Tag Archives: consumer spending

Quick Tip: Basic Money Management Skills

Destroying your debt doesn’t have to take hours. Watch our 15 second tips and then be on your merry way. These tips also air on KAKE-TV’s (ABC, Wichita, KS) regularly.

View all our quick tips.  Follow along on social media at #moneypossible.

Basic Money Management Skills

Get organized. Prioritize your debt. Track your spending habits. Create a monthly budget and stick to it. Make sure you ‘pay yourself.’

Advertisements

Turn $100 Into $1000

100 hundred dollar bills rolledDaily Finance has a nice little series about saving a Grand by cutting $100 per month. It’s called the $1000 Savings Challenge and you can see all the posts here.

Cutting $1000 is about as easy as losing those last five pounds. It’s going to take time, effort and sacrifice, something we Americans seem to lack. And there’s no one size fits all solution either.

According to the article,  “Go after your biggest categories to find the most spending, and concentrate on monthly bills so that you’ll be saving money each and every month. Go over every bill, methodically, one at a time, category by category. Cut out what you don’t use, don’t really need, and then look for less expensive alternatives to what’s less….all you have to do is start now, start small and don’t try to be perfect.”

We have been saying all along that to become financially fit you must DO SOMETHING. Start somewhere. Make a change. No one else is going to do it for you. It is up to YOU.

Here is the list of posts. Read them all, or just read the ones that will benefit you the most.

  • Part 10: When the Refi Fails, Rethink Repairs
  • Part 9: Nibbling Away at the Family Food Bills
  • Part 8: Life Insurance You Can Live With
  • Part 7: Spending Smarter on Entertainment
  • Part 6: Find Big Savings in Small Purchases
  • Part, 5: Cutting the Hidden Costs of Work
  • Part 4: Cutting the Cost of Kids
  • A $1,000 Challenge Bonus: How to Buy a Car and Save a Bundle
  • Part 3: Shrinking Your Car-Related Costs
  • Part 2: Turning Down Your Utility Bills
  • Part 1: Cleaning Your Financial ‘Junk Drawer’

Tips include looking through your bills with a fine tooth comb for “fees” or other things you didn’t sign up for. Research your credit card bill for those recurring items, and if you don’t use the service (gym membership?) get rid of it.

To save at work, consider talking to your employer and see if you can re-arrange your schedule to save on child care costs. Buy things like diapers in bulk at wholesale warehouses, but don’t get distracted by those “shiny non-essential items” like barbecue grills.

To put a stop to unnecessary spending, trim your bank ATM fees by switching to a credit union (with a network of surcharge free or low fee ATMs nationwide) or simply reduce the number of times you use the ATM by taking out more than you need. Of course, that only works if you can limit your spending, and don’t suffer from “Have Cash, Must Spend” syndrome.

There’s some advice about flexible spending accounts, reducing entertainment spending, buying a car and a bunch of other stuff, too. Some of it may not be for you. Some of it may be right up your alley.

Still don’t know where to start? Get help at a credit union or non-profit agency like Consumer Credit Counseling Service. And there’s always the Money Possible Workbook, which doesn’t take any time, effort or sacrifice. Just click the link. If that’s not an easy way to start, we don’t know what is.

Just Say No.

Just Say NoThe word “No” kinda gets a bad rap. Parents of young children grow weary of saying it. “Just say no” was the 1980s ad campaign for the war on drugs. We feel bad sometimes when we say it; like when you are asked to do something you really don’t want to do, or don’t have the time, yet feel obligated to say yes.

Saying no is no fun.

The word yes is much more positive, like that Home Alone Macaulay Culkin fist pump YES!

But when you are talking about your finances, saying “yes” can be much worse than saying “no.”

Just ask Lisa and Bryan. They want to reduce their debt and save for retirement. They are saying “yes” to things, when they should be saying no. Especially to family and friends.

It’s hard to say no to those close to us, or even our co-workers and neighbors. But if you are trying to stick to a budget, save for retirement or whatever, “just say no.”

No to Sonic runs. No to that new movie that just opened today. No to the soda at the ball game. (By the way, if you said no to just those three things, you’d have an extra $20 to save.)

But how do you come across without sounding like a Debbie Downer or a Party Pooper?

It’s simple. Tell people you are trying to stick to a budget, save money, save for retirement, whatever. People who care about you, won’t put you through the ringer for wanting save for a rainy day.

