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it's your money's... :P
i just want to share some information about money... not my money.. but yours..
last modified Jan 27, 2005 at 20:49
No matter how much money you make, you can always use a little more. But the truth is that you aren't always able to increase your income or cut costs. That's when it's time to look into ways to maximize your discretionary income, which is what you have to work with after taxes.
That said, here are some ways to make certain that you're getting the most bang out of your income buck.
Set up direct deposits
Direct deposits can save you money in two ways. First, your bank may waive some fees if you bank electronically. But the real savings comes with control. By putting a percentage of your paycheck into a checking account automatically, you limit the psychological effect of payday, where some guys spend every last cent printed on their check.
Contribute to your 401(k)
Saving is always good, but 401(k) saving is even better. First, you get to put the money away before taxes, so you lower your tax liability. But better than that, a lot of companies match employee 401(k) contributions, which means you get to literally double your money (up to a preset limit).
Roll over your retirement money if changing jobs
You don't have to take your 401(k) with you when you leave your job, but there's really no good reason to leave it there. You have two options: either have the account transferred to your new employer or to an individual retirement account (IRA). The goal here is to bundle your funds (although the investment should remain diverse) because interest grows based on the total principal (meaning that the bigger the principal, the more interest you should earn). Just make sure that the transfer doesn't go through you, but rather directly to the new account manager, to avoid tax liability.
Take advantage of company benefits
Benefits can be one of the best ways to stretch your salary. A company with a strong health plan that offers a low co-pay can more than make up for a lower salary. Some companies have employee-dining plans that allow you to eat subsidized meals. Other companies offer life insurance to employees at reduced rates, while some public companies make their stock available to employees at reduced rates. The thing to remember is that there's more to salary than straight dollars and cents; sometimes a lower paying job with great benefits can make you more money in the end.
Keep saving 10% to 15%
A lot of guys don't save at all, which is a mistake. But some guys who save also make a mistake: they put away the same amount every month no matter how much they make. Experts say that you should try to save between 10% and 15% of your income, which means that as your salary rises, so too should your contribution to your savings account.
Reevaluate your plan contribution
As market conditions change, so too should your 401(k) plan contribution. Since you're not going to get access to this money for years or possibly decades, you should be looking for slow, steady growth. In other words, you don't want a large chunk of your money tied up in any one sector. Stay on top of your investments by getting quarterly investment reports from the plan administrator and move with an eye toward diversity.
Gas prices continue to be near all time highs meaning that car travel is taking a a larger portion out of each of your paychecks. AAA estimates that the cost of driving a car including all direct and indirect costs has surpassed 50 cents a gallon with that price expected to rise.
Reducing the cost of driving your car can be done fairly easy simply by paying a bit more attention to your car. Here are 10 easy ways to cut the amount of gas your car uses:
1. Purchase your gasoline when it's coolest outside such as in the early morning or at night. Gas becomes denser in cooler temperatures. Since gas pumps only measure the volume of fuel - and not the density - you'll get better overall gas mileage for your money by purchasing fuel when it's cool outside rather than in the heat of the day.
2. Religiously check your car's tire pressure each month (make sure to purchase a good-quality dial-type gauge for yourself -- pencil-style gauges and the ones mounted on the air hose are unreliable according to federal government surveys). Under inflated tires reduce fuel efficiency by 2% for every pound they are under inflated. Under inflation also causes premature tire wear giving your tires a shorter use life.
3. Slow down and drive at the speed limit. Cars use about 20% more fuel driving at 70 miles per hour than they do at 55 miles per hour.
4. Avoid using air conditioning whenever possible. Air conditioning reduces fuel economy by 10% to 20%. Use the air ventilation system instead.
5. Don't drive with open windows when traveling at high speeds. Open windows on the highway can reduce fuel efficiency by 10%. It's much better to use the ventilation system.
6. Remove car racks and other items which make your car less aerodynamic when they're not being used. Leaving them on only makes your car less fuel efficient and costs you money.
7. There is no need to let your car idle. Even on cold mornings, cars don't need to idle more than 30 seconds. Newer cars are designed to be driven almost immediately and letting your car idle longer is a waste of gas.
8. It's more efficient to turn off your car and turn it on again than to let it idle for more than 45 seconds while waiting.
