Surviving the Bad Economythe... · 2013-04-22 · idea on how to approach your budget plan. Regain...

Copyright © 2013. All Rights Reserved Worldwide.

Surviving the

Bad Economy

DISCLAIMER: This information is provided "as is". The author, publishers and

marketers of this information disclaim any loss or liability, either directly or indirectly

as a consequence of applying the information presented herein, or in regard

to the use and application of said information. No guarantee is given,

either expressed or implied, in regard to the merchantability, accuracy,

or acceptability of the information.


Table of Contents

MAINTAIN A HEALTHY CREDIT SCORE ......................................................3

CREATING A FAMILY BUDGET.......................................................................5

GETTING ORGANIZED .......................................................................................7

PROSPERING YOUR BUSINESS IN BAD TIMES ...........................................9

COMMUNICATE AND NEGOTIATE.............................................................. 11

SAVE MONEY ON GAS ..................................................................................... 13

TRIMMING YOUR INSURANCE POLICIES ................................................ 15

PAYING OFF YOUR CAR LOAN(S) EARLY................................................. 17

GROCERIES - HOW TO TRIM THE FAT...................................................... 22

ENTERTAINMENT ON A BUDGET................................................................ 25

DOING YOUR OWN AUTO MAINTENANCE............................................... 28

CHANGE YOUR HABITS AND SAVE............................................................. 31

WHO TO PAY FIRST.......................................................................................... 34

DISCIPLINED BUYING ..................................................................................... 37


Maintain A Healthy Credit Score

Keeping a strong credit score can allow you to borrow funds and reduce

expenses (insurance companies, for example give better rates to those with better credit scores.) Here are ten ways to keep a strong credit score.

1. Keep your score safe.

As a personal record, you need to keep your credit report safe. Most people

find that despite their prompt payment of bills and minimal debts, they still have a low credit score. This often happens as a result of identity theft. This

crime occurs when others use your personal information to access your accounts. Somebody else benefits from your bank account while you end up

with large debts.

To avoid this, you need to practice safe banking and related practices. Keep

important information such as account or PIN numbers to yourself. Be cautious when using computers to file information as they can be stored and

accessed by others.

2. Monitoring Credit Report

You must monitor your credit report. This will enable you to record and keep

track of your consumer credit reports from three of the major agencies. Once you have the credit report, you will be able to analyze your credit

history and ensure that all information is correct. Unless you take the time to monitor your credit report, you will not be able to correct false

information that could work against you.

3. General Good Financial Habits

Practicing a healthy financial habit will enable you to have better control over your financial life. When you are able to achieve this, you are one step

closer to reaching your financial goals.

You can get started by organizing your financial records and information.

This will not only ensure that your financial information is safe but it will enable you to efficiently allocate where your finances are going.

4. Dealing with debt

Mounting debt is one of the main contributors to a bad credit score. As soon as you receive your bills, pay them promptly. Perhaps you can set aside part

of your monthly budget for settling any existing debts.

5. Learn to think like a lender

If you assume the role of a lender, you will be better able to understand the


importance of paying your debts on time. Developing this healthy financial

attitude benefits you both ways: (1) you will understand the need to pay your bills on time, (2) you are able to settle your bills and free yourself of

debt.

6. Get professional help

You can consult any financial professional or any of the reporting agencies for evaluation of your credit report status. There are a few terms in your

report that you might have difficulty understanding. By seeking their professional advice, you will become more sensitive to your financial status.

7. Pay bills on time

Aside from eliminating debt, you will be able to prevent having to pay late

payment fees or increased interest. Increasing interest rates will cause you to pay double the amount you initially owed.

8. Repair any bad credit items

Whatever billing information or statements you receive, make sure to review

them for any errors. Unless you do, you will not be able to negotiate any

false information contained in it.

9. Automate your finances

By setting up an automated savings plan, you must take responsibility for setting aside each month for savings. This will be helpful if you have long-

term financial goals and will serve as motivation on properly allocating your finances.

10. Consolidate loans

Through loan consolidation, you will be able to reduce the burden of having

to pay multiple lenders. Hence, you will now have only one loan payment to focus on with each month. Not only does your monthly debt payment more

affordable, you are able to regain control over your finances. However, you must not allow yourself to fall back into bad habits or the consolidation will

be useless.


Creating a Family Budget

Create a Family Budget

Creating a budget plan for your family will enable you to maximize earnings while ensuring that all needs are met. To some, it is a stressful task.

However, it is more stressful when you are having difficulty trying to make both ends meet.

Aside from that, money problems can often be a root for relationship problems within the family. This is normal, knowing that the level of stress

and anxiety are high when it comes to finances.

Why Is a Family Budget Important?

Money is continually flowing, which is one reason why most people neglect

budgeting since they always believe that money will arrive. What if it does not? You need to make maximum use of your finances to ensure that you

are spending only where needed.

This is doubly important for families because there are so many priorities involved. Here are just a few reasons why a family budget is important:

• It allows you to maximize your earnings

• You can save money for future use

• No stress

• There is more harmony within the family

• It gives you a feeling of satisfaction that you have spent your money well

How To Start A Budget Plan

The best way to get started on a family budget is to assume a healthy financial perspective. Although budget is intended for the future, you need to

realize that it is based on your spending habits now. Before you begin creating a budget, analyze where your money comes from and how you

spend it. Keeping track of your income and expenses will give you a better

glimpse on how you will be able to create a realistic budget plan.

Here are a few pointers you might want to consider to create an efficient

budget plan for the family:


• The income

• How much savings you want to produce (or are able to produce) each month

• Your household expenses

• Do you always fall short on your budget

• Do you openly talk with your partner regarding money issues

Once you have looked into these various factors, then you will have a better

idea on how to approach your budget plan.

