Spending Money

Stop Buying What You Can’t Afford

August 8, 2018 by Twila Van Leer

All of a sudden you’re finding that your credit card balances are totally beyond your ability to pay? Time to take control. Debt is a big factor when you need a credit score that will allow you to buy a home, a car or other big-ticket item, so stop debt in its tracks.

Analyzing Your Current Spending

You begin the battle against debt by assessing your spending. Are you buying what you need or letting wants win the game? Before buying an item, be prepared to defend it as a genuine need. The latest eye shadow kit or a trip to the spa probably can’t pass the test. You may argue that you work hard and deserve the occasional spree, but you have to count the sacrifice if you give in to that philosophy too often.

Make a budget and live by it.

A personal finance app can be a big help. But start with a good, honest pencil-and-paper look at your income and outgo. Don’t fudge because that will inevitably gum up the works as you try to make the math work. Start with the items that are essential, such as rent, utilities, insurance, food, clothing (within reason) etc. What is left is your discretionary money. Wisely used, it can help you achieve some of your goals. Start a regular savings for emergencies and then carefully plan what you will do with the rest. Circumstances change, so visit your budget frequently and make adjustments as necessary, keeping the needs vs. wants factor clearly in mind. Invest when you are able to do so. The future comes fast.

Put your credit cards away.

A credit card or two can expedite shopping, as long as it is controlled. If you can’t keep on in your wallet without facing serious temptation, don’t do it. Take you card only when you have in mind an item that is duly budgeted for and resist the urge to go beyond that. If you are one of the many Americans who have no idea what their credit card debt is, go to Credit.com and look at the balances. Limiting the number of cards you have helps reduce the likelihood of overusing your credit. Credit card companies offer all kinds of incentives to keep you in their ranks, but don’t let the perks overwhelm your practicality.

Stop today making excuses for your personal finances.

If you think you don’t have time to make a budget, you could be forced into spending more time trying to find a way out of debt. Get honest with yourself. If you need professional help getting a handle on your finances, it is available. Whatever steps you need to get yourself on an even keel, take them.

Do-It-Yourself Can Save Bucks

August 2, 2018 by Twila Van Leer

How many ways can you think of to save money by taking care of home maintenance items, making your own clothing, your baby’s food and dozens of other projects?
You can save lots of money if you go about it right.

Know What You Are Doing

First on the list of don’ts is the obvious: Don’t undertake DIY projects unless you know what you are doing. Free courses through local schools, colleges, libraries, stores, sewing centers, etc. can prepare you for routine home upkeep chores. Book stores have shelves of how-to books and there is a website for any job you could imagine. Don’t start a project until you’re sure you can finish it.

Leave It To the Experts

Stick with things you are genuinely willing to tackle. If you are put off car repairs by the smells and dirt, leave it to the experts. Focus on projects you want to undertake and have reasonable expectations of success.

Estimate The Time It Will Take You To Complete Your Project

Start small. Re-roofing an entire house is a huge, dangerous and expensive undertaking. Start with a small section of roof on a garage and see what the reality of the full job would be.

Do Your Own Lawn Care

Lawn care might be a good place to start. If you have been hiring it done, enlist the help of family members and do it yourself. Don’t assume you have to do every bit of every job yourself.

Review & Update Your Plans

Reassess your budget periodically to see if there are items you could eliminate or undertake to do on your own rather than pay to have them done.

Get Rid of It!

Sell (or donate) items you no longer need. Keep track of their value to use for tax deductions. Items that have value as collectibles can be offered on eBay.

You will multiply the value of Do-It-Yourselfing by putting the money you saved into your regular savings or into a separate account for emergencies.

Save On Entertainment

July 22, 2018 by Twila Van Leer

Americans love to be entertained and they spend a lot of money for the pleasure. Here are a half dozen ideas for spending less and enjoying it more:

Plan Ahead – Buy Tickets At The Best Discount

If you’re planning a night out for live entertainment, wait until the last minute to purchase tickets. A theater hoping to fill the house may begin selling “rush” tickets a couple of hours before the performance. Consolidated discount ticket booths are popping up all over the country. Or make a direct call to the theater and ask if they discount tickets right before show time. Of course, if you know a performance is likely to sell out, keep your plans flexible.

Use The Library

Remember the library? That’s where people used to go for books. Many of them still do and they also keep current on recorded books, shelves of CDs and other media. Today’s libraries also offer readings, book clubs, film screenings and lectures. Dust off your card and take another look at your local library.

Get Employment With A Fun Venue

Teenagers and young adults who are looking for entertainment that doesn’t break the bank can often find part-time jobs at sports venues, concert halls or theaters. That way, they can catch the action (without neglecting their responsibilities) while earning enough to pay their way into yet more events.

Check Out Discount Days For Entertaining Activities

Regular discount days are a feature of many theaters, museums, galleries, zoos and parks. Some even offer free entry on certain days of the week or during particular hours. Live performance theaters sometimes offer drastically discounted tickets for dress rehearsals.

If baby-sitting costs keep you home, arrange with another family to swap the chore on alternating Saturdays. Over a year’s time, you could save more than a thousand dollars. which you could turn back into entertainment money.

Matinee performances generally are less expensive than night-time performances, so plan to attend during the day rather than paying the higher night-time costs.

