Money Saving Tips

Here we are in late 2009 and the recession is lingering on. While the stock market numbers aren't quite as dismal as they were a year ago (when people lost everything), employers are continuing to shed jobs by the thousands. Despite the perpetual gloom that hangs over the news headlines, many people are taking this time to discover new money saving tips that will help them in good times as well as bad.

"Getting organized" tops the list of money saving tips because, without organization, you can't get anywhere. Many consumers end up paying late fees, reactivation charges, interest and penalties all because they missed a due date when their papers got shuffled into a pile. Not surprisingly, "Getting Organized" was right up there with "Losing Weight" for Top New Year's Resolutions in 2009. A quick stop at Office Depot to buy a $30 filing cabinet is a great way to get started. You might want to have hanging files of different bills (credit card, car loan, taxes, utilities, mortgage, etc) and you might want to demarcate a section for "unpaid bills." Next, invest in accounting software like Myelopes, Quicken or Microsoft Money. Why test out your amateur mathematician skills when you can use a computer's expert accuracy every time to ensure no mistakes are made on your annual budget? You'll find all your financial information is neatly filed and printable for your convenience. These programs can even remind you to pay bills, allow you to check your finances online, track your purchases and lets you know how much you have left to spend in each category based on the initial budget you set up!

The next aspect of money saving tips is comparing your expenses to the norm. You may want to do a little online research to see what the average household spends in certain areas. For instance, the average American household spends about 33 to 38% of their income on housing, 15 to 19% on transportation, 13 to 14% on food, 9% on personal insurance, 5% on entertainment, 4 to 5% on clothes, 4.5 to 6% on out-of-pocket healthcare, 4% on credit card or consumer debt, 2.5% on charity, 2% on reading and educational materials, 2% on miscellaneous items, 1% on personal care products and 0-3% on alcohol/tobacco/caffeine. Come up with a realistic budget for your household and see where you can save some money.

Following these money saving tips, and especially during the current recession, may feel like a culture shock at first. You might instinctively want to rebel against the plan the moment it's written. The best way to adhere to your plan is to leave in some allowances for fun. Instead of seeing the $10 movies, you can opt for the $1.50 cheap shows, for instance. Or you can dine out once a week — but at lunch time, instead of dinner time. After a while, you'll find that saving money can be quite liberating, actually. As former US President Calvin Coolidge once said, "There is no dignity quite so impressive and no independence so important as living within your means."

Rene Lacape is a seasoned insurance agent. He has been dealing with both corporate and individual accounts for several years up to the present. If you need him, you can check his website and give him a call. Act now.