Regain Control Over Your Finances

By properly organizing your family's spending habits in accordance with your

family's income, you will become more organized in your budgeting process. Take note of all bills and even the tiniest expenses such as a bottle of

shampoo or a bar of soap. Unless you do that, you will never be able to create an efficient plan that will cover all of your expenses.

Then, create a sample budget plan. For this stage to work, you need to

discuss it with the rest of the family members so they can be aware of the goals. Making them more aware of the need to budget your expenses well,

they can take their own personal steps that will help alleviate money problems within the family.

Once you have finalized the family budget plan, you need to write it down. This will enable you to have something to consult from time to time. Also,

this will remind you of what your spending priorities are. When you're family has adjusted to your budget plan, you can plan your budget for the coming

year. Creating an advanced family budget will enable you to cope with seasons that require a lot of expenses such as holidays or for the children's

schooling.


Getting Organized

Get Organized

Staying organized will have multiple benefits for you. You are able to maximize the use of your time and you can achieve more things in a shorter

amount of time. However, several people are still struggling when it comes to organization whether it be in managing their time or in organizing their

things. The most crucial part is the start getting yourself to make that decision towards better organization.

A sure fire way of falling into economic disarray is by living with chaos! Until you can get a handle on the disorganization in your surroundings you will

not be able to get your finances in order.

Getting Started

People often fail to organize because they never make the decision. There are several reasons as to why they fail to make that move. It is either lack

of impulse or they simply are used to the disorganization. However, making

the decision to organize will have an impact for the following reasons:

• As soon as you start working your way towards getting organized and you experience its benefits, you will eventually realize the importance and develop a change of attitude. Developing that attitude is crucial

for determining whether you will succeed in this endeavor or not. Unless you are truly in it to make that change, you will find it difficult.

• Once you get started, you might realize several tasks superseding one another. This is your opportunity to straighten out your priorities and

achieve a better picture of what needs to be done.

Proper Management of Time

Organization and proper time management always come together. If you

properly manage your time, you will easily be able to organize your tasks and priorities. By clearly organizing your tasks, you can make better use of

your time. However, this is often better said than done.

One of the best things you can do to get started with organization is to clearly identify several areas in your life, whether it be work or home life. By

being able to establish these two and learning to properly appropriate time to focus on each one, you can avoid intermingling them.

There are several tools you can use to organize your tasks according to


priorities and urgency. By using these tools, you will effectively make the

most out of your time. If you decide to make a to-do list, it is important that you follow them strictly. Or else, what's the use of making one?

However, it is important that you do not abandon tasks that are not completed. This will create confusion later on and you want to save yourself

the hassle of having to go back to previous tasks to finish them.

If you can, make as many copies of your to-do list as possible. Therefore,

you will always have it to remind you of what is currently on the list of your tasks. Make sure you have one in the office and at several areas of your

house.

Benefits of Getting Organized

There are several benefits that one can receive with proper organization.

Here are a few practical ones which you can enjoy with your efforts in organization:

1. You can improve time management skills.

2. You are able to accomplish more in less time.

3. You can develop a sense of responsibility.

4. It will boost your own self esteem.


Prospering Your Business in Bad Times

How to Prosper a Business During Bad Times

When the country is experiencing a recession, sometimes it is a challenge for most businesses to stay afloat. Some survive, others don't. However, this is

not a fixed case because there are still ways to get your business through even during an economic downturn.

Business Startup During Bad Times

Contrary to popular belief, there are several business experts who believe that recession often offers the perfect time to startup a business. So, how do

you do it?

First, you have to realize that there is no specific perfect time for setting up

your business. Anytime is a perfect time to start your business. As long as you have a sound business plan and are persistent enough. Oftentimes, fear

clouds your mind and encourages pessimism but succeeding in a business

during rough times is achievable.

Benefits of Business Startup While on Economic Slump

If you are still indecisive and finding this move a bit too risky, here are a few

more things you might want to consider:

1. When launching a business on a booming economy, you might

experience a shortage of labor force. However, this will noticeably ease up with an economic downturn. Hence, it should be easy to

find people to hire and get started with setting up your business.

2. An economic downturn is the perfect opportunity to test just how

sound your business plan is. As long as you are able to meet your customer's standards and gain profit from your business during a

slump, it will be difficult to see how your business won't thrive in a healthy economy.

3. Create an equally sound backup plan for your business. You have to

ensure that all your business plans offer flexibility to create cash flow despite a troubled economy.

Strategies for Existing Businesses To Prosper


Businesses, whether small or large-scale, are placed at risk during tough

economic times. This is made worse by tightening lending standards for most financial institutions considering the financial risks involved. This is

especially true with no clear idea on when the economy will start recovery. However, here are some ways for you to back up your business strategy to

ensure a thriving business:

1. Join a partnership: By enlisting the help of another company, you

are able to deal with the complexities of a recession better. You can make partners an offer of complementary products.

2. Gather customer feedback: By remaining sensitive to the needs of your customer and taking time to respond to their needs, you will

convert your prospects into paying customers quickly. During times of recession, you will most likely need every paying customer you

can get. Hence, by making your customers feel valued and important, you will receive excellent feedback.

3. Extend your flexibility: On economic downturn, most companies

reduce their operating hours. However, this type of pessimistic attitude will get you no closer to your business goals. In times of

slack markets, you can extend hours and provide maximum convenience to your customers. More importantly, when everybody

else is away, you can entertain these prospects.

Regardless of the state of economy, a good business is one that persists and

recognizes the opportunity.


Communicate and Negotiate

Communicate and Negotiate

Communication and negotiation are two vital aspects in reaching an agreeable term for paying your debts to creditors. Imagine the savings you

can make each month with lower monthly bills to settle. However, you need to meet certain points before you can make a reasonable argument for a

lower monthly debt payment.

