Thought it would be helpful to have a thread for folks to share their tips for saving money/financial planning.
This is NOT the thread for you to comment on other's fiscal irresponsibility, your stock picks, share recipes, or crow about your frugal lifestyle - many others available for that!
The best pieces of advice I've gotten:
1) Set up your paycheck so that a fixed percent of every check goes to a savings or money market account.
(This is great because you never have to make a concerted effort and you don't spend the money because it never shows up in your checking account.)
A friend also does this percentage system, but has her percentage sent to a "fun" account that she withdraws a fixed amount of cash from every week and gets to do whatever with it - until it's gone, then she's SOL.
2) Max out your IRA every year. No major luxury purchases allowed until you've maxed it out for the year.
3) Keep a "forgotten" savings account. Never consider this money as an asset when figuring out your budget and only use it for a "true" emergency. Then you have a cash cushion for major unexpected expenses instead of an emergency credit card that will compound the financial problem.
4) Pay off your credit cards every month - finance charges and interest payments are the fastest way to have money go out the window.
Replies
64
Beach Fanatic
"Upon reaching a financial comfort zone, spend on experiences...not "things."
said Shel....
Off to Australia for X'mas and New Year!!
Nice being at zero debt. Highly recommend it!
Of course I could be living on 30-A and be in debt!
said Shel....
Off to Australia for X'mas and New Year!!
Nice being at zero debt. Highly recommend it!
Of course I could be living on 30-A and be in debt!
Beach Lover
I try not to buy anything new. It saves money and helps reduce the use of our dwindling resources and the amount put into a land fill.
It's great when I get something like my HDTV and almost new couch for 20 cents on the dollar because the previous owner had to have the latest model. eBay and Craigslist have saved me a lot of money.
Same goes for cars. You take a huge hit if you buy or lease a car and get rid of it in 2 years.
You can also get new and used clothing off eBay. I hate going shopping and it saves on the gas.
Don't have kids. They're very expensive.
Lastly, read "The Millionaire Next Door".
It's great when I get something like my HDTV and almost new couch for 20 cents on the dollar because the previous owner had to have the latest model. eBay and Craigslist have saved me a lot of money.
Same goes for cars. You take a huge hit if you buy or lease a car and get rid of it in 2 years.
You can also get new and used clothing off eBay. I hate going shopping and it saves on the gas.
Don't have kids. They're very expensive.
Lastly, read "The Millionaire Next Door".
Edited
SoWal Expert
cut up those fake credit cards, aka - debit cards. If a thief gets the numbers, you are screwed until you sort it out with the bank, and all of your other checks will bounce, then you will pay insufficient fund charges for each bounce. By using a real credit card or charge card (like the traditional AM EX), your checking account is protected, because you can contest any credit card charges prior to paying them. Pay off the full balance monthly. Also, many credit cards like Am Ex will double the manufacturer's warranty on many items purchased, and will also cover the purchases from theft or loss with certain limitations.
Go with an awards card which puts cash back in your pocket. You should be able to find them without annual charges.
From ClarkHoward.com:
Oct 15, 2007 -- J.D. Power names best and worst credit cards
Several weeks ago, Clark told you that Consumer Reports rated the best and worst credit cards in America. The single best card was the USAA Federal Savings Bank MasterCard, while all cards issued through credit unions came in at No. 2. Meanwhile, the big banks that issue the bulk of cards in America got stinky scores. Now there's a new survey out from J.D. Power and Associates that corroborates the findings of Consumer Reports. The J.D. Power tally focused on the big names only and is topped by American Express and Discover. On the bottom of the heap, J.D. Power says HSBC is the worst, followed by Bank of America and Capital One. That's very similar to what Consumer Reports said in ranking Capital One as the worst followed by Bank of America. Meanwhile, Citibank, Chase, Washington Mutual and Wells Fargo all got lousy scores from J.D. Power even though they came in near the top of the tally. So the important thing to note is that you should get your credit card through a credit union if you have access to it. Don't go through one of the giant monster mega-banks. Size does not equal quality in the world of credit cards.
Go with an awards card which puts cash back in your pocket. You should be able to find them without annual charges.
