5 Reasons You Will Always Be Broke

Being broke sucks. I’ve had extended periods in my life where I have been living on the edge of financial ruin, so I know how stressful and overwhelming it can be. When you’re broke and hating your job, things are much worse. It's hard to leave ANY job, regardless of how insanely miserable it is. This is the reason I still need to work at my loathsome job as a financial planner.


Over the last 9 years working in financial planning (and struggling with my own budget), I have seen some commonalities when it comes to people living beyond their means.

Struggling with a job you hate job is hard enough, but when you never seem to have enough money to pay the bills, let alone get ahead, things can be damn depressing. Financial stress is extremely difficult on you, your marriage, and your children. I am speaking from personal experience here.

Getting ahead financially is not especially difficult, even in the absence of a high paying job. It all comes down to your spending habits. It seems so simple; spend less than you earn. In reality though is much more difficult than that.

Our society has taught us how to be greedy, needy, over spenders. In fact, it's empowered us to be downright irresponsible. We want what we want and then we go buy it! If we don't have the money, we buy it anyway.

With this in mind, here are the top 5 reasons that you will always be broke:

Your Spouse Is Out Of Control.

I've seen this time and time again. A non-working wife decides that she needs to fill her empty day with spending their money on anything and everything that looks remotely interesting. Ok, this is a little extreme, but having a spouse that is out of touch with the family finances (and reality), is very difficult to manage. If both partners are not on the same page with the money, things can, and usually do, get very ugly.

You're In Denial.

Millions of people reside here. This is when you refuse to accept that you need to take a serious look at your financial picture. Doing so would mean you might actually have to stop spending and do without the things that your cool neighbor has. Who wants to do that?

You Are A Dreamer.

I worked for a multi-level marketing (MLM) company about 15 years ago and I was taught that if I followed their "proven system", I would become wealthy. Guess what, thousands of us bought into it. We spent like we didn't have a care in the world, hell, we we're going to be RICH in 5 years. As it turns out, it was not what we all thought it was and the company, along with our hopes of becoming a millionaire, went down the toilet.

Dreams are fine and long as long as the execution plan is injected with a sense of reality. Blindly following hype is a sure path to pain and agony.

You Have No Budget.

Budgeting is a word that strikes fear into our hearts and sends us running for the hills. Why? Because it's absolutely boring, limiting, humbling, and at times depressing. At work, I have no problem building Excel spreadsheets and PowerPoint Presentations all day - still, I hate doing a budget. Now imagine the regular person who has no financial background and doesn't even know what Microsoft Office is. Are they going to budget? I think not. Calculators and graph paper don't have a ton of appeal.

You Waste Too Much Money.

This is supremely obvious, but you would be surprised at how few people actually track their discretionary spending. In know, in your brain right now you're saying that the last point was 'budgeting'. I'm not talking about that here. I'm talking about tracking. People don't think about the coffee and bagel in the morning or the afternoon soda and candy bar they buy, but guess what? They will have spent around $1,700 in a year on this stuff. The $1,700 that could have taken your family on vacation.

Start tracking every dime you spend and you will see the difference! Once you've tracked, you can budget. Without tracking, you have no idea what needs to me eliminated or limited in the first place!

There are a number of other reasons why you could be broke, but these are the 5 most common I've seen. So what do we do?

How NOT To Be Broke

It is certainly possible to turn our finances around and actually start showing in the black, but it takes work, often A LOT of work.

Here are 5 ways to avoid being broke:

Talk With A Professional.

This IS NOT a solicitation to get your business or to endorse any service! Remember, I hate my job and don't really want to help you manage your money. However, I do recommend finding a Certified Financial Planner (CFP) that can help you implement a comprehensive financial plan. Let's face it, most people are clueless when it comes to money.

I have clients with $500k in cash that don't have any idea what a mutual fund is. It's not that they're stupid, they just never took the time to learn. On top of that, investing jargon is confusing and often intimidating.

Use Cash Only.

Say what!!! Too many people fall victim to thinking they can just use their credit card this one time and they will pay it off when the bill comes. That one purchase turns into two and then into $40,000 in Visa and MasterCard debt. If you think you're smarter than that and are going to use your debit card instead, I've got news for you - it doesn't work either. You will end up over spending and getting slammed with $35 overdrawn account fees (and those annoying letters telling you about it). Budget out your needs for the month and use cash only. Use the Envelope Method to control spending. It's cheesy, but it works.
Cut Your Expenses.

I'm not talking about canceling your power or living off of Ramen Noodles, I'm talking about things like limiting eating out, avoiding buying movie theater snacks (a $5 candy bar, really?), reducing your tv cable stations from 800 to 200, and generally avoiding buying anything on impulse. It can be done, it sucks big time, but it can be done.

Set Up Automatic Savings From Your Paycheck.

This is one of my favorites because we totally forget that we are saving. I, unfortunately, have never been a good saver. I am fantastic at spending, but not so great at putting money away. Once you figure out exactly how much money you have going out each month, take a portion of the excess and have it taken out of your check and put into some form of savings vehicle. Also, put it into something that is not readily liquid. You will be much more likely to take it out and piss it away if it's sitting in cash at your bank. Buy a CD with a early withdrawal penalty or a Mutual Fund which charges a fee if you sell it before a certain period. Perhaps that will deter spending. (note: Don't use those account types for emergency funds. You can't get penalized for needing money when the furnace breaks!)

Educate Yourself.

Many of the folks who struggle with their bills are not educated when it comes to finance. People tend to bury their heads in the sand when the topic comes up. You cannot afford to do that anymore. Go find a book on personal finance and spend some time reading and understanding it. You should at least know the basics. The more you understand about money, saving, investing, budgeting, etc., the more likely you are to take control of your finances. If you let it control you, you will always be broke.

The bottom line is that if you're living beyond your means, you MUST take control of the situation immediately. I have seen too many people lose everything because they just couldn't get it together.
Don't let that be you too.

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New Grads: Four Money Facts Worth Knowing

Graduation season’s just around the corner, and soon-to-be grads nationwide are plotting the next big move. Many of you coming out of college may soon start earning your first steady, full-time paycheck (and it will hopefully be bigger than those $8-an-hour jobs you used to work over summer vacation).

But with a new income come new expenses.

The transition from college to real life can be a culture shock…especially on finances. It’s easy to get spend happy with your new lease on life, but before you go out and buy the BMW you’ve been eying since your senior year in high school (and yes, no matter how meager your first full-time salary, there’s an auto dealer somewhere that’ll approve that loan) take these four post-grad money tips into consideration:

Mom and Pop Are the Best Landlords

Last week, I wrote all about how to get a cheaper rental rate. But if you want to be really savvy, avoid paying rent altogether. I know you don’t want to hear it, but why not try moving back in with Mom and Dad?

