Found Money:
How To Generate Quick Cash
In An Emergency. Pt. 4/8
Table of Contents:
21 Money Saving Tips 24 Even You can Save on a Shoestring
24 Are You Ready to Start a Good Savings Plan?
27 Smart Tips for Living on a Budget
30 Tips to Help you Save
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• Eat a few hearty vegetarian meals each week.
• Shop garage sales for a great source of household items, books, clothing,
and furniture.
• Don’t buy bottled water! Buy a good water-filter and drink tap water.
• By the end of each day put all of your change into an empty coffee can.
Then roll coins as you watch TV or listen to the radio. This will add up to
hundreds of dollars very quickly and gives you something good to do with
your hands to relax.
Save money by reducing your energy costs. Energy can be the number two
or three expense, along with the cost of rent or mortgage and food.
Switch every single bulb to compact fluorescent bulbs. They may be expensive
but they last for years (no more replacements) and tend to use about 10-
20% of the energy of regular bulbs. Buy one each time you make a shopping
trip, starting in the high traffic areas of the house like the kitchen or stairway
until you no longer have any incandescent bulbs left.
If you own your home, seriously consider switching any electric heating
appliances to natural gas such as the hot water heater, furnace, stove or
dryer. Electricity can be used for almost any device, and you pay a hefty
premium on electricity for that. Gas is very efficient for heating devices; it
heats up much quicker and wastes far less energy.
Do all of your laundry in cold water. Most modern detergents are just as
effective in cold water as in hot water. Also, make sure any laundry that you
do is a complete and full load – it takes the same amount of energy as a
tenth of a load.
Try this trick with your dryer: Put it on for 20 minutes, and then put it on “air
fluff” for 15 minutes. Your clothes are already hot with the water coming off
as vapor and you’ll find although it takes about 20% longer, you save about
50% of the energy costs of your dryer.
In the colder months when you need to use your furnace, turn the heat on to
your desired temperature. When the furnace turns off (your house has been
heated to temperature), turn the thermostat to the off position. If you feel
cold, check the thermostat. If you 5 degrees below your desired
temperature, turn the thermostat on again to your desired temperature.
Often furnaces will kick in and out to maintain your desired temperature, but
furnaces are far more efficient when they are in the heat cycle for longer
periods. You’ll save about 50% on your furnace costs, even 30% over having
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a high-tech digital thermostat. Of course keep it completely off when you’re
out of the house.
If you ever leave the house for the weekend or longer, unplug everything.
That alarm clock or VCR blinking or DVD on standby still take power. If
you’re leaving the house for a week, you will save real money by just
unplugging all of these devices and you’ll protect your home from fire risks
should there be a malfunction or power surge.
Keep your fridge and freezer as full as possible. The fewer air spaces in your
fridge, the less time it takes for your fridge or freezer to cool the air. Don’t
have much money for food? Just buy a bunch of bread and throw it in the
freezer, you usually can get bread cheaper when you buy it in large
quantities anyway.
If you really need a magazine subscription make up a small group maybe
with three people to divide the costs. Then each person can keep the
magazine for one week.
Save money by throwing away any catalogs or magazines which tempt you
to buy something.
Cereal can be frozen and it keeps for a very long time. Before that, we could
never eat it fast enough and had to throw it away when it was stale. When
you pour milk on it, you would never know that it had been frozen. I have
not yet found a cereal that tasted bad from the freezer.
Don’t throw away your empty bags of milk. Instead cut them open and wash
them. You can use them as baggies. They also keep frozen foods fresh when
used with a sealer.
Save money by preparing your grocery list by planning menus for the coming
week and buy only what is on your list.
Borrow DVDs from friends and family instead of renting.
Set your washer to the shortest wash setting possible. Instead of washing
your clothes for 10 minutes put it on for 5 minutes. It saves on your electric
bill and on your clothes wear and tear.