9. Remove all the excess weight from your car. Many people use their car trunk as a storage space adding unneeded pounds to the car's weight. This unnecessary weight reduces the car's fuel efficiency by about 1% for every 100 lbs.
10. For most cars, higher octane gas is simply a waste of money. Regular unleaded (approx. 87 octane or so) is the least expensive and what you should purchase. It's important to remember that octane is a measurement of how hard it is to ignite the gas, not the quality of the gas. Purchase mid or high octane gas only if your engine pings, knocks or rattles when using regular unleaded fuel.
1. Save up to 50% per month on convenience cleaner cloths by cutting them into half, i.e. dryer softener cloths, face cleanser cloths, etc. Savings: $5 per month
2. Find more thoughtful gifts and buy when the item is on sale, shop for birthdays and holidays throughout the year not at the time of the events. Savings: $10 per month
3. Bring your lunch to work once a week instead of eating out. Savings: $7 x 4 weeks = $28 per month
4. Don't go to the coffee shop on the weekends. Savings: 2 visits @ $2 = $4 per week x 4 weeks = $16 per month
5. If you carry a balance on your credit card, and you're only able to afford paying the minimum monthly amount, pay weekly installments instead of one monthly payment. For example, if you owe $100 per month, pay $25 per week. Because credit card companies accrue interest daily on your balance, paying only once a month is a huge detriment to your fiscal health. Savings: $10 - $100 per month (or more!)
6. Instead of a family night out, consider having an old fashion picnic together or a bike ride. Curbing entertainment costs doesn't mean curbing the fun. Savings: $25+ per month
7. Spend a day cooking meals that can be frozen for later use for your family. Once a Month Cooking, a book by Mary Beth Lagerborg and Mimi Wilson, features grocery lists and recipes to prepare and freeze a month's worth of food for you and your family. Not only are you able to purchase the food in bulk, this method prevents having to throw away any spoiled food. Savings: $50+ per month
8. If you are a regular monthly book buyer, stop the habit and visit your library instead! If you insist on buying books, buy it used at your local store or online at merchants such as www.half.com or www.amazon.com. Even a better idea, how about selling the books you have that you don't need! Savings: $5 - 15 per month
9. Use less expensive gasoline. If you live in North America and have Internet access, you are able to search for the cheapest gas price in your neighborhood with Gas Buddy, www.gasbuddy.com. Savings: $5 - 15 per month
10. Use two-for-one coupons when dining out; search for these in local newspapers, flyers, and in your "junk mail." If you are a group of four or more people, consider buying dining certificates at Restaurant.com, www.restaurant.com. After choosing your city and state on the website, you will be presented with a listing of restaurants vying for your dining dollar! Savings: $5- $50 per month
Ah, the holidays: a time of goodwill toward your fellow man -- for some people. For others, it's an opportunity to grab all they can and run while people's defenses are down.
While you are looking for the perfect gifts, con artists will be looking for the perfect target. This holiday season, don't get taken by these popular scams.
1. Naming a star
What better gift could you give someone then the symbol of the first Christmas -- a star? Various companies claim they can sell you a star -- for a fee. This year one company is charging $54. These companies will send you a certificate with the name and location of "your star" and promise that your star's name will be in a star registry.
Here's the problem: Stars are named by the International Astronomical Union -- and they aren't selling. Names for stars (and most are given numbers) are assigned according to the internationally accepted rules of the IAU. Anyone else who claims to be able to name stars has no more legal standing than your neighbor's Rottweiler. When they say your star is going into a "registry," they mean whatever registry they made up -- not the official catalog that is kept by the IAU and used by all astronomers.
According to the IAU's Web site, "such 'names' have no formal or official validity whatever. Like true love and many other of the best things in human life, the beauty of the night sky is not for sale, but is free for all to enjoy."
If you want to give someone a star, save yourself some money: Go to the closest planetarium, pick a star you think is pretty and ask the astronomer for the coordinates. Then go home and make your own certificate on your own computer.
2. Fake charities
Is that sound holiday carolers at your door? No. It's kids selling magazines to support a local scam artist -- oops, they meant to say charity.
Many charities will come knocking, calling or mailing you pleas for donations because during the holidays people remember that part of being human is helping out those less fortunate. Unfortunately, many of those so-called charities are fakes. According to the Federal Trade Commission, many of the calls you get this year will be from scam artists. The FTC has a checklist of warning signs to help you steer clear of charity scams.
