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Nine Ways to Stretch Your Income

Stretched Money

 

Nine Ways to Stretch Your Income

by Susie Cortright
www.momscape.com

These days, many of us are finding ourselves having to stretch the ends until they meet.

And anything’s possible. Vicki Robin, author of Your Money or Your Life lives on the $6,000 that her investments generate each year.

Here are some tips for stretching every dollar.

1. Save a penny, keep a penny.
Dump your pocket change into a jar each night. Invest it in a high-interest bearing account at the end of each month.

Woman’s Day magazine recently suggested this money-saver, adding that if a couple puts just one dollar each into the jar every day, the sum will top $700 at the end of the year.

Invested at 10 percent interest over 10 years, that pocket change will grow into $12,000.

I have a friend who keeps her change in an empty Swiss Miss hot chocolate container. She calls it her ‘Swiss Bank Account,’ and it has already funded two family trips to Mexico.

2. Use your computer
You can save big money by shopping online, if you know where to look. Couponmountain.com is a nicely organized database of online coupon codes.

3. Write letters.
Whether you love the product or hate it, write the manufacturer a letter. Customer service is key for companies these days and a company that receives a complaint is bound to make amends.

On the same token, many companies will acknowledge–and encourage–your satisfaction with coupons and discounts.

4. Shop smart.
Look at the grocery store ads before heading off to the store. Maybe you can reserve a few items for purchase at a nearby store that is offering unusual bargains.

5. Ban impulse buying.
Make it a family policy: if you see something you like, write it on a wish list and wait at least three days before buying.

6. Watch out for ‘nickel and dime’ expenses.
Those little snacks and coffee stops can easily add up to more than $500 per year.

7. Shop around.
Research purchases on the internet. Before making a big online purchase, visit www.dealtime.com and www.mysimon.com.

8. Refinance your home.
Signing a few papers can save you big money on your mortgage payment. It’s really not as big a hassle as you might think. Ask your friends and family for the name of a good mortgage broker.

9. Examine credit card use.
If you have credit card debt, make a promise to yourself to pay it off.

If you’re paying credit card debt, you’re paying not just 17 percent more for your purchases than you need to, you’re also missing out on the money that the sum could earn for you if you had invested it.

Comparison shop cards online with www.creditcardmenu.com.

Or simply call your credit card company and let them know you have been offered a card with a lower rate. Then, ask if there is a way to decrease your rate.

One two-minute phone call recently reduced our rate by 4 percentage points. That was one call I wish I’d made a long time ago.

The most important thing is to recognize that you control your finances. Empower yourself with smart spending.

Smart Retirement Ideas

Retirement Ideas - Lake Havasu City

Smart Retirement Ideas

Many people today will be happy to just be able to retire someday at all – never mind retiring to be able to travel, moving to a luxury resort, etc. Over time it is getting more and more difficult for many Americans – and many others – to be able to retire.

The difficulty is in part due to things within people’s control – many did not save as much as they should have when they were younger. Many people also have been spending way to much money on things they really don’t need or can afford.

Some of the challenges to retirement are not really within your control however. Rising increases in costs, especially health care and housing costs, have made saving for retirement nearly an impossibility also. Concerns about Social Security are also present for many Americans. Many people just do not make enough money to be able to save for retirement – and instead are just barely able to pay their bills while working with nothing left over.

Retirement is something though that everyone will need eventually, whether or not they want to. Most people are not able to work past a certain time in their lives. Of course most of us would like to retire at some point so we have at least a little time to do the things we always wanted to do with our lives but didn’t have time to do when we were younger and working full time.

If you are having a difficult time coming up with the money to save to retire – here are a few tips that may help:

  • Cut back on unnecessary expenses such as eating out, going to the movies, etc. Also, buying less expensive food at the grocery store can help too. Drinking water and milk rather than soda and coffee is both cheaper and healthier.
  • Do whatever work around your house or car that you can yourself rather than pay someone to do it.
  • If you get a raise, don’t spend the extra money, instead save it for retirement.

Most experts believe that people should have a retirement plant that will provide them with 70-90% of what you are making before you retire.

Here are a few ideas and options to get you started:

  • Open a 401k if your employer offers it.
  • Open an IRA if you are eligible
  • Some employers offer pension plans too
  • Savings and Checking accounts
  • Social Security
  • Life Insurance
  • Additional investments

Remember, as with any plan to make money, it is best to diversify where your money is coming from or being invested at.

While the possibility of retiring may sound unrealistic for some – don’t give up! Make a plan for retirement. Calculate how much you will need and how much you will need to start saving now. Keep working and finding ways to save and invest!