As I research our economic situation these days, I am struck by some interesting statistics about people's personal finances. In 2005, at the height of the real estate boom, the average amount of money people saved from their net income dropped into negative territory - meaning on average people were spending more than they were making. In contrast, of June of this year the personal savings rate rose to 6.9% - the highest it has been since 1993, according to the Associated Press. Despite tough times, people have increased the amount they are putting away for their financial security.
So are you someone who recognizes the importance of saving money, but isn't sure how? The options for pinching pennies are endless, but here are a few ideas:
Switch Bank Accounts - With so many options out there, you should not be paying maintenance fees. Check for interest rates on checking and savings accounts. Consider online banking - without the brick and mortar, these banks sometimes offer much better rates.
Free Rewards Programs - Sign up for every free rewards program you can. Even if you don't patronize each individual business often, take advantage of the coupons and discounts when you do.
Shop With a List - Make a list before shopping, and don't buy anything that isn't on the list. You would be surprised at how many you save without those impulse buys!
Invite Friends Over - Virtually all activities are less expensive at home. Everyone will have fun, the cost will be low, and the others will likely reciprocate soon after.
Ask For a Rate Reduction - If you are carrying a balance on your credit card, call them and ask for a rate reduction. Speak to a supervisor if you needed and tell them you will take your business elsewhere if you don't get a rate reduction
Drink More Water - Not only is drinking more water healthy for you, it will also help you save money. If you drink a glass of water before every meal, you will eat less, saving on the bill. Cutting down on the soda, coffee, and alcohol will obviously help you trim costs also.
Clean Your Air Filter - Driving with a clean air filter can improve your gas mileage up to 7%. That's a savings over $100 for every 10,000 miles. Also check your tire air pressure. For every 2 PSI that all your tires are below the recommended level, you lose 1% on your gas mileage.
Take Advantage of the Library - Instead of buying new books and DVDs, check out your local library selection. Most libraries have their catalogs available online, and if they don't have what you want, many are able to request items from other libraries. Also consider using online swapping sites to trade your old books, movies, and CDs for other people's used items. This will help clear the clutter as well as get you new material.
Invest in a Deep Freezer - A large freezer will allow you to buy in bulk, saving at the store. You can also prepare meals ahead of time and freeze them, providing inexpensive and quick homemade food in a snap.
Give Gifts of Service - Instead of buying a birthday or Christmas gift for someone, offer a service. For new parents, offer to babysit. For pet owners, offer to house-sit when they go out of town. For homeowners, offer lawn mowing or cleaning service. This gift will be thoughtful and more personal (as well as save you money!).
Find All the Benefits of Your Job - Talk to your HR department to find out about any benefits you have been missing. Make sure to ask about matching funds for retirement savings - extra money without any extra work!
I hope these tips are helpful!
Eli Johnson
REMAX Results
eli.johnson@results.net
651-357-2536
www.eliasjohnson.com