How to save money

Saving on Misc. Items

Books and Magazines

The library is the place to go to get books and magazines for free. Remember to return them on time so you do not end up paying late fees. If you know someone who likes the same type of books as you do, trade books with them. Goodwill sells used books at bargain prices. Some communities have used book sales to benefit a charitable organization and this is another place to pick up books cheaply.

Late Fees

Be diligent about paying your bills on time. Credit card companies charge up to a $39 a month late fee. If you have several cards and pay one or two late each month you could pay $500 or more in late fees over the course of one year, not to mention the negative effect on your credit score if you are more than 30 days late. (If you don’t usually pay your credit card payment late but slip up one month, call the company and explain why you were late. If you have a good reason they will probably refund the late fee this one time. This probably won’t work more than once a year though.)

Return rented movies on time. Make all your loan payments on time. You work too hard for your money to just give it away!

Here are tips to help you avoid late fees -

1. Get a calendar and hang it somewhere that you will see it each day.

Write in all your due dates - library books, credit card payments, rented

movies, etc. If the due date is for a bill write in the day you have to mail

the bill or when you have to make the on-line payment. Check the calendar

each day.

2. Ask your family members for help - older children can write in the due dates

of movies and books - your spouse can help with mailing bills on time. Explain

to them how expensive late fees are and how money spent on late fees could

be put to better use.

3. Organize your financial records. Purchase an inexpensive file box.

4. Make a list of all your monthly bills and sort by due dates. Put a star next

to the ones that charge a late fee. When you pay bills make sure the ones

with late fees are paid first.

5. Make it a family policy of ZERO TOLERENCE FOR LATE CHARGES.

Bank Charges

Make sure you write every check and debit transaction in your checkbook and subtract it from your balance, then re-check your math every time. Many people end up overdrawing their account because one or more debit transactions that did not get written down or they made a math error. As a double check, if your bank has on-line banking print your account statement once a week, say every Friday night, and reconcile your account. This has another benefit, it is easier to reconcile one week, and then it is a whole month, so it doesn’t seem like such a chore. Overdraft charges are expensive and it is common for one mistake to end up costing over $100 in overdraft fees.

Another trick is to put an extra $100 in your account that you do not record. Each time you reconcile your account you will just have to remember that your checkbook balance will show $100 less than the bank. Then, if you happen to forget to record a transaction, you have a little breathing room.

Only use ATM machines associated with your bank so you do not have to pay ATM fees. If there is not an ATM machine that is convenient for you change banks. You should rarely if ever pay ATM fees. If you are currently using an ATM that is not associated with your bank once a week, this could save you over $200 per year.

If you use on-line banking and can print your bank statement and look up checks on-line, you should have a free checking account. The only time you should ever pay for checking is if you request to have your checks returned to you.

Cigarettes and Alcohol

Add up how much you spend in an average week on cigarettes and alcohol and multiply that by 52 weeks. Think about what else that money could be used for. Could you cut back on the number of cigarettes you smoke? If you smoke a name brand could you try changing to a generic brand? The same thing applies to alcohol; could you cut back or change to a less expensive brand? Consuming alcohol at home is much cheaper then consuming it at a bar or restaurant.

In General

Always shop around before you buy a big-ticket item. Don’t buy the latest technology as soon as it comes out. The price usually drops considerably after a few years. As a general rule, extended warranties are not worth the cost.

Save all your receipts and return anything that is defective. Frequently we don’t bother to return the small items that break. A good example would be a $10 necklace that we bought at a department store where the clasp broke the second time we put it on. We think, well it was only $10. It doesn’t matter it should still last more than one wear – return it.

What To Do When

You Have Too Much Month At The End Of Your Money