Pick up the pennies, dimes and nickels found on the sidewalks or in parking
lots. Add it to the jar of loose change you are saving and by the end of the
year you can add this money to your emergency fund.
Foster the practice of team sports in your kids. The more time you spend
with your kids playing sports, the less time and money they will spend at the
shopping mall.
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To save money on gas, don’t fill the gas tank to the brim since the extra
weight of the gasoline takes extra toll on engine power. Take out all items in
the trunk which are not important to reduce vehicle weight.
Watch other peoples’ budget-conscious movies. Buy your own jar of popcorn
and add your own seasonings.
Turn off the heat at night and sleep with a hot water bottle. This works fine
in a small apartment, because it heats up quickly. For people with larger
houses, turning the heat down should work well, too.
If you must drink a specialty coffee, Espresso seems like a luxury item, but
because it’s ground finer, and you use less, the coffee lasts longer.
Shop eBay for things like razors, lotions, computer software, baby formula,
diapers, etc. If you can plan ahead, you will save.
Each pay period set aside any amount that you have budgeted for but did not
need to spend. For instance, you may have anticipated that $50 would be
needed to maintain your car, but only had to spend $30. Take the “extra”
$20 and put it into your savings account.
Even YOU can save while on a shoestring
Believe it or not, how much you save has little to do with how much you
make and studies have proven this! It is time to put away the excuses;
here’s a roadmap for finding money you didn’t even know you had.
That One Simple Word—Savings
When you hear that one, simple word, do you feel a deep sense of guilt? Of
course you do – we all do. That is because, like most Americans, 75% of
respondents said they knew that their savings, targeted for retirement, were
insufficient.
That’s cause for distress, perhaps, but not nearly as remarkable as the
discovery that how much you save now has very little to do with how rich
you are, today. This is so true in fact, that the middle-income earners
managed to save less than the lower-income earners in that same study.
Now this is remarkable when you think about it. Those with less saved more!
What is the secret to their savings success?
For those of us who scrimp and save endlessly and with so little to show for
it, these statistics are both annoying and embarrassing! It also means you
have no excuse for inadequate savings.
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The bottom line here is this: You just have to save, regardless! That means
for every $10 you earn, you MUST sock away at least $1 in savings. Does not
sound to be too difficult, right? WRONG!
UNLESS you have an iron clad savings plan, you will not save a single red
cent! The trick is in the purpose and the plan!
WHAT IS YOUR EMERGENCY PLAN?
ARE YOU READY TO START A GOOD SAVINGS PLAN?
You are ready but you feel at a loss as to how you will come up with that
extra money. You are already barely eking out a living. You can manage if
you train yourself to think differently. That is the first part of any good plan.
You have to think right. If you don’t think right towards your money, you
won’t be able to manage it.
Your First Step: Rethink how you think about money
Saving money is a calm state of mind. Before you can even begin, you have
to say NO to all of the spending—and stop thinking that you actually need all
the stuff you’re spending all of your hard-earned money on. Just don’t spend.
That is simple enough! Say NO to all of the excuses and reasons for why you
feel you MUST spend. Tell yourself, NO MORE EXCUSES, PERIOD! The very
next time you want to buy something, take the $50 or $100 out of your
wallet, instead and stash it away somewhere. Do you see the logic? That’s
why you call saving. You don’t end up with stuff; you end up with the hard-earned
MONEY.
Another new way of thinking will be to think of frugality as your savior.
Become a confirmed cheap skate and do as your most frugal friends do. Pay
special note to the fact that frugal friends fix the shower curtain instead of
buying a new one. Sit down with Depression-era relatives and ask about how
they made ends meet despite even desperate times. You want to learn to
economize.
The next step in rethinking is to become inspired. Spend all of your spare
time online and search out those frugal Web sites. Look at “living cheaply,”
“frugal living” and “voluntary simplicity.” You’ll find a ton of good Web sites
devoted to living on less, such as: thefrugalshopper.com, simpleliving.net
and frugaliving.com.
