Saving money

[F16]

Get a Long Distance Telephone Savings Plan

Every major long distance carrier offers a savings plan for consumers who request it. Actual savings will vary, depending on your calling habits.
You may also have to make calls at designated times, usually nights and weekends, to get the lowest rates. Nevertheless, the savings can be impressive.
If a plan saves $20 a month, that's $240 a year of extra money in your pocket.

[F16]

Get an Insurance Analysis

You may be paying for unnecessary coverage or missing valuable discounts.

Ask an agent to review your policies. If you are paying several thousand dollars a year for insurance (all types), some savings probably exist.
One idea: Consolidate all property coverage (auto, homeowners or renters insurance, and umbrella liability) with the same carrier.
Many provide discount for doing this.

[F16]

Shop "Alternative" Vendors

Shop where you can get the best value for your money.
Inexpensive sources of toys, tools, appliances, clothing, and home furnishings include flea markets, garage sales, thrift shops, and consignment stores.
Possible savings? Hundreds, maybe thousands, of dollars.

[F16]

Earn More on Savings

Don't let existing savings languish in a low interest bank account.
You are losing money after inflation and taxes.
Move this money to a CD or U.S. Savings Bond to earn a higher rate of return for additional income.

[F16]

Slash Bank and Investment Fees

Avoid banks that charge high fees or require large minimum balances on low - yielding accounts.

Shop around for a better deal by comparing the characteristics and fee structure of at least three bank accounts. Also avoid high brokerage firm commissions and above-average mutual fund expense ratios.

[F16]

Get a Match

If your employer offers a 401(k) plan, save at least enough to earn the maximum employer match.

Many employers for example match 50 cents on the dollar up to a specified percentage of salary.

For example, if you save $2,000, they add an additional $1,000 to your account. This is money for savings that doesn't have to come out of your pocket. Unlike the proverbial "free lunch", employer matching is a good deal that should not be passed up.

[anonymous_saver]

Some good tips, but your repeated posting was a bit like SPAM. Perhaps next time combine some of the posts?

Just a request anyways...

[F16]

Originally Posted by anonymous_saver

Some good tips, but your repeated posting was a bit like SPAM.
Perhaps next time combine some of the posts?

Ok. I'll do it.

[m1kesgurl]

i have made a new thread so the most help the better...thanx

[F16]

1. Pay yourself first.
Treat savings like a "bill".
Put a part of each paycheck - even if it is only a few dollars - into savings and leave it there.

2. Collect coins
Place all loose change in a jar. When it's full, deposit the money into a savings account.

3. Bank your refunds.
When you get a refund from a supermarket product or your homestead rebate, save it.

4. Continue paying a loan
Just finished paying for your car? If you are about to pay off a loan, and don't need a new car right away, continue making the same monthly payment - to yourself!

5. Break costly habits
Do you really need to buy lunch out every day?
Are you trying to stop smoking?
Save the money you would normally spend on habits like these.

6. Increase Investment Yields
Don't settle for low interest rates!
Earn more money on your dollars by seeking investments - consistent with your risk tolerance level - which pay a higher return.
Avoid products with high fees or service charges.
Start saving early to maximize the compounding of interest.

7. Join an employer's Credit Union
Credit unions are convenient and an inexpensive source of funds when you need a loan. Deposits can be automatically deducted from your paycheck.

8. Buy U.S. Savings Bonds.
For as little as $25, you can buy a bond which will eventually double in value (e.g., $25 to $50). Yields are tied to treasury bond rates and are adjusted periodically.
A minimum (floor) return is also guaranteed.
Some employers have U.S. Savings Bond savings plans for their employees.

9. Take advantage of payroll deduction plans
Many people eliminate the temptation of spending their savings by never seeing it in the first place.

10. Participate in an employer's thrift plan.
In addition to automatically saving a portion of your pay for you, some employers even match your contribution - 25 cents or 50 cents (or more!)
on the dollar.

11. Overwithhold income tax
This is not the best savings method because federal and state governments do not pay interest and you must wait for your refund.
Nevertheless, it's one method people use to save money.
Adjust your W-4 form accordingly.

12. Join Christmas and Vacation Clubs
While money deposited in these accounts usually does not earn a high amount of interest, savings does occur in small amounts, enabling people to reach future goals.

