May I suggest you try exposing yourself to chance and new discoveries by not buying any new music that costs over $3 an album unless you buy it directly from the band?
Find the clearance shelf at your local indie record store (Streetlight on Market's is in the upstairs back right corner & prices are $1 or $1.95). Check out yard sales & thrift stores.
Sign up for LaLa and turn the stuff that didn't work out into what you know you want.
Are you automatically transferring money to savings or retirement funds every paycheck?
If so, good. It's time to take a look and see how you can do more. Those tips I mentioned about cancelling a service you don't really use (hello gym membership or cable tv you never enjoy or magazine you don't read!) can free up a little cash here. Apply it first to high interest debt or, if you've conquered that - go you!, then increase the amount heading into retirement savings. Don't count on social security; might be there, but, I'm just sayin', governments change...
Even if you're living paycheck to paycheck find a way to pull out $10 and automatically put it into savings. Figure out the things that would save you the most money - moving to a new apartment closer to work, perhaps - or which would help increase your cash flow - a good outfit for interviews and some nicely printed resumes, perhaps - and do that as soon as these special savings allow.
One thing to note is that this does not need to be an ever upward climb; just think about what really makes you most happy and relaxed and continually reposition your world a little closer to getting more of that.
For most people it turns out not to be yachts and diamonds; just a job they like, while living in a place they love, and getting to spend time with people they enjoy. That's not as expensive as you might think, so take another little step closer to it today.
Want to visit that pricy restaurant but it's outside your budget? Don't go for a full meal.
Have a serving of something decent and cheap and then go out for just appetizers at the posh spot. What's even better about this is you can have them at the bar in many places and avoid the wait for a table.
Maybe tonight's a good night to stay home, make some dinner from ingredients you already have or eat up some leftovers, watch that movie that's been sitting around or read a book off that stack you keep intending to get to or play a favorite old game that's been gathering dust.
Without spending, you can have a really nice time and remind yourself of what is good about your life.
"Automatic Minimum Payment"
Check with the companies behind all your monthly bills and see if there's a way for you to have the minimum payment always charged to your bank account or credit card automatically. This will save you from late fees.
Also, while you've got them on the phone, see if you can get your bills by email. This saves paper and gives you the earliest possible warning if a bill amount is in error.
If you aren't already automatically transferring $25 or more out of every paycheck into some kind of savings account, start now!
If you are already, and you aren't living hand-to-mouth, increase the amount set aside by 10%.
This is especially good if your employer has some option that allows you to have the money come out before taxes (e.g. into a retirement account). Some employers will even match these funds. Mmm, free money.
I also set up a separate automatic transfer to a retirement account with another funds management provider, Pax World, because a) I like they way they invest better than the matched fund choices at work and b) diversifying your savings is a good thing.
Bottom line: it's easier to save if you don't have to think about it and it just happens automatically.
Discard the idea that your phone company (or companies if you have a land line and mobile service) and credit card providers will let you know when you are eligible for a better rate.
At least once a year, call them up and ask if they can give you a better rate.
It's particularly helpful if you can tell them the lower rate that a competitor is offering (which you can often find with a bit of internet research if your junk mail doesn't announce it). They will almost invariably be able to match that rate.
Carrying credit card debt? Been a customer of that bank for a year or more?
Give them a call and ask if you now qualify for a lower rate. If you can cite other rates you've been offered recently this may help.
They may also offer to give you a very low rate if you transfer other debt to them - sometimes you get blank checks in the mail for this. Always check to make sure the rate isn't for a shorter term than it will take you to pay off the money and that it doesn't then switch to a higher rate then you are paying now.
My personal philosophy is to stick mostly with the bank that gives the best service (for me, Wells Fargo Visa, who I've been using since 1989) and who put the least advertising in their bills (unlike those cheeseballs at Direct Merchant Bank with their damn Lillian Vernon catalog-like ads printed on flaps attached to the dang envelopes. No, I do not need a cheap plastic rain guage). I will occasionally make forays out to other banks to take advantage of special offers, but now that I've been a customer for so long and have a good history, Wells Fargo will often match deals. Never hurts to ask.
Those of you affected by the U.S. tax day who have not done your taxes, do them today. You don't want the horrible frenzy next Saturday and the driving in the line of cars to post your return. Just get it out of the way.
Everybody else, today's a good day to take a look at where your money is going. Are you going deeper into debt or paying it off? How's your tax withholding? If you had to pay out a huge amount at tax time and your income hasn't changed much, then maybe you should increase the withholding to spare yourself the scramble for the money. Got a huge return? How about lowering that withholding and setting up an automatic transfer of that cash difference in each check into a retirement account - you won't feel the difference throughout the year and your money will be earning you interest.
Some tips:
- Balance your checkbook & credit card statements every month. Not only will it keep you aware of any trends in the flow of your money, it will also mean that you can catch bank errors or identity theft while there's time to do something about it.
- Pay off your higher interest debt first. Make minimal payments on the rest and put as much as you can towards those big bad boys.
- My financial security rule of thumb: if you are carrying debt with over 6% interest, you should cut optional expenses to the point where you can make significant payments on it every month. Try for 10% of the current amount remaining this month if you can and then keep paying that amount. That will rid you of it within a year.
- Even when you're paying off debt, set up an automatic transfer of $25 into savings every payday. If your company has retirement contribution matching, take advantage of it.
This tip is probably only relevant to city-dwellers, but even those in the country should mull over just how much vehicle they really need.
How much do you spend on car payments, repairs, insurance, parking and tickets? The average is about $500 a month.
I took a look at that number and thought about the hassle of driving, parking and protecting a car in the city and opted out.
I could rent a car every weekend and still come out ahead, but what I've found is that I don't really need a car very often. I have a membership with City Carshare and use it between zero and 3 times a month usually. I take a cab an average of once or twice a week. Otherwise, I walk, take public transit and carpool with friends from work.
I save money, get exercise, avoid stress and dramatically reduce the impact I have on the environment.
What would your life be like if you lived in a vibrant neighborhood where you could walk to shops, restaurants & entertainment and if your commute gave you time to read, catch up on email or just stretch your legs?
For all that talk about cars helping us stay connected and giving us flexibility, I've found quite the opposite to be true: I'm less isolated and more free without a big metal box on wheels.
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