May Topic - "Saving Money in Today's Economy"

01.  Sample Budget Worksheet
02.  Save Money on Gasoline
03.  Save money on your energy bills
04.  Saving money on grocery shopping
05.  Saving money on insurance & Trips

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1. Sample Budget Worksheet

Once you figure out where you can cut expenses and how much you spend we go onto our next step. This is where you will find out how much you can save. Add together your expenses and then take that number and subtract it from your earnings (after taxes). That is the number that you can save. Let's be honest here you are not going to put all that money into savings. Take 10% to 20% and leave it out for other unexpected expenses. For instance, if you had $600 take $60 to $120 and put it to the side while you put the rest in savings. If you are really disciplined hopefully you will end up saving it anyway. As a financial counselor I have learned the hard way no one likes to feel like all their money is tied up in savings. Everyone likes to have extra spending money in the checking account. By doing this unconsciously people tend not to spend it. Try it and I will prove to you it works.

I cannot reiterate it enough stop using credit cards for daily purchases. Unfortunately we are living in a plastic world. Basically everywhere takes credit cards nowadays. The problem with this is that we overspend since we are not constantly reminded how much is coming out. The best thing you can do is use cash. It is easier to budget and know exactly how much is being spent. I do recommend using credit cards for certain expenses such as a new dishwasher that costs $800, however I urge you to pay it off before interest accrues. Many of us are not going to have a lot of money on us to pay cash for expensive items, plus using credit allows you to free up cash and build your credit score. The major downfall to credit though is the obscene interest rates. Be sure you are buying something that can be paid off very shortly. If you can't, you may end up paying $1,000 for an $800 dishwasher.

Now that you are saving all this money where should you put it? Look around at banks and credit unions. Go for an interest bearing savings account. Depending on how much you are saving and how long you may consider investment options. You will get more interest on a CD than a regular savings account. Be careful though since there are penalties on investment options if you take the money out prior to the expiration of the account.

Saving money sounds simple, but don't fool yourself it is not always easy. There are many temptations available to us everyday. Set your goals, follow these steps and with a little will power you will achieve what you are reaching for. The most important thing to remember is not to get discouraged. Remember good things take time. Click here to Download our monthly budget worksheet.

2.Save Money on Gasoline

Don't drive. Do not drive to unnecessary places. Try to plan your trips so that you are getting everything done in one area of town. Also consider carpooling and splitting the gas with someone else. Public transportation may also be an option depending where you live.

Replace your air filter. Changing the air filter to a more efficient brand of air filter may cost you more initially however could save you more in fuel costs.

Spend the money on a tune up. Getting your car maintained will actually save you money on gas. Using less gas will save you money. Go for your regular oil changes and get your engine checked.

Buy a hybrid car. Hybrid cars give you immediate savings. The U.S. government and your local state offer tax breaks for people who use hybrid cars. Federal deductions can be as high as $2,000. Hybrid cars are often more expensive so if it is not affordable get a regular car with good MPG such as miles per gallon. The rule of thumb is the smaller the car, the better the mileage.

Use the lowest recommended octane for your car. The lowest octane gas is cheaper. Most new cars are made to run most efficiently on the lower octane fuel. The other option is if your car requires 87 or 89 octane consider mixing the octane levels. For instance you can do half 87 and the other half 89.

Avoid Idling. Starting the car used to use a lot of gas, it is the same as idling for 30 seconds. Idling to warm up is really bad since the engine needs extra fuel to warm up. After start up, allow the car to idle 30 seconds then drive it until it reaches normal operating temperature. It is better to park your car and run into a restaurant rather than sitting through a drive through. The other issue with stopping and starting the car will cause your car extra wear. In very cold climates it is recommended to allow the car to warm up rather than just drive it. You could save gas.

Invest in a GPS system. GPS is a Global Positioning Systems, which will help you, navigate the fastest and shortest distance to your location. These systems are not cheap, however will save you money on fuel. Do some research and try to look for sales on a GPS. Around Thanksgiving there are usually huge discounts available.

Check tires air pressure weekly. Buy a cheap air pump and an accurate tire gauge. Keep all tires inflated as recommended. For the most part a slightly higher pressure will improve fuel mileage and handling. On the flip side will wear the tires rapidly.

Don't accelerate and then brake, and keep a safe following speed. When you ride too close to someone you tend to brake and accelerate more, which uses more fuel.

Slow down. Cars are most fuel efficient around 55 mph according to Environmental Protection Agency.

Do a spring cleaning in your car. The lighter the car the less fuel. Empty your car of items that you do not need. If you have bicycle rack or ski rack that is not being used remove it.

Wait to fill your tank until needed. By doing this it can extend your gas since your car is lighter as the tank nears empty. This will also allow you to see if gas prices will drop and research if one gas station is cheaper than another. Once you do fill up be sure to fill it completely. It is more cost efficient to fill it all at once than taking several trips to the pump.

Watch where you fill up. Take notice where you fill up regularly and try to keep in mind when they get refilled. If you know that the station has just been refilled steer clear of it for a couple days. When the tanker dumps it gallons of gas the sediment and old gas gets mixed up. This can cause a decrease in fuel efficiency.

Don't look around looking for a "better" spot. If you drive around for minutes looking for that close spot you will end up burning fuel. In addition try to park in a shady area. Gas will actually evaporate in the sun.

3. 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 dish washer 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. 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.

9. 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.

4. 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. A lot of times things go on sale or are cheaper when they are in season especially fruits and vegetables. Other items that go on sale are items that need to be sold to make room for new flavors such as ice creams. Ice cream flavors often go with the seasons. For instance, around the holidays they often have eggnog ice cream and other holiday flavors. After the holiday season they want to get rid of those flavors so they put them on sale.

To all the coffee drinkers. Reuse the coffee beans. It sounds crazy, but reuses 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 time's 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.

5. Saving money on insurance & Trips

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 their 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.

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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 05
Rev.1
May, 2008