Your parents probably won’t charge rent (or little if any at all), will probably pay all the utilities, and they might even foot the grocery bill. What’s not to love? If they’re willing, and you think you can forgo your sanity for six months to a year (I’m kidding), it might be wise to consider moving in with Mom and Dad for a while after college.

Yes, after four years of independence, it’s hard! But with such low living expenses, you can start paying off those student loans or saving for an apartment of your own. I managed to survive living with my parents for a year after college and my finances are still thanking me today.

New Cars Aren’t a Good Investment

So many people think they need to buy a brand new car as soon as they graduate from college. True: some grads may need a new car since their college ride is about to kick the bucket, but many of us can get by on the same wheels for a while.

If your car is starting to cost you more in repairs than it’s worth, than it might be time to buy a new car.

That said, it’s not always the best idea to buy a brand new car. I made this choice right out of college and now wish I would have opted for a used car. I figured after four years of college and landing a full time job, I deserved to take out a $17,000 loan and buy a brand new car. But I’ve since realized that hot- off-the-lot cars aren’t the best investment…in fact they’re not really an investment at all.

Brand new cars depreciate rapidly…as soon as you drive them off the lot. And the value of a car continues in a downward spiral for the rest of its useful life. So, if you’re in desperate need of transportation after graduation, consider scouring the used car section of the want ads for good deals or check out the certified used cars that some dealerships offer.

Your Bank Account Won’t Keep Up With Your Social Life

In addition to your new work life and financial independence, your social life may blossom after graduation. Hanging out with friends and even going on dates may become the foundation of your evenings and weekends. It’ll be tempting to follow in friends’ footsteps and spend loads of cash on daily happy hours, dinners, or other events.

You can’t avoid a social life in an effort to save money, so you’ve got to find a happy medium. Work out a budget with your new income and decide how much you can spend — not what your friends can spend — on entertainment every month. Of course, allow yourself a bit more fun money than you did in college now that you’re a working guy or gal. Just figure out what maximum amount will allow you to save for other things like a vacation, a house, or retirement.

It’s All About BALANCE

I’ve mentioned before the importance of balance to everyone’s financial situation. A life change like college graduation upsets the balance of your budget. That’s okay; you’ll just need to sit down and figure out what works best for you now that you’re not eating dorm food or relying on your parents to deposit $100 into your bank account every other week.

Budgeting after college graduation can be tough and confusing. If you know what’ll work best for you instead of trying to keep up with everyone else, you’ll be setting the foundation for a prosperous and happy financial future.

Carrie is in her mid-twenties and currently studying for the CPA exam, so she can give us some desperately-needed tax advice. She blogs about her journey to financial independence at Carrie…On the Cheap from her home in Kansas City, Missouri. You can also find her on Twitter: @CarrieCheap.

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7 Ways Moms Can Boost Their Financial Security

This Mother’s Day, focus on your financial future -- and that of your children.
When it comes to the financial relationship between moms and their kids, it’s all about giving -- giving advice, giving a helping hand, giving to charity. For instance, in the Thrivent Financial/Kiplinger Survey of Family Finances, 17% of respondents cited their mother as being most influential in shaping their attitude toward charitable giving, second only to faith communities (22%). At 6%, dads were in fifth place.

That squares with other surveys showing that mothers are the most influential source when it comes to teaching money-management skills. A new poll by Charles Schwab found that nearly 60% of women have used the recent economic turmoil to talk to their children more about money management.

At the same time, women express more anxiety about money than men do. In the Thrivent Financial/Kiplinger survey, women were more likely than men to say that they were struggling financially (37% versus 29%) and less likely to describe their financial situation as stable (26% versus 33%). Likewise, in the latest Retirement Confidence Survey from the Employee Benefit Research Institute, men were more confident than women that they would be able to save enough to live comfortably in retirement.

So this Mother’s Day, maybe moms should take a break from giving and spend a few minutes taking stock of their own finances so that they can bolster their financial security and that of their children. Take these seven steps to start the ball rolling.

Talk things out. When asked in the Thrivent Financial/Kiplinger survey what they would change about their spouse or partner financially, 29% of women confessed that they’d like him to earn more. But 21% said they wished he would discuss money issues more frequently. Too shy to start what may be an awkward conversation? At least sit down together to write down your goals and see whether you’re on the same page. Or schedule a money date to discuss financial issues.

Start saving for retirement. Small amounts put aside when you're young grow into great gobs of cash when you're older -- and lay the foundation for financial security and independence. Take the case of two people -- one who saved $3,000 a year for ten years (or $30,000) in an individual retirement account (IRA) between the ages of 20 and 30 and then stopped, versus another who began saving at age 30 and faithfully contributed $3,000 each year for 36 years (or $108,000) until retirement at age 66. Assuming an 8% annual return, the person who started saving earlier would accumulate about $778,000, compared with roughly $602,000 for the individual who started later (see our How Much Will Your Savings Be Worth? calculator).

If you’re in the workplace, sign up for your employer's retirement plan, and aim to contribute at least enough to qualify for any employer match. You can't afford to turn down free money. In 2010, you can contribute up to $16,500 to a 401(k) or another employer-based retirement account, or $22,000 if you’ll be 50 or older by year-end. And never cash out your company plan if you switch jobs.

Set up your own retirement account if you’re not covered at work -- or even if you’re a stay-at-home mom. For women, one of the great features of an IRA is that you can have one even if you don’t have a paying job, as long as your husband is employed. In 2010, he can contribute up to $5,000 of his compensation ($6,000 if you’re 50 or older) to an account for you, in addition to squirreling away $5,000 (or $6,000) in his own IRA. You can open either a traditional IRA or, if you meet income requirements, a Roth IRA (see Why You Need a Roth IRA)

Not only does this give stay-at-home mothers their own retirement stash that they can invest and control, but it also doubles the tax breaks and savings power available to you as a couple.

Buy plenty of life insurance. Once you have children, life insurance becomes a family priority because your kids would suffer financially if you weren’t around to provide for them. Women who are stay-at-home mothers and who are almost completely dependent on their husbands’ income are particularly vulnerable. But even working moms could be at a serious financial disadvantage if they were left to bring up a family alone.

As a rough rule of thumb, figure that insurance coverage should equal eight to ten times your total household income, including any coverage you have through your employer. (For a more precise estimate, use our insurance calculator.)