Save Money On Food

July 16, 2018 by Twila Van Leer

The typical American family of four spends $8,513 per year on groceries. And many families add to that amount by eating out regularly. If you are interested in cutting the amount you spend at the grocery store, file these tips away and follow the advice they offer:

Learn To Eat At Home

Learn to cook. Cooking you own meals can significantly cut the costs of eating. Even fast-food eating out in enormously expensive. You’ll also save if you cook from scratch and avoid the higher-priced frozen and pre-prepared meals. Not only that, it is likely that you will eat healthier. Book stores have dozens of cookbooks, many of them focused on inexpensive and easy-to-fix meals.

Plan Meals For A Week

Take fewer trips to the grocery store. Typical American food shoppers go to a store three or four times a week. This means they triple or quadruple the temptation to pick up things they don’t really need. Studies say the frequent shoppers spend up to 54 percent more than those who stock up for a month or more at a time.

Homemade Lunches

Take sack lunches to work. Compare the cost of a $2 brown bag lunch to the average $6 trip to a sandwich shop and you can see how fast you could save yourself some serious money. In this comparison, the savings are about $80 a month or $960 in a year.

Write Down What You Need

Make a list. Impulse buying is sharply curtailed when you have it written down. Sketch out a week’s meals and see that all the ingredients are on hand. Add a few goodies to the list for the occasional treat, but otherwise, stick with the list.

Use The Brands That Are Cheapest

Buy generic. No-name brands are almost invariably less expensive than those that you recognize right off the bat and the quality is likely to be comparable. The experts say you can pocket big savings on such items as canned goods, cereals, frozen vegetables and even baby products such as diapers and prepared formulas. When buying prescription drugs, compare labels so you are sure you are getting the same dose of the active ingredients.

Discount Coupons Help Save Money

Use coupons. Coupons are good money-savers only if you look for items that don’t cost more than you would find in another brand. Store brands usually cost less. Eateries also offer coupons and you’ll find them online.

Consider Buying In Bulk Quantities

Many stores offer information on their shelves or price tags that gives a unit price. Comparison shop using the unit price. Buying in quantity is a good idea for some items. For instance, a pack of 40 diapers may cost f$13. or 33 cents per diaper. A box of 144 diapers at $35 is just 24 cents per diaper. (A word of caution: Although buying in bulk is usually less expensive, it’s a waste if you cannot use the product within a reasonable time. A good deal is not a good deal if it goes to waste.)

Robust Economy? Not For Everyone

June 28, 2018 by Twila Van Leer

Unemployment is down. Spending is up. Inflation is manageable. Taxes are down. Demand for new homes is up. Household wealth is higher.

Why Are Americans Feeling Insecure About The Economy

So how come many Americans are not feeling secure, even though the last major recession is nine years in the past? Too many of them are falling into categories where high child care costs wipe out the advantages, or the expanding costs of travel wipe out any pay raises, or those pay raises have not materialized, or . . .

Some Are Using Savings To Live Month To Month

Analysts at Oxford Economics who studied American spending patterns found that those in the bottom 60 percent of earners were drawing from their savings to maintain a standard of living. Many are living paycheck-to-paycheck. Even those who have found jobs as the jobless rate dipped are not feeling financially secure.

Here’s how the current economy looks to these folks:

Even though inflation is not a current concern, the prices of some indispensible items is rising. Gasoline is up 24 percent since a year ago. That can eat away as much as a third of what people hoped to save.

Owning A Home Has Become Harder

Owning a home has become harder, not easier. Many areas of the country are seeing a dearth of listings in the affordable range. Prices are rising more than 6 percent annually overall and even higher in some areas, increases that effectually wipe out the 2.7 percent increase in most hourly wages. Thirty-year fixed-rate mortgages are growing costlier. Average interest rates have jumped too 4.62 percent, from 3.95 percent at the beginning of this year.

At the root of the problem is the decline of America’s middle class. Wealth is increasingly lop-sided, with the ultra-rich sector growing while those at the other end of the scale see little benefit from the great economy. The top 10 percent of the country controls 73 percent of the personal wealth. The gains are concentrated in the top 1 percent, which lays claim to 39 percent of the wealth.

Where the middle class once included some 40 percent of the overall population, the figure now is just 27 percent. In the lowest 40 percent, Americans have a negative net worth and few have cushions sufficient to offset an emergency. They can’t look to stocks, rental properties, capital gains or home equity to shore up the budget if needed. Hourly wages haven’t risen over the past year for most of them.

Times are particularly tough for people who lack an advanced educational degree. Those who ended their education with high school find themselves scrambling as most of the jobs go to college grads. Those minimally educated make up less then 1 percent of the job gains that have boosted the overall economy.

Student Debt Affects Home Buying

At the same time, it isn’t all rosy for those with a college degree. Ever-higher student debt has wiped out some of the advantage. Since 2004, total student debt has increased 540 percent to a startling total of $1.4 trillion. That doesn’t include graduate school debt. That debt is influencing the ability to buy homes. Realtors have reported home-buying delays of about seven years among those burdened with education debt. College graduates dealing with debt also tend to delay the start of families, another factor that impedes full economic health in the country.

Children are, in fact, very expensive. Nearly a third of families put out at least 20 percent of their income for child care. Some families go into debt to cover child care expenses. Average cost of care for one child is $10,486 a year and it can be as high as $20,209. Many women have dropped out of the job market to stay home with children rather than pay the high costs of outside care.

The percentage of American women in the workforce has dropped from 77 percent in 2000 to 74.8 percent now. A return to the higher figure would see some 1.4 million more women in the workplace.

So while the economy appears in print as encouraging, there are problems to address before the benefit can blanket all Americans.