Are you spending more on "fixed" expenses than you should? Fixed expenses are regular monthly costs such as cable, internet, cell phones, insurance, and banking. Most consumers select a product and stay with it for months, even years, without researching other options. Often, there are lower cost options available that could save you HUNDREDS of dollars annually. However, you'll have to take the time to research and compare since companies aren't going to contact you to offer a better deal. It's worth your time and you can put the money that you save into a savings account or pay off high interest credit cards.
2. Review Your Credit Report - It's FREE Visit
www.annualcreditreport.com and request a free copy of your credit report. Your credit report is a collection of your financial information and credit history - consider it your "financial report card." You should review your credit report at least once per year to make sure the information is accurate. You may be able to correct any negative credit history and ensure that your identity hasn't been compromised by anyone trying to access credit in your name.
3. Identify Your Spending Leaks Without even realizing it, many of us spend a lot on inexpensive items such as coffee, meals out, entertainment, clearance sales, and personal expenses. To get this often unnecessary spending under control, you'll first need to identify the problem items. Track ALL of your purchases for an entire month, no matter how small. After a month of tracking, add them all up to identify your personal spending leaks - you might be surprised to see where your money is going!
4. Set-up Automatic Savings Now that you have identified spending leaks, it's time to focus on savings. Establishing the habit of monthly saving is important, even if it's just a small amount. Savings can help you lessen your dependency on credit cards and other types of borrowing. If you don't have any savings, start with a savings goal of $500 - $1000 and build from there. Almost all banks will, at your request, automatically transfer funds from your checking account to a savings account, U.S. Savings Bond, or stock mutual fund. What you don't see, you won't miss!
5. Raise Cash to Pay Off Debt Take a look around your house to see if there are unwanted items that you could sell and turn into real cash. Things to consider are video game equipment and games, musical instruments, athletic equipment, appliances, DVD's, collectibles, tools, or lawn equipment. Most of us have households full of items that we don't need or use and it's easier than ever to sell unwanted items. Host a neighborhood lawn sale or sell your items online. Use this "found money" to pay off high interest credit cards or to start a savings account!