Tag Archives: saving money

Budgeting

4 Ways To Save Money On Gift Buying

It may be too late to get some of the best bargains for some holiday shopping but anytime you can get some ideas of how to save money that might fit within your budget as it pertains to gifts it’s a good day.

We want to preface this by saying that even with savings, you should always make sure you’re staying within your budget as much as possible. Nothing’s a deal if you can’t really afford it. Here we go:

1. Buy online. There are many deals to be made online, even for new items. Be cautious that you’re not losing your savings via lousy shipping deals, which some retailers are sneaky about (such as charging you multiple times for multiple items you know are going in the same box). There are the generic sites where you can bid on things and other sites that offer low prices by comparison, but sometimes the best deal you can get is directly from the manufacturer.

2. Buy within the first two weeks “after” a holiday. This may not work well for items that won’t come out until just before a holiday but for everything else almost all businesses are trying to clear out inventory at drastically reduced rates. If the item you want to buy isn’t time conscious this is a great way to save a lot of money.

3. Don’t always buy “new”. There are a lot of big ticket items that are still pretty good that people decide to sell for reasons other than because something went bad. Things like cars and jewelry, sometimes even appliances, often get sold because someone didn’t like it as much as they thought the would but otherwise are just like new. Sometimes you can save as much as 75% on some items that aren’t fully new, and we’ve seen some cars with less than 5,000 miles go for upwards of 40% off, depending on the model.

4. Look for “vintage”. Going further with the theme of not buying new all the time, things like paintings, quilts and furniture sometimes retains itself pretty well over time and, in some instances, if you shop properly you can save some money on really nice stuff. Of course some vintage items go up in price over time so you might want to think about your purchases as an investment to help someone make money later on.
 

Budgeting

Savings Vs Debt

When we or anyone else talks about budgeting, it’s with the main idea of making sure you can pay all your bills and, hopefully, have something extra so that you’re not always living check to check. This is all well and good, but it’s possible that maybe you’re not paying enough towards your bills or putting enough away for your future. And with those as your only two choices (spending every dollar you make is NOT a choice for now), which is better to deal with first?

Last year the federal government passed a law stating that your credit card vendors must supply you with not only bills 21 days before their due to be paid but estimates of how much you would need to pay monthly, without using your cards again, to get rid of that particular debt. For some people that number might seem impossible to deal with on a tight budget and they might decide to try to put some money away instead. Let’s look at some real numbers.

The first is interest rates. The overwhelming majority of credit card interest rates come in between 14% and 23%. At your best the rate you’ll earn on any type of investing or savings might be 10%, and that won’t be every year (if it is you might want to hire a consultant to see if you’re getting the Madoff runaround). If you have time, it’s probably better to put more money towards your debt, even if you can’t pay it off in 3 years, because it’s growing faster than you can grow your money.

However, what if you can’t stop spending or using your credit cards? Some people just can’t stop themselves and it’s understandable. There are wants and needs that come up, and sometimes the credit card just seems so handy. Even though it wouldn’t be recommended overall as a first choice, in this case it might be better if you can put some of your money away towards savings or investment because it might help to spur you to stop using your cards at some point and actually pay down your bills with the extra cash you might see.

The “might” is important to see because it depends on the type of savings or earnings you’re hoping to try. Traditional savings accounts don’t earn anything these days except maybe some peace of mind. CDs might pay 2-3%, while most mutual funds could, as the economy improves, grow by 5% in a year, which can be compounded if you add to the investment amount on some sort of monthly basis. Of course you have to know that there’s risk if you’re shooting for a 5% growth, so you could just as easily lose that much on your investment each month, even with adding money all the time. If you’re risk averse, paying down debt once again becomes the better option.

It’s always better not to get into overwhelming debt, but remember that every day is another opportunity to get a handle on it, and there’s always someone who can help you overcome it.
 

Finances

3 Housing Upgrades That Could Save And Make You Money

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Every year there are a lot of people selling their homes. Too many of them don’t end up getting what they feel their house is worth. Some have had significant upgrades done to their homes and yet those things don’t seem to matter when they go to sell their homes. Not only that but the money that was laid out doesn’t equate into much more than aesthetics for the homeowner; that’s nice but it’s not enough.

Homes that sell better offer things such as more space, a specialty item like a pool, or upgrades that have been performed that not only protects the house but helps to save money on either utilities or expensive repairs down the line. The suggestions made here will help with the latter; you’re on your own with the pool.

1. Roofing. Homes that have upgraded or repaired a roof within 5 years sell very well. Home buyers know that those are homes that won’t have to worry about leakage, which can damage so many things and can be hard to track. If a new homeowner has to worry about spending an extra $10,000 – $30,000 on a roof repair sometime soon, it encourages them to look elsewhere.

Not only will you get the same benefit while you’re living in the home but it’s possible that you can tie it in with upgrading your insulation while you’re at it. Some states like New York have arrangements with local organizations that will offer free inspections and give you a recommendation for upgraded insulation that will save you a lot of money and offer you a lot of comfort all year round. Imagine being able to tell a prospective buyer that their energy costs will be half of what their neighbors are paying.

2. Windows. A survey came out that had a surprising answer; windows are something many potential homeowners have at the top of their list. It’s not that they’re looking for pretty windows but energy efficient windows, windows that won’t leak air out and that offer protection from the sun’s heat during the day. Any home that heats up drastically in the evening sun also lets out a lot of heat if you have to keep your furnace running all the time.

With that said it has to be mentioned that it’s sometimes hard to find a windows installer you can trust. Estimates can sometimes range from a couple thousand to more than $40,000 for windows; ouch! When one of my clients moved into their new house they were offered a free evaluation that took 4 hours and received an estimate of $36,000. Two weeks later, after not jumping at the offer, the new price was $9,000. Even if that’s a great price would you trust someone who did that?

Still, it’s worth looking into, and the combination of better windows with the changes in roofing and insulation can offer dramatic savings in utility costs.

3. Basement. Many people believe that having a damp basement isn’t such a big deal, but it is. Basement flooding accounts for more damage than any other type of damage within a house outside of a disaster and some insurance won’t cover the costs of repairs or replacement of items down there. You can get mold in basements that will only cost a lot of money to get rid of, but you can be forced out of your house by the authorities and have to live in a hotel for awhile.

A well sealed basement can save both money and protect your health. It also gives you the option of furnishing your basement in some fashion or, when you sell it, offers the buyer the possibility of using the expanded space. That extra space can add thousands of dollars to the sale price of a home while offering you more options such as a media room or workout space.
 

Budgeting

The Basics Of Budgeting

Whether you’re in business or you’re worried about your home finances, budgeting can help bring peace of mind to you and help you know where your money is going. It gives you the opportunity to pay bills, save money, and even figure out if you need more money or to control expenses so you can sustain yourself.

budgeting cake

Budgeting sounds really hard and boring to most people, which is probably why they don’t do it. If you have a lot of debt you probably don’t want to know about it, but you can’t address your issues without knowledge; that goes for everything in life. Budgeting isn’t hard, although there are aspects of it that can be complicated. We’re going to give you the easiest way to go about it, which is a great start.
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