From ClarkHoward.com:
Oct 15, 2007 -- J.D. Power names best and worst credit cards
Several weeks ago, Clark told you that Consumer Reports rated the best and worst credit cards in America. The single best card was the USAA Federal Savings Bank MasterCard, while all cards issued through credit unions came in at No. 2. Meanwhile, the big banks that issue the bulk of cards in America got stinky scores. Now there's a new survey out from J.D. Power and Associates that corroborates the findings of Consumer Reports. The J.D. Power tally focused on the big names only and is topped by American Express and Discover. On the bottom of the heap, J.D. Power says HSBC is the worst, followed by Bank of America and Capital One. That's very similar to what Consumer Reports said in ranking Capital One as the worst followed by Bank of America. Meanwhile, Citibank, Chase, Washington Mutual and Wells Fargo all got lousy scores from J.D. Power even though they came in near the top of the tally. So the important thing to note is that you should get your credit card through a credit union if you have access to it. Don't go through one of the giant monster mega-banks. Size does not equal quality in the world of credit cards.
Beach Fanatic
cut up those fake credit cards, aka - debit cards. If a thief gets the numbers, you are screwed until you sort it out with the bank, and all of your other checks will bounce, then you will pay insufficient fund charges for each bounce. By using a real credit card or charge card (like the traditional AM EX), your checking account is protected, because you can contest any credit card charges prior to paying them. Pay off the full balance monthly. Also, many credit cards like Am Ex will double the manufacturer's warranty on many items purchased, and will also cover the purchases from theft or loss with certain limitations.
Go with an awards card which puts cash back in your pocket. You should be able to find them without annual charges.
From ClarkHoward.com:
Oct 15, 2007 -- J.D. Power names best and worst credit cards
Several weeks ago, Clark told you that Consumer Reports rated the best and worst credit cards in America. The single best card was the USAA Federal Savings Bank MasterCard, while all cards issued through credit unions came in at No. 2. Meanwhile, the big banks that issue the bulk of cards in America got stinky scores. Now there's a new survey out from J.D. Power and Associates that corroborates the findings of Consumer Reports. The J.D. Power tally focused on the big names only and is topped by American Express and Discover. On the bottom of the heap, J.D. Power says HSBC is the worst, followed by Bank of America and Capital One. That's very similar to what Consumer Reports said in ranking Capital One as the worst followed by Bank of America. Meanwhile, Citibank, Chase, Washington Mutual and Wells Fargo all got lousy scores from J.D. Power even though they came in near the top of the tally. So the important thing to note is that you should get your credit card through a credit union if you have access to it. Don't go through one of the giant monster mega-banks. Size does not equal quality in the world of credit cards.
Why are credit union cards better? I pay off the balance every month so interest rate is not a concern. Are there other benefits that make credit union cards more attractive ( custimer service, more cash back, better warranty coverage)?
Beach Fanatic
Anyone mention that buying lottery tickets is a waste of a dollar?
http://portofmissingmen.com/idiot_tax.htm
http://portofmissingmen.com/idiot_tax.htm
Edited
SoWal Insider
Mangy's financial tip of the day:
"Don't forget to take the quarter out of the shopping cart. Then use it to buy bubble gum."
"Don't forget to take the quarter out of the shopping cart. Then use it to buy bubble gum."
SoWal Expert
I've never found money in a shopping cart. BTW, doesn't gum cost around $1.06 a pack?
Mangy's financial tip of the day:
"Don't forget to take the quarter out of the shopping cart. Then use it to buy bubble gum."
SoWal Insider
I've never found money in a shopping cart. BTW, doesn't gum cost around $1.06 a pack?
Some grocery stores make you put a quarter in a slot to release the shopping carts. When you return it, you get your quarter back.
The bubble gums machines near the doors are a quarter for a big blob of gum.
Edited
Meow
Some grocery stores make you put a quarter in a slot to release the shopping carts. When you return it, you get your quarter back.
The bubble gums machines near the doors are a quarter for a big blob of gum.
You are back in Yankee land, aren't you?
SoWal Insider
You are back in Yankee land, aren't you?
They have to pay for a shopping cart in Yankee land?! WTH?!
Meow
They have to pay for a shopping cart in Yankee land?! WTH?!
...we need to give Mango a wide berth! Beach Fanatic
There is a real likelyhood that this 'credit crunch' in the US could turn into the real-deal crisis that many have been prediciting. In addition, it is a near certainty that the US$ will continue to depreciate.
Given those two assumptions, these are my recomendations for financial prudence:
1). In the event of a banking crisis, you will not be able to access you money in the bank for some period of time. Keep 4 to 8 weeks worth of expenses in cash in a waterproof/fireproof safe in your home.
2). Have $10K in physical gold for each person living in your household.
3). When people like Greenspan are saying that the US$ could depreciate by 50%, take note. Diversify your savings into a basket of foreign currencies (currency ETF traded like stocks make this easy). This may be the only way to keep your money's purchasing power.
And other more generic ideas:
- have a large vegetable garden in the summer, and can/freeze.
- plant fruit trees in your yard.
