Being a homeowner on a budget is nothing to be ashamed of, if anything, most people prefer to keep their expenses low, especially after recently purchasing a home! But,there are some things you shouldn’t cheap out on, and we’ve got you covered.
The post 5 Things You Should Pay Premium for as a Homeowner or Renter appeared first on Homes.com.
Source: homes.com
Have you ever sat down to go over your budget only to find out that youâve outrageously overspent on food? Local, organic, artisan goods and trendy new restaurant outings with friends make it easy to do. With food being the second highest household expense behind mortgage or rent, our food choices have a huge impact on our budget. Using this monthly budget calculator can also help guide how to budget for food.Â
You may be surprised to find out that the most nutrient-dense foods are often the most budget-friendly. Itâs not only possible, but fun and easy to eat nourishing, delicious food while still sticking to your budget. Here are 11 ways to help you learn how to budget groceries.
Before you figure out what you should be spending on food, itâs important to figure out what you are spending on food. Keep grocery store receipts to get a realistic picture of your current spending habits. If you feel inclined, create a spreadsheet to break down your spending by category, including beverages, produce, etc. Once youâve done this, you can get an idea of where to trim down spending.
How much each household spends on food varies based on income level and how many people need to be fed. Consider using a grocery calculator if youâre not sure where to start. While people spent about 30 percent of their income on food in 1950, this percentage has dropped to 9â12 today. Consider allocating 10 percent of your income to food as a starting point, and increase from there if necessary.
This is the least fun tip, we promise. Eating out is a quick and easy way to ruin your food budget. If youâre actively dating or enjoy going out to eat with friends, be sure to factor restaurants into your food budget â and strictly adhere to your limit. Coffee drinkers, consider making your favorite concoctions at home.
Itâs much easier to stick to a budget when you have a plan. Plus, having a purpose for each grocery item you buy will ensure nothing goes to waste or just sits in your pantry unused. Donât be afraid of simple salads or meatless Mondays. Not every meal has to be a gourmet, grandiose experience.
Keep a magnetized grocery list on your fridge so that you can replace items as needed. This ensures youâre buying food you know youâll eat because youâre already used to buying it. Sticking to a list in the grocery store is an effective way to keep yourself accountable and not spend money on processed or pricey items â thereâs no need to take a stroll down the candy aisle if itâs not on the list.
If your mother gave you this advice growing up, she was onto something: according to a survey, shoppers spend an average of 64 percent more when hungry. Sticking to a budget is all about eliminating temptations, so plan to eat beforehand to eliminate tantalizing foods that will cause you to go over-budget.
50 percent off ketchup is a great deal â unless you donât need ketchup. Beware of coupons that claim youâll âsaveâ money. If the item isnât on your list, youâre not saving at all, but rather spending on something you donât truly need. This discretion is key to saving money at the grocery store.
Not only is the bulk section of your grocery store great for cheap, filling staples, but itâs also the perfect way to discover new foods and bring variety into your diet. Take the time to compare the price of buying pre-packaged goods versus bulk â itâs almost always cheaper to buy in bulk, plus eliminating unnecessary packaging is good for the planet.
Bonus: a diet rich in unprocessed, whole plant foods provides virtually every nutrient, ensuring optimal health and keeping you from spending an excess amount on healthcare costs.
Picture this: youâre trying to stick to a strict food budget, and one day at work you realize itâs lunchtime and youâre hungry. But alas, you forgot to pack a lunch. All the meal planning and smart shopping in the world wonât solve the work-lunch-dilemma. Brown-bagging your lunch is key to ensuring your food budget is successful. Plus, it can be fun! Think mason jar salads and Thai curry bowls.
Would you ever consider throwing $640 cash into the trash? This is what the average American household does every year â only instead of cash, itâs $640 worth of food thatâs wasted. With millions of undernourished people around the globe, throwing away food not only hurts our budget but is a waste of the worldâs resources. Tossing food is no joke. Eat your leftovers.
To avoid wasting food, freeze things that look like theyâre about to go bad. Fruit thatâs past its prime can be frozen and used in smoothies. Make double batches of soups, sauces, and baked goods so youâll always have an alternative to ordering takeout when you donât feel like cooking.
Sticking to a food budget takes planning and discipline. While it may not seem fun at first, youâll likely find that you enjoy cooking and trying a variety of new foods you wouldnât have thought to use before. Being resourceful and cooking healthfully is a skill that will benefit your wallet and waistline for years to come.
Sources: Turbo | Fool | Forbes | Medical Daily | GO Banking Rates | Value Penguin
The post How to Budget Groceries: 11 Easy Tips appeared first on MintLife Blog.
Source: mint.intuit.com
Change has to start somewhere, and for many people that change is easier to make if the starting point has some meaning. It can be a birthday, an anniversary, or any other date with some symbolic weight. Most commonly, people choose the beginning of the new year.