You’ve got to stand your ground. And don’t you dare feel guilty about saying no. It’s like peer pressure for adults. It’s like keeping up with the Joneses. There will also be someone with the newest gadgets, eating at the fanciest restaurant, taking the coolest vacations. Get over it. Just say no.

Here are three ways to say no:

  1. Keep it simple.
    You don’t need to explain the heck out of why you can’t (or don’t want to) go the latest flick. Just say “another time.” Or “I’m busy that night.” Even a casual “It’s not in the budget this week” should do the trick.
  2. Offer something else.
    “Instead of going out to a movie, let’s rent that one we’ve been wanting to see, and have a movie night at my house.” You are still spending time with them, just in a different way.
  3. Say “I don’t” instead of “I can’t.”
    “I don’t go to movies in the theater,” is different than “I can’t go to movies in the theater.” A change in terminology can be the difference between staying within your budget, and blowing it to bits.

A couple of good hardy “nos” and you’ll be a pro at it. You’ll feel better about your decision, and your budget will be saying YES!

Don’t Be Such a Waste

Wasteful spendingDon’t be such a waste. Wasteful spender that is. Financial experts estimate Americans spend 10%-15% of their income on unnecessary items. (Read: Things you don’t need!) Or things like fees or services charges that are certainly avoidable.

We asked our Money Possible participants what they found they waste money on.

Fredica brings up a common one: cell phone. She says her monthly payment could be lower.

Lisa and Bryan admit wasting money on things like a soda at the gas station, or food and drinks at sporting events.

Fredica, Lisa and Bryan are in good company.

Unnecessary bills, fees, or or simply paying for a service you don’t need is at the top of the “money down the drain” list. So are “extras” at entertainment venues, like popcorn at the movies. At $5 a bag, that’s enough to pop your wallet!

Wasteful spending items can include any or all of the following, and can really add up:

  • Memberships you don’t use (gym, Sam’s club)
  • Late fees (pay your bills on time!)
  • ATM service charges (use your financial institution’s ATM. Credit unions have a network of surcharge free ATMS…7,000 of them! Or at least take out a big chunk of money so you don’t have to use the ATM every week)
  • Services you don’t use (check your bills – don’t use call waiting on your landline anymore? Who does? Get rid of it!)
  • Unlimited data on a mobile device (only text your teenage daughter? Use a limited data plan to save money)
  • Junk food (eat before you go!)

Need more money wasters? How about drinks and dessert when eating out? Those alone can tack on an extra $20 on your restaurant bill…and an extra $4 in tip…so really an extra $25! Sheesh!

Here’s another, and it sounds stupid. But you can waste $100 a year on electronics that are plugged in when not in use. Just don’t pull the plug on that annoying clock that you have to set every time the electricity goes out. It’s not worth it.

And by all means, pay those dang bills on time! Get your act together, organize your household expenses and budget and never pay a late fee. It’s just money down the drain.

Need more?
Yahoo Finance: Ways to Waste Your Money

Already Over Budget For the Holidays?

Control Holiday SpendingThe holidays are upon us, and so is the season of overeating and overspending. Although the average person only gains two to five pounds during the holidays, that same person may pile on 40 percent more debt on their credit cards during that same time.

And here’s another statistic: the average consumer will spend $786 on holiday gifts this year, and 30% will spend more than $1000. Do you have an extra $700 laying around this month?

It’s a bit late to do anything about this year’s holiday spending, but let’s talk about what you can do next year. How about a Christmas Club account at your local credit union? If you start your 2014 holiday saving next month, you can save for the holidays a little at a time, which is way better than racking up your credit cards the last month of the year.

According to this article in The Wichita Eagle, Christmas Club accounts (and layaway options at retails stores) used to be popular avenues to keep holiday spending under control.

“More than four decades ago, layaway was a common method used by consumers to pay for holiday gifts. So, too, were Christmas Club savings accounts, which allowed consumers to routinely set aside a certain amount of money and, at the end of a 12-month period, withdraw the amount they had saved plus interest, then use that to pay for Christmas.”

So, to keep you in the black for next holidays season, determine your budget for the holidays, and start setting aside money monthly in January. These funds should be in addition to your regular savings goals and budget requirements.

Yes, we know it’s hard, especially when those holidays bills start rolling in. Keep in mind you may need to cut back on your spending for a few months to get yourself back on track…just like you’ll need to cut back on those holiday sweets so you can quit wearing those sweatpants.

By starting your holiday saving now, you won’t put yourself into holiday debt then and the holidays might be more enjoyable for you.

As for the overeating…well, we can’t help you with that!