Although women are most often the ones who benefit from life insurance, don’t underestimate your own importance and value -- financial and otherwise -- in supporting your family. If you have a paying job outside the home, add together both your income and your spouse’s to figure your total need for coverage, and divide it proportionately between individual policies on each spouse.

To keep things both simple and inexpensive, buy term life insurance. You can buy several hundred thousand dollars’ worth of coverage for just a few hundred dollars per year. To price policies -- especially if you have medical issues -- go to AccuQuote (www.accuquote.com) or call 800-442-9899 begin_of_the_skype_highlighting 800-442-9899 end_of_the_skype_highlighting. It’s one of those financial tasks that will take you only 15 minutes (see Recipes for Quick Financial Fixes).

Recalculate your life-insurance needs at various points in your life. You may need more coverage, for example, if you have another child. On the other hand, once your children finish college and are less dependent on your income, you may need less insurance -- or none at all.

Write a will. In the absence of a will (intestate, in legal-speak), your state’s one-size-fits-all estate plan kicks in, and it may not be tailored to your needs or your children’s. For example, as the surviving spouse, you may get only a fraction of your husband’s assets, with the rest going to your children. If you and your spouse both die, the state decides who will raise your kids.

With a will, you call all these shots. You can divide your property just about any way you like and design creative trusts for your children that distribute money at specified ages, for example, or tie assets to specific purposes, such as paying for college. Review your will after the birth of each child.

Choose a guardian. Think of a will as a way to protect your most precious assets -- your children -- if something should happen to you and your husband while the kids are still minors.

Parents are often tempted to rely on informal guardianship arrangements -- “My sister has agreed to take care of our children if we aren’t around.” But an informal arrangement doesn’t have the legal standing of a formal guardianship.

And if both you and your husband should die without having formally named a guardian, the courts will decide who’s going to rear your kids. It’s possible that a judge could choose the one relative you wouldn’t want. Worse, a family battle could ensue, and the cost of a court fight would come out of your estate -- that is, your kids’ pockets. You can avoid all of these hassles by naming a guardian in your will.

Get your fair share. Just as important as setting up a will is reviewing the beneficiary designations on insurance policies, pension and profit-sharing plans, IRAs, 401(k)s, and other retirement plans. These assets go to whomever you’ve named as beneficiaries; they’re not covered by your will.

If you fail to update beneficiaries, you could find yourself in the position of Caroline, who was unexpectedly widowed at the age of 32. Before Caroline and her husband met, he had named his mother as the beneficiary of his retirement account and had never bothered to update the papers after he married. When he died, there was nothing Caroline could do to get access to that money for herself and her young daughter -- except depend upon the kindness of her mother-in-law. That’s yet another reason to take financial matters into your own hands.

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Save Money Without Clipping Coupons

There are plenty of articles about how to slash your holiday spending. Sure, you can clip coupons, make retailers play "match the markdown price" and spend your Thanksgiving evening loitering in some dark, damp parking lot guarding your place in line so you can snag those Black Friday door buster deals.

Alternately, you could try a more cerebral cost-cutting strategy. Here are five ways to psych yourself into saving money.

1. Sweat the big stuff

No need to drive around all day to find the best price on wrapping paper and snowglobe stocking stuffers (unless you're really sick of rewashing the dishes just to avoid the in-laws). Concentrate your cost-cutting first on high-dollar purchases -- big-ticket items where saving 20% puts some real cash back in your pocket. Then tackle the smaller stuff as time, energy, and sanity allows.

2. Do some retail recon before you shop

You won't know whether you're getting a real bargain or a dud deal unless you have some pricing history for comparison. Many stores don't include an item's original price in their advertising circulars. If the original markup was helium-high, even 50% off is hardly a "sale." Keep a folder for sales circulars on items of interest, so you aren't suckered into buying something that seems like a good deal until you get it home.

3. Don't fall for the upsell

Skip the extended warranty, which can pad the price of the item by 10% to 30%. With just a few exceptions -- such as treadmills and big-screen HDTVs -- warranties are rarely worth the extra price, according to Consumer Reports. If you feel the need to purchase extra protection, pay no more than 15% of the product's price, and buy the manufacturer's warranty, not the store's version. Same goes for all those extra doodads that are displayed near the only item that's actually on your list. It's called an "up-sell" for a reason -- it drives up your tab and the store's profit margins.

4. Shop with blinders on

Avoid last-minute upgrades by picking the must-have features and target price range for more complex goods such as electronics and small appliances. Studies show that the more choices shoppers are given, the more likely they are to trade up to a fancier (an unnecessary) model. So weigh the merits of each product independently. Compare like with like -- and erase from your mind the alternatives that don't fit your criteria.

5. Go on an all-cash diet

Yes, credit cards are convenient -- they offer purchase protection, rewards, an easy way to track your spending (albeit after the damage is done), and they take up less wallet room. But they're also too convenient. Studies show that people spend more -- and more impulsively -- when no actual cash changes hands. Plastic makes us devalue what we spend because we don't experience the immediate loss of buying power that we do when we pay with cash. (Why do you think they use poker chips and not actual currency in Vegas?) If you tend to overspend, leaving your credit cards at home during the holidays can be a serious boon to your bottom line.

Source: The Motley Fool

How to Set Up an Emergency Fund

“Most financial advisers recommend building up emergency savings equivalent to three to six months’ worth of living expenses… however, some recommend a fund to cover eight months’ living expenses.”
Emergency Fund?

Respondents (n=122) in Wi$eUp’s latest online poll have…

42% – NO emergency fund

26% – less than 1 month’s savings on hand

15% – 1-2 months’ savings on hand

7% – 3-4 months’ savings on hand

3% – 5-6 months’ savings on hand

7% – more than 6 months’ savings on hand

(http://wiseupwomen.tamu.edu/03-resource-center/polls.php)

The Wi$eUp poll results highlighted above illustrates a challenging reality for many families – NO or very limited emergency savings. Polls and studies reported in the media frequently talk about people being “a paycheck away from financial disaster.” Is it possible to be proactive and establish an emergency fund even during tough economic times? The answer is, yes, if you are able to make it a financial priority. That may not be easy when money is tight, but it is important.

Just what is an emergency fund? Your emergency fund is a reserve of money intended to cover basic living expenses IF you experience a financial emergency, such as losing your job or other sources of income, or having an unanticipated, catastrophic expense (perhaps a medical expense or a major household expense).

Here’s how to start an emergency fund…

• First, do the math. What are your “bare bones” monthly living expenses? That is, what is the least amount of money you would need to cover the very basics and not fall behind with your monthly bills? This amount is
generally less than what you actually spend on a monthly basis.

• Once you know the monthly fi gure, multiply it by three, six, or eight – whatever is your goal for how many months’ worth of living expenses you want to build up.