If you’re looking for some New Year’s resolutions that will truly change your life, consider adjusting your financial strategy. Here are five things you can do in 2021 to take your money game to the next level.
Interest rates are at near-historic lows, which makes this the perfect time to refinance your debt. Refinancing means switching your loans from your current lender to a new lender in order to take advantage of a lower interest rate. Refinancing can save you thousands of dollars, depending on the original interest rate and total balance.
 For example, letâs say you have a $200,000 30-year mortgage with a 5% interest rate, and you refinance to a 3% interest rate. Your monthly payment will be $244 lower, and youâll save $31,173 in total interest over the life of the loan.Â
You can refinance auto loans, personal loans, and even student loans. However, if you have federal student loans, you may want to hold off on refinancing. Refinancing a federal student loan converts it into a private student loan. This means youâll give up extra perks and benefits like income-driven repayment plans and deferment and forbearance options.
If you have credit card debt, you can pay less interest by transferring the balance to a new card with 0% APR on balance transfers. These special discounts usually last between 12 to 18 months, during which time you wonât be charged interest on the credit card balance.
For instance, letâs say you have a $5,000 balance on a card with a 17% APR. If you only make the minimum payments, youâll pay $1,223.61 in total interest. If you transfer that balance to a card with 0% APR for 12 months and repay the balance in that time, you wonât pay any interest.
There is often a small fee associated with balance transfers, around 3% of balance transfers. For example, if you transfer $5,000, youâll pay a $150 fee. That still leaves a net savings of $1,073.61 in the scenario outlined above.
One of the best things to do for your budget in 2021 is to decrease fixed expenses like your car insurance, internet, cable, and cell phone. Call those providers and try to negotiate a lower rate.
 Go through your transactions for the past few months and write down all the recurring subscriptions like Netflix, Amazon Prime, and DoorDash. Then, group them into categories like âfrequently use,â âsporadically useâ and ârarely useâ. Consider canceling anything you rarely use.
 See if you can get a better deal on your most popular subscriptions. For example, if you and your significant other both pay for Spotify Premium, get a Spotify Duo account instead, and save yourself $83.88 a year.
Most people are missing out on an easy way to earn money through your bank account. You could be leaving hundreds of dollars on the table if you still have a traditional savings account.
According to the FDIC, the current average interest rate on a savings account is 0.05%. Many high-yield savings accounts offer rates between .40% and .60%.Â
Letâs say you have $10,000 in a savings account with .05% interest. After one year, youâll have earned $5.04 in interest. If you moved that amount to a high-yield savings account with .5% interest, you would earn $49.92 in interest over that same time period.
If you’re not investing for retirement yet, this might be the most important financial resolution you can make. Thanks to the power of compound interest, you can start investing now and see huge growth by the time youâre ready to retire.
IRAs and 401(k)s are the two main retirement accounts. Anyone can open an IRA, while only those who have access to an employer-sponsored 401(k) can open one.
 If you’re not sure how to invest in your retirement account, consider hiring a qualified financial planner through the National Association of Personal Financial Advisors (NAPFA).
If youâre not ready to work with a financial planner, you can use a robo advisor like Betterment or Wealthfront, which will create a portfolio based on your age, income, and expected retirement age. Robo advisors have low fees and are designed to help beginner investors.
First, start small. Pick one habit to change at a time. If you try to accomplish five goals at once, you’ll burn out quickly and give up.Â
When you decide on a resolution, break it up into smaller, more manageable tasks. For example, if your goal is to talk to a financial planner about investing, break it down into the following steps:
1) Research financial planners through NAPFA
2) Send introductory emails to three financial planners
3) Choose the one that seems like the best fit
4) Schedule a consultation
Give yourself a deadline to accomplish each of these tasks, and ask a friend to hold you accountable.
Another tip is to tie your resolutions to a bigger goal. Like dieting or starting a new exercise plan, changing your financial habits is hard. If you’re used to grabbing lunch with your co-workers every day, bringing leftovers from home instead will seem like a huge change.
The key is to imagine the future version of yourself who will benefit from the changes you make today. If your goal is to open and contribute to a retirement account, imagine yourself as a senior citizen living comfortably.
When youâre tempted to skip this monthâs retirement contribution to buy concert tickets, think about your future self, what youâd want for them and how they would appreciate your sacrifice. It can also help to remember some of the financial mistakes you’ve made in the past, and how much easier your life would be right now if you had made a different choice.
The post The 5 Best Financial New Year’s Resolutions appeared first on MintLife Blog.
Source: mint.intuit.com
Mia, 35 and her husband Luke, 36, earn a combined $200,000 per year. But after paying their mortgage and rental property loan, as well as car and student loans, child care, and other living expenses, the Los Angeles couple has a difficult time socking away money in savings.
