Table 1

Money Savings Tips

In addition to having good budgetary habits, it also helps to take advantage of money-saving measures. The following are a few of the things you can do to help you save thousands of dollars per year.

Item

Suggestion

1

Tax Advisors

Use tax advisors to avoid overpaying taxes

2

Investments

Utilize investments that have low to no commissions, fees and expenses

3

Borrowing

Shop around for the lowest interest rates

4

Insurance

Consult your eFinplan financial plan to determine the insurance you need and meet with a professional insurance advisor to help you find the lowest prices possible. (eFinPlan is not an insurance provider.)

5

Living Smaller

Live a lifestyle one to two notches below your income bracket. Smaller homes and cars, and fewer belongings require less money to maintain and insure

6

Cheaper Vacations

Camping or lower cost destinations (or off-peak weeks) often are more enjoyable than expensive resorts and tourist destinations

7

Transportation

Transportation consumes a large percentage of family income; see the Transportation and Commuting article in the eFinplan.com learning center

8

Food

Pack your lunch, eat out less often and at less expensive establishments, avoid expensive beverages when you eat out (such as coffee), and shop at the least expensive grocery stores

9

Identify Wants versus Needs

Because of quick credit extended to the last generations, people have learned to live above their means on a regular basis; therefore, many of us need to learn to identify what wants and needs really are. For example, having a manicure or buying season passes to your favorite sports franchise may be difficult to justify, unless you can afford it.

Table 2

Budgeting Tips

Item

Suggestion

1

Use technology or spreadsheets

Obtain software (or use spreadsheets) that will help you pay bills and make and monitor a budget

2

Devote time to it

Keep track of all expenses and enter them into your software program or monthly spreadsheets each week

3

Save all receipts, bills, household documents, and tax documents

Organize these items by category into an accordion file or drawer: e.g., auto, bank, business, credit cards, dental, medical, grocery, income, insurance, mortgage, utilities, general receipts, school information, and taxes.

4

Balance your checkbook

It is amazing how few people balance their checkbooks monthly. Budgeting software makes reconciling simple, but you can read the back of your statement or make an appointment with your banker if you need to learn this skill manually.

5

Tax Time

If you use budgeting software, you can run a tax summary report before you work on your taxes. If not, and if you itemize your taxes (Sched.A), you must total the appropriate columns in your spreadsheets, e.g., Medical expenses (Your accountant may provide you with an organizer to help you get ready for tax time.)

6

Set Expenses

Remember to place quarterly and yearly expenses on the appropriate month in your budget so that you do not overspend. For example, annual insurance payments, quarterly tax estimated payments, annual homeowners association dues, etc.

7

Debit Cards for couples

Debit cards can make monitoring your spending very difficult, especially if both you and your spouse use one for the same checking account. Each spouse should regularly enter their receipts into the budget spreadsheets or software and communicate any unexpected or extra expenses.

8

Debit Cards for singles

Make sure that you are entering each receipt into the budget weekly and/or enter each amount into your checkbook as you make purchases. Be careful of overspending with this convenience.

9

Education for your children

Remember to include annual expenses in your budget for ‘pay to play’ fees, sports or school uniforms, school books and lab fees, pictures, etc. We usually budget around $600 in August to pay the public school fees for two children. Budgeting becomes even more crucial when your child heads off to college.

Table 3

Other Practical Tips

In addition to having good budgetary habits, it also helps to take advantage of money-saving measures. The following are a few of the things you can do to help you save thousands of dollars.

Item

Suggestion

1

Break Habits

Smoking and excessive eating of pre-prepared and fast foods costs thousands of dollars per year

2

Monitor Emotions

Shopping provides only a temporary relief from depression or stress. The real stress begins when the bills arrive.

3

Support Groups

Support groups for individuals with compulsive behaviors may be offered at a low cost (or free) by community centers, the YMCA, or churches.

4

Library: Educational

Obtain books from the library from their large inventory of resources about budgeting, financial planning and spending less

5

Library: Entertainment

Obtain good books and DVDs from the library for a source of free entertainment

6

Reduce or Eliminate Cable TV

If you are in financial crisis, eliminate cable or other cost-based TV. If not, consider reducing channels to the basic programming. Your quality of life may go up, by having less TV in your life when you consider some household’s over-consumption of news, violence, and sexually-oriented programming.