Cutting Back And Save Money Without Sacrifice

When times are tough it is tempting to cut out all the little indulgences that make life a much more pleasant and less stressful thing.  You financial advisor certainly won’t tell you how to keep though little luxuries around, but you can.  There are a number of ways that you can cut back on expenses and keep life’s small pleasure.

1.    Take more bubble baths.  There is no better way to reduce stress than to lay back and relax in a tub of hot water.  If baths aren’t your way of relaxing, find something besides shopping.  It could be meditation, writing a story, starting a craft, anything that is low in cost and helps you take the stress out of the day.
2.    Hold a movie night with your friends and neighbors.  The movies are fun, but going to a theater can be very expensive, especially with a large family.  Instead rent a movie, pop some popcorn and invite over the neighbors.
3.    Instead of going to restaurants, learn how to cook.  Restaurants, even fast food, are expensive and that expense adds up over time.  If you make dinner at home, take the leftovers to work the next day.  But don’t go to the store while your hungry, its been proven to lead to more impulse buying.
4.    Bring the bar home.  A night out on the town could easily cost $50-$60, which is fine if you can afford it.  If you can’t, pick up a six pack and invite your friends to your living room bar instead.
5.    Decide where you really want to spend your money.  This can easily be done in just a few minutes.  Write down your major spending areas, food, loans, etc.  Then guess what percentage of your money is going to each.  Now make another list of what percentages you’d like to see for those categories.  If your ideal numbers are not matching the real numbers, adjust your spending a little.
6.    Turn down the heat by a few degrees and dress in layers.  Don’t make your living room the next Antarctica, but drop the temperature by about 3-6 degrees.  You’ll notice the difference but it won’t be too hard to adjust to and the savings will add up quickly.  This also applies with the air conditioning, but turn it up a few degrees when your home and turn it off when your not.

Written by on July 19th, 2009 with no comments.
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Exactly What Is Personal Finance

Silly question? Not really ,this is a term we all know and hear daily from the news.  We all know that it’s important to have a solid personal finance portfolio.  What does that mean?  Personal finance is broken down into four areas.  If you master these things, you will achieve financial freedom for the rest of your life.

First is security.  If you were severely injured tomorrow, would that be your financial ruin?  Would the bills expend your savings and leave you destitute?  To be financially secure you need to prepare for unlikely scenarios.  Make sure that your life insurance is up to date and exactly what you need.  Ensure that your savings are sufficient if disaster strikes.  You should have an emergency cash fund as well, so that something like this won’t immediately ruin you.

Next is stability.  This is as simple as living within your means.  Don’t mortgage a million dollar estate when you’re barely making above minimum wage.  Don’t rack up thousands of dollars in credit card debt if you can’t pay that off.  Have a budget and stick with it.  If you’re already in debt, lower your standard of living a tiny bit until you can get out from under it.

Third is growth.  After stability it’s time to build your funds.  Look into converting your savings account into a money market account and earn in interest.  Look at investing some extra cash in the stock market.  Don’t rely on your pension or Social Security to give you the retirement you want.

Finally, protect your assets.  Make sure that your possessions are insured.  Ensure that your funds are in secure account or not in any highly risky investments.  If you have over $250,000 in cash, talk to a banker about a trust account.  These are much more secure and are much easier when it comes to dispersing your assets when you pass on.  Protections and security are much the same and should be treated that way.  But with all of these things in place, your personal finance will be secure for decades to come.

Written by on June 18th, 2009 with no comments.
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