They do have about $10,000 in a rainy day account, which could cover their expenses for about one month. But adding to the account has been proving difficult.
Luke feels confident that if they ever run into a serious financial bind, they could always take advantage of their low-interest home equity line of credit. But Mia isnât comfortable with that route. Sheâd prefer to have more cash on hand.
A bit more background on the couple and where they stand financially:
Luke recently transitioned to a new job as a government attorney, which he loves, but it also meant taking a 50% pay cut. Thatâs impacted their ability to spend and save as comfortably in recent months. It was an unexpected opportunity for which the couple wasnât financially prepared.
Mia and Luke would like an objective look at their finances to discover ways to reduce spending, increase saving and possibly find new revenue streams. âIâd love to figure out a side-hustle, so that I can eventually leave my job and spend more time with the kiddos,â says Mia, who works in marketing. Other goals including affording a new car in a couple of years and remodeling their primary residence.
Hereâs a closer look at their finances:
Income:
Debt:
Retirement:
Emergency Savings: $10,000
College Savings: The couple has 529 college savings funds for both of their children. They allocate their cash back rewards from credit cards towards these accounts. Currently they have about $10,000 saved for their 4-year old and $5,000 saved for their 1-year old child.
Top Monthly Spending Categories:
From my point of view, I think the biggest hole in Mia and Lukeâs finances is their rainy day savings bucket. Relying on a HELOC to cover an unexpected cost is not really an ideal plan. In theory, the money can be used to cover expenses and the interest rate would probably be far lower than the rate on a credit card. But in reality, tapping a HELOC means falling further into debt. They do have $10,000 saved, which is good. But itâs not great.
If not for an emergency, the savings can allow them to achieve other goals. The couple mentioned wanting to buy a car in a couple years. This will probably require a down payment. Having cash can also assist with renovating their home.
Here are my top three recommendations:
Their previous residence is now a rental property. It nets them about $500 per month. The couple is using this money to pad their living expenses. Can they, instead, move this into their savings account for the next few years? The way I see it, they should have a proper six month cushion in savings to tide them over in an emergency and/or if they need money to address their goals. This rental income isnât going to get them to this 6-month reserve too quickly, but itâs a start.
While I donât have a detailed breakdown of all of the familyâs monthly expenses, I can bet that they can pare their expenses to save an additional $300 to $500. A few dinners out, some unplanned purchases at the grocery store (because you took the kids) and a couple monthly subscription plans can easily add up to $500 in one month. Whenever I want to save more, I schedule money to transfer out of my checking and into savings at the top of the month. I do this automatically and only spend whatever money I have left. Iâd suggest doing this for the first month and seeing how it feels. Do you really notice the money is gone? If yes, revisit some of your recurring costs and decide on trade-offs. If Lukeâs salary has decreased by 50% then the couple needs to make some modifications to their spending. The math, otherwise, wonât add up.
Mia is interested in a side hustle, too, to bring in extra income (which I highly recommend). Sites like tutor.com, care.com, taskrabbit.com and others can help you find quick work within her preferred time frame. In the meantime, can she and her husband find ways to adjust their work hours or commute, which saves gas, time and money?
Miaâs commute to work is one hour each way. Thatâs ten hours per week stuck in a car. And my guess is that while Miaâs driving, sheâs paying for daycare, for at least some of those hours. Could she work from home one or two days per week to reduce her time in traffic, as well as her child care costs?
Bottom line: When Lukeâs income dropped by 50%, the couple didnât adjust spending. It may help to take pen to paper and imagine they were building their budget for the first time. Take all of their expenses off the table and rebuild the budget and lifestyle to better align with their adjusted income. Start with the absolute needs first: housing, insurance, food. And really scrutinize all other expenditures. Unless itâs an absolute need that they can easily afford it, consider shutting it off until theyâve reached a 6-month savings pad.
The post We Earn $200,000 and Canât Save. Help! appeared first on MintLife Blog.
Source: mint.intuit.com
Do you want to know, “What can I do as a side job?”
Today, I have a list of over 80 possible side hustle ideas for 2021. With these side jobs, you can make extra money in 2021.
So, what is a side job? I say side job meaning something that you do on the side of your regular job.
Side jobs are sometimes called side hustles, and the idea is that you put some of your extra time towards making more money.
You can find side jobs online, side jobs from home, side jobs outside your home, and pretty much wherever else. There are many different options when it comes to finding side jobs for extra money.
Over the years, I have spent a lot of time making extra money through side hustle jobs.
In fact, I paid off my $38,000 student loan debt in just 7 months by side hustling. I did several of the things on the list that you are about to read through.
Learning how to find a side job changed my life in a crazy way — it helped me to stop living paycheck to paycheck, pay off my debt, and leave my day job to pursue my job as a full-time blogger.