- become obsessed with turning out lights in rooms in your house that aren't in use
- try to wait longer in the spring without turning your air conditioner on by installing ceiling fans and table fans in each room.
- either walk or bicycle to run errands when you can, and always try and combine atleat two trips/tasks in one when you drive
- if you have young kids, start a program with other parents where you pass down hand-me-down clothes and toys rather than buying everything new
- become less dependent on premade food items (ie. cook from scratch)
- spend a weekend going to yard sales and thrift stores -- it takes alittle effort but you'll be amazed at what you find
- instead of dropping off your junk at Goodwill, have a yard sale
- get a library card and use it, rather than going to the bookstore (or video store)
- always buy Craftsmen tools and other things with lifetime warrenties (my mother just returned a broken rake and garden hose to Sears, and they replaced them for free because they were Craftsmen).
Given those two assumptions, these are my recomendations for financial prudence:
1). In the event of a banking crisis, you will not be able to access you money in the bank for some period of time. Keep 4 to 8 weeks worth of expenses in cash in a waterproof/fireproof safe in your home.
2). Have $10K in physical gold for each person living in your household.
3). When people like Greenspan are saying that the US$ could depreciate by 50%, take note. Diversify your savings into a basket of foreign currencies (currency ETF traded like stocks make this easy). This may be the only way to keep your money's purchasing power.
And other more generic ideas:
- have a large vegetable garden in the summer, and can/freeze.
- plant fruit trees in your yard.
- become obsessed with turning out lights in rooms in your house that aren't in use
- try to wait longer in the spring without turning your air conditioner on by installing ceiling fans and table fans in each room.
- either walk or bicycle to run errands when you can, and always try and combine atleat two trips/tasks in one when you drive
- if you have young kids, start a program with other parents where you pass down hand-me-down clothes and toys rather than buying everything new
- become less dependent on premade food items (ie. cook from scratch)
- spend a weekend going to yard sales and thrift stores -- it takes alittle effort but you'll be amazed at what you find
- instead of dropping off your junk at Goodwill, have a yard sale
- get a library card and use it, rather than going to the bookstore (or video store)
- always buy Craftsmen tools and other things with lifetime warrenties (my mother just returned a broken rake and garden hose to Sears, and they replaced them for free because they were Craftsmen).
Edited
SoWal Insider
Damn, BDC, your dire predictions make mine look like a skip down Sugerplum Lane.
10K in physical gold for each person in your house?
Kinda makes my suggestion of just donning Tinfoil hats seem a bit impuissant.
.
10K in physical gold for each person in your house?
Kinda makes my suggestion of just donning Tinfoil hats seem a bit impuissant.
.
Beach Fanatic
At least for the real estate leveraged and over leveraged the falling dollar is hedged. Hopefully jobs stay okay. No need to post the most recent jobless claims..saw 'em.
Beach Fanatic
Buy a new surfboard every quarter!
Beach Fanatic
Why would you need 10k in physical gold for the Goodwill store or the vegetable garden?
SoWal Insider
Upon reaching a financial comfort zone, spend on experiences...not "things."I have to say I LOVE this statement. Can I put it on a t-shirt???
In terms of emergency funds, if you live down here or in some other hazard-prone area, keep the first $1,000 in an account where you can turn it into cash in less than 15 minutes' notice (ie. some sort of standard bank account where you can pull it out of an ATM) Because there may come a time when you really do need it that quickly.I always keep cash hidden on my property somewhere...
(wolley swamp)Why are credit union cards better? I pay off the balance every month so interest rate is not a concern. Are there other benefits that make credit union cards more attractive ( custimer service, more cash back, better warranty coverage)?I wonder this as well?? I pay my cards off so I avoid fees and I feel I get great points to use on merchandise. What do credit union cards offer that is better for me ??
You are back in Yankee land, aren't you?That is what I was thinking...
I have never had to put a deposit in on a grocery cart!!!:shock:SoWal Insider
That is what I was thinking...
Only had to once in New Jersey at a large grocery store.
I said Mahna Mahna.
SoWal Insider
I have to say I LOVE this statement. Can I put it on a t-shirt???
A T-Shirt is a "thing"...If you must, just print the statement on your chest with a Sharpie and use the $12 to rent a good movie, buy popcorn & soda and enjoy an evening with friends & family.
.
Edited
Beach Fanatic
Damn, BDC, your dire predictions make mine look like a skip down Sugerplum Lane.
10K in physical gold for each person in your house?
Kinda makes my suggestion of just donning Tinfoil hats seem a bit impuissant.
.