There are five steps to take that will help ensure you get the desired

monthly rate.

1. Assess your current financial situation and credit score.

Everyone wants to get out of their debt but oftentimes the rates are just too costly for an average income earner. On the other hand, most financial

institutions are looking for ways to help you survive, which will in turn enable them to recover their investment. Therefore, assuming the proper

approach when attempting to negotiate with your creditors is crucial.

The first step you must take is to understand your current financial situation and how bad your credit status is. Is it a case of missed payments or is your

income just not enough to keep up with your rising debts? It is important to pinpoint which aspect you are missing out on as this will also enable you to

determine how you can keep up.

2. Make reasonable offers.

If you are going to make your creditors an offer, make it reasonable enough. You need to consider that this is a business and they need to earn profit

from it. You can lower payments at a reasonable level but not to a point wherein you have doubled, or tripled, the payment period.

The key here is to be honest with your creditor in the negotiation process. Let them know how much you can afford to pay monthly and most of them

will try to meet with you halfway. Since it is in their best of interest that you pay them back what you owe, they will provide as much means as possible

to make paying less of a burden on your part.

3. Seek help from professionals.

When dealing with multiple debts, it is easy to become confused. However,

there is always a professional debt management help available for you. These are people who are equipped with proper knowledge and strategies in

terms of dealing with debt negotiation and credit situation.


Having professional advice will also ensure a fair negotiation. Sometimes,

even lenders will try to take advantage of your lack of knowledge on a situation.

4. Be truthful with your credit situation.

Truthfully and honestly explain to your creditors the need to negotiate a

lower monthly payment. Study your current credit status alongside with your pending debt payments. This will enable you to analyze the most beneficial

terms for you.

5. Make your payments.

If you were able to reach a reduced monthly payment for your debts, then you have to make sure you pay them on time. Aside from staying current on

your payments, you must not miss any payment. If not, then this might prompt your creditors to raise your monthly rate again and you would have

wasted all efforts to reduce it.


Save Money on Gas

How To Save Gas?

With oil prices continually on the rise, it is fast becoming crucial to maximize your use of fuel. If you wish to cut back on your fuel costs, there are simple

steps you can take. In order to save gas, you will only need to make slight changes in your motoring habits. There is no need to purchase other

expensive equipment to help you save on gas. Follow these simple methods:

Proper Engine Warm-Up

Avoid overextended warm up for your engine. An average warm-up session

should run for about 30 to 45 seconds only, and going beyond that is not good for your vehicle.

Never idle your engine for more than a minute because it will consume the same amount of gas when you start the engine. On the other hand, never

rev your engine just when you are about to switch it off. This will eat up

your fuel and could even cause oil to spill down the vehicle's cylinder walls.

Tips on Buying Gasoline

When you plan on filling up your tank, do this during low temperatures such

as late evening or early morning. This is when the gasoline is at its most dense state. Therefore, you can get more out of your purchase because the

fuel density is more concentrated.

Another consideration to take is the brand and type of gasoline. Because

other gasoline brands have better quality, then that is a more economical choice.

When filling up your gas tank, avoid filling it to the top. Instead, you should stop once you hear the fuel nozzle click.

On Your Driving

Drive only within the speed limit. Apart from avoiding trouble with law

officials, this is more gas efficient. When you maintain your driving speed at 55mph, you will achieve 21% better mileage as compared to exceeding

speed limits. This is supported by the fact that you will consume 45% more fuel when driving in low gears at fast rates.


As much as possible, maintain your speed. Refrain from abrupt speeding or

slowing down since it wastes a lot of fuel. That is why tailgating is often discouraged because when the car in front of you screeches to a halt, you

will be forced to brake abruptly as well.

Accelerating on steep highways or on a hill, you need to accelerate just

before you go up that steep climb and not on the middle of it. For manual autos, you have the capacity to shift gears whenever you want. So try

nursing along your driving to save on gas.

Additional Gas-saving Tips

Not too many drivers are aware that slight changes they do in their driving

will significantly impact how much fuel they consume and their mileage. Therefore, you need to bear in mind some more of these helpful tips:

1. Park your car in such a way that when you leave the parking lot later on, you will do it in a forward gear. Maneuvering in reverse gear consumes more

gas.

2. Tune-up your car regularly. This will prove to be quite economical since troubled engines eat up more gas.

3. Limit your use of the air conditioner because they it will reduce your fuel life by as much as 10-20%.

4. If you have several short errands, do them in one trip. Reducing multiple trips into one will save gas.

5. Check your tires to ensure they are inflated properly. Radial designs for wheels are considered to be effective fuel-savers. Therefore, you need to

verify with your car manufacturer in terms of maximum tire pressure specifications.

6. Reduce the load of your vehicle by getting rid of materials such as tools, reserve tires, back seats, and any heavy parts out of your car's trunk. The

bigger the load for your engine, the lesser your mileage percentage is.

7. When your car is in an idle position, you need to cool down the automatic

transmission. To do this, keep your gear neutral.

8. If there are rough or dirt roads, look for a better route. When driving through dirt or gravel, your gas mileage will drop by up to 30%.


Trimming Your Insurance Policies

The Importance of Insurance

People who refuse to secure insurance don’t realize its importance until they need it. This happens with young people who believe they are healthy

enough to not need insurance.

Experts advise securing an insurance policy while you are still young. If you

decide to get insured at a young age, your rates are considerably lower. The same goes for purchasing insurance for your children while they are still

young. Rates are typically determined by risks.

Health and life insurances, for instance, are quite helpful for the future,

especially for emergency situations.

Choosing the Right Insurance

Once you've made the decision to get insured, the next step is determining

the right insurance. This is crucial since you don’t want to be spending

premiums on insurance that you do not need or can’t use.