And, this is why I talk about making extra money through a side job so much — because I believe that it can change your life for the better.
What I like so much about the ideas on this list is that there is something for everyone. There are really so many different options. While I have included over 80 different side job ideas, there are many, many more out there. You can find something to fit your lifestyle, interests, and the amount of time you have to dedicate towards earning more money.
Whether your goal is to pay off your debt, stop living paycheck to paycheck, start saving for retirement, plan an amazing vacation, or something else, finding a side hustle idea in 2021 can make that a reality.
Making extra money through a side job can help you:
What some people don’t realize about making extra money is that it doesn’t have to take all of your time. You can dedicate as much or as little time to it as you want. I started this blog on the side of my full-time job. It took a lot of work, but I was in control of when I worked.
That’s one of the reasons I love blogging and many of these other side jobs. Many of them are very flexible and let you pick your schedule. Below you’ll find great options if you work full time, are a parent, are in school, etc.
Besides starting a successful side hustle, there are some great small ways to earn extra money. The point is, there are so many ways to make money on the side with a full-time job that there is no reason not to start now.
Related content on how to make extra money:
There are so many side jobs that can be found online these days. The internet has introduced more possibilities, many of which have extremely flexible schedules.
Working an online side job allows you to create your own business in your spare time or work remotely for a company. These are some of the flexible options for 2021.
For me, I love being able to work online as it allows me to have a flexible schedule, there is no commute, and I simply enjoy working from home more than working in an office.
Below are ways to work an online side job:
If you’re looking for a side job, one possibility is to create a side business for yourself.
The ones you just read about above are online side jobs, but many of the ones in this section require in-person work. Not everyone wants to work online, and these side jobs will get you outside of the house and earning money.
For me, my side business of creating a blog actually turned into a full-time business for myself. And, I am so happy that I made that choice!
Here are some side business ideas:
Online side jobs are becoming more and more popular, but you can still make good money with more traditional part-time jobs.
I know many people who have part-time side jobs, and they love that they are low-commitment ways to make extra money.
You can find a part-time side job on sites such as Snagajob, Craigslist (yes, I’ve found a legitimate job through there before), and so on.
There are so many different types of items that you can sell to make extra money.
You may be able to find things around your home that you can sell, or you may even search for items online or in-person to buy and resell for a profit.
If you’re already employed and not interested in starting a side hustle, by starting an online business, or taking on a part-time job, you can still learn how to earn more at your current job.
Of course, I can’t include every single side job in this blog post, as there are way too many options to list in one place. But, here are some more that didn’t fit one of the categories above.
If earning $1,000 a month or more is your financial goal, there are lots of different approaches.
You can run Facebook ads for small businesses, deliver food for Postmates, start a freelancing side job, and more. Or, you can combine several smaller side jobs.
If you are willing to put in the work, starting a blog is something that can help you earn $1,000 a month or more. It takes time to grow your blog, but with time and effort, you can well exceed $1,000/month in blogging income.
There are so many different ways to make money on the side in 2021, and I just gave over 80 different ideas.
Look through the options above and make a list of the ones that interest you. Think about what skills you have, how much time you want to dedicate to your side job, and how to get started with each option.
There are honestly options for anyone, no matter how much time you have to spare. And remember, even just a $100 extra a month can begin to make a dent in your debt, can be invested for your future, or help you stop living paycheck to paycheck.
If you have any questions about finding a side job, I recommend heading to 10 Of The Most Common Questions About Having A Side Job.
Some of the questions I answer in that blog post include:
Out of the side jobs listed above, which one interests you the most? Which side job would you like to learn more about?
The post 80+ Best Side Job Ideas To Make Extra Money in 2021 appeared first on Making Sense Of Cents.
Source: makingsenseofcents.com
Due to financial consequences of COVID-19 â and the broader impact on our economy â now is an excellent time to consider refinancing most loans you have. This can include mortgage debt you have that may be converted to a new loan with a lower interest rate, as well as auto loans, personal loans, and more.
Refinancing student loans can also make sense if youâre willing to transition student loans you currently have into a new loan with a private lender. Make sure to take time to compare rates to see how you could save money on interest, potentially pay down student loans faster, or even both if you took the steps to refinance.
Get Started and Compare Rates Now
Still, itâs important to keep a close eye on policies and changes from the federal government that have already taken place, as well as changes that might come to fruition in the next weeks or months. Currently, all federal student loans are locked in at a 0% APR and payments are suspended during that time. This change started on March 13, 2020 and lasts for 60 days, so borrowers with federal loans can skip payments and avoid interest charges until the middle of May 2020.
Itâs hard to say what will happen after that, but itâs smart to start figuring out your next steps and determining if student loan refinancing makes sense for your situation. Note that, in addition to lower interest rates than you can get with federal student loans, many private student lenders offer signup bonuses as well. With the help of a lower rate and an initial bonus, you could end up far âaheadâ by refinancing in a financial sense.