13. Bank a Windfall
Whenever you receive unexpected money - an inheritance, bingo winnings, retroactive pay, an insurance dividend, etc. - put at least part of it into savings.

14. Try crash savings.
The secret of this strategy is setting a limit.
Decide for, say 2 months, you'll buy only absolute necessities, literally.
Save the rest. At the end of the 2 months, treat yourself and buy the item(s) you were saving for. Then resume your "normal routine" or set a new goal.

15.
Fund IRAs One Week At a Time
Try to set aside $38.46 each week.
As you accumulate sufficient funds, place them in your IRA. At the end of the year, you'll have saved $2,000 (plus IRA earnings). Use this same strategy for a Keogh plan if you're self-employed, subject to your maximum contribution limit.

16.
Participate in a 401(k) plan
If you are a corporate employee and your employer offers such a plan, you can reduce your salary (by payroll deduction) up to a certain annual allowable limit.
Many employers even match employee contributions! Fund accumulate tax-deferred for retirement.

17.
Participate in a 403(b) Plan.
If you're a teacher, college professor, or nonprofit organization employee and your employer offers such a plan, you can reduce your salary up to $9,500 a year for retirement savings.

18.
Analyze Family Expenses
Putting savings first will undoubtedly put pressure on your spending habits. Try to keep track of where your money goes and pinpoint expense categories that you could cut back.

19.
Save "Extra" Paychecks
If you are paid biweekly, in 2 months of each year you will receive three paychecks. Employees who are paid weekly will receive an "extra" check in 4 months of each year. The months vary with each year's calendar and the day of the week on which you are paid.
Save at least part of this money.


20. Set Goals
You'll be better able to save if you know what you are saving for.
Some examples of financial goals are a new car, a start-up capital for a business, college expenses, major appliances, a vacation, and retirement.
Make a list of your goals in priority order. Then determine how much money you'll need and when.
Calculate the amount of periodic savings necessary to achieve each goal.

[disneysteve]

Originally Posted by F16

4. Continue paying a loan
Just finished paying for your car? If you are about to pay off a loan, and don't need a new car right away, continue making the same monthly payment - to yourself!

I plan to do this in a few months. The last payment ($150/month) on my daughter's braces is due in May. After that, I'm going to add that $150/month to the money we have going into savings. Initially, it will go to finish off our Roth contributions for the year. After that, it will probably go toward repaying our HEL.

[aida2003]

Originally Posted by disneysteve

The last payment ($150/month) on my daughter's braces is due in May.

Steve, just out of my curiosity not to get a sticker shock in case my kids need them in 10 years . How much do braces cost for a kid? Is there a range of prices for them?
It sounds that plenty of kids need them and not all dental insurances cover them.

[disneysteve]

Originally Posted by aida2003

Steve, just out of my curiosity not to get a sticker shock in case my kids need them in 10 years . How much do braces cost for a kid? Is there a range of prices for them?
It sounds that plenty of kids need them and not all dental insurances cover them.

I don't have the numbers in front of me, but I think the total was $3,750. An initial payment of $750 and then $150/month for 20 months.

We do have dental insurance which got us a discount of, I think, 20%. So without insurance, it would have been around $4,600 but don't quote me on that figure.

[tbc32]

#90 has a great list of ideas. I would include, have a family. Kids are a great way to get tax breaks and refunds which can be applied to your savings. We were able to save a few thousand dollars more this year because we had a baby.

[pfodyssey]

I'm actually having a little bit of difficulty figuring this out exactly because I don't really keep track of any excess cash (only pre and post tax retirement contributions). So, I would say safely at least 20%.

[aida2003]

Originally Posted by disneysteve

I don't have the numbers in front of me, but I think the total was $3,750. An initial payment of $750 and then $150/month for 20 months.

We do have dental insurance which got us a discount of, I think, 20%. So without insurance, it would have been around $4,600 but don't quote me on that figure.

It probably sounds about right. I remember one waitress saying that she must work hard and save money because her kid needs braces and they cost close to $5,000. This was 5 or 6 years ago in Detroit.

[tbc32]

As a student I am only able to save about $300/month... it's a start, but definitely not where I want to be when I get "a real job." I put almost all of it into index funds in a Roth IRA.