Finance 101: How To Stay Debt Free In Today's Economy

Having some level of debt is common in today's society. However, you don't have to let debt consume you. What are some things that you can do to stay out of debt and put your money to good use? Let's take a look at how you can live without a large credit card balance or expensive monthly payments:

Rent Instead of Buy

When you acquire something, you need to consider the total cost of ownership. While renting a house may appear to be more expensive than buying a house, you have to consider the additional utility costs as well as taxes and mortgage interest. Whether you are looking at homes, cars, home tools or more, renting could save a lot more money than buying.

Buy Used Instead of New

Buying items that are used can allow you to buy something nice without paying full retail for it. For example, buying a 2012 car in 2014 may be the better deal because it won't depreciate as much. When you buy clothes or shoes at a thrift shop, you can pay pennies on the dollar for the latest fashions. Most items won't give you any problems if they are gently used, but it will save your wallet a lot of extra money. 

Save Money Ahead of Time

Instead of financing 100 percent of the purchase price, try to save up as much as possible. Having equity in your asset makes it easier to sell it if you can no longer afford to make payments on it. 

Keep Your Credit In Good Standing

Those who have good credit will pay less in interest charges than those who have bad credit. Borrowing $100 at 10 percent interest means that you pay $110, while you would pay $130 at 30 percent interest. Over a larger scale, that savings adds up. 

Create a Budget That You Can Stick With

Make sure that you create a budget for your monthly and yearly spending. It will keep you within your means and ensure that you don't deplete your savings and rely on credit cards to pay bills. While you may want to be strict with your budget, it's important to still be realistic so you can meet your financial goals.

Resist the Urge to Upgrade

Driving your car for as long as possible after it is paid off enables you to avoid a car payment. Keeping your current TV allows you to save $500 or more that you can put in the bank or use for an emergency situation. If your items are still working, wait until you save more money to upgrade.

If you want to stay debt-free, you have to be willing to make some sacrifices to stay within your budget. If you feel overwhelmed with debt, it's important to talk to professionals who can help. Staying debt free is very possible, and following these tips will help get you started on having better control of your finances.

Informational credit to A C Waring & Associates Inc.

Don't Sell: 7 Items that Will Cost You More Money in the Long Run If You Sell

When in a financial crunch, you may be tempted to sell many of your belongings to come up with some quick cash. While you can make some decent money doing this, it is not always a good idea. Selling certain items may end up costing you more in the long run, like these examples:

Heirlooms

While it is true that possessions aren't everything, they’re still important. Don’t sell your family heirlooms. You want to have something you can pass on to your children to continue your family’s legacy. Chances are, the you will be selling your family heirloom for much less than you think it is worth. Consider selling other items items instead like collectibles that don't have a special meaning to your family, but could to someone else. 

Furniture

Old furniture is unlikely to sell for much. However, it's hard to justify living without a bed or table, and replacing furniture can be very expensive. If you need some space, consider renting a storage unit to hold that furniture until you have room for it again. You can find storage units of all sizes and prices to meet your needs and save you money in the long run, says the professionals at The Self Storage Space.

Old Currency

You may have some old coins or bills in your possession. If this is the case, don’t sell this old currency immediately. Hold onto it until you can get a legitimate collector to examine it. Never sell collectible currency for face value, since it could be worth much more.

DVD Collection

While it may be tempting to get rid of your film collection on DVD and Blu-ray, you will only receive an incredibly tiny fraction of what you originally paid. Better yet, watching movies you have already invested in is far cheaper than going to the theater. If you want to make a better profit, consider selling your old electronics. Even outdated and broken electronics are valuable to many people who plan to use parts or fix it up.

Your Car

While it may seem like you can make a lot of money from selling your car, it is a risky move. Cars depreciate in value quickly, and purchasing a new car is an expense you probably don’t want. Even though you can buy used cars in the future, you will never know if it has hidden problems that could be expensive to fix. Spending the money to take care of your current car to keep it running for a long time will save a lot more in the end. 

Stocks

Never sell stocks simply because you need quick cash. Only sell them when the market is up and you’ll make a return on your investment. Selling stocks at a loss misses the point of investing in them in the first place.

Your House

Moving out of a house and into an apartment is something many people do. However, this can be a bad decision in the long term. While a mortgage is expensive for the short term, it is certainly a lot less expensive and stressful than paying rent for the rest of your life. Only sell when you are ready to move and feel like you can make a profit, not because you want your monthly bills to change.

Looking for ways to earn some extra cash can be difficult. However, be careful about what you sell. You may end up losing more than you bargained for. Look for easily replaceable items to sell first. Having a garage sale for things like clothing, books, toys, baby and pet items, games and old jewelry are a great way to earn a little extra cash without having to spend a lot to replace them. 

Tired of Gas Prices? 5 Tips for Ditching Your Car and Still Getting Around

Gas prices have almost tripled since 2002, causing many people to ditch their cars to save money. Leaving car ownership behind is easier when you have confidence you can still get around. Good news - you can survive without a car, even if you don't live in a major urban area. Here's five tips to help you get started.