Find a policy that suits your needs. You may be allowed to specify terms within your insurance policy. The type of coverage you choose will determine

how much you will pay in premiums. This will help ensure that you are not paying for services or coverage that you may not use.

Deciding on an insurance policy might seem like a daunting task, but it shouldn't be. You need to review premiums, monetary benefits, and

coverage. Once you have determined these factors, compare that with the requirements of the policy to ensure you get the services you need.

When it comes to choosing the best insurance provider, you will need to do a little research. Gather all the information you need such as company

background, insurance policies and coverage, rates, and benefits and compare.

Re-evaluate Insurance Policies

As the market continually fluctuates, you may need to make necessary

changes in your insurance policy as well. This will help ensure that you are receiving value for your money.


For your family and life insurance plans, you need to look into proper

coverage for your family members. Consider your financial stability alongside your family's needs in determining whether you need long or short

term insurance coverage. Determining the right choice will enable you to save money in the long run.

For your health insurance, you can change policies according to your health status. If you were previously a chain smoker and just recently quit, this

places less risk to your health. The greater the risks are, the higher the premium. You might be able to save from a reduced monthly insurance

premium. Meanwhile, if you have just acquired an ailment, you need to update your insurance coverage. Having your medical needs covered by the

insurance will lessen the burden on you for the entire medical expense.

For insurances on your children, make sure that everyone is covered,

especially when you have a new addition to the family. The coverage should fit your financial needs, now that you have an additional person. Since this is

a long-term responsibility, you need to closely examine the terms that

enable you to benefit (financially speaking) in the long run. You need to take note of emergency situations that affect your coverage needs.

Continuous re-evaluation of your insurance policies ensures that you are neither over-paying nor under-covered. Most experts would recommend

doing this check on your policies at least once a year to keep it updated.

Essential Factors To Achieving Favorable Policies

It is not enough to just get a standard policy since there are essentials you

may need in your coverage. Whether you have a lot or little coverage, you will never know until you take the time to sit down and evaluate it yourself.

Here are a few tips that insurance experts offer:

• Carefully look into the details of the fine print. Take note of all the legal terms and conditions to make sure that you comprehend them and that you get what the insurance providers have promised.

• If you are single without anyone to support financially and yet you earn enough income to shoulder the cost of an emergency and/or medical expenses, then maybe it is better not to enroll in medical

insurance.

• Keep all of your contact information current.

• If you are age 60 or older, you might reconsider switching your long-term care policy into a life insurance.


Paying Off Your Car Loan(s) Early

Car Loan: How to Re-finance or Pay Off Early

Refinancing you car loan is one of the smartest deals you can get these days. If you are patient enough to search for any trusted cheap auto loans in

the country, your monthly payments are decreased every month.

Why Refinance Your Car Loan?

There are a variety of reasons why refinancing your car loan makes sense.

Auto loans are often refinanced in order to cut back on your monthly payments. Hence, you will be able to extend the payment period for your

loan and consequently reduce the interest for your monthly rate.

The refinancing option is suitable for anyone who plans on buying a car

despite bad credit. You do not need perfect credit to ensure that you can get a lender to refinance your loans. After all, there are many lenders competing

in the market today. Most of them have loosened their requirements to cater

to more borrowers. However, if you have a better credit score, then you are more likely to score a better rate for your car loan. You will be able to save a

large percentage reduction on your monthly payments.

Requirements for Refinancing

Just like with any other types of loan, you need to meet a few requirements

in order to get the loan application approved. When applying for a car loan, you need to be at least 18 years old and have a stable job. Then, you are

automatically qualified for the application. Most of these car loans, especially the cheap ones, are only short-term services and are offered for about two

to five years.

The first requirement is that the value of the car must exceed the current

amount you owe for the car loan. If your debt is more than the car's worth, then it would be impossible to get an approval for refinancing your auto

loan. However, if you really want to refinance, then you can try to reduce

your amount so that it is below the value for the car.

Another requirement is that the car must not be over 5 years old and you

still have $7500 to owe for the car loan. This requirement, however, varies or is not included in some lenders especially those found online.


Finding A Lender

This part of the process is the easy part. However, you should not take this lightly for it plays an important role. You should be aware there are several

cheap auto loans online. If you find one, take time to study their available quotations, services, and plans. Research is the secret ingredient to finding

cheap and reliable loan companies. Beware of online scams.

If you want a loan company who offers good services and inexpensive

quotes, you can try searching in your local area. Just so you know, these auto loan lenders are more than willing to help you find an efficient

refinancing method. In fact, there are some of them who offer great deals even with a bad credit score. Online is a great venue to gather various

quotes and get all the information you need to decide which is the best deal for you.

In order to find reputable lenders, you need to do a bit of work. Once you find them, they value confidentiality and will protect your information from

frauds. To ensure yourself of a company's credibility, try doing some

background checks to validate any information they provide. If searching online, take note of testimonials and what other people have to say of the

quality of their service.

How Car Loan Refinancing Works

If you are not familiar with how refinancing works, it basically works as

simply as this:

If you have a car loan for $25,000 and it is financed at 9% for 60 months,

you are obliged to pay a monthly fee of $519. For this, your total fee is roughly at $6000 with an interest for a 60-month period. However, if you'll

refinance this loan for 4%, your monthly payment drops to $460 and there is a savings of at least $60 every month. That means you can save over

$3000 in 60 months.

This is just a representation but that's how refinancing auto loans works.

Therefore, it is crucial that you look for a lender that offers the best rates so

you can get more savings.


Saving on Utilities

How to Save on Home Heating, Cooling and Lighting

Today’s costs are continually on the rise. Whether it is food, clothing, mortgage loans, and/or energy. When I say energy, this term refers to the

three systems used inside our homes. These systems are heating, cooling, and lighting. Using these energy systems are among some of the basic

needs we have today. However, shouldering the energy bills on a monthly basis can be too much of a burden.

