Every quarter ING Direct sends out a quarterly newsletter with money saving tips and and additional tips on money management. Here are a few of the tips from this quarter’s newsletter, with a few additional comments and links to help you better manage your money. Oh, and if you aren’t using a high yield savings account for your savings and emergency fund, I highly recommend it!
Money management tips and tips to save money
Keep a record of where your money goes. Look at your spending over the past three months. Leave nothing out. And then, cut expenses where you can. Creating a budget is a good place to start. You can also use a free online money management tool like Quicken Online to help manage your money. Here is a Quicken Online review for more information.
Change your energy consumption habits. Turn your thermostat down five degrees and save 10% in fuel costs. While you’re at it, consider installing a programmable thermostat to help you save money. The $30 investment should easily pay for itself in a few months. Here are some more tips on saving money on heating costs and saving money on air conditioning costs.
Watch what you spend for food. I bring my lunch to work most days, which saves me a lot of money in the long run. The food also tastes better and is better for me. Win-win-win situation!
Establish an emergency savings fund. ING Direct recommends saving enough money to cover three to six months of expenses. I think this is an excellent idea. Your best bet is to keep your savings in a high yield savings account so you can earn extra money on your savings. While you’re at it – make sure your savings and checking accounts are FDIC-insured.
Check your tax return. If you didn’t qualify for the 2008 financial stimulus and your income has decreased, you may be eligible for a “recovery rebate credit” when you file your 2008 tax return.
Increase your retirement savings. Increase your IRA or 401(k) contributions if retirement is still several years out (you should be putting away 10% to 15% of your income). Retirement contribution limits have increased for 2009 so increase your contributions if you can afford to.
Improve your credit score. Your credit score is extremely important and can affect many aspects of your financial life. Improving your credit score can help you save money in other areas as well, including insurance and loans.
Hopefully these tips can help you save money and improve your money management skills!
Comments
These are all great tips on how to manage your money. In this economy, one needs to do everything he can to improve his situation. Save your money for a rainy day because it’s not going to get easier over the next few months.
I think most people would agree that saving money is something “easier said than done”. Personally, I believe it’s a mind-set that needs to be developed by creating good money-saving habits.
Here are some things I’ve done to help change my spending habits:
- Cooking more at home ? Eating out is very expensive especially if you do it a couple times a week
- Shopping online ? You can find better deals than in the store and you save on gas
- Paying the full balance on credit cards each month ? Interest charge is like giving away free money
- Don’t forget to pay yourself ? Set up an online savings account (they pay higher interest than a normal savings account)
- Setting a budget and goals ? It’s good to have your goals written down so you see them everyday and don’t lose focus on your ultimate objectives
Again, saving money requires a lot of patience and hard work. However, you’ll thank yourself later on in life. Good luck everyone!! =)