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Learn to turn shopping time into activity time. Go for a bike ride, walk down
memory lane, take the kids to the park; do anything and everything that you
can to take your mind off shopping and spending. It works!
Step # 2: Time to Save!
There are any number of creative ways to live on less. However, you don’t
want to make your life miserable. Here are some great ways to economize
without missing quality of life.
Don’t think too much about it – just do it! Direct deposit is now your best
friend! Your money is whisked away into your IRA, 401(k) or money market
account—and you don’t have to do a thing to make it happen. Just drop by
your payroll department and/or your bank and fill out the forms. Do it today.
Eat meatless some of the time. Go veggie. Prepare just three meatless days
a week (without substituting pricey fish) and you could save $25 a week,
which equals $100 a month, which equals $1,200 a year! Beans: You will
learn to love them.
Play the money game. Whenever you get a $5 bill, put it aside for later.
Alternatively, do the same with ones, with quarters or even all your spare
change. You’ll have a nest egg built up before you even miss a nickel.
Never spend the extras. Save all of your income-tax refund, your holiday
money from the folks, the $20.38 overpayment check from the telephone
company and any other extras and save every penny.
Negotiate and Haggle. You will be impressed by who will drop their prices,
fees and interest rates: airlines, hotels, credit card companies, and even
computer/appliance/rug salespeople. Before you even think about paying full
price: Haggle a bit first.
Re-evaluate your money before you spend. That dinner out for the family will
cost more than you spend on groceries in a week. That fancy pair of shoes is
worth half the cost of a commuter pass. Learn what your money is worth to
you, and you won’t be so quick to dispose of it.
Don’t overpay on your taxes. Yes, you love to get a big refund from the IRS
every spring. The fact is, though, you’re effectively lending money to the
government and interest-free. Go through your tax return and see if you can
hold out until Dec. 31 to maybe get a $150 refund. That way you can use
your money NOW should you need it for an emergency and bank the refund
when you get it later.
Decide to raise your insurance deductibles. Reassess each of the deductibles
for your various kinds of insurance. If you can raise them at all, your
premiums will drop.
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Bring your mortgage costs down. Look at whether or not the rate is too high.
If it is, look to refinancing – this will save you money. Now, let’s look at the
private mortgage insurance (PMI) you’ve been paying because you didn’t
have enough money to make a 20% down payment. If the equity in your
home is greater than 22%, make sure that it is cancelled. It’s the law.
Finally, pay up on your mortgage. If you can manage an extra $100 per
month, you will save thousands in interest costs over the long haul.
Toss out those nasty, glossy catalogs. The best-known form of spending
temptation known to man or woman is the catalogs. Sure they are fun and
look good, but are they worth the risk of spending? Chuck them straight out
into the trash.
Refuse those unnecessary fees. Like the $2.50 you pay just because the ATM
is right there, right now as opposed to walking two blocks to your bank,
where you don’t get charged at all every time you use your cash card.
Alternatively, how about the late fees for returning videos? These really add
up. Don’t forget those fat charges banks hit you with when you write a check
that, well, bounces.
Clean it yourself. I’ve discovered a very cool trick: When a clothing label
says, “Dry Clean Only,” I wash it. On the other hand, dab out that little
mustards stain with an old-fashioned cleaning device cleverly known as a
sponge.
Don’t pay for a pro. If you can fix the neighbor’s garage door and she can
paint the kitchen: go for it and save.
Put your raise in the bank. Put that tiny 3% to 5% boost in the paycheck on
your direct deposit and live on your previous salary.
Pay smart for long-distance. Evaluate all of the different telephone plans for
value. Pay attention to what you are currently paying per minute. Some dialaround
codes or cheap calling cards (one without a surcharge per call) may
give you a better rate. Not only will you save, but also you may find you
won’t need to speak to Alvin in Schenectady so often.
Just buy the basics for the pets. Say no to pet pampering. Does your dog
need those t-bone snacks? Does your cat need that rabbit-fur-lined toy?
