Super simple plan to save $63 this month

According to the Financial Industry Regulatory Authority (FINRA), nearly 60 percent of Kansans do not have a rainy day fund. That’s a whole lot of umbrellas we’re going to need in a downpour.

And 21 percent of us spent more than we earned last year!

This is probably why 30 percent of Americans are in debt collections.

It doesn’t have to be this way. Here’s a super simple plan to save $63 this month.

Just save.
Set a savings goal of $1.25 per week: $5 per month.

Generic vs. name brand.
Buy generic spaghetti sauce: $1.98 per month.
By switching from Classico spaghetti sauce to Wal-Mart’s Great Value spaghetti sauce, you can save $3.78 per month (based on using 66 oz of spaghetti sauce per month).

How we came up with $1.98 per month:
Classico: $3.82 for 44 oz, 0.08 per oz
Great Value: $3.50 for 66 oz, 0.05 per oz
If you use 66 oz per month, you’ll spend $5.28 per month using Classico or $3.30 per month using Great Value. Using a generic brand will save you almost $2 per month just on one item!

On-time payments.
Make your payments on time: $34.18 per month.
This one should be a no-brainer. The typical bank in Kansas charges $34.18 in late fees.

Lunch.
Twice a month, swap eating out lunches with brown bag lunches: $11.38 per month.
This is based on the Big Mac meal at McDonald’s which is $5.69 per meal. Here’s another example: If you ate out twice for lunch at Applebee’s, you’ll spend $16.98 (based on the cost of the classic + signature option lunch combo).

Dinner.
Order water instead of a soft drink twice during your dinners out this month: $4 per month.

Use a credit union.
Use a credit union instead of a traditional financial institution: $7 per month.
On average, a consumer can save $84 per year simply by using a Kansas credit union (or $159 per household). Divide $84 by 12, and you’ve saved $7 a month. And those late fees? If you bank at a credit union, you’ll reduce your late fee from $34.18 to $24.56, a savings of $9.62.

• Total savings per month: $63.54.

Turn $100 Into $1000

Daily 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.

Quick Tip: On Time Payments

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.

On Time Payments

By making credit card payments on time, you can save $30-35 per month in late fees which could free up an extra $500 a year.

Our Debt is Embarrassing

We know we suck at money management…we just gave ourselves a C or lower in personal finance class. But then we say we are spending more and basically not doing anything about it.

Yet, we are embarrassed about our credit card debt…more embarrassed about that than our weight, age, credit report or how much money is in our bank account.

It’s embarrassing and we stress about it. We’d like to say “don’t sweat the small stuff,” but your finances aren’t “small” and maybe sweating it would do you some good.

If you’re this far, the good news is you CAN find the light at the end of the tunnel. It’s called “saving money.” And it can be the answer to all your financial woes.

The bad news? It’s going to take some work. For the rest of your life (or until you don’t have to worry about money anymore). Money management doesn’t just “go away” once you have it in order. It takes lifelong tending and growing.

Go Girl Finance has some ideas to get you started saving money and living stress-free:

Identify the problem. Be serious…what is the real issue? Spending too much on fancy-schmancy stuff? Too much activity on your credit card? Or is there just not enough income coming in? Find out why you are stressed about money, then make a plan and start getting organized.

Stay positive in the present. Nobody likes a Debbie Downer. But it’s easy to become one and jump on the “woe is me” bandwagon. Focus on what you are doing now and give yourself a daily pep talk. Remember what Stuart Smalley used to say: “I’m good enough. I’m smart enough. And doggone it, people like me.”

Put yourself in the power seat and know that you can change your situation. Above, we said you need to make a plan. This is when you put that plan into motion, little by little. Remember, it’s a marathon not a sprint. One small change (like saving $25 a month) can have a snowball effect, and encourage you to do even more.

Exercise! Yes, move your body more than just lifting the remote. Exercise is a great stress buster. Just a regular old walk around the block can put you in a better mood, and relieve stress.

Savvy Money says to track your spending. Maybe not forever, but this is a must for a few months. Here’s how it should pan out:

• 35% for housing
• 15% for transportation
• 15% for debt
• 10% for savings (this is NON-NEGOTIABLE!)
• 25% for any other living expenses

If you feel like housing can be a lesser expense, use it towards another category. It’s your choice! You can borrow from any category EXCEPT savings.

Managing your money smartly takes time, effort and dedication on your part. But we know you can do it…because you’re good enough, you’re smart enough, and doggone it, people like you.

Money Brain

There’s “mommy brain,” “senior moments” and “blonde moments.”

Well…now there’s “money brain.”

Experts say being a spender or saver depends on your brain. What you’ve been taught at home has something to do with it too, but in this post, we’re talking about that gray matter between your ears.

Recent research shows that while parents do have an effect on your financial habits, your brain’s chemistry plays a role too.

We won’t bore you with case studies, focus groups and medical gobbledygook, but here’s the deal: some of you get a thrill from instant gratification (buying that super cute pair of shoes NOW) and some of you get excited by “the deal” (think shopping sales or seeing your savings grow).

Think about it: When you get a free meal, doesn’t it taste better? Or if you find those super cute pair of shoes HALF OFF, aren’t they all that much cuter?

If you want to read the research, read The Psychology of Money-How Spending and Saving Habits are Programmed in Your Brain or The New Science Behind Your Spending Addiction.