• Next, determine how much you can save regularly on a monthly basis.

• Then decide how long it will take you to build up your emergency fund. Remember, you do not have to fully fund your emergency fund overnight!


Example:

• “Bare bones” monthly living expenses = $2,100
• Emergency fund goal (3x, 6x, or 8x) = 8x
• Total amount needed to fund it = $16,800 (8 x $2,100)
• What I (we) can aff ord each month = $300
• How long it will take to build it up = 56 months
($16,800 divided by $300)
• In the example, 56 months may seem like a long time, but remember the money can be accessed for emergencies if needed during this time. And you can always alter your goal.

• Designate a special savings account to hold your emergency fund. Select an account that will accrue interest or earnings and is liquid (accessible when needed without penalty), but don’t make it so easy that you will “raid” the fund every time you need a litt le “extra.”

• For more information on emergency funds and set-aside accounts, check out

Chapter 5 – Savings Basics at Wiseupwomen.org

How to Be Your Own Life Coach and Save Some Cash

Life coaches aren't just for celebrities nowadays: lots of regular Joes like you and me have worked with, or are thinking about hiring, a coach. It's true that a good, experienced life coach can help you turn your life around – whether you want to improve your health, switch career or even overcome phobias.


However, many of us (me included!) can't afford to pay for life coaching. Should we resign ourselves to sitting on the sidelines, watching friends and colleagues forge on ahead, with their life coaches cheering them on? We could throw our hands up in the air and say, "Well, I'd be that successful too, if I could afford to pay someone to help me."

We don't need to miss out. There are ways to get many of the benefits of life coaching ... even when you're broke.

Set Aside an Hour a Week

One of the reasons that people benefit from life coaching is because they've blocked out (and paid for!) time which will be used in serious thought about their goals, dreams, ambitions and problem areas. Typically, life coaches will work with a client for an hour each week.

There's absolutely nothing stopping you from blocking out an hour in your diary, every Sunday afternoon (or whatever time you pick). I know you're probably thinking "I'm too busy" or "But what if something comes up?" If you make a genuine commitment to yourself that you'll keep that hour-long appointment, the time will be there!

There are 168 hours in a week. Surely you can invest just one of those in your own personal development!

Try Some Self-Coaching Techniques

Although you're (probably!) not a trained coach, there are some techniques you can use to help yourself get clarity and perspective about your life, and find solutions to your problems. These are a few to try:

Timed Writing

Set a timer for five minutes. Write down a problem or issue in your life (eg. relationships). Now write, without stopping or editing, about things you could do to overcome that problem. Put down everything that comes into your head, even if it seems silly.

Question and Answer

This is another writing exercise. Ask yourself a question, then write the answer. Keep asking questions if you think something isn't fully explained. Imagine the questioner as a very close friend, or as the person you'd like to become.

If you're not sure what to ask yourself, try these questions:

What would make your life better right now?

Where are you going forwards in your life at the moment?

Where do you feel stuck?

Meditation

Lots of people have preconceptions about meditation. It doesn't have to be new-agey or spiritualist – meditation is just a way of quietening your mind. It's one of the best ways to reduce stress, and meditating at the start of your hour-long session can help you to get into a calm, focused frame of mind.

If you're anything like me, you'll find that Meditation Techniques for the Busy and Impatient is a must read!

Work Through a Blog Post, Book or Program

Many life coaches, motivational speakers and other big shots in the personal development field have written books or produced programs that can literally turn your life around. There's a but coming, though ... you have to actually take some action.

How often have you bought or borrowed books, read them, enjoyed them ... but failed to change anything about your life? I love reading, and I'm too prone to rushing through books when I need to take the time to actually implement their advice.

Pick up one of the books you've read, or get hold of a good one (How to be Rich and Happy by life coach Tim Brownson and best-selling author John P Strelecky is the next on my list to work through). Spend your hour a week – or more time if you can – working through slowly, chapter by chapter. Many books will offer exercises for you to complete at the end of each chapter: try not to skip or ignore these!

Be Kind to Yourself

Finally, one of the best ways to be your own life coach is to learn to be kind to yourself. Many of us have a very critical little voice in our heads that berates us for making mistakes, getting things wrong and sometimes falling short of the mark ... in short, being human!

When you're tempted to judge yourself harshly, stop and think how a life coach would respond. Perhaps they'd remind you of the progress you have made, and perhaps they'd help you to look at the reasons why things went wrong.

Source: Dumb Little Man

How to Make Living on One Income Work

There are many reasons couples may end up living on one income. Some want to be home to take care of their children while others may be dealing with layoff or medical issue. Whatever your situation, living on one income can be tight, but it certainly isn’t impossible. There are, however, some things that you need to think about and give some serious planning before you make the leap into single income territory.


Here are just a few:

• Stop eating out. While eating out is fun, it is also expensive if you do it on a regular basis. Cut back to once a month and you’ll save quite a bit by cooking at home instead.
• Work out a budget ahead of time. While everyone should have a budget, it can be even more important if finances are going to be tight. Sit down with your significant other and figure out what your expenses will be and where you can cut back.
• Have a cushion. If you can, go into a one income situation with a comfortable amount of savings to get you through should any unexpected situations arise. There will likely be a learning curve when it comes to living on one income and you’ll need a little padding to get you through those first few months and to prepare for all those incidental expenses that crop up.
• Buy new only when you need to. If you’re going to live on one income your days of buying everything new may be at an end. That doesn’t mean you can never have new things, but focus on getting them where it really matters rather than just purchasing everything new. Clothes, cars and furniture are available in abundance used, and are often of perfectly good quality.
• Research frugal solutions. There are loads of resources on the web that are designed to help you save money around the house. Spend a little time with your significant other searching through this information to find out if you can apply any of these solutions to your own home and save every penny you can.
• Determine what’s really important to you. If it really means a lot to you to stay at home with your kids—more than say, taking a vacation to Mexico—figure out a way to work your budget so that your priorities are highlighted and the things you can do without are deemphasized. You may have to forgo some pleasures but you’ll appreciate it in the long run.
• Do a trial run. If you know you’re going to be going down to only one income, start living on just that for a few months so that there is less of a shock when the time comes. You’ll be able to work out the kinks while you still have that other income as a backup.

Source: Financial Highway

Testimony of a One Car Couple

Up until a few months ago, if someone would have asked my wife or me to get rid of one of our cars, we would’ve just snickered and responded, “Impossible!” But then it happened… I wrecked my car.