Still, there are definitely some negatives to consider when it comes to refinancing your student loans, and weâll go over those disadvantages below.
Do you have student loan debt at a higher APR than you want to pay?
Do you have good credit or a cosigner?Â
Do you have federal student loans?
Are you willing to give up federal protections like deferment, forbearance, and income-driven repayment plans?
There are many reasons student borrowers ultimately refinance their student loans, although they can vary from person to person. Here are the main situations where it can make sense to refinance along with the benefits you can expect to receive:
While the reasons to refinance above are good ones, there are plenty of reasons you may want to pause on your refinancing plans. Here are the most common:
Before you move forward with student loan refinancing, there are some details you should know and understand. Here are our top tips and some important factors to keep in mind.
Because student loan refinancing is such a competitive industry, shopping around for loans based on their rates and terms can help you find out which lenders are offering the most lucrative refinancing options for someone with your credit profile and income.
We suggest using Credible to shop for student loan refinancing since this loan platform lets you compare offers from multiple lenders in one place. You can even get prequalified for student loan refinancing and âcheck your rateâ without a hard inquiry on your credit score.
Some student loan refinancing companies let you score a bonus of $100 to $750 just for clicking through a specific link to start the process. This money is free money if youâre able to take advantage, and you can still qualify for low rates and fair loan terms that can help you get ahead.
We definitely suggest checking with lenders that offer bonuses provided you can also score the most competitive rates and terms.
Also keep your personal eligibility in mind, including factors beyond your credit score. Most applicants who are turned down for student loan refinancing are turned away based on their debt-to-income ratio and not their credit score. Generally speaking, this means they owe too much money on all their debts when you compare their liabilities to their income.
Credible also notes that adding a creditworthy cosigner can improve your chances of prequalifying for a loan. They also state that âmany lenders offer cosigner release once borrowers have made a minimum number of on-time payments and can demonstrate they are ready to assume full responsibility for repayment of the loan on their own.â
Also, remember that you donât have to refinance all of your student loans. You can just refinance the loans at the highest interest rates, or any particular loans you believe could benefit from a different repayment term.
Once youâre ready to pull the trigger, there are four simple steps involved in refinancing your student loans.
Before you start the refinancing process, it helps to have all your loan information, including your student loan pay stubs, in one place. This can help you determine the total amount you want to refinance as well as the interest rates and payments you currently have on your loans.
From there, take the time to compare lenders in terms of the rates they can offer. You can use this tool to get the process started.
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Once youâve filled out basic information, you can choose among multiple loan offers. Make sure to check for signup bonus offers as well as interest rates, loan repayment terms, and interest rates you can qualify for.
Once you decide on a lender that offers the best rates and terms, you can move forward with your full student loan refinancing application. Your student loan company will ask for more personal information and details on your existing student loans, which they will combine into your new loan with a new repayment term and monthly payment.
Whether it makes sense to refinance your student loans is a huge question that only you can answer after careful thought and consideration. Make sure you weigh all the pros and cons, including what you may be giving up if youâre refinancing federal loans with a private lender.
Refinancing your student loans can make sense if you have a plan to pay them off, but this strategy works best if you create a debt repayment plan you can stick with for the long-term.
The post Should You Refinance Your Student Loans? appeared first on Good Financial Cents®.
Source: goodfinancialcents.com
The post 50 Ideas To Help You Get Out of Debt! appeared first on Penny Pinchin' Mom.
When it comes to trying to get out of debt, I’ve seen and heard it all. Â From the person who gets three jobs to the guy who sold his dream car – just to make it all happen. Â It got me to thinking – what are some of the craziest ideas out there to help you find your way out of debt?
I decided to make a fun post about the craziest ideas people have tried just to try to get their debts paid off. Â The funniest thing is that these really do work! Â Who knows? Â Maybe one of these will inspire you too!
Things are that – just things. Â They don’t define us, and they don’t always make us completely happy. Â My husband and I sold so many items when we were trying to get out of debt that we were able to raise more than $1,000. Â The thing is – I can’t even remember what we sold (which proves that they were things we obviously did not really need). Â Here are some unconventional ideas of things you can sell:
1. Hair.  This may sound bizarre, but people will pay for long hair!  Crafters often use it for making dolls, so they will pay to buy it.  You will need to have at least 10″ or more to sell, and the price will vary greatly. You can visit eBay to learn more and get started.
2. Toilet paper / paper towel rolls. Â Have you been on Pinterest and seen the number of craft projects which require a paper towel or toilet paper tubes? Â They are all over the place!
You can get onto local sites such as Wallapop, Craigslist or even visit eBay and list your products for sale. Â It may sound crazy, but it actually can work.