1. Use Public Transportation

A handful of cities are known for such excellent public transportation systems that having a car is an anomaly instead of a requirement. But most cities have some public transportation. Consider buses, trains, trollies and even publicly available bicycles.

Scheduling your day around public transportation can take some adjustment. Research makes the transition easier. Look up routes, print out a list of exchanges and times and program the customer service number into your phone for quick information.

While taxis aren’t as cheap, they can definitely do in a pinch when you need to get from point A to point B very quickly. A taxi service in Naples might be just the thing for you, and you always want to make sure you get a ride from a trusted company, like Southwest Florida Transportation Group, Inc. Don’t just hop into any old yellow car and hope it’s a taxi!

2. Walk or Bike

What's a great way to learn more about your city, get some exercise and save on gas? Using your own two feet as your primary mode of transportation. Walking is free and even investing in a good bicycle pays for itself in a couple months of saved gas bills.

Living in a central location that allows you access to frequent destinations may be more expensive than other housing options. Keep in mind the money you're saving without a car payment, gas bills and car insurance when making your budget. 

3. Reduce Your Trips

Without a car, you learn to consolidate trips. Not running out for fast food may be inconvenient at first, but you'll be saving even more money in the long run. Whenever you need to go out to the store or run other errands, plan ahead. If you need to go to the grocery store or if you need to go get your haircut, go to the grocery store last. This will allow you to take care of all of your other tasks without letting any of your food going bad and it will prevent you from having to go back to the grocery store later. It will also give you time to think if you need to add any more items you need to get at the grocery store to your list. This will help you avoid the risks of going back later because you forgot an important item. Work ahead to avoid unnecessary trips. Plan out your week's meals and shop for everything you'll need at once. Odds are, you'll eat healthier, too.

4. Buy an Alternate Motorized Vehicle

Electric bikes, mopeds, scooters and motorcycles are growing in popularity as gas prices rise. They are the best of both worlds - you can travel long distances in short amounts of time and use less gas than traditional cars. A bonus is that many options don't require insurance.

5. Car Sharing for Special Trips

No matter how satisfied you are with your car-free life, there will come a time when you simply need a car. In those situations, consider a car-sharing program. City Car Share, i-Go, FlexCar, ZipCar and Lyft are just a handful of the options available. Some research will help you find the best car-share program for you.

Getting Close To Retirement? 4 Things To Remember As You Get Closer To The Golden Years

If you are approaching retirement, you will want to take the time to understand your goals and where you stand. Otherwise, if you head to retirement without thinking about your future, you will face serious issues. With this in mind, here are four things to remember as you approach your golden years.

Lawyer:

Once you amass some wealth, you will want to protect it. To do so, talk to a lawyer who can set up your finances in an intelligent and thoughtful manner. Otherwise, if you have a 401k, pension or other financial product, you will fear problems if you commit any mistakes. Not only that, with an attorney, you can maximize your social security payouts as he or she can come up with the best withdrawal solution for your needs. While a lawyer will cost money, he or she will have you enough in the long run that you will have no trouble justifying this minor expense. Rogers Bussey Lawyers are lawyers in Newfoundland, and a good example of a firm that could help you through this transition in life. 

Health care:

Believe it or not, if you retire without health care, you are putting your net worth at risk. While you can usually use government sponsored plans by the time you reach 65, you will need to think about your needs before you reach that age. Not only that, you will also want to consider supplemental plans, especially if you suffer from any ailments. Either way, when you take care of this at a younger age, you will avoid issues should you fall ill.

Home:

Let’s face it, if you raised a family in a large home, during your retirement, you will not need the room. In reality, you need to consider selling your house as you can move to a lower cost of living area. Other times, if you want to remain in the area, you can downsize to a condo or smaller home. Either way, unless you want to stay in a large house and pay to heat and cool it, you need to consider downsizing.

Will:

If you have some assets, you will probably want a will. Not only that, if you are a parent and want to pass down money to your kids, you will want to set up a will. With a lawyer on your side, you can create this quickly.

When you prepare for retirement, you will have an easier time as won’t need to worry about losing out on the best time of your life. Remember, if you don’t prepare, you will struggle when you are older.

Tips for Creating your Perfect Retirement Home on a Tight Budget

Retirement (Photo credit: Tax Credits)

Building a customized retirement home is a great way to ensure that every single aspect of the property is exactly how the owner would wish, but there are some important considerations to make. Here is a look at a few simple steps to avoid common mishaps, save money, and not cut corners.

Consider Splitting Lots

One of the biggest parts of creating the perfect retirement home is finding an ideal location. A sprawling lot next to a lake may seem ideal, but that is not always going to be in the budget. Those that are retiring can speak with family and friends about purchasing larger lots with one of the parties using their half as an investment property while the retirees begin building their home.

Carry Out Minimum Site Prep

Site prep tends to be one of those expenditures that very few think about before it is too late. While the initial cost for a near-ready site is going to be more expensive, site preparation can often cost tens of thousands of dollars. Some of the most common preparation costs include hauling in fill dirt, cutting down trees, grading, leveling, and breaking down rock. 

