Personal Finance Ology

If your finances are tight at the end of the pay period, these tips to help you cut back on spending will help to solve that. Most people don’t even know where all their money goes. The little things add up and it is time to discover where you can cut back and find less costly ways of doing things.

Interest and Fees

Credit card debt is a big culprit. Credit cards are easier than cash; therefore, it is easier to spend more money. This results in a larger monthly payment and it piles up more interest if not paid off each month. A low-interest secured loan is a great way to get rid of credit card debt. Expert advice, such as that found at moneysupermarket.com can help with that.

A good place to cut back is ATM fees. ATMs usually involve fees from the vendor and from your bank. It can cost $6 or more to take cash from your account. Doing this several times each week can cost over $100 per month. Pull the cash directly from your bank’s ATM, or shop at stores that allow cash back from your debit card purchase for no fee.

Reducing Automobile Expenses

Keeping a vehicle’s tires inflated and the engine tuned saves gas. So does walking, car-pooling and public transportation, as does living near work. Car-pooling can save at least half the gas money and more with more participants.

Plan trips to get everything done at one time rather than going out again later. Making several stops in one outing saves gas money you would have spent in additional trips.

When purchasing a car, buy one that is two years old rather than a new one. New cars depreciate when you drive them off the lot, but a two-year-old car has depreciated already and can still be in good shape. This can save you several thousands of dollars.

If your vehicle is older and paid off, consider dropping full coverage insurance. Liability is all you need and it may not be worth full coverage if the vehicle is so old that it would not be worth repairing. Also, consider raising the deductibles. That can save you hundreds of dollars each year.

Reducing Utility Bills

A few adjustments can save you lots of dollars each month on utilities:

* In the summer, keep the thermometer at 68 or lower and 78 or lower in the winter

* Keep the AC filters clean

* Save hot water by taking short showers and reduce the temperature of the water heater

* Turn out the lights in vacant rooms

* Use microwave or toaster oven and only bake when the weather is cold

* Reduce phone bills by having only the minimum features

* Reduce cable bills by getting only the basic programming

* Unless it is crucial to your work, get a slower internet connection

Spending Less on Food

To save money on food, always use a shopping list rather than risking impulse buying. Use coupons when you can and stock up during sales. Instead of dining out, pack lunches or eat at home. Take coffee from home instead of stopping for it somewhere else. Avoid spending large sums on alcohol and that goes for tobacco too.

What You Get in Return

If you are doing so now, you will no longer be living from paycheck to paycheck. You will be able to pay down all of your debts faster and put money aside for your children’s college education. You can also start putting more money aside for retirement, so you will be more comfortable during that time.

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Credit cards often get a bad reputation, but they have many benefits that are often overlooked or ignored by the general public and financial experts. A credit card is a double-edged sword and it can be tempting to abuse one; but with a solid understanding of how a credit card works and how to use them to an advantage, a person can improve their credit and earn benefits or rewards.

One of the most important steps in responsibly using a credit card comes before a card is even applied for - making sure the right card is chosen. There are numerous credit card options available and should be considered carefully. There are two basic fees attached to any card that need to be compared: the annual percentage rate (APR) and is there a holder fee. The APR is the sum of the interest on the card. If the card does not list an APR, just multiply the monthly interest rate by 12. Holder fees are fees charged by the credit card to use the card and not all cards have one. Many rewards cards come with a yearly fee, but most cards from credit unions do not. Obviously, the lower the interest rate the better. Some credit cards offer introductory rates that will increase after the first six months or the first year, so be on the lookout for the fine print. There are credit card comparison websites that will present the information from several different cards in a clear format to help people avoid confusion and make the best choice for them.

One of the most positive things about using a credit card is the convenience. They can be used to pay bills, book travel reservations, make purchases where cash is unavailable or impracticable and be used in emergencies. Credit cards are also safer than cash in many ways - a lost or stolen card can be canceled immediately to prevent fraudulent purchases, while cash is gone for good. Many credit card companies also offer purchase protection which helps protect the card holder from purchases that are flawed, such as a brand new computer that breaks and the store will not accept fault. Purchasing with a credit card actually allows a person to legally dispute the purchase - something that cannot be done with cash or a debit card.