Your best bet is to not make any quick decisions, ask for information in writing and research the charity before cutting any checks.
3. Spam solicitations
Never buy anything from an unsolicited e-mail. No matter how good a deal you think you are getting, it is not worth it to risk losing your money or giving any of your information to a possible scam artist. By responding to these e-mails, you are begging to receive so much spam as to make your inbox unusable, because by responding to their e-mail, you let the spammers know that you have a working e-mail address. You are also proclaiming yourself easily fooled and a great target for any number of Internet scams -- such as identity theft.
It is unfortunate that spam scams have become so prevalent that they are virtually indistinguishable from legitimate advertisers -- and there are some legitimate advertisers out there. But as this is the currently reality, don't take the risk.
4. eBay scams
"Let the buyer beware" takes on a severe meaning when applied to online auctions. Accept the fact that you are dealing with a nameless, faceless salesperson that could disappear at any time. Bid wisely and only pay for items using your credit card so you can cancel payment if you don't receive your merchandise -- or if you receive that tea set you were bidding on only to discover that it is dollhouse-sized.
5. The high-pressure sale
Perhaps the most annoying scam is the legal one: the high-pressure sale. It can happen anywhere -- the mall, the car lot, over the phone and even in the salon. You've been through it before: "No, really, you have to have this mousse so your hair will sit correctly. I'll just add it onto your bill," or "We only have two of these carrot juicers left. After they are gone, I won't have any more," and "This is a special price just for you so take it or leave it because I am just about to close up shop."
Rest assured there are lots of carrot juicers in the world and if one person is willing to give you a "good deal" on it, someone else will too. Go home, research the product on the Internet and figure out what a good price is or you will be doomed to pay too much.
Do you feel nervous waiting for the ATM to print out your account balance? Do you find yourself often gazing into an empty wallet, confused? You don't have to be a financial analyst to keep yourself from spending money like a dunce. I've come up with ten simple, everyday things you can do to put an end to living from paycheck to paycheck.
10- Resist eating out
It's tempting to let someone else do the cooking for you, especially when you've just come home from a full day of working. Ordering in or eating out may seem like a way to make your life easier, but it's an expensive means of doing so. Taking the extra half-hour at night to make your own dinner, or the extra ten minutes to prepare lunch for the next day, may save you a host of worries when it comes time to pay the bills. If you feel a bit in the dark when it comes to cuisine, well hey, we can help you with that too. Keep in mind that knowing how to whip up a tasty dish impresses the ladies in the process.
Cash saved: If you're dropping $6 daily on a sandwich and salad from the cafe in the lobby, slapping some meat and cheese on a bun the night before instead is going to save you $30 a week. If you're ordering out a couple of nights a week on top of that, at $10 a dish, you're looking at a total of $220 monthly that could be slashed from your budget.
9- Avoid brand names
We're not just talking Polo shirts here. If you think about what you routinely buy, more often than not you'll find that you could be buying a generic version, and the only difference would be the price (and perhaps less attractive packaging). When you're grocery shopping, go for the store brands -- it really doesn't matter who makes the aluminum foil or toilet paper you use. The same rule goes for pharmaceuticals, where you can save yourself a fortune if you stick to the no-names. Oftentimes, the only difference between brand names and generics is the price. Next time you're at the pharmacy, compare a Tylenol label with that of a generic acetaminophen: you'll see that even though the Tylenol is a few bucks more, the ingredients and dosage are identical.
Cash saved: A box of 100 Tylenol PM Extra Strength caplets retails for around $12. One generic equivalent is the CVS pharmacy brand, which although equal in quantity and chemical constituents, is more than 25% cheaper. Now, saving nine dollars over three annual acetaminophen purchases seems trivial, but if you extend this philosophy to the rest of your buying habits, you could avoid blowing up to hundreds of dollars over the course of a year.
8- Kick expensive habits
If you're a smoker, you're probably coughing up a big wad of cash every month for something you shouldn't be doing in the first place. If your addiction lies elsewhere, your problems may be way beyond the reach of this particular article. This tip's a no-brainer: if you have an expensive habit, saving money is probably just one of the many reasons to drop it.