Yeah, there is a real good chance that I read too much Peter Schiff, and definately need to stop tuning into Alex Jone's radio show. But If you know of any way for the US to reverse course and avoid this economic "perfect storm" ahead, I'd love to hear it. The oh mighty dollar is taking on water, and I fear that ship is going down.
If we get to a point where nobody wants to accept devalued dollars anymore, it just might be nice to have some gold coins in your pocket.
Edited
SoWal Insider
Yeah, there is a real good chance that I read too much Peter Schiff, and definately need to stop tuning into Alex Jone's radio show. But If you know of any way for the US to reverse course and avoid this economic "perfect storm" ahead, I'd love to hear it. The oh mighty dollar is taking on water, and I fear that ship is going down.What's the better alternative to the dollar. Who has the perfect economy and currency. What country using the Euro has solid GDP growth? The doom/gloom thing is caused by mass emotion as much as fundamentals. Three quarters of our economy is determined by individual buying decisions influenced by the greed/fear tug of war.
If we get to a point where nobody wants to accept devalued dollars anymore, it just might be nice to have some gold coins in your pocket.
SoWal Insider
Yeah, there is a real good chance that I read too much Peter Schiff, and definately need to stop tuning into Alex Jone's radio show. But If you know of any way for the US to reverse course and avoid this economic "perfect storm" ahead, I'd love to hear it. The oh mighty dollar is taking on water, and I fear that ship is going down.
If we get to a point where nobody wants to accept devalued dollars anymore, it just might be nice to have some gold coins in your pocket.
I enjoy Peter Schiff too.
I think we have indeed hit on the fringes of economic meltdown--with more to come--and we'll see a lot of people financially crushed. The only thing I think will turn this ship around is a finance renaissance where a majority of folks decide they will no longer be slaves to debt, greed, want and "keeping up with the Jones'" (ala the hippy movement in the 60's).
There is currently a move away from McMansion-style housing--it is a start.
.
Beach Fanatic
"..But If you know of any way for the US to reverse course and avoid this economic "perfect storm" ahead, I'd love to hear it. The oh mighty dollar is taking on water, and I fear that ship is going down...."
"...I think we have indeed hit on the fringes of economic meltdown--with more to come--and we'll see a lot of people financially crushed. The only thing I think will turn this ship around is a finance renaissance where a majority of folks decide they will no longer be slaves to debt, greed, want and "keeping up with the Jones'" (ala the hippy movement in the 60's)..."
Geeez
I hate to be the optimist here but
I don't see this as armagedon but rather just part of
the continueing cycle of boom and bust that is an old, old
story in American finance.
Now, the bigger the boom, the bigger the bust. And we have
been through one heck of a big boom so we can expect one
god-awfull bust but at some point (don't know when) things
will get back to boom again.
Just a never-ending cycle of cycles.
A pendulum swings both ways.
(But I do not)
"...I think we have indeed hit on the fringes of economic meltdown--with more to come--and we'll see a lot of people financially crushed. The only thing I think will turn this ship around is a finance renaissance where a majority of folks decide they will no longer be slaves to debt, greed, want and "keeping up with the Jones'" (ala the hippy movement in the 60's)..."
Geeez
I hate to be the optimist here but
I don't see this as armagedon but rather just part of
the continueing cycle of boom and bust that is an old, old
story in American finance.
Now, the bigger the boom, the bigger the bust. And we have
been through one heck of a big boom so we can expect one
god-awfull bust but at some point (don't know when) things
will get back to boom again.
Just a never-ending cycle of cycles.
A pendulum swings both ways.
(But I do not)
SoWal Insider
Geeez
I hate to be the optimist here but
I don't see this as armagedon but rather just part of
the continueing cycle of boom and bust that is an old, old
story in American finance.
That's the rub...it's not "Old American Finance" anymore--it's Global Finance now.
America pulled itself up by its bootstraps after the depression because we were an industrialized nation....that's gone. (Instead of manufacturing goods, we're now the global suppliers of debt.)
America was able to get over housing setbacks with just a few banks and individuals going under (because banks held the mortgage notes in-house)...that's gone.
Americans used to get by in bad times between jobs by living off their savings.....that's gone.
Americans used to work for a company for years and years and receive medical benefits and a pension....that's gone.
Financially speaking, THIS TIME--it REALLY is different. We're entering into uncharted financial territory. If America is going to pull out of this economic mess quickly, Americans are going to have to change lifestyles first.
.
SoWal Insider
A T-Shirt is a "thing"...If you must, just print the statement on your chest with a Sharpie and use the $12 to rent a good movie, buy popcorn & soda and enjoy an evening with friends & family.
.
Checking your forum account
Please wait while we verify your forum account.