In our first topic for 2007 we cover Money Saving Tips

01.  Save money on your energy bills
02.  Saving money on grocery shopping.
03.  Saving money on insurance
04.  Saving Money on Trips
05.  How to Save Pennies for a day

Debt to Income Ratio Basics

Having a savings account is extremely important. Emergencies happen when we least expect it and sometimes they are hard to deal with emotionally so having to financially struggle does not help the situation. Everyone should have a savings account in case you get sick, lose your job, your car breaks down or something else happens. I know that most of you are sitting there saying yes, that would be nice if I had the money. That is exactly what I was thinking when someone told me that but truth is we all have the money we just do not know it.

Now you are thinking oh yea well where? I will tell you where. Your house, car, or bank accounts for example. There are many ways in which we can cut down our expenses. Most Americans do not know how to save money. We pour money into our houses, cars, and other aspects of our lives that can be put into our savings accounts. Throughout this newsletter I will talk about ways to save money in our houses, gas tanks, vacations and insurances.

I urge you to start a savings or emergency fund by using the examples in this news letter. Our tax income returns that we receive should go into a savings account for our futures. We have unconsciously learned to budget on what we have and when we get more we feel like we can spend it instead of saving it. If this does not apply to you congratulations you make up about 15% of the United States!

Throughout the year our company offers educational financial seminars to various companies. One of the biggest new years resolutions that people tell me that they make is to save money. The problem is many people do not know how. I will now go over the same tips that I give in my seminars. I challenge you to try them in your daily life and encourage you to give some feedback as to whether they helped you.

Save money on your energy bills

1. Automate your energy use
A simple way to lower your energy bills is by investing in a programmable thermostat. This device costs on average $30 to about $80. The purpose of this thermostat is to reduce or increase the temperature while you are out. You can program this device to turn off or lower your temperature while you are not there. For instance if you go to work at 9 am until 5 pm you can program it to shut off at 9:15 am and turn back on at 4:30pm before you arrive home. It is also great when you are on vacation. It will keep the house from getting too cold or hot when you are not there. On average it saves consumers about $100 a year.

2. Every degree counts
For every degree you lower your thermostat can cut your bill by 3%. I do not mean you need to be uncomfortable in order to save money. One tip that is often given is to keep pans of water near vents. The reason this will help is because humid air retains heat better than dry air. If you do that you will feel comfortable without taking money out of your pocket.

3. Unplug items that are not being used
Electronic items that are not being used account for 5% of the nation's total energy use. Toasters, TV's, stereos and other electronic items often times are only used for a short period of time. By having them plugged in you are using electricity due to displays and memory chips. If you do not plan on using the item that often or going on vacation unplug it and save yourself some money. It is easier if you have a few items on a power strip. That way with one switch you can disconnect a few items at a time.

4. Invest in a low flow showerhead
Showers are more energy efficient than a bath. However showers still account for almost half of your hot water energy costs. You can buy a low flow showerhead, which will cut your costs by almost half for only $20. If you are not sure if you already have a low flow showerhead place a gallon bucket under your shower and turn it on. If the water reaches one gallon in less than 20 seconds you need a new showerhead.

5. Clean your fridge
Believe it or not by vacuuming off the coils in the back of your fridge you can actually save energy. The coils get dusty and it takes more energy to keep food cold. The same goes for your dryer. If you clean out your dryer's exhaust hose it will be more efficient also.

6. No more hand washing your dishes
If you fully load a dishwasher you will use about 40% less water than hand washing each dish. Another benefit to this is that the dishwasher sterilizes your dishes. Plus you save a lot of time.

7. Microwaves are better than toaster ovens
Did you know that microwaves use more than 50% less energy than a conventional toaster oven? For big meals use the stove.

8. Save on gas
I know that everyone wants to save on gas especially with the prices fluctuating so much lately. Keep your tires pumped up. Under inflated tires reduce fuel efficiency. If you are in cold weather you should check your tires more often since the cold weather tends to reduce your tire pressure. Another tip on saving money on gas is to find out when the shipments arrive. If prices are going up it is better to buy gas before the shipment arrives. If prices are going down then buy gas after the new shipment.

9. Insulation
Did you know that if you insulate your attic it would save you money on energy bills? The reason is simple a cool attic means a cool house. If you have your attic insulated it will make your house cooler since it will hold in heat. Do not forget to insulate the attic door. The heat will escape through an uninsulated door.

10. Car pooling or public transportation
Car pooling is a great way to save money especially for people who go to work or school. Ask someone in your office or school that lives near you if they are interested in driving together. You both will save money and plus you will have company. You both will win. Public transportation is always a great option. Find out the local bus or train schedule. That can save you a lot of money not only in fuel but also in car maintenance.

Saving money on grocery shopping.