Probably not.
Vow never again to pay full price. The next time you must shop, hop onto the
World Wide Web. Look for eBay, half.com and craigslist.org for excellent
sources of “lightly used” goods—everything from books to jewelry to office
furniture—even the entire first season of Star Trek on video.
When you are focused on being savings minded, you’re thinking about
money changes. Before you know it, you have substantial savings.
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Smart Tips for Living on a Budget
Regardless of the time in history and no matter what the current state of the
economy, no matter what the current trends are, no matter what the
unemployment rate is or where interest rates are, some money-saving ideas
always work and stay true.
Big changes come from small steps and if you determine to put even one of
these many savings secrets into place, you will see big change in your life.
You will now learn a variety of savings tips. You will learn how to best place
your hard-earned money in a variety of down-to-earth ways. What you will
learn about will set you up nicely in your day to day life.
Money Saving Tip #1:
The great Albert Einstein once said, “It takes a genius to see the obvious.”
Let these wise words guide you today. What he meant by that is that
sometimes the simpler things in life are the most powerful … but because
they are so obvious, we tend to ignore them, and not let them work for us.
One of the most powerful money making ideas is this: keep a daily diary of
everything you spend. Go to the dollar store, buy a little book, and carry it
with you wherever you go. Write down every penny – each single penny –
you spend. It’s just as simple as that.
If you do this one thing, you will find that something magical happens in your
financial life in only a few weeks.
There is something incredibly powerful about writing down each of your
expenditures. It makes the flow of money through your life more realistic and
exacting. It shows you simply and clearly just exactly where you are
spending your money, on what and why. Once you know this, it becomes
much easier to control your spending. You will feel empowered with self-control.
and this will encourage saving.
Many people who have taken up this practice have not only learned
something about themselves, which they never before understood, but they
are often astounded by the simplicity of the lesson learned.
For example, a person could realize through examining their notebook that
they actually spent nearly $1,000 throughout the year on diet soft drinks,
snacks and candy bars! Since their job only brings in $20,000 per year, they
realized that 5% of their entire income was being frittered away on
something entirely frivolous. The person gave up the snacks and drinks, and
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found they had enough money to go on vacation the following year. If you
had the choice between snacks and a much-needed vacation, which would
you choose? Of course you would choose the vacation, we all would.
The point is, it was their daily expense log that helped achieve the insight
and clarity they needed to realize control of their finances. That’s what a
simple spending record will do for you – it will give you much needed control
over your spending, and thus your financial life. There may be nothing but a
75-cent notebook and a ballpoint pen between your life of financial struggle
and financial freedom.
Money Saving Tip #2:
Stop deficit spending! We all know how Uncle Sam has been creating debt—
spending more money than our country takes in. It’s called deficit spending.
Well, don’t do the same! The same rules apply to you and me. Using those
nasty little plastic cards may be the “American Way,” but it’s a debt making
way and creates plenty of fools each new day.
Today, the average credit card holder is carrying around $8,000 in plastic
debt!
Spending yourself into such debt with a credit card is certainly very easy, as
many of you already know. The reason is psychological. When you give that
clerk a credit card, it’s just not the same as handing over a stack of green
dollar bills. Would you as readily hand over a pocketful of ten-dollar bills as
toss a credit card across a counter? Probably not. This one is a no-brainer for
most!
Credit cards put you in debt and keep you there. Even for people with good
incomes, paying your credit card debt down to zero can be amazingly
difficult. In addition, make no bones about it; credit card debt will sap your
financial strength just as readily as an open vein will deplete your physical
body of its very life force. Using a credit card by choice can quickly turn to
using it for need. Once you get to that point, you are already in trouble and it
becomes time to get some help.
There is no secret in freeing yourself from the credit card game. You must
take out a pair of scissors today, cut your cards in half, and begin paying
them back, slowly but surely. Be sure to always pay more than the minimum
amount due, even if it is only $10 more.