Although energy bills are expensive, there are ways for you to save money. The secret is simple: use appropriate accessories and control systems that

are energy-efficient. You can start saving money on heating, cooling, and lighting systems.

How can you save money on home heating?

Studies show that water heating is considered to be the second highest used

energy in a common household. There is an estimate cost of $250-800 spent in US residence alone. Basically, the cost of heating systems depend on two

elements: energy cost and energy efficiency.

There are a lot of ways to save money on heating systems:

• Turn off your hot water: You are not only saving electricity but also saving gas. For this reason, it is suggested that you consult an electrician and request for an installation of a timer. There are several

On-Demand Hot Water Heaters out there and using their temperature remote control features can save energy.

• Weather Stripping: Purchasing window kits is a great way to save at least 75% of the heat energy.

• Non-condensing boiler: If you want to conserve energy, you can replace your non-condensing boilers. A new and efficient condensing

boiler can help you save $500-700 per year.

• Use Heat Pumps: Purchasing a programmable thermostat can conserve energy. Make sure if you buy one, you have sealed all the

leaks in your air ducts.


• Reduce the level of your thermostat: Reducing the level of your thermostat can save at least 35% of the heat energy. For this, you should learn how to set your thermostat to 72 to 75 degrees only. If

you feel cold, wearing a sweater is a good choice instead of increasing the level of your thermostat.

How can you save money on cooling systems?

A recent survey shows there is a cost of $3000-8500 when you install cooling systems in your homes. Air conditioners with cooling capacities of

8000 BTU seems ideal for a 300 sq. foot room but if you have 1000 sq. foot rooms, a large cooling unit with 2400 BTU is enough.

Follow these two tips and you can save money on your home cooling systems:

• Invest in ceiling fans: Ceiling fans are, without a doubt, a great replacement for air conditioners. They also have a cheaper price and

will only cost you $50-100 each.

• Consider renovation: This is the best option you can do to save energy inside your home. Instead of buying all the energy-saving tools

you have read about in books, try hiring a specialist and let him do the job for you. Hiring a renovation specialist is a wise decision and you

can easily request an upgrade of your residence or commercial property.

How can you save money on home lighting?

Lighting is probably the most essential type of energy you need at home. You use light in almost everything you do. You can't charge your mobile

phone when there's no electricity. When there is a power blackout, it restricts you from doing your usual chores at home.

For this, it's important to understand the different techniques on how you can save money on lighting:

• Buy fluorescent bulbs: Using fluorescents is the smartest choice you can make to save money on lighting. Imagine this: four fluorescent bulbs of eight watts each can spread more light compared to 100-watt

incandescent bulbs. One more thing to remember: when you are buying, choose the one with a high unit of luminous flux.

• Light Placement: The placement of the bulbs can help you save


money and energy. You should place the lights directly on those unlit

areas rather than just brightening the whole room.

• Invest in auto dimmers: There are auto dimmers on the market and these can help you adjust your lighting system without manually controlling your lighting systems. Some automatic systems have

occupancy sensors that switch off the light as you leave the room.


Groceries - How to Trim the Fat

Save on Groceries

When creating a budget for the family, food expenses often make up a large percentage of your budget. Therefore, when you think of saving or reducing

costs in your household, this is one aspect you can look at. There are several areas of your grocery list where you can reduce costs and save money.

Shopping within a limited budget takes a little practice but you can ensure that you have all you need without spending too much.

Create a shopping list

Whenever you go out to get groceries don’t forget your list. The benefit of the list is two-fold: it saves you time and money.

To make that list, you need to look at what you need in your household. To

make sure you have everything on your list you need to look in your freezer,

fridge, or pantry. Once you have that list, make sure you stick with it. Never purchase anything that is not included on the list or else, you will null the

benefit and purpose of the list in the first place.

Plan your weekly menu ahead

To assist in making your list, you need to have a menu. This will allow you to

decide what you need to buy and will ensure that you never run out of stock at home. If you want to save more time, you can even share the same menu

for two weeks. Hence, you can do your shopping in one trip and you will have saved yourself time and money.

Never go to the grocery while hungry

This is a very practical tip that you need to follow strictly. When you go hungry, you have access to several food choices that will satisfy your

hunger. Unless you have unwavering self-control, you could end up spending

more. So before you go to the grocery, eat a full meal first and you'll be more likely to stick with your list.


Determine your budget

Before making your list, there is one consideration that you need to look into: how much are you willing to spend? Then you can adjust to suit that

budget limit. A clear knowledge of your budget will enable you to filter out the most important items you need to get at the grocer. On the other hand,

when you have a substantial amount of budget available, you could end up spending too much. Therefore, you need to allot money and bring only

enough money to spend for the grocery.

Keep receipts and take note of price list

After doing your grocery shopping, do not throw away the receipts. This is

useful when planning your budget for your next trip to the grocer. Having the prices to consult, you will be better able to precisely budget your money

according to the items you will purchase. Aside from that, you can compare prices according to which offer the best savings such as sale or buying items

in bulk.

Cut back on some items

If you study your list closely, you will discover that you are purchasing items that are unimportant or you could do without. An example of this is meat.

Buying meat at the grocer can be quite expensive. Therefore, you can opt to go for vegetarian meals or other types of menus that require less meat.

Tie multiple shop trips into one

Plan on going to the grocery once every two weeks. Refrain from going to the grocery just to purchase one item. Aside from this as a waste of time, it

is a waste of fuel. It is of the utmost importance to plan your menu ahead and make your shopping list in advance. By doing this, you will notice how

drastically you have reduced your trips to the store. In case you find yourself going out to buy a few items, re-evaluate how you came up with your list

and why you keep forgetting items.