3. Gift cards. Â If you get a gift card for any reason, be it a return or even a gift, you can turn around and sell the card. Â You won’t get quite face value for it, but you also can at least get paid cold hard cash.
They don’t have even to have the full value on them. Â For instance, if you had a $100 gift card to your favorite sporting goods store, but you only have used $26.48, you can still sell your card, and another person can use the remaining balance.
Visit Raise.com to learn more about placing your gift cards up for sale.
4. Daily Deal vouchers. Â Did you buy a deal on LivingSocial and haven’t yet redeemed the voucher, you can sell it.
5. Â Sell things you don’t need. Â Use eBay, Craigslist or LetGo to sell the stuff you do not need anymore. Â Go through your home and decide what you need and what you could sell to raise some quick funds to pay off your debt!
These are things that just make sense and most people think about…but you may not have thought of every one of them!
6. Â Budget. Â Of course, it seems this should go without saying, but it is not always obvious. If you don’t have a budget, you have no control of your money. Â Learn How to Create a Budget.
7. Coupons. Â Start using coupons to save as much as you possibly can at the grocery store. Â Then, use the amount you save to pay towards your debt! Read more about How to Use Coupons.
8. Change where you shop. Â If you live near an Aldi, start to buy groceries there. Â Skip the clothing store and find consignment stores to find gently used clothes. Â Read more about How to Shop at Aldi.
9. No more dinners out.  This is a tough one, but it works.  Best of all, its not something you will have to give up forever!  Just think, if you spend $100 or more a month dining out that is more than $1,000 to pay towards your debt in just one year!
If you do have dinner out, skip the soft drinks and go for water instead, which is free! Â Make sure you also pass on the appetizers and consider splitting a larger entree to pay less.
10. Give up your hobbies. Â If you are an avid golfer, you might give that up for some time and use the monthly dues to pay towards debt.
11. Menu plan. Â By planning your meals, you not only know what you will have for dinner, but it also helps you plan your shopping trip. Â That ensures you have all you need on hand when you get ready to cook all of your meals – saving you from running to the store for that “one item,” which often leads to more. Â Read more about How to Create a Menu Plan.
12. Ask for rate reductions.  Contact your creditors to see if they would lower your interest rate at all. This is not always something that works, but it is definitely worth a few calls to see if it won’t work for you. Learn the tricks to asking for a rate reduction.
13. Avoid paying monthly fees. Â If your bank charges monthly fees, ask them to waive them. Â If they will not, consider moving to another one which offers free banking. Â Even $5 a month is $60 a year that you are giving to them, just to have your account.
14. Keep the change. Â I always use cash. Â I don’t even pay with change. Â If the total is $6.42, I hand over $7 and keep the change. Â I roll all of this once a year and usually have quite a nice amount saved up. Â Best of all – I never miss it!
15. Â Overbudget. Â This is a fun way to get extra money. Â We may budget $300 for groceries every two weeks, but I will do what I can to keep my shopping way under this amount. Â Then, I take anything left over at the end of that two weeks and save it (you could use it towards your debt). It’s a fun way to challenge yourself to see how little you can spend!
16. Â Change insurance. Â Make some calls to find out of you can get a better rate on your auto and home (renter’s) insurance. Â You can sometimes find a better deal by bundling or even by increasing your deductibles a bit.
17.  Skip the evening movies.  If you love to visit the movies try the matinee instead!  You can usually pay less by catching the afternoon show. Make sure you pass on the snacks too, as those can add up quickly!
18. Â Don’t buy books. Â Instead of buying books, visit the library or get free Kindle books. Â No need to buy them at all, when there are ways you can get them for free! Â Find out more ways to get free books.
These are ideas which do not work for everyone, but have worked to help others get out of debt very quickly!
19. Stop retirement contributions. Â If you are in debt, you might want to take that 15% you were saving for retirement and throw it all towards your debt. Â As soon as you are debt free, you can start that contribution again (and maybe even do more than that to other accounts).
20. Cancel cable completely. If you really want to go drastic, you need to take all steps necessary to do so. Â Cable can run more than $100 (or even more than $150) per month. Â If you can cut out cable entirely, you might quickly free up $100 or more every single month!
21. Sell your car. Â If you are leasing a vehicle, that is a simple way to throw money away, as you will never own it. Â Turn in the vehicle and then take out a loan to purchase a much older car, where you will pay less per month. Â Best of all, you will own it in a few short years!
If you have an expensive vehicle, you can also sell that and then purchase an older car, which will reduce your monthly overhead (and possibly taxes and insurance).
22. Move. Â If you are renting or even if you own your home, consider downsizing to pay less each month. Â I know many people have opted to sell their home and use any income to pay towards debt, and then they rent until they are debt free. Â Then, they save to get the house of their dreams, which they can purchase debt free!