A bit of background
From the time we met in 2003 up until seven months ago, my wife and I had always viewed two cars as a necessity. Then on Thursday, December 19th, 2008 I rear-ended a pickup truck at a busy intersection and wrecked my 2001 Jeep Cherokee.

At the time, my Jeep was worth about $5,000 and the initial quote to repair the damage was upwards of $9,000! In other words, it was totaled. I called a mechanic friend up and asked if he could come by and give it a once over to see if anyone he knew could do the body work for a reasonable amount of money. He obliged.

As it turns out, he did have a business associate who, despite being a wee bit unreliable, would be able to do the work for around $3,000 parts and labor. I jumped at the chance.

As the weeks rolled by and my Jeep was still “being fixed,” I grew increasingly impatient and my wife was far from happy. After all, she was the one responsible for carting me around until my Jeep was back in working condition.

The weeks turned into months, and now here we are in the middle of the summer and I still don’t have my Jeep back! We’ve certainly learned an important lesson about “getting a good deal,” but that’s a topic for another post.

Today I want to focus on how we successfully adapted to becoming a one car family. without killing each other, or hating the end result.

Changes we’ve made
My wife and I work in different towns, so she started dropping me off at a bus stop on her way to work. From there, I was able to catch a bus straight to my workplace. The stop was right off an expressway exit for her, so it took little more than five extra minutes each morning.

To save money, I purchased bus passes in 10 ride increments and wound up paying $1/ride. After work, I would catch a bus back to the dropoff/pickup spot and wait for my wife to arrive on her way home. We coordinated the pick up times via phone, and it worked out quite well.

Once summer came, and my wife began her three month vacation, things changed a little. Some days (fewer than I would like) I ride my bike about 10 miles to and from work. On days that I don’t ride, my wife gets up with me and drives me in.

I don’t want to spend too much more time talking about how we get around with just one car, so I’ll just say this: We do our best to coordinate our schedules, and we go out of our way to accommodate each other. A side benefit is that we get to spend more time together.

Read tips for making it work at The Five Cent Nickel

The Top 12 Most Frequently Used Pantry Items (and what to do with them)

Learning the kitchen ropes for the first time? Gathering all ingredients, following the recipe, and avoiding a grease fire is all you can handle. And you seem to find recipes that require obscure necessities like capers and kalamata olives. What you need, newbie cook, is to stock your pantry with the most common ingredients and work within those parameters.



1. Cooking Oils
If you plan on making anything stovetop, oil is essential. You'll want to use virgin olive oil as much as possible--since it's a healthier option--but many things don't taste right cooked in olive oil. Keep some vegetable and peanut oil on hand to broaden your cooking options.

2. White Flour and Sugar
From baking to soup thickening, you'll need to have a bag of flour handy. If you need to brown a chicken breast, dip the chicken in egg then in flour before cooking stovetop. Far too many recipes call for flour, so don't venture into a cookbook without it. Sugar is used in much more than just desserts--keep a pound sealed in the pantry for a dash of sweet.

3. Cream of Soups
The cooking soups I use most often are cream of mushroom, cream of celery, and cream of chicken. Add these to tuna casseroles, pot roasts, and anything that needs a creamy punch. Purchase the low sodium/low fat varieties to cut back on the calories.

4. Apples and Oranges
These seem to last forever. Go for the mixed fruit bag that includes red apples, green apples, and oranges and you'll have a great selection of fruit that won't turn mushy soon after purchasing.

5. Noodles
Keep a bag of egg noodles (for stroganoff or casseroles) and some basic wheat spirals. Paired with some cooked ground beef and Prego sauce, you'll whip up a cheap tasty meal for pennies. I sometimes cook more noodles than I need for a recipe and use leftovers to make cold pasta and mini-tuna casseroles later in the week.

6. Breadcrumbs
From toppings to meat filler, a simple box of breadcrumbs goes the distance. Steer clear of the Italian seasoned variety--put your own oregano, basil, garlic, and parsley in to save money.

7. Spices
The seasonings I need most often are sea salt, garlic powder (or minced garlic, but not garlic salt), onion powder, parsley, basil, rosemary, thyme, oregano, Lowry's seasoned salt, chili powder, and crushed red pepper. On the sweet shelf you can always find vanilla extract, almond extract, nutmeg, honey, and cinnamon. I also combine baking soda, baking powder, and cream of tartar in with the sweets since you'll add them to baked goods.

8. Oatmeal
If you can acquire a taste for oatmeal, your pocketbook will be in good shape. A bowl of oatmeal make with milk and brown sugar costs just around $.40. Make oatmeal chocolate chip cookies and add oatmeal as a filler for meat loaf when you're in a pinch.

9. Chicken and Beef Broth
Buy several cans of both--you'll use more than you think for flavor across the cooking spectrum. If you need to save money buy bullion and make your own with boiling water. It only takes an additional 5 minutes to heat the water and add your own flavoring.

10. Canned Meats and Vegetables
The best tasting ones are chunk light tuna in water, chicken, green beans, all other beans, corn, and tomatoes (mainly for cooking). A good rule of thumb is only buy canned if you can find it frozen. Most of the frozen veggies are healthier and tastier, but some can't be beat in the can.

11. Quick Mixes
I like to keep a couple of mixes--Bisquick Heart Healthy, Betty Crocker white cake, Fiber One muffins--for the just in case scenario. When company comes over last minute it's nice to have something ready that doesn't take a huge effort to assemble.

12. Cold Necessities
Always keep eggs, milk, butter (the real thing, no transfat), and a block of cheddar cheese to keep your cooking options open. Check expiration dates--sometimes the organic products have a much longer shelf life. You may pay a bit more for the product but it can perch in your fridge for more time.

Source: Go Frugal Blog - Ashley Grimaldo is obsessed with finding free stuff, whether she needs it or not. She loves playing with words, crunching ice, and is convinced she missed her calling as a professional ice skater. In between changing diapers and pureeing baby food, Ashley is launching an official campaign to make maternity pants an apparel industry standard.

Exclusive: Coupon Sherpa promises to make coupons reliable again

There's no shortage of coupon sites on the Internet, which makes standing out a difficult task ... and all that more impressive when a new competitor emerges.

WalletPop was able to score an exclusive interview with Luke Knowles, the founder of Coupon Sherpa and FreeShipping.org, to find out what he thinks will make Coupon Sherpa the number one source for coupons on the Internet.

WalletPop: Luke, thanks for your time. Can you tell me what makes Coupon Sherpa special?

Coupon Sherpa: We see some problems with online coupon websites and we wanted to create a coupon website so that it would help our iPhone app. So we thought, why don't we be the ultimate coupon website that's missing right now.