Do the grocery shopping alone

If you have kids, it is advised that you do the grocery shopping without them. When your children go with you, they are likely to pester you into


buying a junk food they like. This will certainly ruin your budget. This is

aside from the fact that having to look after the kids while doing the grocery is a lot of work!


Entertainment on a Budget

Save Money On Entertainment

Even if you are saving money, you do not have to deprive yourself of some entertainment opportunities. There are several possibilities for having fun,

whether on your own or with friends, without having to ruin your financial budget. In fact, you can even enjoy the latest entertainment craze. It is

essential that you allow for a percentage of your earnings to go for entertainment, or else there's no point in saving. Here are simple tips you

can take note of for fun that is not necessarily expensive.

Take Advantage of Anything Free

Once in a while, free concerts are held, take advantage of them. If you can,

bring your friends along so you can enjoy the lively atmosphere offered at concert events. Since most concert tickets today are quite expensive, you

should grab this opportunity to see a concert for free.

If you are still going to school or know someone who is, many schools offer free entertainment through exhibition of plays, sports events, dance recitals,

art exhibits, or film festivals. While most of them are free, there are those that charge affordable ticket prices.

Change Your Viewing Habits

Spending money on a movie ticket is just not practical. Instead, you can watch a movie at home with friends or family. You can prepare popcorn for a

snack while watching your favorite movies. To get those DVD movies, you can look for a rental store within your neighborhood or nearby area.

Subscribing to a video store is not a practical decision because you end up spending more on late charges or you are unable to maximize your

subscription fee.

Or better yet, you can borrow DVD copies of your favorite movies from

friends...or your local library! If you want, you can invite them to your house so you can watch those movies together. This is a thrifty way to entertain

yourselves and bond with friends.

Indoor Games


Go back to the past with indoor games that you enjoyed as a kid. You can do

puzzles and board games with family members. This might sound boring for some, but once you get started playing, you will find yourself hooked. This is

a perfect opportunity to waste time on a particularly dreary day.

Join Clubs

Whatever your interests are, you are bound to find an organized group that

caters to your interests. For instance, if you love reading books, then you can join a book club within your community. This is a fun way to meet new

people, while others exchange their favorite books. If you enjoy biking, then there's probably a biking group to join.

Membership fees for most of these groups are quite affordable, while others

require no registration fee. These are organized by people who just want to share their passion for certain things with other people. This is not just a

cheap way to entertain yourself but is quite fulfilling too.

Watch For Discounts

If you want to watch theater productions, go to a museum, or partake in any form of merriment, where you can invite your friends to join you. While

there are a few of them that offer tickets at a cheap price, look out for those that offer discounts for buying tickets in bulk. These discount offers are done

to encourage people to watch these productions and you need to grab them while the opportunity lasts.

Aside from that, you should take advantage of other forms of discounts. For instance, if you are a student, you can get discounts by merely presenting

your ID.

Head Outdoors

Most people's idea of entertainment are confined to malls and movie

theaters. These forms of entertainment are often quite expensive. Therefore,

you can go outside and experience fun outdoors. Not only is it a cheaper way to have fun but there are limitless activities to explore.

You can go hiking, picnicking, fishing, camping, kayaking, bird watching, visit a park, or walk on the beach with friends. This is a perfect way to get


re-acquainted with the outdoors and be treated to the beauty of nature.

These types of activities are quite calming and relaxing. Aside from that, most of these parks or reserved areas are open to visitors for free.


Doing Your Own Auto Maintenance

Do Your Own Automobile Maintenance

Most automobiles manufactured today are expected to reach the 200,000- mile mark with regular maintenance and tune-up. Prices of automobiles are

consistently increasing. To ensure that your car performs well, to preserve your investment, save yourself tons of money and effort, have your car

repaired by an auto technician.

However, if you car is out of warranty there is no reason why you should not

do regular maintenance yourself.

Learning More About Your Automobile

If you want more information about your automobile, the best place to turn

to is the owner's manual. Take note of maintenance procedures according to your car's mileage:

* 3000 miles

Whenever you reach 3000 miles, you need to change the engine's oil. As you do this, you need to change the filter. Other things to look into are the fluid,

tires, air filter, hoses, and belts. You must examine the state of battery cables and terminals.

* 5000 - 10,000 miles

Maintain the rotation and balance of your car whenever you cover 5 to 10 miles. This will ensure that the tires won't wear out and its life span is

extended. Take note, most especially, of the front tires for the right pressure.

* 15,000 miles

Change air filter after running 15,000 miles for fuel efficiency. When your air filter is dirty, it will cause damage to the engine. As you do this, take time to

also check your brake system.

* 30,000 miles


Once you've reached 30,000 miles, check your transmission's fluid level.

Consult your owner's manual for the right kind of fluid to use in your car. Use the manual for proper directions on how to properly drain and change

fluid.

* 50,000 miles

Upon reaching 50,000 miles, you need to change your car's coolant. Also,

maintain your car's finish to ensure it remains in good condition. Constantly wash and apply wax onto your car as varied weather conditions could

diminish the paint.

Car Maintenance Software

To ensure that proper maintenance is done on your car, you need to keep

records. There are several ways to keep your records whether it be in a separate notebook, a log, or in your computer. In fact, there is a software

available for this specific function. This particular software contain programs

that track such maintenance procedures as repairs, replacement of parts, and fuel consumption.

The software can be used for monitoring multiple vehicles. Hence, you will know when one vehicle needs maintenance or changing of parts as it often

becomes much of a hassle to keep track of each one.

Another impressive feature for this software is the capacity to set service

schedules and reminders on when the next maintenance will be performed. Aside from that, it offers practical car care tips for your vehicle. Lastly, there

are diagnostic and reference tools in case you have trouble with your vehicle.