23. Â Turn off your home phone. Â This can run $30 or more a month. Â Just use your cell phone and cancel your home service.
24. Downgrade your cell phone. Â Try to reduce the data you use to see if you can’t lower your monthly payment on your cell phone. Â Stick with your home internet for most of your data usage, and you can use your phone less and less and rack up the savings.
25. Â Swap services. Â Instead of paying for babysitting, exchange time with another couple. Â You watch their kids for free, and they can do the same for you. Â You might be able to swap your tutoring for haircuts or your lawn mowing for handyman repairs.
26. Â Make gifts. Â Instead of buying people gifts for birthdays and holidays, consider making them yourself. Â You could even offer a “service” gift where you will babysit once a month for a year, etc. Â Find a way to give from the heart instead.
27. Â Budget bill your utilities. Â If you can, arrange for budget billing with your services. Â This can make it easier to include your budget and will avoid those swings in the summer or the winter when certain utilities may be more expensive.
28.  Drop the gym or country club.  If you have a membership of any sort, just cancel it.  If you work out at the gym, try to find free videos you can follow at home or create your own workout plan. If you like to golf, go with a friend instead of paying for your membership.
29. Â No more coffee trips. Â Make your coffee at home each morning and cancel that run through the drive-thru.
30.  Take your lunch.  It is great to go out to lunch every day, but pack your lunch, and you’ll ensure you eat up leftovers. Not only will you waste less food, but you’ll also save a nice chunk of money every month.
31. Â Carpool. Â Take turns driving to work and save money on fuel and also wear and tear on your vehicle.
32. Â Set up no spend months. Â This is a tough one, but see if you can go a few weeks without spending anything more than you need to survive. Â That means no dining out. Â No entertainment. Â No clothes. Â Just food and fuel and that’s it!
This is a bit different than working from home. Â These ideas help you make a bit more money just doing things you might already do – like search the internet, shop, etc. Â These sites will pay you money to do just that. Â Then, turn around and apply anything you make towards your savings.
33. Swagbucks. Use this site to get paid for doing searches and other things you normally do online!  Click HERE to learn more about Swagbucks.
34. Sell crafts on Etsy. If you are good at crocheting, woodworking or anything at all, look at selling your wares on Etsy. It is a simple platform and the costs are very low, which allows you to keep most of what you make from each sale.
35. Rent a room in your home. Â If you have a walk-out basement, consider renting out the space to make more money. Â Just check with your local laws and homeowner’s association to ensure this is allowed before you jump in to start this one.
36. Sell stocks. Â If you have investments, considering selling them and using the proceeds to pay towards your debt.
37. Give music lessons. Â If you know an instrument or you can sing, consider selling your time to help teach others.
38. Tutor. Â Find your expertise and teach others. Â You never know who you might be able to help!
39. Start a blog. Â You may not get rich with your blog, but it can turn into a nice stream of income! Â Learn more about How to Start a Blog.
40. Â Visit garage sales and upcycle. Â Find items very inexpensive at a yard or garage sales. Â Put in some elbow grease, paint and creativity and turn them into something you can sell for a profit. Â Check out flea markets and farmer’s markets for larger items and for places where you can sell your items.
41. Â Find holiday work. Â When the holidays roll around, many stores hire employees for a short 6 – 8 week period. Â Sign up and put in some extra time after your regular job and make some extra cash you can use to pay down your debt.
42. Â Become a mystery shopper. Â This is a great way to get some things for free. Â This is not a way to get rich but is an excellent way to get some of the things you need for free (which allows you more money to pay towards your debt).
43. Become an eBay master. Â Purchase items on clearance or at deep discounts and then sell them for a profit on eBay. Â You can still offer prices which are less than in the store, but more than you paid.
44.  Ask for a raise. Don’t be afraid to ask for one. Make sure you share the additional work or responsibilities you’ve taken on as a reason why. Or, if it has been a while since you last had a raise, you can mention that too.  It never hurts to try.
45. Â Sell an eBook. Â If you are an expert in any field, or if you love to write, create a book you can sell on Amazon!
While there are things that you can physically do to save or to make money, you need to get your brain into the right mindset too.
46. Â Make your goal visible. Â If you want to get out of debt so you can afford to save for a vacation, tape a photo of the destination where you see it each day. Â It could be on your office wall, bathroom mirror or the refrigerator.
47.  Learn to be happy with less.  Sure, a new TV might be fun to own. It could be enjoyable to go out to dinner.  However, do you need those things?  Probably not.  Find a way to be happy spending time at home spending no money at all, and you’ll realize how much those things don’t matter.
48. Â Learn to say no. Â You may need to tell friends you can’t go out to dinner. Â It may mean telling the kids that they can’t get that treat at the grocery store. You may need to say to yourself that you do not need to grab that afternoon latte. Â Learning to say no can easily keep more money in your pocket.