"The biggest problem with coupon websites is that a lot of times you go to coupon sites and the coupons just don't work. You know, they don't work or they're expired and the sites just leave them up there so there's not a whole lot of quality control.


"So with Coupon Sherpa we're really going after that word 'reliable.' We want to be 'the reliable coupon website,' that you can trust. We're aiming for a success rate of 99.9% with our coupon codes. I know human error does creep in but we're going to put the quality control measures in place to account for that.

At the same time, besides just being the reliable coupon website, we want to provide all different types of coupons. Most sites focus on online coupons, like coupons codes, because that's the only way they can make money. So we want to be online, printable, grocery and pretty soon we'll add local coupons. So we want to be the one resource you need for coupons.

WP: When you say local, do you mean my local coffee shop can get online and put a coupon up?

CS: Yes, so coupons for what's around you, those coupons that are available near you.

WP: It's great to hear that a coupon site is tackling the problem of reliability. Earlier this week WalletPop posted about the incredible number of shoppers who will continue a purchase even if their coupon is rejected. Something like 50% of consumers will actually continue and make an online purchase.

CS: "Right, yeah, you've probably experienced this a hundred times. Coupon sites will list all these coupons and they don't work. There's no quality control there. So we're working directly with the merchants to get coupons specifically for them. If they aren't directly from the merchant, we test them.

WP: You're working directly with merchants. Can I still submit a coupon I find?

CS: "You can share coupons with us. Now we're not just going to put it on, we'll put it on if we find that it works, but we're going to make sure it works before we put it up. Sometimes that will involve us doing a fake checkout or doing additional research on the Internet to try and find an expiration date.

WP: Tell me a little more about the social aspects of your site.

CS: "We're trying to do the social thing; you can tweet any coupon and you can vote coupons up or down 'Digg' style.

WP: What's your favorite coupon from Coupon Sherpa right now?

CS: "It'd have to be the $25 off of a $100 purchase at Sports Authority. I also saved something close to 40% off of my Banana Republic purchase at an outlet mall recently using the Coupon Sherpa iPhone App.

WP: Are there any other Coupon Sherpa features coming that you can tell us about?

CS: "We're going to be creating an 'Ask Coupon Sherpa' feature on our site where it ties the whole site into Twitter. People can ask questions to Coupon Sherpa related to saving money or coupons or deals. He'll answer them real time on Twitter as well as answer some in more detail on the 'Ask Coupon Sherpa' section of the website."

WP: Thanks for taking the time to tell us about Coupon Sherpa, we appreciate your efforts to make coupons easier and more reliable.

For being a relatively new coupon website, Coupon Sherpa boasts an impressive number of major retailer coupons, and the current selection backs up the quality of quantity approach that Knowles claims will set Coupon Sherpa apart from its competitors. Right now there are good coupons for Target, Kohls, Finishline and many others to use online and plenty more that you can print out and use in store.

It's up against some hefty competition, but Coupon Sherpa is off to a good start -- it already saved me 20% on a pair of dress shoes!

Source: Wallet Pop

How To Pay Rent By Volunteering For Science Experiments

This is a guest post from Hank.



I recently earned $40 the easy way. I was just sitting in my doctor's office minding my own business when a nurse from the office next door stopped by to ask for volunteers. It seems that they were doing a medical study on the adverse effects of vaccines. I was given the money for about thirty minutes of my time, a brief medical questionnaire, and five small vials of blood. Not bad for a half hours worth of "work".

This wasn't the first time that I had been exposed to earning money for the benefit of science. I grew up in a medium size southern town that had a fairly large teaching hospital. Not only were there lots of medical students running around the hospital's hallways, but there were also a lot of medical experiments being conducted too.

I remember hearing about one experiment that the medical college was conducting while I was a senior in high school. For $5,000, the research doctors at the school would cut off one of your big toes, sew it back on, and then measure how the loss of the toe affected your balance. All my friends and I thought that it would be so cool to have all of that money. It was a lot for a kid in high school, but none of us ever were ever gutsy enough to try for it.

Earning Money From Science:

So, of course, this recent medical study got me thinking. Can someone earn enough money from science to pay your rent? I think you can. Here are a few examples of how you can make money by giving back to help science.

Sell Plasma. Most people don't know about selling plasma. Blood plasma is prepared by spinning a tube of fresh blood in a centrifuge until the blood cells fall to the bottom of the test tube. It is just like giving blood. While you can make approximately $240 a month if you donate twice a week, it is nothing that you can get rich off of. There are also a few negative connotations associated with selling plasma, although I personally know of several respectable people from the "good side of the tracks" who sell plasma to supplement their income. Let's face it, teachers do not get paid enough (but, that's a subject for another time.)

Sell Eggs. Many women can make around $5,000 by selling their eggs to companies who resell them to women who cannot give birth. The only problem with this plan is that it takes a lot of time and patience, and there is a small surgical procedure that the woman has to go through in the end to retrieve the eggs. I knew of one lady who was trying to earn money this way, and it took months of paperwork and several doctors visits before they would even consider giving her a dime. This isn't the option to pursue if you need money in a hurry (or if you're a guy!), but it may be well worth your effort if you are patient.

Sell Sperm. Every year, approximately 75,000 American children are born thanks to a sperm donor. To qualify as a sperm donor, many sperm banks require that you be between the ages of 18 and 38, have a clean medical history, have high quality semen samples, and be able to pass a rigorous psychological and genetic screening. You must also be able to provide a medical history of you and your relatives going back several generations. The payoff can be handsome though at about $100 per visit and several visits needed each month.

Medical Experiments. Like I mentioned above, you can get paid up to $300 per day or more to participate in clinical or medical trials that test new or improved ways to treat an illness or condition. Or, you can participate in research studying a particular phenomenon or a new search for a disease's cure. In my case, I was paid to be in the control group of the study because I had never had a reaction to any vaccines. The possibilities of finding the study that is right for you should not be too hard since the possibilities are almost endless. You can get paid to participate in studies for things such as sleep deprivation, time isolation, alcohol, caffeine, nicotine studies, exercise, diet and nutrition studies, psychology studies, the list goes on & on.

Others. There are several other ways to make money in the medical arena that could be explored as well. You can consider becoming a surrogate mother which can pay tens of thousands of dollars. Or, you can sell your hair for few dollars per inch. There are many ways you can get paid for helping science. The hard part may just be finding them.

While these medical procedures listed above are not all inclusive, they can give you an idea of the possibilities that are out there. No one medical experiment, testing, or donating can solve all of your financial needs, but you can earn a decent supplemental income from some of these programs. Maybe you do not want to deliver pizzas in order to help you get out of debt faster. Maybe donating plasma is a better answer for you personally.