Find out if the stores have a loyalty card

Most stores offer loyalty cards, which in turn can save you a lot of money. These cards are free and worth your while. They are usually required to receive the discounted price. I recommend getting one even if it is not your usual store. Often times once you sign up for these cards you will receive coupons and mailing lists through the mail. If they notice that you have not been shopping there in a long time sometimes they will send you extra incentives. For example the store may send you a flier that states they missed you and next time you come in you will receive an extra 10% off or other incentive.

Look for weekly ads for stores.

Most grocery stores put out a circular that often has coupons in it. Be careful though because featured items do not mean sale. You should know your prices before taking advantage of any of the "deals" in the circular.

Planning ahead can save you a lot of money

Think about the products that you and your family routinely use. Actively search online for coupons. Often times if you go to the manufacturers website they offer coupons for their products, especially new products. Remember a few dollars adds up.

Before you go shopping be sure to make a list and do not go on an empty stomach

Try to stick to the shopping list. Too many times we go shopping without a list and get home and realize that we didn't need most of the stuff in our cart. Going shopping on an empty stomach results in a lot of items that we would not normally buy. When we are hungry we tend to buy anything that looks appetizing.

Research and learn prices of items

Sometimes different stores have the same items at different prices. By knowing the lowest prices and where they are offered it can save you a lot of money. To surprise you even more different counties offer the same products at different prices.

Keep track of items that you use frequently

When they are on sale stock them up.

Use generic items

Generic items are the store brands also known as the knock off brands. They use the same ingredients, often times they are made by the original manufacturer. However they are often half the price of the main brand. This is the same for medicines. Keep in mind that the FDA, which means that they must be the same, regulates all medicines in the U.S exact as the original. This can be a huge savings.

Pick your stores wisely

Wholesale stores like Costco often offer discounted prices when you buy in bulk. Check out these stores and their membership fees to see if it is worth your while. You usually have to buy an annual membership to these stores that is around $50. You would want to make sure your savings for the items you would buy is more than the fee.

Look for coupons in various places

Coupons can be found on the Internet, newspapers, in stores, by mail, and other places.

Buy items that are going out of stock or in season

Reuse the coffee beans. It sounds crazy, but to reuse them just add a little bit of the new ones to the old ones. It will taste the same. Try it out.

Buy day old bread

Often times stores offer day old bread cheaper. It will not taste stale. You can put it in the microwave for 10 seconds to warm it up and no one will know the difference except your wallet.

Saving money on insurance

• Look into purchasing insurance from a low price insurer for car insurance and home owner/renters insurance. Contact your state insurance department for a list showing the average prices. Do not stop there go ahead and contact a few insurance companies and get quotes and compare them.
• Think about lowering your coverage on car insurance or raising your deductibles. By doing this it will lower your monthly payments.
• If you decide to switch plans be sure one is effective before canceling the other.
• Be sure you purchase enough home insurance to cover the dwelling (structure) and it's contents.
• If you are interested in buying life insurance decide what you need.
• A term life insurance policy is good for just an insurance policy and not an investment.
• If you plan to buy a policy as an investment also known as a cash policy plan to hold onto it for at least 15 years.

Saving Money on Trips

• Book ahead for any trips you will want to take. Any time you book a plane fare try to book at least 2 weeks in advance. The fares are lower when you book in advance.
• Use the Internet to your advantage. There are many websites that offer reduced prices for travel by plane or cruise ship. They also offer discounted rates if you book you car rental, hotel, and airfare through the site.
• Travel in large parties. Often times you can receive reduced fares when you have a lot of travelers.
• Do not travel at peak times. Find out when the fares are lowest to different places. For instance traveling around the holidays is often expensive. If you are planning to go away for the holidays try to leave a couple days before. It could save you lots of money. Also leaving in the middle of the week is often cheaper than leaving on a weekend.
• When booking hotels find out if they offer any special deals or accept any discounts. There are many hotels that accept AAA or a senior discount.
• If visiting a theme park such as Disney World stay off the grounds. The hotels and resorts that are located on the site are often two to three times more money than those located 5 to 10 minutes off the site. Look into them and find out if they have a shuttle available to take you to the amusement area.

How to Save Pennies for a day

The Soda

1 can of soda = $0.65

1 can of soda per day x 5 days per week = $3.25

1 can of soda per day x 5 days per week x 50 workweeks = $162.50

Total soda savings: $162.50 a year

The Donut and Coffee

1 cup of coffee and a donut = $1.90

1 cup of coffee and a donut per day x 5 days per week = $9.50

1 cup of coffee and a donut per day x 5 days per week x 50 workweeks = $475.00

Total donut and coffee savings: $475.00 a year

Total saving per year $ 637.50

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Got a question? Then contact our Education Team on 561-883-2398 Ex.310 United conducts regular seminars on financial education, including "How to Budget", come along and join us - to reserve your seat contact our Education Team on 561-883-2398 Ex.310

Newsletter 01
Rev.1
January, 2007