Once you stop adding to the debt, even small payments will eventually, add
up. You can get out of debt, if you are patient and self-disciplined. Once your
cards are history, you must adopt a strict pay-as-you go policy. Instead of
buying now and paying later, save now and buy when you have the full
amount. This is key to being able to save.
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Once again, stopping credit-oriented consuming is one of the most powerful
financial tools available to anyone today. Why not pick up this tool and use it
for yourself?
Money Saving Tip #3:
Sell all of your junk. That’s right; it’s high past time for a serious yard sale.
Search throughout your house or apartment for every single item that you
don’t really need, and then sell it all! Every last piece!
Take an inventory. The truth is, most people are astounded by what they
own – and how much money they have tied up in items they no longer need
and use. Why let it just sit and collect dust while it could collect interest
instead in a savings account?
You could easily be $600, $1,200 … even $5,000 richer by the end of the
week. As an added bonus, you’d have your place cleaned up, and you will
have a fresh feeling of beginning all over again. A garage sale is an excellent
way to start. Not only do you clean out your house, but also it often gives a
psychological boost that helps people get control of their life and money.
Money Saving Tip #4:
Ben Franklin said long ago: “A penny saved is a penny earned.” Yes, it’s still
true and still one of the most powerful moneymaking tips in all of history.
Understood well within Franklin’s famous statement is the difficulty of saving.
It’s tough to save and much easier to spend! We all know that! That’s why
every penny saved truly is earned – because it takes so much effort to hold
on to that cash! If you can do it, it will work magic in your life. Having a
savings account will de-stress your life. Imagine being ahead of your bills,
rather than behind. When you are ahead of your bills, you entire life comes
under your own control. You sleep better at night. Your mind is freer to come
up with new ways to make more money and save more. Saving is contagious
– once you let it get started!
Some Tips to help you save:
1. Don’t settle for interest checking. Have a separate savings account
that can’t be as easily accessed as a checking account.
2. Keep your savings in a different bank – one that’s off your regular
route, or perhaps even in different town. That way you won’t be tempted to
dip into it every time you visit the bank to make a checking deposit.
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3. Buy short-term savings bonds, which have 6-month to one-year
maturity dates. You will get a higher rate, while at the same time keeping
your money close in case of real money emergencies.
4. If you can, open the account under two, different names and require
that both signatures be required to make a withdrawal. Two people can
debate each withdrawal and keep each other in line.
5. When you get your paycheck, immediately put a minimum of 5% in
your savings account. After just a year, you’ll be amazed by how much you
have actually saved and you will feel great about it.
Visualize abundance and wealth everyday. Am I actually suggesting that you
practice some sort of mysticism that will make you into a “money magnet”?
Perhaps yes, maybe no. Call it what you wish – a mind game, mysticism,
New Age—the solid fact is that behind every wealthy man and woman is a
positive attitude toward money.
Look at it like this: It costs ZERO one way or the other to have either
negative or positive thoughts. So why not have positive thoughts AND
increase the ODDS?
There have been many studies done on the thought patterns and the mindset
of some of the richest, most successful people in the world. The one thing
that they all had in common was a positive attitude toward money and their
ability to earn and keep it.
WHAT HAVE YOU LEARNED? RESPECT MONEY AND THINK POSITIVELY
TOWARDS MONEY. THIS IS A GREAT START TO MEANINGFUL SAVINGS.
The key to being able to raise emergency money when needed most is to be
in the right frame of mind about money in the first place. Think positive
about money and spending and save. You can’t beat that equation!
7 Serious Ways to Save Money – Not for the Faint of Heart
Do you truly want to save? Take a serious look at how you spend and then
change it. Quit smoking those cigars, take in a roommate, park your car—
and you’ll save as much as $10,000 a year. It really is just as easy as all
that!
Are you finding it harder and harder to blame savings shortfalls on your
measly pay check?
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