A credit card is also one of the best ways to build or credit scores. Credit scores determine the rates of interest a person will be charged on future purchases such as cars or homes, and are also often checked by landlords and even employers. Essentially, a credit score is the financial history of person and how well they pay their bills. Using a credit card sensibly allows the person to build a solid credit score and show that they can handle a line of credit and pay it back according to the cardholder agreement. One of the best ways to do this is to pay off the credit card every month, which will build credit while avoiding paying interest on the card. Rewards cards are doubly helpful, since they reward the cardholder with airline miles, hotel stays, cash back or other incentives. This can help save money over time as well as being convenient. These rewards cards may charge a yearly fee, requiring the cardholder to make sure the rewards are equal to or greater than the fee so they do not lose money.

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You know it is the festival season and Christmas time when you start feeling the strain in your pocket. Christmas is the season of joy, festivities and celebrations. Thus it is quite natural that during this time your expenditure will increase. Dinners, parties, food, and of course gifts not leaving out shopping for oneself, takes up most of your earnings during Christmas. It has been observed that most people end up in debt during this time. For those who have incurred credit card debts while happily shopping have credit card debt consolidation as a way out of your trouble.

However, as is said, prevention is better than cure; you should not bank upon credit card consolidation and go on spending beyond your budget. It is better that you practice frugal living during and before the festive season to save money so that you will be able to spend on things required and not get into debt in the process. Here are some methods you can use to save money during Christmas.

1. Save on Christmas cards – If you see that Christmas cards are not on your budget then you can refrain from spending on them. Instead of sending Christmas cards to your friends and family you can send them normal postcards. This will help you to save money as postcards require less postage as compared to Christmas cards. Also if you really want to send Christmas cards you can use some tricks. You can wait till the months of December to buy Christmas cards as you can get them on sale in many places. You can also be innovative and make Christmas cards on your own by cutting out cards from last year and sending them as postcards.

2. Save on decoration of gifts – Christmas is that time of the year when you need to give presents to friends and family. As much as buying presents takes up money, so does decorating these gifts. You can save money on the decoration by doing some work on your own. First of all you can use colorful magazines or the comic section of a newspaper to wrap your gifts instead of using costly wrapping paper as these would look attractive enough. You can save wrapping papers from gifts you received all the year round and fold small pieces of these to make gift tags. You can also cut up old Christmas cards to make gift tags.

3. Save on shopping – Christmas is the time for shopping and it is mere torture to refrain from doing so with all the wonderful things displayed around. However, if you shop wisely, you can avoid excess expenditure. First of all start collecting coupons and use them to buy things from different store. You should also compare price, especially while shopping for food stuffs. There are times when you get discount if you buy items in bulk. You can buy non perishable items in bulk to get a discount.

Thus you can see how the above methods can help you to save money during Christmas and avoid debt.

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Perhaps you’re young and new to finance and are just starting to look into credit cards and what they offer? Or maybe you’re a more seasoned spender but just want a refresher on exactly how credit cards work? However you’ve stumbled across this blog, it’s our aim to give you a brief, back-to-basics explanation of what a credit card is, how it works and the pros and cons of using one.

A credit card offers a flexible way to pay for goods and services, based on the user’s promise to pay for the transaction at the end of the month. Once issued with the card, the holder is given a credit limit, which the maximum amount of money that can be spend within one calendar month. People can choose to use credit cards for their spending due to the fact they offer better protection than cash, checks or bank account transfers. As part of the Consumer Credit Act legislation, you’re much more likely to get your money back if a supplier (for example, a travel firm) goes bust if you’ve used a credit card.

Of course, as with any financial product, there are pros and cons to consider – although in most cases, the key is to get the card with the features that most suit the user.

Some common pros include that they:

• Offer a flexible way to borrow money
• Can boast rewards, such as cash-back or air-miles
• Give you more protection than debit cards or cash
• Offer the chance to clear your outstanding balances on other cards using a balance transfer credit card

On the other hand, some of the cons are:

• If not used properly, they can wind up putting the user in debt. The fact that interest is incurred on this debt can be particularly problematic, as it can make it harder and harder to get back in the black as time moves on.
• Loyalty isn’t rewarded – the longer you stay with one card, the worst its deals and rates are likely to be. New customers on introductory deals usually get the best bonuses and 0% deals, so it’s always worth comparing credit cards once your initial period is over to make sure you’re getting the best deal.

Ultimately, the way you use a credit card will determine whether it’s a good move for your finances – use them wisely and they could end up saving you money each month, use them recklessly and you can expect the opposite effect in some cases.

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