Cash saved: Smoking a pack of cigarettes a day, at $5 a pack, works out to a monthly investment of $160. Not to mention, you're slowly killing yourself. You do the math.
7- Don't spend when you're drunk
The sight of an empty wallet is frequently accompanied by a pounding headache and blurred memories of acting like a jackass. The bottle can make a man do foolish things: picking fights with strangers over their haircuts, laying terrible lines on girls, buying rounds of shots for the table you met ten minutes earlier. So take out some insurance before you pull your Saturday night Jekyll and Hyde routine. Bring a reasonable amount of cash with you to the bar, and leave your bank and credit cards at home. Once you're broke, it's probably time to crash anyway.
Cash saved: If you're prone to buying the crew a round of $3 shots at the end of the night, that's an additional $30 spent per weekend. The amount hinges, of course, on how popular one is. We're assuming that the average AskMen reader is escorted by at least five members of the Norwegian bikini team on a nightly basis.
6- Avoid prepayment plans
There's a reason why the cable company is always trying to push you into prepayment plans. Authorizing your creditors to dip directly into your bank account is essentially condemning yourself to financial ignorance. It's easy to throw a statement away if the balance has already been paid off, but doing so involves overlooking all the little extra fees and rate changes that may pop up. Take the time to examine your bills thoroughly before submitting your payment, and be conscious of where your money is going.
Cash saved: In 2001, Americans paid $2.2 billion dollars in ATM fees . Eliminating monthly fees from your budget, whether it be by negotiating or switching service providers, can save you around $50-$70 every month.
5- Choose your phone company wisely
This tip could be extended to virtually any customer service, but it's on phone bills that people tend to get burned the most. Ask questions before you commit to a phone carrier: is its advertised rate a fixed one, or will it increase after the first two minutes of a phone call or the first six months with the company? What additional fees will be billed every month? If you discover that you're being billed more than you thought you were, you might not necessarily have to change carriers. Again, competition is intense between these guys, and they certainly don't want to lose customers. Stage a little freak-out on customer service, and you might find that negotiating lower fees or rates isn't all that difficult.
Cash saved: Switching carriers or terrifying a customer service agent could cut up to $15 a month off your phone bill, or $180 dollars a year.
4- Don't become a tech junkie
Gadgets can be terribly addictive. Not only are they fun to play with, but our utter dependence on technology also makes it easy to justify blowing hordes of cash on updating all our toys. But let's be honest: Unless you're Bill Gates, there's no way you can afford to keep on top of every hardware and software upgrade. So why bother?
Cash saved: This amount depends on the extent of one's technology addiction. Remedying severe cases can literally translate into thousands of dollars saved a year. Even just passing on this year's upgrade for your four favorite programs and waiting for the next batch will leave you with an extra $800 in your pocket.
3- Go easy on the plastic
Nobody in their right mind would pay 18% interest on a car loan, but people seem to have no problem paying comparable rates on their credit card purchases. I'm not advocating that you trash your card -- keeping a consistent balance, even if it's a low one, on your Visa is good for your credit rating. Just restrict yourself to one card, and contribute a bit more than the minimum payment when the end of the month rolls around. Paying only the minimum doesn't help towards lowering your balance, it only eliminates the interest for the past period.
Cash saved: Buying a $200 pair of shoes on a credit card with an 18.5% annual interest rate will tack an additional $3 and change on the price tag for every month that you leave the balance unpaid. That's an extra $40 a year, for a single purchase. Pay in cash as frequently as you can.
2- Use Coupons
You might snub your nose at the granny fumbling through her coupons in front of you in the checkout aisle, but she's probably walking out of the store with a heavier wallet than you are. Scoop up a coupon leaflet when you go shopping at pharmacies or grocery stores, and keep your eyes peeled for specials.
Cash saved: Following old lady Irma's lead and clipping coupons could shave a monthly $200 grocery bill down to $150. That works out to a fairly hefty $600 dollars a year.
1- Multiply your earnings at the track
There's no better place to increase your net worth than at the dog races... I'm just kidding. Do your best to steer clear of the tracks and casinos.
Cash saved: Come on, you're kidding right?
you're rich! you're rich!
Now that you have all this extra moolah at your disposal, what do you do with it? Why not make it work for you? Start saving up for a rainy day
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