Now that you know “you can’t help spending” … well, actually, you can…but if you feel you are one of those people like our friend Fredica (who had a spending problem, but now realizes she can control it) here’s some tips:

• Use cash. The simple act of seeing the dollars can help. A credit card is just a plastic card, right? You can’t see the money being spent until it’s too late (and $300 later).
• Use an ATM or branch office to withdraw your money, and make sure you get a balance inquiry. This helps you see your dwindling account.
• Never “put it on my tab.” Pay as you go so you keep track of how much you are spending. Wait…the only place we know of where you say “put it on my tab” is a bar, and you shouldn’t be wasting money there anyway.
• Don’t be swayed by “the big sale” or sales people! Remember that Friends episode when Joey bought all that stuff for his new apartment and racked up a major credit card bill?

Ross: What… what’s that?
Joey: It’s my VISA bill. “Envelope one of two.” That can’t be good.

No Mr. Tribbiani, it’s not good.

Don’t buy things because they’re on sale. Buy them because they are a need.

• Know the difference between needs and wants. Read this “Needs vs Wants” from a recent post.
• We’ve said it before. Tell someone you are trying to control your spending. A good friend will stop you from buying too much. A great friend will buy it for you. JUST KIDDING. Don’t think we want you to be a charity case. A great friend will help you and may even suggest a financial counselor at a credit union or non-profit agency.

No matter if you are a spender or a saver, you brain has a lot to do with your money smarts, as well as the habits you learned early on in your fiscal career. The bottom line is all about control, and we know you can control your brain. Well, most of us can.

Quick Tip: Smart Uses For a Tax Refund

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.

Smart Uses For a Tax Refund

The average tax refund has been around $3,000. Don’t blow it. Pay off credit card debt. Boost your savings. Build your retirement fund. Or even invest in your home.

Poll results: What is Your 2014 Financial Goal?

Our informal poll results are in:

More than a quarter (27 percent) of respondents goal is to pay down credit card debt. That’s a biggie…the average household owes more than $7,000 on their cards, and 15 percent of us roll over more than $2,500 in credit card debt per month.

Twenty percent said the goal was to save for a milestone like college, a new baby or retirement. Did you know the average college graduate owes $35,000 in debt in 2013? Or that you’ll spend about $10,000 on a baby in the first year alone? Or that you’ll need eight times the amount of your ending salary to retire? Things to think about…

Only 13 percent are saving for a “big ticket item” like a house, car or much needed vacation.

This is the big one…almost half of you (40 percent) want to build your emergency savings.  You are in good company. Roughly 75 percent of Americans are living paycheck-to-paycheck, with little to no emergency savings, , according to a recent survey released by Bankrate.com.

Fifty percent of those surveyed have less than a three-month cushion and 27 percent had no savings at all. People…this is not good. All households should have at least three months of living expenses saved.

How Your Tax Refund Can Help Your Financial Goals

Nobody likes taxes. Have you seen the new commercial for tax software or tax preparers? They make it sound all fun and easy…like some kind of party: ”You did so much crazy, awesome stuff. So, we’re pretty sure you can answer questions about those things and file your taxes on your own.” Another claims: “Get Your Billion Back!”

Well, for one thing, you won’t get a billion dollars back, and did you really do some crazy, awesome stuff?

Maybe you used to…and are thankful every day that phones with cameras and social media did not exist back then…but last year? Not so much.

Worrying about taxes is an adult thing, and definitely not a party. Taxes are that dreadful thing that rears its ugly head. Every. Single. Year.

Some people can’t wait to get that tax refund. In fact, many count on it. According to a Fidelity survey, most Americans (75% of you) will get a refund…to the tune of $2,700 (See? Definitely not a billion dollars).

The good news is that most people say they will save or pay down debt with their tax refund.

Wait…save it? Pay off some debt? Psshhh…that’s not fun at all. Sounds like something Sandra Dee would do.

In fact, 33% said they intend to pay off debts and 46% plan to use the money for some kind of savings (retirement, college, etc). Such a responsible bunch…you know the type…Teacher’s pet. Goody-two shoes. Responsible citizen.

Yes, people want to be responsible financially…no one wants to be debt. These statistics are the light at the end of the tunnel. Individuals and families want control of their financial situation. They want financial health.

Start the ball rolling with your tax refund. According to creditcard.com, the average credit card debt per U.S. adult is $4,878. With your $2,700, you could cut away good chunk of that debt…and be on your way to that billion dollars…all on your own.

New Year’s Resolutions Focus on Finances

The ball has dropped, the party hats worn, and the champagne bottle is empty. Bid farewell to 2013, and wave hello to 2014.

With the new year comes a fresh start. A new page. New resolutions.

According to a survey by GoBanking.com, saving money and paying down debt were the most popular financially related New Year’s resolutions. And according to a Dec. 30 Forbes post, the resolution to pay down debt has tripled since 2010.

What’s interesting is that when the responses are broken down by income level, both the lowest income bracket ($0-$24,000) and one of the highest ($100,000-$149,000) reported the highest response rate to both saving money and paying down debt.

This reveals that financial issues affect all income levels, and not just those on the lower end of the income ladder.

Saving Money
The 52 Week Money Challenge seems to be a popular and simple way to save money over a year. Each week, put away the designated amount of money. Easy peasy lemon squeezy!

Paying Down Debt
To jump-start your effort to pay down debt, try paying just $20 more on your credit card bills, loan payments or medical bills. You will be amazed at how fast this little bit adds up.

For example, if you owe $3,300 on a credit card at a 14.96% interest rate, it will take almost 20 YEARS to pay off the debt if you only pay the minimum balance. And it will cost you $7,600! That’s more than double the amount of the debt. By paying just $20 more than the minimum amount, you pay off that card in four and half years, plus you will save about $3,000 in interest fees.