49. Â Give more. Â This may seem crazy, but it actually works. Â When you give more of yourself to others, you feel better. Â Best of all, giving is not always financial. It can mean your time or even your prayers.
50. Surround yourself with the right people. If your friends encourage you to spend money, then you might want to distance yourself from them (at least until you can get better control over your finances and self-control). Â Find other people who think like you do so that they can encourage and build you up.
There you’ve got it. Â Fifty ways to help get you out of debt! Â Which are you getting ready to try?
The post 50 Ideas To Help You Get Out of Debt! appeared first on Penny Pinchin' Mom.
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Austerity policies are nothing new. But talk about them in the news has recently escalated. In response to its ongoing debt crisis, the Greek government is preparing to implement austerity measures aimed at helping the country regain its financial footing. If you didnât major in economics or you have no clue what austerity means, read on to find out how this fiscal program works.
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Austerity: A Definition
Trust us, austerity isnât as complicated as it sounds. Austerity is a type of economic policy that governments use to deal with budget deficits. A country faces a deficit whenever itâs using more money than itâs earning from tax dollars.
By taking on an austerity package, a government hopes to reign in its spending, improve the status of its economy and avoid defaulting on its unpaid debt. Governments usually take on austerity measures in order to appease their creditors. In exchange, these lenders agree to bail out countries and allow them to borrow more money.
If you look up the word austere in the dictionary, youâll see that it means severe, grave, hard, solemn and serious. Indeed, austerity is nothing to joke about.
Austerity Measures
Austerity plans normally involve increases in different taxes, (property taxes, income taxes, etc.) budget cuts or a push to incorporate both. Government workers could lose their jobs or see their wages and benefits either decline or become stagnant. Hiking up interest rates, adding travel bans and keeping prices at a fixed level could be other strategies put in place to reduce spending.
Naturally, austerity measures typically arenât viewed in the best light because they mean that there might be fewer government programs available to the public. Aid for veterans and low-income families, healthcare coverage and pensions are some of the benefits that normally take a hit when a countryâs using an austerity package. Government services that arenât eliminated might not be as comprehensive or as beneficial as they once were.
As you can see, in an austere environment, conditions are tighter overall. Historically, austerity has been implemented in the US during tough times including World War I, World War II and the Great Recession of 2008.
Greeceâs new austerity package â which government lawmakers finally accepted in July 2015 â will feature less government funding, higher taxes and cuts to pension plans. As a result of this deal, the country was allowed to begin talks with its creditors about a third bailout.
Related Article: All About the Greek Debt Crisis
The Problems With Government Austerity
Experts on the economy tend to go back and forth about how effective austerity can be. Some believe that instead of turning to austerity, the government should pump out more money and borrow as much as possible if an economy is on the rocks.
From a political standpoint, austerity is often controversial and results in riots and demonstrations. Anti-austerity protests erupted in Greece, where quite a few folks say that past austerity programs have only made social and economic conditions worse.
Beyond slowing down the economy, an austerity bill can cause a country to remain in its debt crisis, particularly if itâs in the midst of a recession. As fiscal austerity decreases spending, GDP can go down while unemployment goes up. Consumers can get nervous and stop spending and investing their own money.
In short, austerity policies can make life even more difficult for people who are already struggling. Thatâs why governments tend to turn to them as a last resort if other strategies arenât working.
Why Austerity Might Not Be So Bad
Notable European creditors have argued that austerity can be beneficial to a countryâs long-term economic state. For instance, the International Monetary Fund (IMF) has previously reported that austerity has done more damage than anticipated. But the European Central Bank released a paper saying that austerity has been helpful, at least for some of the weaker eurozone countries.
In fact, austerity has helped strengthen the economies in European countries like Latvia and Iceland. Although Spainâs unemployment remains high, its economy is in better shape overall. Ireland has made considerable progress as well toward rebuilding its economy.
Proponents of austerity policies say that they can make investors feel more optimistic when a country is being run more responsibly. Austerity has the potential to bring a shrinking economy back to life as everyday citizens invest in the private sector instead of relying on support from the federal government.
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The US used austerity measures between 2010 and 2014. Not only were our policies harsher than those employed by the governments in the UK and other European nations, but our economy fared better than theirs.
The Takeaway
The point of austerity is to tighten the governmentâs belt, bring a countryâs debt back down to a more manageable level and stimulate an economy that has stopped growing. Countries generally try to meet these goals by cutting spending and raising taxes.
The debate over whether austerity works continues but one common theme has emerged. Timing matters. Some critics suggest that cutting too much too quickly during a recession can be painful. When introduced more slowly, however, (or when the economy is doing very well,) austerity measures can turn things around.
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The post What Is Austerity? appeared first on SmartAsset Blog.
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