Source: Budgets Are Sexy

12 Clever Substitutions That Save Money (Nearly) Effortlessly

One of my favorite ways to trim money from my spending is to find simple little substitutes for my regular expenses. If I can trim a few bucks from the cost of household supplies, routine purchases, and other things like that, over the long run, that can add up to a lot of money with virtually no change in my life. Here are twelve of my favorites (not including my “infamous” homemade laundry detergent).

Laundry Softener -> Vinegar
Instead of buying expensive laundry detergent, just use half a cup of white vinegar to the “softener” cup in your washing machine. It accomplishes the same effect as softener – it makes your clothes really soft – plus it breaks down the laundry detergent, making the clothes much better for people with sensitive skin or allergies. What about the smell? Once the clothes are dried, you smell nothing at all. You can buy four gallons of vinegar for $6, meaning the cost per load is about $0.05, while a load’s worth of Downy costs about $0.15. You save a dime per load and your clothes are less chemical laden.

Ziplocs -> Reusable Containers
Ziplocs – especially the small ones – usually wind up in the trash after one use. On the other hand, a reusable container can last for years. Since a typical Ziploc costs about $0.10 and you can get a reusable Rubbermaid container for about $1.00, you break even on the container after about twelve uses or so (the cost of washing the container in the dishwasher is estimated there) and everything thereafter is pure savings.

Dishwashing Detergent -> Simple Homebrew
Instead of using liquid or powder dishwashing detergent (and paying a stiff premium for it), just take an old milk jug, put two teaspoons of liquid dish detergent and four teaspoons of baking powder in it, then slowly fill the jug with warm water, sloshing it while you do it (even better, just slowly add the soap as you’re adding the water). Then put that jug under the sink. Each time you do a load, fill up the cup with the homebrew. It works like a charm. The jug will provide enough for eight to ten loads of dishes for about a penny each, compared to about thirteen cents per load for ordinary detergent.

Knife Set -> Chef’s Knife
You’re just getting started in the kitchen and you think it’s time to get yourself a big ol’ knife set. Don’t. Unless you’re doing crazy things in the kitchen, all day every day, you really only need one knife – a chef’s knife. Head down to your local retailer and check them out. One good chef’s knife will make kitchen work easier than an entire block’s worth of other knives. It’s really all you need – I can’t even remember the last time I used a knife besides that one. Just learn how to properly hone it and sharpen it (both are easy – check out this YouTube video).

Windex -> Vinegar
Seriously. Just use vinegar instead of Windex when you clean your windows. It cleans off almost anything on a window and doesn’t streak and, more importantly, doesn’t leave a film behind as Windex often does. Just put some vinegar in a spray bottle – maybe that Windex one that you didn’t buy a replacement for – and just wash windows as normal. You’ll be quite happy with the results – and you’ll save about a penny per squirt.

Paper Towels -> Reusable Cotton Cloths
Cotton cloths work better, absorb more, and you can get a five pound (!) box for about the same price as a jumbo pack of paper towels. But what about the WASHING? It’s easy – just keep a ton of them in a drawer in the kitchen and use them for spills and filtering and other purposes until they’re dirty, then just toss them into any load of socks or underwear or towels. Even a big handful take up barely any room at all and before you know it, you’ve refilled your supply. Better yet, you’re not buying any more paper towels and you’re reducing your garbage.

Drain Cleaner -> Baking Soda and Vinegar
Remember those nifty volcanoes that kids tend to make for science fair projects in grade school? The basic mixture that made them bubble up was baking soda and vinegar – it expands nicely and pushes itself into everything. Perfect for clearing a clogged drain, no? Just put in a quarter cup of baking soda, chase it with half a cup of vinegar, then cover the drain and wait fifteen minutes. Once that’s done, chase it with a gallon or so of boiling water. This will clean almost any drain and save you from blowing unnecessary amounts of money on a big bottle of Drano. This also works as a toilet bowl cleaner – it’ll foam up like crazy at first, but after fifteen minutes, you’ll be able to scrub your toilet with a brush with ease.

Television -> Old Computer
If you need a new television somewhere, why not just use an old computer instead? A computer that’s five years old with a ‘net connection can easily be a substitute for a television. You can watch tons of programs full screen on Hulu and many channels offer a full screen stream, too, plus it’s simple to watch DVDs on a computer as well. Even better, you can stow the box somewhere out of the way (in a cabinet, perhaps) and just leave the monitor somewhere easy to access. This can be a great solution in a kitchen, where you can watch television on it or use it to call up YouTube videos to tutor you through a meal prep – plus you don’t have the cost of buying anything to get it working.

Oven Cleaner -> Ammonia
If you cook at home, you’ll eventually have to clean your oven – and it can be a nasty job. There are lots of products out there that claim to be able to make this process easy, but the easiest way I’ve found is far cheaper – and far easier. Just put a cup of ammonia in a glass bowl in the evening, put that bowl in your oven, and close the door. Let it sit overnight. The next morning, get rid of the ammonia and you’ll find scrubbing down the inside of your oven is suddenly quite easy. The burnt-on drippings from spilled dishes will come right up with no problems. Plus, a jug of ammonia is far cheaper than some spray-on solution.

Keep reading more tips here, on The Simple Dollar

In a down economy, what are the wealthy doing with their money?

Experts who work with the wealthy and observe their spending habits say rich folks are sitting on their cash. Just like the rest of us, they're worried about the future. Suddenly uncomfortable with the nation's financial volatility, the wealthy are revisiting their investment and savings strategies, says Chris Geczy, director of the Wharton Wealth Management Initiative at the Wharton School in Philadelphia.
"They're consuming less and saving more," Geczy says.

Like so many other Americans, "the mass affluent were overextended" in real estate and investments gone sour, he says. Now, they are more likely to invest in fixed-income vehicles.

"They're still scared of risk," he says.

Investment professional Nancy Rooney has noticed this fear, too.

"There is a subset who -- since September and October -- are frozen and so nervous," says Rooney, managing director and head of the Northeast investment business for private wealth management at J.P. Morgan in New York, which says it serves 51 percent of the Forbes 400 list of U.S. billionaires.

"They're looking at their principal left and realize, 'If I lose any more, I'll jeopardize my quality of life,'" she says.

Here are a few ways the wealthy are saving in the current recession -- and lessons average investors can learn from the rich.

Put safety first
Today, many wealthy people are thinking about safety over yield, Geczy says. The wealthy are scouring the Internet, looking for the best rates on CDs, money market accounts and other FDIC-insured options, he says.

"They're still hugging close to fixed income, Treasury bills and fixed assets," he says.