Diagnose Your Vehicle

There are common car problems that require only a simple job. Instead of going to a technician, you can save money by doing it yourself. Below are a

few tips for fixing common car problems you can do.

• When you turn on the ignition and the car does not start, the battery might be dead. Often, this is due to an interior light being left on. Look

for this light so you can turn it off. Wait for a few minutes and try turning on the engine again.


• When you turn on the ignition and you hear a screeching sound, you might need to check the fan belt. In fact, you might need a fan belt replacement, which is something you can do. However, if you are

unsure on how to do this, you can always seek the help of an auto technician.

• There are certain instances wherein the car starts but dies after a matter of seconds. This might be due to fuel getting into your engine

tank. There are 3 possible reasons for this: you are using the wrong type of fuel, you are out of fuel, or there is something wrong with your

safety switch.

Do-It-Yourself Auto Jobs

While there are car maintenance procedures you must leave to the auto

professionals, as the car owner you should check on the condition of your vehicle. Here are a list of basic car maintenance techniques:

1. Maintaining wiper blades.

2. Providing wiper fluid.

3. Changing oil and checking oil filter.

4. Checking tires for right pressure.

5. Maintaining headlights.

6. Checking air filter.

7. Replacing spark plugs.

8. Checking battery life.

9. Keeping an eye on automatic transmission fluid.

Treat your car right and you can save money. It will also serve you well for years when maintained properly.


Change Your Habits and Save

Saying "NO" to Smoking and Alcohol

Campaigns against smoking and drinking have been around for some time. There is a widespread information campaign that aims at educating people

about the harm of consuming too much alcohol and cigar. Hence, there is a need to discuss the benefits offered by quitting these habits that extends far

beyond your savings.

Monetary Benefits

Today's society is frozen by a recent economic crisis and this is mostly felt

by lower to middle-class people who earn minimal income. Therefore, it leaves most people just enough to sustain. If you are one of these people

and yet you are both a smoker and a drinker, you need to think about quitting.

Smoking and drinking alcohol does damage not only to your personal budget

plan but for the entire economy. In the United States alone, the resource dedicated to the cost of smoking related issues amounts to $130 billion.

Furthermore, there are several known illnesses related to both smoking and drinking. The cost for medical resources to treat smoking and drinking

related illnesses such as lung cancer, colon cancer, or heart disease is approximately $60 billion annually. This amount could have been used on

medical resources to treat other diseases.

Therefore, the government suffers from the negative effects of habitual

smoking and drinking as much as your wallet.

Health Benefits of Smoking Cessation

Should you decide to totally get rid of your smoking habit, then you can

enjoy the benefits to your health. Just like with any other type of addiction or habit, you might suffer first few days of quitting. However, it should be a

gradual process and every minute counts.

Here is a list of comparison to your health's condition as soon as you get rid of that cigarette stick:

• Within 20 minutes of quitting cigarettes you will notice that the rate of your blood pressure returns to normal. Hence, it minimizes the risk of

heart attack.


• After 8 hours, you will experience a reduced level of carbon monoxide and nicotine. The level of oxygen in your blood stream is more stable.

• Your body's carbon monoxide level reduces into half by the time you reach 10 hours without smoking. The high level of carbon monoxide in your system can lead to reduced energy levels and hampers your

blood circulation.

• After 24 hours to 3 days without smoking, you will enjoy the following health benefits: more energy, less nicotine in your body, relaxation in your bronchial tubes, and easier breathing.

Every smoker needs to realize that when you smoke, you are putting the health of passive smokers at a greater risk. Smoke emitted from a cigarette

can be as dangerous to the health of others as much as the smoker himself.

Health Benefits of Quitting Alcohol

Most people drink alcohol at some point in their lives, although the

frequency varies from occasional, moderate, to regular. Too much alcohol in

your body poses a tremendous risk, especially when you exceed moderate levels. Here are some health benefits that you can experience should you

decide to quit:

• By quitting alcohol, you avoid suffering from drinking related illnesses such as heart problems, damaged pancreas, cancer, cirrhosis, liver damage, sexual problems, among others.

• Too much alcohol affects your appetite. Therefore, quitting alcohol can help you achieve a more toned muscle and healthier overall feeling.

• Drinking can contribute to weight gain due to the high levels of fat present in alcohol. So, if you want to lose weight, you could start by

eliminating alcohol.

Other Personal Benefits

For chain smokers and drinkers, quitting these habits might prove to be a

struggle. However, aside from the improvement in their health condition,

there are several more benefits to enjoy.

Owing to the fact that quitting smoking and drinking can prove a struggle,

being able to quit gives you a sense of accomplishment. By making that choice, you earn more freedom and retain control over your life. The


recognition of the harmful effects of smoking and drinking, coupled with the

choice to develop a healthy lifestyle is your step towards revising your self-image.

Due to the health impacts of drinking and smoking, you will be able to assume a happier disposition. The choice to quit signals the start on your

way towards a healthier sense of well-being.


Who to Pay First

Pay YOURSELF first

With mounting bills and limited monthly earnings, most people find it difficult making both ends meet as far as a budget is concerned. Oftentimes, your

monthly income cannot cover all your monthly obligations. You often tell yourself that your financial situation will improve only to find yourself in a

deeper hole. To achieve this, you need to set financial goals for yourself.

Importance of Financial Goals

You should list an objective set of goals that will determine your spending

and saving habits. Without a clear financial goal, you may end up spending your money on things you don't need or won't be able to use anyway. This is

one of the reasons why most people end up wondering why they don't have enough money left. And yet, they don't have a clue on where and how they

spent that money.

In our chapter about creating a budget we discussed the importance of creating a detailed list of all your expenses, including a cup of coffee or

bottle of shampoo you bought. Hence, you will be able to identify where you spent your money. Aside from that, having that record for reference will

enable you to assess your spending habits. Are you spending too much on unnecessary things? You can identify those unnecessary things and omit

them from your list of purchases.

