Want To Save Money? Here Are 6 Tips To Make Your Wallet A Little Thicker!

By David Chang

 

Your money problems can involve significant debt or minor cash flow issues. No matter your financial situation there is one thing that all of us would like to do, save a little money each month.
Especially since expenses can add up fast and take a toll on your finances. These cost saving tips are significant enough that they can help some prevent bankruptcy. If you have a little extra money each month you can spend it on paying down other debts faster.
Use these tips to help grow your bank account:
1. Change the way you watch TV - Gone are the days where a family rushes into the TV room to sit on the couch together and watch a favorite program. Today's busy families need more flexibility than that. More families than ever before are watching programs after the original air date. Your favorite programs can also be watched on the internet after the first air date. This means that if you're patient you can see all of your programs without paying for cable. Quitting cable and relying on the internet to catch your favorite programs can offer monthly savings as high as $100.
2. Drop a phone line - Does anyone call your home phone other than telemarketers? With the increase of cell phones it is unlikely that you need to have a house phone any longer. Paying monthly for two phone lines is just silly. Decide which phone line you can't live without, cell phone or landline. Cancel the home phone and you can save $40 each month and more if you have to pay for your long distance calls.
3. Live with your extended family - Making the change to share a home with your parents, in-laws, grandparents, or other relatives can help save big money each month. The decision to co-habitate by itself can prevent bankruptcy. Not to mention that living with family is fun and you can share all housing costs including:

• Rent/mortgage
• Utilities
• Cars
• Cable and phone

You will also be able to share household chores and maintenance projects and costs with your family.
4. Update your home loan - Interests rates are still very low. If you plan to stay in your home for a while longer and you have some equity in your home despite the real estate crash, then it's time to refinance. Depending on your current interest rate, refinancing can lower your monthly mortgage rate significantly.
5. Change the oil in your car less often - Guidelines are given about car maintenance. It is important to take good care of your vehicle but it's recently been found that you can go a little farther between oil changes. If your car is relatively new and in good condition, then you should be able to go 7,000 miles between oil changes.
6. Make a list before you shop - A great way to cut down on unnecessary spending is to plan our your shopping trips. Making a detailed list and taking inventory of what you need before you shop can save you big money and prevent food waste.
These cost cutting tips can help anyone save a little extra money each month. They can also help you prevent bankruptcy by lowering your monthly expenditures. Take this advice and start saving today!

The Chicago bankruptcy lawyers of Chang & Carlin specialize in chapter 7 & chapter 13 bankruptcy, real estate and foreclosure law services as well as tax and IRS legal issues. Learn more about these services and request a free consultation today: http://www.changandcarlin.com/

How to protect your savings from inflation

www.telegraph.co.uk
Inflation can reduce the spending power of your money but there are ways to reduce its most corrosive effects.

Inflation: How to protect your savings Photo: .Keith Leighton / Alamy

By Rosie Murray-West

3:34PM BST 15 Aug 2011

34 Comments

With inflation running far ahead of the Bank of England target, most savers are finding that their money is worth less by the day. But there are steps that savers can take to avoid what has been described as a "slow motion bank robbery" - with a number of new products launched that promise to "inflation proof" your savings and deliver a real return. Below we look at the most popular options

1. Inflation-linked bonds and accounts

With inflation a concern for many savers, some banks and building societies have launched inflation-linked products for those concerned about their cash losing value. However, it can be difficult to work out which ones are best for you, and some tie your money up for a long time.

The current bonds from National Savings & Investments have the advantage of not requiring you to pay tax on your interest, and offer 0.5pc above the RPI when held for five years. However, you can take your money out earlier and still get a return as long as you hold them for at least a year. You can put in £15,000 per issue. The bonds are available from www.nsandi.com.

Rival products include the Post Office's bond which pays 1.5pc over RPI over five years or 0.5pc over three years, but is subject to tax, and a new bond launched by the Cambridge Building Society which pays 1pc over RPI fixed for five years.

2. ISAs

For those who pay tax on their interest it is almost impossible to outrun inflation. Based on June's inflation figures, a basic rate taxpayer would require an account paying 5.63pc to beat the lower level of inflation (CPI), while a 40pc taxpayer would require an account paying 7.5pc to beat the same measure.

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This makes it more important than ever to use your tax-free cash ISA allowance of £5,340 a year. The best rates are available to those who are willing to put their money away for five years, and include Northern Rock's fixed-rate Isa paying 4.26pc over five years, just below June's CPI figure. With inflation predicted to fall back from here in the coming months, this product should help your cash to maintain its value.

3. Mortgage overpayments

Once you have exhausted your tax-free savings options, there is one more option that can help you to outrun inflation, if you have a home loan. This is to make overpayments on your mortgage. By offsetting your savings against your debt, you effectively end up with an interest-free savings rate at whatever rate you are paying on your mortgage.
For many people this will be better than a top-paying savings account. However, you need to make sure that you do not fall foul of your lender's rules on overpayments. Some mortgages are fully flexible, allowing you to make overpayments and get them back freely, while others do not allow you to take overpayments back, or will charge you if you make too many.
If you are thinking about remortgaging and like this option you could consider an offset mortgage with a bank like First Direct. The bank is currently offering a two year fixed rate of 2.99pc for those looking for a 65pc mortgage, which has flexible features.

4. Top paying savings account

If you want total security for your savings and have exhausted all other options and used your tax-free allowance, the best you can do is to find the best paying home for your money. You will get more interest if you tie up your money for longer, but the tax, if you have to pay it, is likely to take the total return way below inflation. Top accounts include a five year bond at 5pc from KRBS, and a similar product from Melton Mowbray building society paying 4.75pc.

5. Low-risk investments

£If you are happy to take on more risk, a portfolio of dividend-paying shares can help you to outrun inflation. This is only an option for those with a diversified portfolio and who can withstand (both emotionally and financially) the ups and downs of stock markets. The good news is that after a dreadful couple of years, the number of companies increasing or reinstating dividends this year outnumbers those that cut or cancelled payouts in 2009.
But investors might prefer to buy funds than invest in a spread of dividend–paying companies, which tend to be equity-income funds. These funds have had a tougher time than many over the past three years, but are starting to come into their own as dividends make a comeback. Equity income funds include Threadneedle UK equity Income, Rathbone Income and Newton Global Higher Income.