The FDIC only insures up to $250,000, so multiple savings accounts at solid institutions are key to liquid returns, says Tim Grizzle, a certified public accountant and CEO of Georgia Logic, an Atlanta-based financial planning firm for high net-worth individuals, who also wrote "Creating Wealth in a Turbulent Economy."

"Those who are cash-heavy spread the wealth over multiple banks to ensure FDIC insurance," Grizzle says.

Rooney says that when shopping around for a bank, it's important to look into an institution's overall financial health.

"Your biggest decision this year is where you're going to put your money," Rooney says.

As long as you choose a bank that's FDIC-insured, there will be no risk to the first $250,000 you deposit. However, if a bank fails and is taken over by the FDIC, your great rate could disappear, as there is no guarantee an acquiring bank will honor your previous institution's rate.

Banks that offer a much higher-than-average rate of return may be cash-strapped and at risk of failing, Geczy says.

On the other hand, competitive rates aren't necessarily a sign of trouble. For example, some online-only banks can offer great rates because they don't have the expenses of a brick-and-mortar bank, including everything from rent to electricity bills and janitorial services.

It takes a savvy researcher to discern the difference between a bank that's cash-starved and one that's an efficient operator. If a bank offers an unusually high return, ask questions, Rooney says.

"I wonder why it's above market -- why do they need deposits so desperately?" she says.


Protect against inflation
Like everyone else, the wealthy have to worry about rising prices eating into their savings. For now, inflation remains subdued; in fact, some experts are more worried about the prospect of falling prices, or "deflation."
Banks are paying out very low rates on savings instruments today. However, the return may be better than it appears, thanks to today's low inflation rate. For example, if you find a savings account with 1 percent interest in an environment where inflation runs minus 1 percent, you've netted a 2 percent rate of return.

Keep reading on bankrate.com

66 Ways to Save Money

For most kinds of purchases, you can get valuable advice and comparisons on the Internet. Ask a librarian or friends which Internet sites they think are helpful, or you can use a search engine like Google or Yahoo. Be aware that information you find is often biased. At many websites, the only products or sellers listed are ones that pay to advertise. Before buying anything on the Internet, check several websites and make sure you deal with reputable dealers.

Transportation
Airline Fares
Compare low-cost carriers with major carriers that fly to your destination. Remember, the best fares may not be out of the airport closest to you.
You may save by including a Saturday evening stay-over or by purchasing the ticket at least 14 days in advance. Ask which days of the week and times of the day have the lowest fare.

Even if you are using a travel agent, check airline and Internet travel sites, and look for special deals. If you call, always ask for the lowest fare to your destination.

Car Rental
Since car rental rates can vary greatly, compare total price (including taxes and surcharge) and take advantage of any special offers and membership discounts.
Rental car companies offer various insurance and waiver options. Check with your automobile insurance agent and credit card company in advance to avoid duplicating any coverage you may already have.

New Cars
You can save thousands of dollars over the lifetime of a car by selecting a model that combines a low purchase price with low depreciation, financing, insurance, gasoline, maintenance, and repair costs. Ask your local librarian for new car guides that contain this information.

Having selected a model and options you are interested in, you can save hundreds of dollars by comparison shopping. Get price quotes from several dealers (over the phone or Internet) and let each know you are contacting the others.
Remember there is no “cooling off” period on new car sales. Once you have signed a contract, you are obligated to buy the car.

Used Cars
Before buying any used car:
Compare the seller’s asking price with the average retail price in a “bluebook” or other guide to car prices which can be found at many libraries, banks, and credit unions.

Have a mechanic you trust check the car, especially if the car is sold “as is.”
Consider purchasing a used car from an individual you know and trust. They are more likely than other sellers to charge a lower price and point out any problems with the car.

Auto Leasing
Don’t decide to lease a car just because the payments are lower than on a traditional auto loan. The leasing payments are lower because you don’t actually own the car.

Leasing a car is very complicated. When shopping, consider the price of the car (known as the capitalized cost), your trade-in allowance, any down payment, monthly payments, various fees (excess mileage, excess “wear and tear,” end-oflease), and the cost of buying the car at the end of the lease. A valuable source of information about auto leasing can be found in Keys to Vehicle Leasing: A Consumer Guide, which is published by the Federal Reserve Board and Federal Trade Commission.

Gasoline
You can save hundreds of dollars a year by comparing prices at different stations, pumping gas yourself, and using the lowest-octane called for in your owner’s manual.
You can save up to $100 a year on gas by keeping your engine tuned and your tires inflated to their proper pressure.

Car Repairs
Consumers lose billions of dollars each year on unneeded or poorly done car repairs. The most important step that you can take to save money on these repairs is to find a skilled, honest mechanic. Before you need repairs, look for a mechanic who:
is certified and well established; has done good work for someone you know; and
communicates well about repair options and costs

Insurance

Auto Insurance
You can save several hundred dollars a year by purchasing auto insurance from a licensed, lowprice insurer. Call your state insurance department for a publication showing typical prices charged by different companies. Then call at least four of the lowest-priced, licensed insurers to learn what they would charge you for the same coverage.

Talk to your agent or insurer about raising your deductibles on collision and comprehensive coverage to at least $500 or, if you have an old car, dropping this coverage altogether. This can save you hundreds of dollars on insurance premiums.
Make certain that your new policy is in effect before dropping your old one.
Homeowner/Renter Insurance

You can save several hundred dollars a year on homeowner insurance and up to $50 a year on renter insurance by purchasing insurance from a low-price, licensed insurer. Ask your state insurance department for a publication showing typical prices charged by different licensed companies. Then call at least four of the lowest priced insurers to learn what they would charge you. If such a publication is not available, it is even more important to call at least four insurers for price quotes.

Make certain you purchase enough coverage to replace the house and its contents. “Replacement” on the house means rebuilding to its current condition.
Make certain your new policy is in effect before dropping your old one.
Life Insurance

If you want insurance protection only, and not a savings and investment product, buy a term life insurance policy.

If you want to buy a whole life, universal life, or other cash value policy, plan to hold it for at least 15 years. Canceling these policies after only a few years can more than double your life insurance costs.

Check the National Association of Insurance Commissioners website or your local library for information on the financial soundness of insurance companies.
Banking/Credit

Checking Accounts and Debit Cards
You can save more than $100 a year in fees by selecting a free checking account or one with no minimum balance requirement. Request a complete list of fees that are charged on these accounts, including ATM and debit card fees.
See if you can get free or lower cost checking through direct deposit or agreeing to ATM only use. Be aware of charges for using an ATM not associated with your financial institution.

Click here to keep reading

Source FTC