Find the Right Location

It is popular to build a retirement home in a beautiful, tropical location. When potential retirees begin to fantasize over the potential places to retire, they begin to lose a grip on smart location choice. Location can save a very significant amount of money in your site and in the cost of living after moving in.

Take for example Florida. Florida ranks consistently as one of the 5 most popular places to retire, especially for east coast seniors. But not all of Florida is made equal. According to CNN Money, living in Tampa, FL will save you 33% on housing costs compared to Miami, FL. In addition, health care, groceries and transportation cost around 6-7% less respectively in Tampa. Do some research and pick a smart location!

Use Stock Plans

A fully custom floor plan is typically going to be too expensive for those that are looking to build a retirement home on a budget. Instead, a much more affordable option is to choose a stock layout from a reputable builder or architect and then make the minor changes to the home in order to customize it how the residents would like it.

Explore Used Materials

Demolition sites may not sound like a place where one wants to collect materials, but they actually can provide some amazing and unique options without the overwhelming costs. Many of these sites offer their materials at little or no cost for those that are willing to haul and builders can find stressed woods, bricks, and a variety of non-finishing materials as well. 

Use Cheaper Material to Save Money

One of the best ways to save on building a house is to knowing the kinds of material that can go into a certain room. For example, you may be working with a contractor who suggests that you install a natural stone floor in your kitchen or bathroom. However, if you know good alternatives to natural stone, you will be empowered to make better decisions. For example Centura Tile, a supplier from Hamilton, Canada, offers ceramic tile at less than a dollar a tile compared to natural stone which can get over $50 per tile.

Create Allowances

The builder is going to make or break a project, and they could also create extra savings or go well over budget. While there are some safeguards against them gouging prices, that does not always mean that hiccups won’t happen. It is important to set aside allowances for overspending, notify the builder of that amount, and have them agree to it in writing.

Creating a retirement home from the ground up does not always mean exorbitant costs. Taking the time to understand each step and cutting expenses one at a time will mean a beautiful home that is on budget.

Save Money: How To Reduce Your Utility Bill This Summer

Are you one of the many Americans who dread opening up your utilities bills each month? Fortunately, there are several ways to cut down on your utilities. These six tips can be a great way to get started with your monthly savings.

Turn off your electronics

It may be tempting to leave your TV or stereo on at night, or maybe you forget to switch off the lights when you leave a room. However, these costs can add up over the course of a month. Before you leave the house or go to sleep, do a quick sweep to make sure your electronics are switched off. This is especially important for charging laptops and cell phones. Take a quick look around your home before leaving for the day, and especially before long trips. You may be surprised at how much electricity you are using when you don't need it. Common sources that are often overlooked include: kitchen appliances like toasters, charging computers or phones, electronic shavers and power strips.

Upgrade your appliances

Switching to energy efficient appliances can save you hundreds of dollars on your utilities. Your AC units, dishwasher, and washer and dryer can all be replaced with a high-efficiency model. In addition, many local and state governments offer financial incentives to homeowners who choose to upgrade to more efficient appliances. Air conditioner installation is a simple process with the help of professionals, and can save you a bundle for years to come, says the experts at Cydcom Services Ltd. 

Choose your light bulbs carefully

If you choose to purchase energy efficient light bulbs, not only will you save money on your electricity bill, but you will also save money in replacement costs. Although energy-saving light bulbs are initially more expensive, an energy-efficient light bulb can last seven times longer than a normal light bulb and costs you much less on your utilities. You won't end up having to keep going to the store to buy more light bulbs either, making it much easier to maintain as well. 

Install an irrigation meter

A little known fact about your water bill is that you are actually charged twice, once to pump the water into your house, and again when you pump it into the sewage system. By installing an irrigation meter, instead of pumping the water back into the sewer, you can use it to water your lawn or garden. The meter will be measured each month by the utility company and subtracted from your water bill.

Buy a programmable thermostat

A programmable thermostat can also help you save money on your heating and air conditioning costs. You can use a programmable thermostat to keep the temperature cooler in the winter and warmer in the summer when you aren’t home during the day. This is an easy way to save money without making a conscious effort everyday. By having the programmable thermostat, you can set a temperature for your home each day or night, and not worry about constantly changing it or forgetting to turn it down when you aren't home.

Turn down your water heater

Setting your hot water heater on a higher temperature can cost you hundreds each year in standby heat losses. Most hot water heaters are set at 140 degrees, but by turning the temperature down to 120 degrees, you can save even more money on your monthly utilities bills. When you have company over or need to use more hot water, you can turn it up temporarily to save you money. Hot water is more expensive than many people realize. You should also consider doing your laundry with cold or warm water as often as possible. Using hot water for all loads of laundry costs the average homeowner hundreds of dollars each year.

Bills for your electric, water and gas can be expensive, but by following these six steps, you can greatly reduce your monthly utility expenses. Expenses that you can control can make a big difference in savings at the end of the year.