Financial goals, basically, not only enable you to study the way you spend

your money but encourages wise purchases.

Financial Goal and Savings Plan

The next step is to determine your goals. This might seem quite obvious in

concept but the problem is how to get started. The most efficient way to do this is through creating a savings plan. This will serve as your stepping stone

towards reaching your financial goals.

Here are steps to start your own savings plan:

1. Create specific but long-term goals. If, for example, you want to save money to support you after you retire, you need to have a specific, targeted figure in mind. This will enable you to determine how much

you can allot for your monthly earnings for your savings account.


2. If you do not have any idea on how to go about creating a savings plan, you can seek a financial expert's advice.

3. Whenever you earn bonuses or raises, set them aside in your savings account. You cannot just rely on your paycheck for building your savings. Instead, you should increase it at every opportunity possible.

Managing Your Finances

Your savings account will be of no use unless you know how to manage your

finances wisely. More than any other bills, you must learn to pay yourself first. Hence, even if you end up spending your money on various bills you

owe, you have already set aside some amount for yourself.

Whenever you receive your monthly pay, set aside an amount for your

savings plan. Recognize what your financial obligations are and put them on your priority list, when it comes to spending your earnings. For instance, you

have monthly bills such as electricity, water, or internet and you need to set

down a percentage of your income to pay for them.

If you find that you are short on your budget, then you may have to make a

few sacrifices. Instead of eating out, opt for home-cooked meals. You can cancel your subscription to a fashion magazine. This will help, alleviate your

financial burden and save for more important things.

Practical Ways To Save

Oftentimes, saving and wise spending entails only a little bit of self

discipline. Creating a healthy financial disposition will enable you to better understand the importance of managing your finances responsibly.

Here are a few tricks you can try:

• Open an investment account and opt for an automated contribution. You need to keep in mind that you should opt only for automatic

monthly contribution once you are comfortable with your investments

and are earning enough on a monthly basis.

• Increase your stream of income. Regardless of your monthly paycheck, you need to supplement your current earnings to boost your savings. However, you must try to maintain your expenses (if not


possibly lowering them) to free up more money to add to your savings

account.

• Avoid impulse buying and unnecessary purchases. Since most people are having trouble resisting this urge, it is best to bring only the amount of money you can afford to spend when you go shopping.


Disciplined Buying

Learn How to Discipline your Purchases

Discipline is an essential part of a successful financial management process. Unless you know how to disciple yourself, you will never be able to save. It

comprises the ability to say 'no' when the urge to purchase something you had not initially planned on buying and is one of the first steps to achieve

disciplined financial management.

However, this does not mean you should deprive yourself. It is still possible

to indulge without spending too much.

How To Discipline Yourself

Discipline, just like any other skill, can be developed. You need to start with

small amounts. Making tiny efforts such as sticking with your budget plan is your first and biggest step toward a more efficient financial management.

While discipline is a skill, spending is a habit. Therefore, once you acquire

the skill of disciplining yourself, then it should be easy to break your spending habit.

Then, you can undergo a reward and punishment method. For example, you set aside a certain amount which you will spend for a specific period of time.

In order to make do with that limited budget, you might need to forego some of your luxuries and settle for those that offer the most savings. When

you've done that, you will be able to save your money and enjoy whatever savings you've made later on. That is your reward.

Shopping Wisely

Stretching the value of your dollar is one of the common dilemmas facing average income earners. This does not necessarily mean that you should

dismiss the chance to purchase something you want. It is nice to reward yourself sometimes by buying that bag or shirt you have been eyeing. But

when you do, always ask yourself: am I making a wise purchase?

How To Look For Bargains

For some people, bargaining is a stressful activity. While for others, it is fun to haggle with vendors and get your desired item at a cheaper price.

Therefore, if you have the patience to look for a bargain, you could end up


saving tons of money!

Plan your day ahead. Take note of all the places or markets you wish to visit for the day. Doing this will help you avoid going back and forth. It is best if

you plan ahead which item to buy, so you won't end up looking all over the place and still having no clue what you are looking for. Thus, you avoid

buying items just for the sake of buying.

However, you must not dismiss the possibility of making other purchases

(something of which you did not plan on), especially when it proves to be quite a bargain for its price. While this sounds like impulse buying, you need

to ensure that you are be able to make good use of this item.

Often, when you enter a store, you are shown their fully priced items first

before the discounted merchandises. If you prefer branded items, you can call a store ahead and ask if they have overstock or clearance sales. These

are perfect opportunities to grab supposedly expensive items at a bargain price.

When it comes to haggling with vendors for prices, always offer at least half

of the original price. Therefore, even if the vendor does not approve of your offer, then you can still get the item at a considerably lower price.

Additional Bargaining Tips

Plan ahead of time when you are looking to buy a specific item or items. Question local vendors on what they could suggest for the best time or

places to shop.

If shopping online, take note of sales and overstock. You can secure amazing

deals over the internet, but do not forget about shipping. Then, weigh out the odds: for example, you might get an item for 30% off but the shipping

and handling charges will result in you paying more than if you paid the item's full price. Then, it is not worth buying it! Another concern while

shopping online is the credibility of an online shop you are considering. Make sure it is a valid online shop before you give out any confidential financial

information.

This is a common bargain tip that you should always remember: take time to shop around. If you find an item you like, do not jump right in. Instead,

look for other options because you might find something you like better at a more affordable price.

Surviving the Bad Economythe... · 2013-04-22 · idea on how to approach your budget plan. Regain...

Documents

Transcript of Surviving the Bad Economythe... · 2013-04-22 · idea on how to approach your budget plan. Regain...