers a less expensive alternative to paying over limit fees, late fees or bounced check fees.

So, the next time you consider applying for another line of credit to purchase something that is not in your budget, please reconsider. Instead, put money aside each week for as long as it takes. It may take several months to save enough money for the item, but it will help you realize if it is really that important to you. Saving the cash will also help you appreciate the item more and will also teach you, as well as others in your family a lesson in patience.

Americans need to learn how to just say NO to overconsumption and ridiculous financial behavior.

Have you thought about packing a lunch?

Having to stretch out the paycheck between paydays? Looking for an easy way to save cash? Try packing a lunch! So many people eat out everyday when they’re at work. The average cost for this is between $5-10 a day. If you start bringing your lunch Monday thru Thursday (we’ll let you eat out on Friday), then you can save $20 to $40 a week. This adds up to $80 to $120 a month and $960 to $1,440 a year!

If you want to be real strict with yourself, then bring lunch on Fridays as well. Of course, the amount of money saved will be reduced a bit by the amount you spend to buy your lunch supplies. But compared to the amount you save, this is a really low amount.

So start thinking about what’s easy to make at home and what you like to eat. Then hit the grocery store this weekend and pick-up some supplies. Good luck and great eating!

Step 1: Reducing Monthly Expenses

Are you finding yourself not being able to get ahead with your bills? Maybe it’s time to re-evaluate your expenses. Over the next few weeks, Budget Brilliant will be highlighting some areas of your budget that can easily be reduced.

* Today’s Budget Cut: Cable Television
Subscriptions to an expanded cable package can be really expensive, reaching $100 in some areas. Reducing your cable package to at least the basic channels or eliminating it all together will save you around $50 a month and make you $600 wealthier at the end of the year.

Some things you can do instead of watching television include:

· Read more. It’s easy to find deals on magazine subscriptions or if you don’t want to spend any money – try swapping with friends.
· Spend time with your friends, kids or spouse. Organize a game night or head outside.
· Watch movies at home. Instead of buying new DVDs or renting them, check out your local library to check out various selections of movies, music, audiotapes, books and other types of media. This will also keep you from getting bored and keep a steady stream of entertainment going.